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IHI Tests 6 MW Ammonia-Fueled Land-Based Engine

Akihiro Komuro IHI Power Systems in July began operating a demonstration plant using a 6,000kW ammonia-fueled reciprocating engine at its Ota Plant in Gunma Prefecture. The engine uses ammonia and heavy fuel oil in a dual-fuel configuration and can also operate entirely on heavy fuel oil. The company is targeting both an ammonia fuel ratio and a greenhouse gas emissions reduction of more than 90%.
The demonstration will evaluate the complete power generation system, including engine performance, fuel supply equipment, exhaust aftertreatment, leak detection and safety controls. Fuel handling and exhaust treatment are particularly important because ammonia is toxic and can produce unburned ammonia and nitrous oxide under certain combustion conditions. IHI Power Systems plans to complete the testing during fiscal 2026 and begin commercial sales in fiscal 2027.
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Government Links Semiconductor, AI Investments
The South Korean government announced a large industrial investment program in June centered on semiconductors, physical AI and AI data centers. The plan is intended to expand domestic production capacity and connect the country’s semiconductor industry with growing demand for computing infrastructure and industrial automation.
Samsung Electronics and SK Hynix are expected to invest a combined $541.03 billion USD (KRW 800 trillion) in new semiconductor capacity in southwestern South Korea. Samsung has selected Gwangju as a candidate location for a new production base, while SK Hynix is also considering an additional site in the region. A separate advanced semiconductor packaging cluster, involving approximately $54.78 billion USD (KRW 81 trillion) in investment, is planned for the Chungcheong region.
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Investment for AutoAlliance MHEVs Approved

Akihiro Komuro Thailand’s Board of Investment in July approved a THB 7 billion, approximately USD 210 million, investment by AutoAlliance Thailand (AAT). The joint venture between Mazda Motor and Ford Motor will upgrade its existing production facilities, mainly for Mazda vehicles, in preparation for a B-segment SUV using mild hybrid electric vehicle technology.
The investment will introduce additional automation and robotic equipment in chassis welding, body assembly, painting and final assembly. The upgrades are intended to improve production efficiency and accuracy while allowing the plant to handle the additional components and manufacturing requirements of the new MHEV model.
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Hitachi Tests Remote Construction Equipment

Akihiro Komuro Hitachi Construction Machinery announced that a joint demonstration test will begin with Fukudome Kaihatsu in Tosa, Kochi Prefecture, using a ZX200A-7 20-ton class hydraulic excavator and a real-time digital twin platform. The test will be conducted in June 2026 at a river dredging project site in the Niyodo River Mochiishi District.
The platform integrates 3D terrain data, camera images, construction machinery, vehicles, and worker location information in real time, and reproduces the worksite in a virtual 3D space. The demonstration will compare remote operation under direct visual observation, remote operation using camera images, and remote operation using the real-time digital twin platform, in order to verify its effect on safety and productivity.
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SK Construction Equipment Exports Expand
HD Construction Equipment signed a contract to supply 39 DEVELON articulated dump trucks to Rental Group, one of the largest construction equipment rental companies in Northern Europe. The contract is worth about EUR 12 million, or around KRW 20 billion. The order includes 13 units of 28-ton models and 26 units of 41-ton models, which are scheduled to be delivered during the year. The machines will be used in quarries, road construction projects, and large-scale tunneling work in Norway.
The company also secured a KRW 27 billion contract to supply 50 15-ton DEVELON bulldozers to the Polish military. This is the company’s first major military procurement order in Europe.
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Thai EV Adoption Pressures Production

Akihiro Komuro Ten Thai automotive and auto parts associations have warned that EV adoption is putting pressure on domestic production and that the country’s automotive industry could face a crisis. According to the industry groups, Thai manufacturers are struggling to compete with low-cost, zero-tariff EV imports from China, while local parts suppliers are seeing orders decline.
The associations, which represent more than 1,500 member companies, said in a letter to the government that the industry could face a major shock in 2027, when the current incentive scheme designed to support EV production is scheduled to end. They called on the government to review the EV policy before the incentives expire and to introduce urgent measures to support the industry.
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Komatsu Reports Record 2025 Sales but Profits Decline

Akihiro Komuro Komatsu announced that its revenue reached a record high for fiscal 2025 due to the effects of a weaker yen and improved pricing. However, the company explained that profits fell below the previous year’s level due to declining demand for construction machinery in North America and rising costs.
In North America, the company reported that demand for residential construction remained sluggish and that machinery purchases by rental companies had also declined. It also noted that the Asian market remained generally weak.
Conversely, demand for mining equipment remained high, with the resources sector underpinning its performance. It also stated that its parts and services business had performed steadily.
Furthermore, although Komatsu acknowledged that ‘the business environment remains uncertain’, the company expressed the view that ‘infrastructure investment and mining demand will remain robust’.
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Yanmar To Build Plant for Marine Hydrogen Engines

Akihiro Komuro Yanmar Power Solutions is advancing the development of engines that are compatible with next-generation fuels. In anticipation of future increased production volumes of marine and land-based engines, the company has acquired a site in Amagasaki City, Hyogo Prefecture.
The new plant will be used to conduct test runs of marine hydrogen engines and to reorganize and strengthen production capabilities, including those of existing plants. The new plant is scheduled to begin operations about March 2029.
In the marine industry, there are ongoing efforts to develop and commercialize decarbonization technologies with the aim of achieving carbon neutrality by 2050. Leveraging its expertise in engine development and production, Yanmar Power Solutions plans to develop powertrains compatible with next-generation fuels, including hydrogen, methanol and ammonia, and establish production systems to support them.
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HD Construction Introduces Electric Safety Training
SOUTH KOREAREPORT
In response to the growing adoption of electric construction equipment, HD Construction Equipment has introduced South Korea’s first safety management certification system for high-voltage systems. The system is designed to educate specialists in maintaining and inspecting high-voltage batteries and electrical systems in electric excavators and other machinery.
Recognizing that the expansion of electric construction equipment requires addressing safety risks that differ from those…
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Power Shortages Boost Reliance on Generators

Akihiro Komuro Amid rising demand during the dry season and the risk of power plant outages, concerns are mounting in the Philippines over tight electricity supplies. The Energy Regulatory Commission (ERC) has noted that prices on the Wholesale Electricity Supply Market (WESM) could increase by approximately 4 pesos per kWh.
This increase is due to a combination of factors, including high temperatures, the shutdown of some power plants, and rising fuel costs.
These conditions are also causing instability in the power supply at the regional level. For instance, Boracay’s supply capacity has not kept pace with the surge in electricity demand fueled by the tourism recovery, prompting the use of generators in some areas. Although transmission operators aim to avoid power outages through future infrastructure improvements, reliance on backup power sources continues to some extent.
Power Systems Research
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Akihiro Komuro Senior Research Analyst – Far East and Southeast Asia
Akihiro Komuro is based in Tokyo, Japan. He is responsible for collecting pertinent market data, executing special projects, analyzing forecast trends, attending trade shows across the Far East and Southeast Asia regions, and updating all OE Link™ data for Japan, South Korea, and the nations of Southeast Asia. After studying at Shukutoku University, Mr. Komuro gained extensive experience in the precision instrument and machinery markets and was actively engaged in international trading of marine engine parts. Mr. Komuro is a regular contributor to PSR’s monthly PowerTALK newsletter and provides forecast trend commentary covering the Far East and Southeast Asia regions for PSR’s Quarterly Update Bulletin. Mr. Komuro has worked with Power Systems Research since 2015.
Erik Martin Director – Asia Region
Erik Martin oversees PSR’s research and business development teams in China, India and Japan and has worked in these and other Asian countries. Erik holds a B.A. in Chinese Language from the University of Minnesota and attended Nankai University in Tianjin, China. Erik has been Director – Asia Region at PSR since 2014.
Tohan Research, Inc.
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Shinji Yasueda Managing Director Japan
Shinji Yasueda is the Director of Tohan Research Group in Japan. He graduated from Kyushu University with a Master’s in Mechanical Engineering, and also has his Ph.D. in Mechanical Engineering. Shinji has experience developing diesel and gas engines, as well as consulting on the development of industrial engines. He has been published in ISME in 2011 and ASME in 2012. Shinji joined the Power Systems Research team in 2012.
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