DÜSSELDORF, Germany & TOKYO & NOVI, Mich., January 15, 2025–(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.

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.