Toray Industries (3402) Investor update summary

Hydrogen market outlook

• Hydrogen demand forecast at 500 million tons in 2050, 5x current levels; green hydrogen projected to exceed 80% of supply.

• Demand expansion expected after 2030 as scale-up and cost reductions accelerate hydrogen integration in industry, power, buildings and transport.

• 1,046 hydrogen-related projects announced through 2030, representing ¥44.8 trillion in investment as of Jan. 2023.

Supply-chain strategy and materials

• Advanced materials target hydrogen production, transport, storage and end use, including electrolyzer membranes, carbon fiber tanks, carbon paper, GDL, CCM and MEA.

• HC electrolyte membrane targets water electrolysis, hydrogen compression and fuel cells; proprietary design delivers 2x proton conductivity, 1/3 gas permeability and 4x strength versus conventional membranes.

• Prototype HC membrane achieved 87% efficiency versus 76% for standard fluorine membrane, with 2x hydrogen generation at the compared operating point.

• Greenerity CCM capacity expansion is planned to exceed 10 GW electrolyzer-equivalent by 2030; a new plant was scheduled to begin operation in Oct. 2023.

• Carbon recycling R&D includes hydrogen separation, CO₂ separation and hydrogen-oxidizing bacteria; the project was selected for NEDO's Green Innovation Fund.

Commercialization and partnerships

• A 5-year Green Innovation Fund project supports development of a large-scale PEM electrolyzer and heat-demand decarbonization, with funding up to ¥14 billion and a 16 MW-class prototype demonstration.

• Partnership with Siemens Energy aims to advance industrial-scale PEM water electrolyzers using HC electrolyte membranes.

• Yamanashi Hydrogen Company, established in Feb. 2022, develops hydrogen production, supply, sales, energy services, and technology demonstrations.

• HC membrane testing at a 25 kW stack confirmed load-following performance under fluctuating power; low gas permeability supports a lower minimum load and higher operating rates.

• Fuel-cell carbon fiber and electrode materials have been adopted in more than 30 million vehicles cumulatively; CCM and MEA participate in demonstrations, mainly in Europe.