Tri Chemical secures ¥10bn for Minami‑Alps plant; Suntory advances 16‑MW green hydrogen project

Tri Chemical Laboratories secures ¥10 billion to build new Minami‑Alps plant; Suntory advances 16‑MW green hydrogen project

A Tokyo‑listed chemical maker has closed financing worth ¥10,000,000,000 to fund construction of a new plant in Minami‑Alps City, Yamanashi Prefecture, while a major beverage group is moving ahead with a 16‑megawatt power‑to‑gas system in the same prefecture as part of a wider shift toward green hydrogen.

Top line: Tri Chemical financing and what it means

Tri Chemical Laboratories Inc. (ticker JP:4369) has executed a term‑loan agreement and a commitment‑line agreement totaling ¥10 billion. The company says the funds will be used to build a new production facility in Minami‑Alps City and are intended to secure capital for growth and expansion. Management expects the financing to have minimal impact on the company’s current fiscal performance.

The company operates in the chemical sector, developing and producing chemical products, and is listed on the Tokyo Stock Exchange Prime Market. Publicly available market indicators show an average trading volume around 589,417 shares and a market capitalization near ¥83.52 billion. Recent analyst coverage lists a Buy rating with a price target of ¥3,500, though technical signals for the stock recently read as Sell.

Suntory’s green hydrogen push and the Yamanashi Model P2G System

Separately, a large beverage and spirits group has published a mid‑ to long‑term Green Hydrogen Vision that outlines how it plans to use hydrogen across production, distribution and sales to lower carbon emissions. The plan follows a failed bid for government funding in the U.K. for a hydrogen site adjacent to one of its distilleries.

As part of the vision, the company has partnered with Yamanashi Prefecture and nine companies to develop what is being called the Yamanashi Model P2G System. This project will install a 16‑megawatt electrolyzer in the forested Southern Alps of Yamanashi. The system will use local renewable electricity to split water into hydrogen and oxygen, producing green hydrogen that will supply a nearby water plant and a distillery.

Project plans show the produced hydrogen will be used to provide heat for distillation, supply sterilization energy for mineral water processing, and fuel some on‑site vehicles. The project’s total cost is reported at ¥14 billion, with a large portion of that expected to be covered by a national green innovation fund. Construction is slated to be completed in 2024, with testing and verification through 2025.

Why these moves matter

The chemical plant investment reflects a common strategy: secure long‑term financing to expand capacity while aiming to limit near‑term profit and loss impact. For the hydrogen project, the move illustrates growing corporate interest in local production for local consumption models for clean fuels—using renewable power and water sources close to where the hydrogen will be used.

Green hydrogen projects face two main cost drivers: the price of electrolyzers and the supply of low‑cost renewable electricity. Electrolyzer technology is currently expensive but is on a learning curve that could reduce costs as deployment scales up. Governments in the region have shown a willingness to subsidize such projects to help establish viable business models.

What to watch next

• Progress on construction of Tri Chemical’s Minami‑Alps plant and any updates to financing terms or schedule.
• Permits, equipment delivery and grid connections for the 16‑MW P2G system in Yamanashi.
• How the hydrogen project’s costs are split between private partners and public funds, and the timetable for verification in 2025.
• Broader market responses, including changes in analyst forecasts and trading patterns for the companies involved.

Context

Japan’s national hydrogen strategy, adopted in recent years, positions hydrogen as an important element of a decarbonized society. Corporate experiments with green hydrogen aim to prove whether the fuel can be integrated into real industrial uses—heating, sterilization and vehicle fuel—in ways that reduce greenhouse gas emissions while remaining economically feasible.