Asahi Kasei gets $73m government boost for hydrogen electrolyser expansion

Asahi Kasei hopes to secure 20% world market share by 2030 as new hydrogen ecosystem expected to emerge in the search for fossil fuel alternatives.
The Japanese government is set to give technology firm Asahi Kasei a subsidy of ¥11.4 billion ($73 million), a move that supports the country’s goal of carbon neutrality by 2050.
Tokyo-headquartered Asahi Kasei hopes to increase manufacturing capacity for cell frames and membranes of alkaline water electrolysers for the production of green hydrogen at its plant site in Kawasaki, Kanagawa Prefecture.
In ramping up production to at least 2 GW of capacity by 2028, the company says it aims to secure a 20% share in the world’s major water electrolysis equipment markets – primarily in Europe, North America, and India – by around 2030.
Total investment in the project is estimated to cost around ¥35 billion (approximately $224 million), with ¥11.4 billion ($73 million) supplied through a government subsidy for the construction of new plants.
Masami Takenaka, Lead Executive Officer of Asahi Kasei and Senior General Manager of the firm’s Green Solution Project, said: “We aim to build the world’s largest water electrolysis equipment manufacturing capacity and supply system.”
A new hydrogen ecosystem
Including the current manufacturing capacity for Asahi Kasei’s ion-exchange membrane chlor-alkali electrolysis process, the expansion will bring the company’s total annual capacity for cell frames and membranes to more than 3 GW.
This will be done through further capital investment and alliances with partners built through existing businesses, including overseas. Mr Takenaka added that a substantial market is expected to emerge from a new H2 ecosystem.
Kenji Takeda, Executive Officer of Asahi Kasei responsible for Green Solution Project Business Development, commented: “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. Establishing a stable manufacturing supply chain for green hydrogen is another major step towards realising a hydrogen society.”
Asahi Kasei will work with the Ministry of Economy, Trade and Industry (METI), which is promoting its “Green Transformation” strategy, where green hydrogen forms an important cornerstone.
Japan has ambitions of establishing a stable domestic manufacturing supply chain for technologies that contribute to achieving the country’s 2050 Net Zero target.
Japan has established itself as a key player in the hydrogen sector. As previously reported, in October 2024, the Japanese Hydrogen Association launched a $1bn fund to boost global hydrogen supply chains.