Potential buyers include European and Middle Eastern energy companies. The hydrogen generators, which use renewable energy to produce up to 10 megawatts of hydrogen per unit, are in operation at a test facility in Japan’s Fukushima Prefecture.
Hydrogen, the source of power in zero-emission fuel cell cars, is seen as a crucial part of the global drive toward decarbonisation.
So-called green hydrogen, which is produced in a zero-emission process, has the ability to cut greenhouse gas output in industrial applications, heavy transportation and other sectors where direct use of renewable energy is not an option.
Asahi Kasei’s production equipment uses electrolysis to free hydrogen from an aqueous potassium hydroxide solution. One unit can produce enough hydrogen each day to fill 850 fuel cell vehicles with 5kg tanks.
The company aims to lower the per-kilowatt price of the equipment to ¥50,000 (US$430) by 2030, down from the current estimate of ¥200,000. This will cut the current Japanese market price of roughly ¥1,100 per kilogram to ¥330, which will be on par with the government’s 2030 goal.
Global demand for hydrogen will reach approximately 300 million tons in 2050, according to the International Energy Agency, or quadruple the volume in 2019. Much of the increase will come from the transportation and power sectors.
Asahi Kasei plans to boost the production efficiency of the hydrogen generator. Development is advancing on technology that will connect multiple units, and the company plans to enlarge the electrolysis system to 100 MW later this decade.
The global market for hydrogen generators will expand to ¥4.4 trillion (US$38.2 billion) by 2050, according to a Japanese government estimate.
Most hydrogen is produced from natural gas or naphtha, releasing carbon dioxide. The IEA predicts that in 2050 nearly half of hydrogen will be produced with electricity that is chiefly generated with renewable energy.
In Japan, industrial groups like Hitachi Zosen and Mitsubishi Kakoki are expanding their footprints in the hydrogen generator field. The competition is heating up overseas as well, with the likes of Germany’s Siemens Energy and ThyssenKrupp developing giant units.
Mass production of green hydrogen is expected to concentrate in places with relatively low renewable energy costs, such as Europe, the Middle East, Australia and South America.
The EU aims to install 40,000 MW worth of equipment by 2030 to produce 10 million tons of green hydrogen. Australia and Chile look to become global hydrogen exporting nations.
Because Japan has high renewables costs, attaining domestic self-sufficiency in hydrogen is seen as less likely, energy analysts say.