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Kanadevia To Build Plant for Hydrogen Equipment

Kanadevia To Build Plant for Hydrogen Equipment

Home » News » Alternative Power » Fuel Cells » Kanadevia To Build Plant for Hydrogen Equipment
2025-02-24
Akihiro Komuro
Akihiro Komuro
Akihiro Komuro

Kanadevia (formerly Hitachi Zosen) said it plans to build the first mass-production plant for water electrolysis equipment, which produces hydrogen by electrolyzing water, in Yamanashi Prefecture.

A company announcement said, “We want to develop this as an important production base that contributes to the realization of a hydrogen society. The company will invest approximately 8 billion yen ($52,000,000 USD) to build a mass production plant for water electrolysis equipment with an annual production capacity of 1 gigawatt (157,000 tons of hydrogen produced).

Construction is scheduled to begin about June 2026, with completion and operation by the end of fiscal 2028. The company plans to position this as a domestic mother plant, and in the future, it envisions gradually expanding its hydrogen production equipment manufacturing bases both in Japan and overseas.

The company has set a target of increasing its hydrogen-related business sales to more than 100 billion yen ($650 million USD) in the 2030s and more than 200 billion yen ($1.3 billion USD) in the 2040s, making it a business that “accounts for 10-20% of the Group’s total sales.

Source: The Nikkei

PSR Analysis: Recently, there has been increased media coverage of hydrogen-related issues. Kirin Brewery is reducing its CO2 emissions by replacing 20% of the heat demand of its factories with green hydrogen. The current domestic supply of hydrogen is estimated to be about 2 million tons, but most of this is used for hydrogen stations for cars and for adjusting the components of oil refining. However, there are few examples of commercialization, as most companies that produce hydrogen themselves are still in the demonstration phase.

The hydrogen production equipment that Kanadevia is mass-producing is equipment that will be needed as demand for hydrogen increases and companies begin to produce hydrogen in-house, and the company is acting with the expectation that it will gain experience, know-how, and first-mover advantage by entering the market early to meet this future demand.

While the Trump administration has created headwinds against decarbonization, which will likely lead to some short-term stagnation and strategic rethinking by companies, the long-term trend toward decarbonization is expected to continue. The real purpose of hydrogen is not to use it for its own sake, but to use it to reduce CO2 emissions. Cost reduction is essential to expanding demand, and while there have been calls for larger plants and mass production, the market should see Kanadevia’s announcement as increasing the options available. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Categories: Alternative Power, Fuel Cells, Hydrogen, Japan, Production
Office: Japan Office

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