Panasonic has opened its first hydrogen-powered plant in Europe at a microwave factory in Wales as the Japanese electronics firm’s transition to green energy gathers pace.

The 50-year-old manufacturing plant in Cardiff, which produces around £50m worth of microwaves per year, has been fitted with 21 5KW fuel cells powered by green hydrogen, alongside solar PV and battery storage, steered by the firm’s proprietary ‘Energy Management System’.

Panasonic has said it is investing over £100m to develop its HX technology in Japan and launch this pilot in Cardiff, plus a further location in Europe in 2025, with the goal of demonstating that 100% of the electricity consumed for the microwave oven production at this site can be powered entirely by renewable sources. 

Panasonic president and CEO Masahiro Shinada said: “We believe that this is the place where we can take a big step towards the future by combining British and Japanese technology.

“It is our sincere hope that this facility can be used as a showcase to foster diverse partnerships, accelerate innovation through the combination of technologies, and contribute to the development of the UK’s hydrogen-related industry.

“In ten years, or even 20 years, I hope this facility will be seen as a birthplace of innovation – where we helped build a hydrogen society and laid the foundation for a decarbonised future.”

It comes as Panasonic this week recorded a more than 10% decline in sales in the UK as it warned on softening demand, higher costs and increased competition.

Total revenue of its UK subsidiary dropped 11% to £174m for the year to end March 2024, amid a fall in sales of both its microwave ovens and computer products.  The company posted a loss of £4.7m a significant jump on the loss of £48k the previous year. That loss widens to £14m when taking into account the firm’s recalculation of its pensions liabilities.

“This drop in demand was as a result of inflated spending during the pandemic, which has been considered to cannibalise sales in subsequent years, combined with tough economic conditions within the European market,” Panasonic said.

“Fluctuating commodity prices, particularly in steel, adversely impacted material prices on the 2024 result as prices did not decrease as anticipated.”

Panasonic added that a “comprehensive recovery of consumer spending is not expected in 2025.”

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