Shionogi Partners with Japan Hydrogen Fund on Strategic Investment

Shionogi Invests in Japan Hydrogen Fund, Fueling Enduring Energy Future

OSAKA, Japan – July 16, 2025 – Shionogi & Co., Ltd.has announced its strategic investment in the Japan Hydrogen Fund,L.P., a pioneering fund dedicated to advancing JapanS hydrogen sector. This move signals Shionogi’s commitment to a hydrogen-powered society and its broader environmental goals.The Japan Hydrogen Fund, a collaborative initiative by the Japan Hydrogen Association (JH2A), Advantage Partners, and Sumitomo Mitsui DS Asset Management, aims to accelerate the adoption of hydrogen as a clean energy alternative to fossil fuels. Supported by the JH2A, its member companies, and the Japanese government, the Fund is a key component of the nation’s strategy to achieve carbon neutrality and combat climate change. Through targeted investments in hydrogen technologies and businesses, the Fund seeks to establish a robust hydrogen supply chain and foster a sustainable future.

Shionogi has identified “Protect the habitat” as a core material issue and is actively pursuing its SHIONOGI Group EHS Action Targets,with a focus on fiscal year 2035. The company has set an ambitious goal to reduce greenhouse gas (CO2) emissions by 60% compared to fiscal year 2019 levels by fiscal year 2035,a direct response to the urgent challenge of climate change.

“Through our investment in the Fund, we aim to contribute to the realization of a hydrogen-based society while achieving a high level of balance between business expansion and environmental consideration,” a Shionogi spokesperson stated. “In doing so, we will continue to support the sustainable progress of both our group and society as a whole.”

This investment underscores Shionogi’s dedication to integrating environmental responsibility with its business strategy, paving the way for a cleaner, more sustainable energy landscape.

What potential synergies exist between Shionogi’s pharmaceutical expertise and the development of hydrogen technologies?

Fueling Future Growth: A Deep Dive into the Collaboration

Shionogi & Co., Ltd., a prominent Japanese pharmaceutical company with a rich history dating back to 1878 – notably recognized for its contributions to antibiotic development, including the 1958 revelation of Sulfamethoxazol – has announced a strategic investment partnership with the Japan Hydrogen Fund (JHF). This collaboration signifies a bold move beyond traditional pharmaceutical boundaries, venturing into the burgeoning hydrogen energy sector. The investment aims to accelerate the development and deployment of innovative hydrogen technologies, aligning with Japan’s enterprising decarbonization goals and Shionogi’s commitment to sustainable growth.

Understanding the Japan Hydrogen Fund

The Japan Hydrogen Fund, established by the development Bank of Japan (DBJ) and other key stakeholders, is a crucial component of Japan’s national strategy to become a leading hydrogen society. Its core mission is to provide financial support across the entire hydrogen value chain, from production and transportation to utilization.

Here’s a breakdown of the JHF’s key objectives:

Investment Focus: Supporting projects encompassing green hydrogen production (utilizing renewable energy sources), blue hydrogen production (with carbon capture and storage), and hydrogen infrastructure development.

Financial Instruments: offering a range of financing options,including equity investments,project finance,and bridge loans.

Strategic Alignment: Contributing to Japan’s 2050 Carbon Neutrality target by fostering a robust and competitive hydrogen market.

Technological Advancement: Promoting the development and commercialization of cutting-edge hydrogen technologies.

Shionogi’s Rationale: Diversification and Sustainability

While seemingly a departure from its core pharmaceutical business, Shionogi’s investment in the JHF is a strategically calculated move. several factors underpin this decision:

Diversification of Investment Portfolio: Reducing reliance solely on the pharmaceutical sector and exploring high-growth potential opportunities in emerging industries.

ESG (Environmental, Social, and Governance) Commitment: Demonstrating a tangible commitment to sustainability and responsible corporate citizenship. Investing in clean energy solutions like hydrogen aligns with growing investor and stakeholder expectations.

Potential Synergies: Exploring potential applications of hydrogen technologies within Shionogi’s operations, such as powering manufacturing facilities or developing innovative drug delivery systems.

Long-Term Growth Prospects: Recognizing the significant long-term growth potential of the hydrogen economy, driven by global efforts to decarbonize.

Investment Details and Planned applications

Specific details regarding the investment amount haven’t been fully disclosed, but sources indicate a considerable commitment from Shionogi. The funds will be allocated to a diverse range of projects within the JHF’s portfolio. Areas of particular interest include:

Hydrogen Production technologies: Supporting the development of more efficient and cost-effective methods for producing hydrogen, including electrolysis and methane pyrolysis.

Hydrogen Transportation & Storage: Investing in infrastructure for the safe and reliable transportation and storage of hydrogen, such as pipelines and liquid hydrogen carriers.

Hydrogen Fuel Cell Applications: Funding projects focused on utilizing hydrogen in fuel cells for power generation, transportation (including hydrogen vehicles), and industrial processes.

Carbon Capture, Utilization, and Storage (CCUS): Supporting technologies that capture carbon emissions from hydrogen production processes, contributing to a circular carbon economy.

Impact on the Pharmaceutical Industry & Beyond

Shionogi’s move could inspire other pharmaceutical companies to explore similar diversification strategies. The pharmaceutical industry, while focused on healthcare, also has a significant carbon footprint due to energy-intensive manufacturing processes. Investing in renewable hydrogen and other clean energy sources can help these companies reduce their environmental impact and enhance their sustainability credentials.

Furthermore, this partnership highlights the growing convergence between traditionally distinct industries. The hydrogen economy requires collaboration across sectors – from energy and transportation to manufacturing and healthcare – to unlock its full potential.

Japan’s Hydrogen Strategy: A Global Leader

Japan is positioning itself as a global leader in the hydrogen economy. the government has set ambitious targets for hydrogen adoption, including:

Hydrogen Supply Chain Development: Establishing a robust and secure hydrogen supply chain, both domestically and internationally.

Fuel Cell Vehicle Deployment: Increasing the number of fuel cell electric vehicles (FCEVs) on Japanese roads.

Hydrogen-Based Power Generation: Expanding the use of hydrogen in power plants to reduce reliance on fossil fuels.

International Collaboration: Working with other countries to promote the global adoption of hydrogen technologies.

This partnership between Shionogi and the Japan Hydrogen Fund is a testament to Japan’s commitment to a sustainable future and a clear signal of the growing importance of hydrogen as a key energy carrier. The investment is expected to drive innovation, create new economic opportunities, and contribute to a cleaner, more resilient energy system.