Innovative Technology Series:Towards the Widespread Adoption of "Artificial Photosynthesis," an Innovative Technology from Japan


Mizuho Industry Research
April 2025

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Key Highlights

  • As moves towards achieving a decarbonized society accelerate, technologies that contribute to this goal are gaining attention. Among these technologies, artificial photosynthesis is considered to contribute to carbon negativity and is an area where Japan enjoys technological superiority. This technology can generate hydrogen and chemicals from carbon dioxide (CO₂) and water using sunlight as energy. In the half-century since its discovery in 1967, numerous research and development efforts have progressed, bringing practical application closer. This paper examines the challenges and potential solutions for its implementation and use in mass production.
  • Challenges and risks for the practical implementation of artificial photosynthesis include the procurement of photocatalyst raw materials, the danger of explosion from mixing hydrogen and oxygen gases, and the cost of procuring hydrogen externally. Addressing these issues requires not only further research and development but also a policy-based approach.
  • Regarding the production of artificial photosynthesis equipment, customer budgets and the environmental conditions and constraints of installation sites vary, and differences in the target chemicals to be manufactured by customers (chemical manufacturers) mean specifications may need to be modified each time. For manufacturers of artificial photosynthesis equipment, there are two main strategic directions to consider: guiding customers toward specifications that can be mass-produced, or identifying markets and customers that can accept higher unit prices for the equipment.
  • However, Japan has had many bitter experiences where it has been ahead of other countries at the development and implementation stages of a technology, only to be outcompeted by Chinese and Korean rivals at the mass production stage. Therefore, with artificial photosynthesis it needs to consider right from the current stage differentiation strategies to maintain competitive advantage in anticipation of competition with rivals. Examples of such strategies include developing alliances with influential companies from an early stage and early positioning in niche areas.
  • While artificial photosynthesis faces multiple challenges, there are many people hoping that Japan will continue to demonstrate its presence with this innovative technology that originated there. There is likely to be a need for policy initiatives such as subsidies that stimulate interest in business development and regulations like emissions trading systems that encourage CO₂ emission reductions. The formulation of rules for carbon negativity, a characteristic of artificial photosynthesis, is also expected. We anticipate that artificial photosynthesis, a groundbreaking technology, will become widely and properly recognized by the general public and spread through the discovery of viable markets where it can be utilized.

 

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