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does-panasonics-integrated-in-house-model-hold-the-key-to-industrial-transition
© Panasonic / The Cardiff plant demonstrates the potential of integrating different renewable energy sources
does-panasonics-integrated-in-house-model-hold-the-key-to-industrial-transition
© Panasonic / The Cardiff plant demonstrates the potential of integrating different renewable energy sources

Does Panasonic’s integrated in-house model hold the key to industrial transition?

There hasn’t been a great deal of Christmas cheer surrounding hydrogen, nor for that matter, most of 2024. Regulatory, cost and offtake pressures have combined to give the impression that it’s been a lost year.

While these broader issues remain stubbornly difficult to overcome, the perception is inaccurate as there has been tangible progress – a fact that was underlined only last week by Panasonic opening its HX Renewble Energy Demonstration facility in Cardiff, south Wales.

Panasonic was faced with issues common to many manufacturers, principally how best to turn a 50-year-old legacy plant into a modern, renewables-focused operation.

It considered the different technologies and didn’t plump for one, but three, by combining hydrogen fuel cells powered by green hydrogen, solar PV and battery storage, all steered by Panasonic’s proprietary Energy Management System (EMS).

Panasonic may enjoy some particular attributes, drawing on its Asian and international knowledge and history, not to mention its electronics expertise. But such joined-up thinking could be a key learning for other companies in the transition.

The 21 5KW fuel cells have 95% energy efficiency when converting green hydrogen into electricity and heat energy, which is integrated with 372kW of solar power and 1MWh capacity battery storage. By being able to produce its energy onsite, the factory will benefit from more reliable electricity provision. This decentralised approach to energy demand management increases the company’s energy resilience in a volatile market.

By integrating an energy management system and storage batteries, the factory will be able to scale its energy needs when ramping up productions, for example. Batteries store PV energy when the factory isn’t in operation, such as on weekends.

At the same time, the factory has been able to introduce a number of electricity saving measures such as motion detected lighting, push taps and small cisterns.

Heat generated by the Panasonic hydrogen fuel cells as a by-product of the electricity production will be used to heat spaces and domestic hot water, further improving overall energy efficiency.

By replacing the facility’s gas boiler with this renewable energy source – a combination of a heat exchanger and Panasonic’s heat pump technology – fossil fuels will cease to be used, representing a significant and positive environmental impact.

The electronics giant is investing approximately €130m to develop the core Panasonic HX technology in Japan, and launch the Cardiff pilot, plus another location in Europe in 2025.

The long-term goal of this investment is to demonstrate that 100% of the electricity consumed for the microwave oven production at this site can be powered entirely by renewable sources.

Masahiro Shinada, President & CEO, Panasonic Corporation, said, “We believe that this is the place where we can take a big step towards the future by combining British and Japanese Technology. It is our sincere hope that this facility can be used as a showcase to foster diverse partnerships, accelerate innovation through the combination of technologies, and contribute to the development of the UK’s hydrogen-related industry.”

He hopes the facility will be seen as a birthplace of innovation, “where we helped build a hydrogen society and laid the foundation for a decarbonised future”.

The company now aims to develop a technology set-up which is optimised towards local conditions, incorporating temperature, days of sunshine and overall climate.

Panasonic’s EMS will leverage external local weather forecast data, including changes in weather conditions and demand fluctuations.

And in another integrated move, Panasonic is inviting students and customers from local businesses to its plant, to inspire the next generation and help companies plan for their own transition.


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