Suntory doubles down on hydrogen plans despite UK distillery block

Tokyo-based multinational Suntory Group has announced it will start selling hydrogen to external customers and using the gas for whisky distillation in Japan, despite its plans to develop a hydrogen plant in the UK being rejected by the government. The post Suntory doubles down on hydrogen plans despite UK distillery block appeared first on The Drinks Business.

Jun 13, 2025 - 11:25
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Suntory doubles down on hydrogen plans despite UK distillery block
Tokyo-based multinational Suntory Group will start selling hydrogen to external customers and using the gas for whisky distillation in Japan, despite scrapping plans for a hydrogen plant in the UK. Suntory doubles down on hydrogen despite UK distillery block The Japanese company released its 'Suntory Green Hydrogen Vision' on Wednesday (11 June), setting out plans to increase its use of hydrogen in the mid to long term. Suntory has said that from 2027 it will be the first in Japan to engage in all areas of the green hydrogen value chain from production to sales. It also announced the launch of its Yamanashi Model Power-to-Gas System, which will begin operating in 2025. As part of the new system, Suntory will run hydrogen boilers to sterilise water at one of its plants and explore the use of hydrogen for direct-fire distillation of whisky at its Hakushu Distillery. The announcement about advancing Suntory's hydrogen usage in Japan follows news earlier this week that the multinational was scrapping plans for a hydrogen plant in Scotland after its funding bid was denied. Suntory and partner Marubeni, a Japanese trading company, first announced plans to build a hydrogen plant to decarbonise Scotch whisky production in August 2024. The plant was due to become part of Suntory’s Auchentoshan Distillery, a Lowland single malt Scotch whisky distillery in Dalmuir, Scotland. However, the company has now published a statement announcing that the hydrogen project has been ditched. "We are disappointed that HyClyde Auchentoshan was unsuccessful in its application to secure UK Government funding through the Hydrogen Allocation Round 2 (HAR2) decarbonisation fund, resulting in the project’s discontinuation," the company said in a statement shared with db. It continued: "However, Suntory Group remains committed to achieving net zero greenhouse gas emissions throughout our entire value chain by 2050. As stated in the Suntory Green Hydrogen Vision, we will continue to actively explore opportunities to utilise hydrogen at our owned production sites in Japan and abroad to decarbonise our business." Suntory faced backlash from the local community in Scotland in 2024 after announcing the plans for the plant. Critics pointed to the dangers that hydrogen's flammability poses. Despite potential reservations over the use of hydrogen in the UK, the Japanese government has embraced its usage in progressing towards net zero targets. Japan launched its Basic Hydrogen Strategy in 2017, positioning the gas as a key green energy source. Public-private partnerships in the country have also been used to actively promote the establishment of hydrogen supply networks. Suntory Group has collaborated with Yamanashi Prefecture and nine companies engaged in technological development to construct Japan’s largest 16 megawatt size Yamanashi Model P2G System to supply green hydrogen to Suntory Minami Alps Hakushu Water Plant and Suntory Hakushu Distillery. The programme is supported by NEDO under the Japanese government's Green Innovation Fund. Starting in 2027, Suntory will also produce and sell hydrogen to external customers, the company announced on Wednesday. In collaboration with Tomoe Shokai Co. Ltd, Suntory plans to distribute and sell green hydrogen for local consumption in Yamanashi Prefecture and in Tokyo. The group has said it will also actively explore opportunities to utilise hydrogen at other sites both in Japan and abroad. It has set out plans to use hydrogen as a heat source at the Chita Distillery in Aichi, Japan. The grain whisky from Chita is a key component in blended whiskies like Toki, Hibiki Harmony, and Hibiki 30-year-old. Suntory is also considering introducing hydrogen usage at the Suntory Takasago Plant in Hyogo Prefecture in the early 2030s. The company's hydrogen utilisation plans are part of the group’s aim to achieve net-zero emissions across its value chain by 2050.