[Event Report] Kagawa Prefecture Showcases Sakaide City's Bannosu District, a GX Transition Hub, at Pitch Event for Overseas Companies

On June 26, Kagawa Prefecture participated in "Invest-1," a local government pitch event hosted by the Ministry of Economy, Trade and Industry (METI) as part of the GX (Green Transformation) Strategic Zone program (Note 1), and showcased initiatives in the Bannosu District of Sakaide City, the hub of the prefecture's GX strategy, to representatives of overseas companies.

The district, which is accelerating the GX transition, faces the Seto Inland Sea and serves as a key transportation hub linking land and sea routes via the Great Seto Bridge, making it one of Japan's leading industrial centers, home to major shipbuilding, chemical, and other industrial complexes. The district benefits from an integrated energy supply network and port infrastructure, which are expected to facilitate a smooth transition to decarbonized industries while helping to reduce investment costs. In addition, collaboration among industries is expected, and the area is also anticipated to serve as a testbed for demonstration projects over the medium to long term.

At the core of the GX strategy is the development of an energy system centered on hydrogen. In February 2024, Sakaide City established the Sakaide City Bannosu Industrial Complex Hydrogen Utilization Promotion Council, through which public and private stakeholders are jointly studying a resource circulation model that includes local production and consumption of hydrogen, the production of turquoise hydrogen (Note 2) from LNG, and the utilization of solid carbon as a byproduct. The initiative also aims to establish a hydrogen supply chain connecting Japan and overseas, including procuring hydrogen from abroad by leveraging Sakaide Port and building a supply network through collaboration with other ports. At the same time, advanced initiatives are also underway, including a project to build liquefied hydrogen carriers.

Another key pillar is the integration of GX and AX (AI Transformation). Through the development of GPU data centers, AI-driven materials development, and integration of energy and digital infrastructure (watt-bit collaboration) through the optimization of power and telecommunications infrastructure, the prefecture aims to enhance next-generation materials industries, including semiconductors. Kagawa Prefecture's partnership agreement with NVIDIA G.K. (February 2026) and its collaboration with Professor Yutaka Matsuo of the University of Tokyo, who serves as an industrial AI advisor (Note 3), are also expected to further accelerate the adoption of AI technologies and attract investment in related fields.

In terms of location, another strength is the connectivity to Asian markets through Takamatsu Port's international container routes and Takamatsu Airport, which offers the largest number of international flights in the Chugoku-Shikoku region, including services to major cities across East Asia.

Participants raised questions regarding the potential participation of overseas startups in demonstration projects underway in the Bannosu District, as well as the status of potential partners for collaboration in turquoise hydrogen production, highlighting strong interest in the district's specific initiatives and future development prospects. In response to this strong interest, Yoshinari Wada, Assistant Director, Business Location Promotion Division, Commerce, Industry and Labor Department, Kagawa Prefectural Government said, "We will continue to work steadily toward official designation as a GX Strategic Zone so that Bannosu, where the beauty of the Seto Inland Sea coexists with vibrant industrial activity, can become a global hub for leading GX industries." Attention is now turning to whether this traditional industrial zone can evolve into a key hub in the decarbonization era.