News 2026

- Demonstration of SOEC-Based Green Hydrogen Production in the Federative Republic of Brazil -

NAGOYA, JAPAN, April 23, 2026 ー Niterra Co., Ltd.(the "Company"), a member of the Niterra Group, has been selected as a recipient under the Ministry of Economy, Trade and Industry (METI)'s "Global South Future-Oriented Co-Creation Project Under the FY2024 Supplementary Budget (Large-Scale Demonstration:Non-ASEAN Member Countries) "Second Call for Proposals and will commence a green hydrogen technology development and demonstration project in the Federative Republic of Brazil.

【Project Overview】

Brazil is currently promoting a national strategy (including the National Hydrogen Program, PNH2) aimed at becoming one of the world's most competitive low carbon hydrogen supply hubs, leveraging its abundant and low-cost renewable energy resources. At the same time, conventional hydrogen production technologies, such as alkaline and PEM electrolysis, face challenges in terms of energy consumption and operating costs.
Through this project, the Company will introduce next-generation hydrogen production equipment based on Solid Oxide Electrolysis Cell (SOEC) technologyーdeveloped using the company's proprietary ceramic technologies cultivated over many years in the manufacture of spark plugs and other productsーand, in collaboration with local hydrogen project developer Company NEBRA*¹ in Brazil, will conduct the following demonstrations:

*1: A joint venture between Green Energy Park（https://gep-global.com/）and the investment arm of the State of Piauí.

Location: Parnaíba, State of Piauí, Federative Republic of Brazil (within the Zona de Processamento de Exportação do Piauí ー ZPE Piauí)
Demonstration scale: 100 kW SOEC module (12 kW initial unit plus 96 kW expansion unit)

Scope of demonstration:

• 1. Phased facility deployment
  Verification of a parallel system architecture that enables stepwise investment, starting from a 12 kW unit and expanding to a 96 kW configuration.
• 2. Proprietary modular design
  Realization of lower CAPEX*² through containerized module design that facilitates transportation and installation.
• 3. Remote monitoring
  Demonstration of remote monitoring from Japan to verify reductions in local maintenance costs and improvements in system availability.
• 4. Hydrogen utilization
  Verification of the environmental benefits of a pilot local hydrogen supply chain (including hydrogen boilers), assuming end uses such as fertilizer production via ammonia synthesis and applications in green steelmaking.

*2 Lower CAPEX: Achieved by standardizing key components to reduce non-recurring engineering costs for bespoke designs, and by enabling phased capacity additions in line with demand, thereby optimizing the overall system while mitigating initial investment risk.

■ Unique strengths

The SOEC technology to be deployed in this project offers an energy conversion efficiency approximately 30%*³ higher than that of incumbent alkaline and PEM electrolysis systems. It is particularly well suited to "hard-to-abate" sectorsーsuch as ammonia synthesis and steelmakingーwhere industrial waste heat can be effectively utilized. Under comparable power prices, this is expected to reduce electricity-related costs by approximately 25-35%. In addition, drawing on over 66 years of business experience in Brazil, the Company has established an operational framework tailored to local needs.

*3 Source: "Solid Oxide Electrolysis: A Technology Status Assessment," CATF(2023)

■ Need for government support

The subsidy enables field demonstration at a scale appropriate for future commercialization. It also facilitates earlier recovery of capital expenditures by improving the project's financial profile.
Furthermore, sustained governmental support will provide strong momentum for Japan's industry to demonstrate a clear competitive edge ahead of 2030, a key milestone for global commercialization of these technologies.

■ Significance and Social Impact

By successfully implementing this project, the Company aims to establish advanced Japan-origin SOEC technology as a global standard and to become a world-leading SOEC company in the 2030s.
The project will also contribute to job creation and associated infrastructure development in Brazil's less industrialized Northeast region through green hydrogen production located within the ZPE Piauí, a federally designated Special Economic Zone in the city of Parnaíba, thereby deepening co-creation between Japan and countries in the Global South while leveraging the zone's export-oriented regulatory and fiscal framework.

Reference:

Ministry of Economy, Trade and Industry HP
Regarding the selected businesses in the Second Call for Proposals for the 'Global South Future-Oriented Co-Creation Project Subsidies (Large-Scale Demonstration:Non-ASEAN Member Countries)'"
https://gs-hojo-web-lsna.jp/saitaku.html#second

For media inquiries, please contact:

Public Relations Department, Niterra Co., Ltd.
https://reg31.smp.ne.jp/regist/is?SMPFORM=qepf-ljrjld-185a93fed2d43f2c4b81582630366b23

About Niterra

Niterra Co., Ltd. (formerly NGK SPARK PLUG CO., LTD.) is a globally recognized manufacturer founded in 1936, best known for its NGK-branded spark plugs and NTK-branded ceramic products.
The Niterra Group's 2040 Vision is "We will be a company that brightens the Earth by solving social issues through our unique, Tokushu, technologies and ideas."
The company is strategically focusing management resources on three focus areasーMobility, Semiconductors, and Environment & Energyーby leveraging its core ceramics assets to create new business value.
Niterra's Mission is to integrate its established core assets with newly developed ones, optimize the efficient use of minimal resources, and deliver regenerative and circular solutions to society.
Niterra is now expanding into the growth fields of mobility, environment & energy, and semiconductors.
Please visit https://www.niterragroup.com/english/