Minami‑Alps City, Yamanashi Prefecture, September 12, 2025
News Summary
Tri Chemical Laboratories has closed ¥10 billion in financing through a term loan and committed credit line to fund a new production plant in Minami‑Alps City, supporting capacity expansion with limited near‑term fiscal impact. Separately, a major beverage and spirits group is progressing a 16‑megawatt power‑to‑gas electrolyzer in the Southern Alps of Yamanashi to produce green hydrogen for a nearby distillery and water plant. The ¥14 billion project aims to use local renewable electricity for heat, sterilization and vehicle fuel, with construction targeted for completion and verification phases following soon after.
Tri Chemical secures ¥10 billion to build new Minami‑Alps plant; Suntory rolls out Green Hydrogen Vision and plans 16‑MW Yamanashi P2G system
A Tokyo‑listed chemical maker has arranged financing worth ¥10,000,000,000 to build a new production facility in Yamanashi Prefecture while a major beverage group is advancing a large green hydrogen project in the same region. The financing deal for Tri Chemical Laboratories Inc. (ticker JP:4369) is intended to fund construction of a new plant in Minami‑Alps City and is expected to have minimal impact on the company’s current fiscal results. Separately, a corporate hydrogen plan includes a 16‑megawatt Yamanashi Model P2G System that aims to supply green hydrogen to local operations.
Toplines on the Tri Chemical financing
Tri Chemical Laboratories has executed a term‑loan agreement and a commitment‑line agreement that together total ¥10 billion. The company says the arrangements are designed to secure the capital needed for growth and the construction of the new Minami‑Alps plant. The firm operates in the chemical sector and is listed on the Tokyo Stock Exchange Prime Market.
Market indicators tied to the company include an average trading volume of roughly 589,417 shares, a technical sentiment signal listed as Sell, and a current market capitalization of about ¥83.52 billion. The most recent analyst rating shown for the stock is Buy with an analyst price target of ¥3,500.
Why the financing matters
The loan and commitment line are aimed at supporting construction and related expansion costs. Company guidance notes management expects little near‑term effect on fiscal performance, suggesting the financing is structured to limit immediate pressure on cash flow. For investors and local stakeholders, the development signals continued investment in chemical manufacturing capacity in Yamanashi Prefecture.
Overview of the Green Hydrogen push in Yamanashi
A separate initiative in the region seeks to scale green hydrogen production. The plan brings together a beverage and water producer with prefectural authorities and multiple commercial partners to install what is described as Japan’s largest 16‑megawatt power‑to‑gas (P2G) system in the forested Southern Alps of Yamanashi.
The P2G system will use renewable electricity to run electrolyzers that split water into hydrogen and oxygen. That hydrogen will be used to supply heat and sterilization needs at a water plant and a nearby distillery, and a portion will be used as fuel for onsite vehicles. Project backers aim for the two facilities to be able to run on locally produced green hydrogen when the system reaches full capacity.
Project scale, timeline and funding
The full project cost is reported at ¥14,000,000,000. A national innovation fund is expected to cover ¥10,000,000,000 of that total, leaving a remaining share to be covered by the company and partners. Construction is slated for completion in 2024, with testing and verification to follow in 2025. If completed on schedule and operated at designed output, the system should generate roughly the same annual heat energy currently used by the two facilities.
Context on hydrogen and challenges ahead
Green hydrogen is produced by running electricity through water to isolate hydrogen molecules, a process that emits no greenhouse gases when the power comes from renewable sources. Currently, most industrial hydrogen is made from fossil fuels and generates emissions. Electrolyzers remain relatively costly and are produced at smaller scales, though costs are expected to decline as deployment grows and manufacturers move down a learning curve. The cost of clean electricity remains a key driver for project economics.
The move to build a large electrolyzer and to create a local production for local consumption model reflects wider national policy interest in hydrogen as part of a low‑carbon energy strategy. Public support and subsidy programs have played a major role in enabling early projects while developers and operators continue to work out long‑term business models.
What this means locally and for industry
For the local area, the two developments combined could bring construction activity, new industrial capacity, and a testbed for hydrogen technologies. For the broader energy and industrial sectors, they provide another example of how private firms and public programs are trying to move green hydrogen from pilot stages toward industrial use, particularly where there is a clear onsite demand for heat or fuel.
FAQ
What did Tri Chemical Laboratories announce?
Tri Chemical arranged a term loan and a commitment line totaling ¥10 billion to fund construction of a new plant in Minami‑Alps City. The financing is intended to support expansion and is expected to have minimal immediate impact on company fiscal performance.
What is the 16‑MW Yamanashi P2G project?
The project is a 16‑megawatt power‑to‑gas system that will use renewable electricity to produce green hydrogen by electrolysis. The hydrogen will supply a local water plant and distillery for heat, sterilization, and vehicle fuel.
How is the P2G project funded?
Total cost is reported at ¥14 billion, with ¥10 billion expected from a national green innovation fund. Remaining funds are to come from project partners.
When will the hydrogen project be operational?
Construction is planned to finish in 2024, with testing and verification through 2025.
What are the main risks or challenges?
Key challenges include the high cost of electrolyzers, securing reliable low‑cost renewable electricity, and developing a sustainable business model for supplying hydrogen at scale.
Key features at a glance
| Topic | Key detail | Notes |
|---|---|---|
| Tri Chemical financing | ¥10,000,000,000 term loan and commitment line | Funding to build new Minami‑Alps plant; minimal expected near‑term fiscal impact |
| Company listing | Tokyo Stock Exchange Prime Market, ticker JP:4369 | Analyst rating listed as Buy; price target ¥3,500 |
| Yamanashi P2G system | 16 MW electrolyzer / P2G system | Aims to supply green hydrogen to a water plant and a distillery |
| Project cost and funding | ¥14,000,000,000 total; ¥10,000,000,000 from a national innovation fund | Construction targeted for 2024; testing and verification in 2025 |
| Main technical point | Hydrogen from electrolysis using renewable electricity | Emits no greenhouse gases when powered by clean electricity; costs remain a hurdle |
Deeper Dive: News & Info About This Topic
Additional Resources
- TipRanks: Tri Chemical Laboratories secures financing for new plant construction
- Wikipedia: Minami-Alps, Yamanashi
- FuelCellsWorks: Suntory reinforces domestic hydrogen strategy after UK distillery project collapse
- Wikipedia: Green hydrogen
- Canary Media: Green hydrogen will power production of Japanese whisky (Hakushu)
- Wikipedia: Japanese whisky
- TheDrinksBusiness: Suntory doubles down on hydrogen plans despite UK distillery block
- Google Search: Suntory green hydrogen Yamanashi
- The Straits Times: Costco in Japan’s Yamanashi prefecture attracts visitors before opening
- Encyclopaedia Britannica: Yamanashi Prefecture
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