Japanese chemical firm Asahi Kasei has won regional subsidies to expand its alkaline electrolyser component manufacturing capacity to over 3GW, adding to a previously secured ¥11.4bn ($71.6m) from Japan’s central government.
The ¥35bn ($219.9m) expansion at the conglomerate’s Kawasaki Works will build up capacity for both alkaline electrolysis cell frames for hydrogen production and ion-exchange membranes for chlor-alkali electrolysis.
By 2028, Asahi Kasei expects annual manufacturing capacity for both cell frames and membranes to reach at least 2GW, taking its total capacity, including existing facilities, to more than 3GW.
New regional subsidies from Kanagawa Prefecture will cover up to 3% of eligible project costs, capped at ¥500m ($3.1m), as well as a 50% reduction in real-estate acquisition tax.
Kawasaki City will also cover up to 3% of costs, capped at ¥500m.
The regional support adds to up to ¥11.4bn from the Japanese Ministry of Economy, Trade, and Industry’s GX Supply Chain Development Programme.
If awarded in full, the central and regional subsidies would cover more than 35% of the project’s expected ¥35bn cost, excluding the value of the real-estate tax break.
Asahi Kasei currently offers containerised alkaline systems ranging from 1MW to 7.5MW under a partnership with Italy’s De Nora, as well as larger systems based on a 10MW stack arrangement.
It began installing its first 1MW system at a Finnish hydrogen refuelling station earlier this year.
Through its chlor-alkali business, the company claims to have delivered over 10GW of systems.
The Kawasaki expansion comes amid a wider overcapacity of electrolyser manufacturing.
A World Bank group report recently said global manufacturing had reached 61GW, with another 16GW under construction, while operational electrolyser capacity was just 2.15GW.
The majority of this manufacturing expansion has been driven by China, which benefits from low-cost material supply chains and workforces.
