Beverage powerhouse Suntory recently announced the launch of its mid-to-long-term plan for hydrogen power utilisation in its operations, dubbed the ‘Suntory Green Hydrogen Vision’.
The plan has laid out a comprehensive strategy of hydrogen-related initiatives for Suntory to achieve what it calls a ‘hydrogen society’, powered by hydrogen-derived energy. Here are three key takeaways from the overall plan:
1) The Suntory Green Hydrogen Vision hinges on hydrogen energy derived from waterRipples forming in spinning vortex (Jonathan Knowles/Getty Images)According to Suntory chief sustainability officer Masaki Fujiwara, the firm believes that it is essential to better leverage water in order to move towards true sustainability.
One of these ways is in terms of power generation: Water (H2O) is comprised of two hydrogen molecules and one oxygen molecule, making it a natural source of hydrogen energy, which is a clean energy source.
“As a new approach to engaging with water, Suntory aims to fully leverage and expand the potential of hydrogen energy, [bringing us closer to] making the concept of ‘hydrogen society’ a reality,” he said.
“Hydrogen energy is truly an energy source ‘Born from Water, Returning to Water’ and Suntory believes that this is an essential element for us to achieve our net zero emission targets.”
The firm is already actively engaging in discussions to utilise this green hydrogen energy in its manufacturing processes, and expects to begin this year.
“In 2025, we will introduce hydrogen boilers for heat sterilisation processes at the Suntory Minami Alps Hakushu Water Plant,” a Suntory spokesman added.
“There will be no impact on the existing manufacturing processes, but the hydrogen boilers will be operating alongside existing LNG boilers for now, and we plan to evaluate their ability to work in cooperative control during a pilot testing phase.”
The Suntory Hakushu Distillery, which makes Suntory’s Hakushu range of single-malt whiskies, will also be piloting the use of green hydrogen energy in its operations.
2) Suntory is building Japan’s largest green hydrogen system to power this visionSuntory Hakushu Distillery and Suntory Minami Alps Hakushu Water Plant (Suntory Group)The Green Hydrogen Vision will be powered by Suntory’s own hydrogen energy generation system, dubbed the Yamanashi Model Power-to-Gas (P2G) system.
This system is Japan’s largest at 16 megawatts, and is scheduled to begin operations in 2025. It was built in collaboration with the Yamanashi Prefecture and nine other technology companies.
“When operating at maximum capacity (16 megawatts running 24 hours a day, 365 days a year), the planned annual hydrogen production is 2,200 tons. This will reduce CO2 emissions by 16,000t per year,” Suntory stated.
“However, we still need to adjust the actual amount of hydrogen produced during phase one to meet the factories’ demands, so CO2 reduction will not necessarily be this planned quantity.”
Phase one involves using hydrogen energy at Suntory’s own sites before moving on to phase two in 2027 which will involve external business opportunities using hydrogen energy.
“For phase one, this will be the first time our factory will be handling hydrogen, so we will take thorough preparatory measures, such as improving our employees’ and partner companies’ understating of hydrogen as well as effectively coordinating with fire departments and other emergency services in the event of an incident,” said the company.
3) Hydrogen energy as a business opportunityHow Suntory plans to implement its green hydrogen strategy (Suntory Group)Suntory’s plans for its green hydrogen energy are not only to power its own operations but also to market this to external parties moving forward, as a potential new revenue stream.
“Our plan for phase two is to collaborate with energy companies such as Tomoe Shokai Co Ltd on the distribution and sales of green hydrogen energy, considering both local consumption in Yamanashi Prefecture and potential sales in Tokyo,” Suntory added.
“This is part of our business plan, and we are currently calculating the specific details with the aim of achieving profitability within a few years through sales.”
Given the novelty of the business and hydrogen energy in general for Suntory, the company has already set an ambitious target for the launch of phase two in 2027.
“Suntory Group will be the first in Japan to engage across the entire green hydrogen value chain by 2027, from production to sales,” said the company.
“To explore business opportunities concerning hydrogen energy, we are discussing various safety measures including compliance with relevant laws and notification requirements, as well as systems and infrastructure.”