Asahi Kasei Receives Governmental Support to Expand Manufacturing Capacity for Green Hydrogen Production Equipment in Japan

DÜSSELDORF, Germany & TOKYO & NOVI, Mich.--( BUSINESS WIRE )-- The Japanese technology company Asahi Kasei has received governmental support for the expansion of its manufacturing capacity for cell frames and membranes of alkaline water electrolyzers for the production of green hydrogen at its plant site in Kawasaki, Japan. The purpose is to establish a stable domestic manufacturing supply chain for technologies that contribute to achieving the country’s goal of carbon neutrality by 2050.

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Configuration of Asahi Kasei's alkaline water electrolyzer. (Graphic: Business Wire)

Driven by expectations for green hydrogen as a clean energy alternative to fossil fuels, the annual installed capacity of water electrolyzers globally is forecasted to reach 31 GW by 2030. As such, the manufacturing capacity for electrolyzers and related components needs to be scaled up in order to keep pace with the expanding demand for the production of hydrogen.

For decades, Japan has been a leader in the field of technology for hydrogen production and utilization. Green hydrogen is one important cornerstone of the country’s “Green Transformation (GX)” strategy to achieve carbon neutrality by 2050. As one part of this strategy, the “GX Supply Chain Construction Support Project” aims at establishing a world’s first domestic manufacturing supply chain for cutting-edge technologies that will contribute to achieving Japan’s climate goals, while nurturing economic growth.

Increasing annual production capacity to 2 GW

Asahi Kasei is a comprehensive manufacturer and provider of alkaline water electrolyzers for the production of hydrogen. Within the abovementioned governmental program, Asahi Kasei proposed to build new plants for both cell frames and membranes for electrolysis having manufacturing capacity of at least 2 GW each at the company’s plant site in Kawasaki, Kanagawa Prefecture, Japan, by 2028. On December 18, the Japanese Government adopted this proposal for financial support. The total capital investment for this project is estimated to be approximately ¥35 billion, and Asahi Kasei expects to receive a subsidy of up to ¥11.4 billion through this initiative.

Including the current manufacturing capacity for Asahi Kasei’s ion-exchange membrane chlor-alkali electrolysis process, this expansion will raise the company’s total annual capacity for cell frames and membranes to more than 3 GW.

Asahi Kasei aims to create synergies between its two electrolysis businesses by establishing a system that can respond to both the uncertain expansion of the hydrogen market and the growing demand in the chlor-alkali electrolysis business, which has earned a high level of trust and market share from customers around the world.

“Even as it remains unclear when a hydrogen society will become a reality, we need to swiftly establish and expand a production system to seize the opportunity of market expansion and earn our share of the water electrolysis equipment market,” comments Masami Takenaka, Lead Executive Officer of Asahi Kasei and Senior General Manager of its Green Solution Project. “Looking ahead to the huge market that will emerge from a new hydrogen ecosystem while anticipating market expansion toward 2030, we aim to build the world’s largest water electrolysis equipment manufacturing capacity and supply system through further capital investment and alliances with partners built through existing businesses, including overseas. Through these efforts, we aim for a 20% share of the world’s major water electrolysis equipment markets, primarily in Europe, North America, and India, by around 2030, which will contribute to strengthening the green hydrogen supply base worldwide while raising the industrial competitiveness of Japan in the field of hydrogen.”

“The lack of inexpensive electricity from renewable energy sources, as well as unstable supply, pose serious challenges to the further expansion of the green energy market,” comments Kenji Takeda, Executive Officer of Asahi Kasei responsible for Ion Exchange Membranes, Microza & Water Processing, and Green Solution Project Business Development. “Establishing a stable manufacturing supply chain for green hydrogen is another major step towards realizing a hydrogen society. We will work with the Ministry of Economy, Trade and Industry (METI), which is promoting GX to the fullest extent, to become a leading global supplier in the field of water electrolysis, while leveraging our strong network in the ion-exchange membrane industry.”

About Asahi Kasei

The Asahi Kasei Group contributes to life and living for people around the world. Since its founding in 1922 with ammonia and cellulose fiber businesses, Asahi Kasei has consistently grown through the proactive transformation of its business portfolio to meet the evolving needs of every age. With more than 49,000 employees worldwide, the company contributes to a sustainable society by providing solutions to the world's challenges through its three business sectors of Material, Homes, and Health Care. Its Material sector, comprised of Environmental Solutions, Mobility & Industrial, and Life Innovation, includes a wide array of products from battery separators and biodegradable textiles to engineering plastics and sound solutions. For more information, visit https://www.asahi-kasei.com/ .

Asahi Kasei is also dedicated to sustainability initiatives and is contributing to reaching a carbon-neutral society by 2050. To learn more, visit https://www.asahi-kasei.com/sustainability/ .

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