Creating and securing intellectual property, formulating and executing IP strategies, and building business models for co-creation
At TOYO, the IP Management Office, our intellectual property division, leads the creation and protection of intellectual property, the planning and execution of IP strategies, and the development of co creation* business models through front end activities in collaboration with the Technology Strategy Committee and R&D divisions, spanning from the formulation of technology development policies through to commercialization.
To support sustainable growth, we actively investigate and analyze other companies’ patent filings and leverage IP intelligence. Based on these insights, we generate ideas, secure rights, and establish proprietary technologies that become our competitive strengths. Through this approach, we build entry barriers, create new value, and develop high value-added businesses.
By advancing these IP initiatives, we aim to accelerate EPC
project awards
and the conclusion of technology licensing agreements—contributing to the
resolution of societal challenges, enhancing the value of our business
portfolio, improving profitability, and enabling long-term corporate
growth.
* Joint development with other companies, as well as the introduction and provision of licenses
Formulating and executing an IP strategy aligned with TOYO’s growth story
We position IP activities as an integral part of TOYO’s growth story. Starting from our Mission, we aim to create customer-oriented value through our businesses. When customers choose TOYO’s technologies, those businesses expand - leading to TOYO’s growth (see diagram below).
In developing our IP strategy, we evaluate key questions such as:
Our growth story for intellectual property strategy
Based on this growth story framework, we formulate and execute IP strategies to effectively drive IP creation, rights acquisition, and business model development. The following is an example from our methanol technology, g-Methanol™.
Case Study: g-Methanol™— e-methanol production technology produced from captured CO2 and renewable hydrogen
How does this business contribute to TOYO's Mission「Engineering for Sustainable Growth of the Global Community」
By using captured CO2 and hydrogen derived from renewable energy, g-Methanol™ contributes to the realization of a carbon-neutral society
Methanol is attracting attention as a fuel, primarily in the marine transport industry. Leveraging our experience in the synthesis of methanol derived from fossil fuels, TOYO is undertaking the synthesis of clean methanol produced from CO2 and renewable energy-based hydrogen. We are drawing on the strength of our proprietary MRF-Z™ methanol synthetic reactor to continue tackling the challenges of plant engineering and operation under the variable conditions of renewable energy.
Market need for green methanol?
Demand for green methanol is growing rapidly.
Methanol production is expected to increase fivefold by 2050, driven by rising demand for clean fuels
Source: Innovation Outlook: Renewable Methanol, IRENA & Methanol Institute, 2021
Green methanol—produced without fossil fuels—includes: bio-methanol (produced from biomass such as wood chips), and e-methanol (produced from renewable hydrogen and captured CO2). Among these, e-methanol is expected to see particularly strong growth in production volume. g-Methanol™ targets the e-methanol market.
For the green methanol EPC market, we will estimate the size of the following markets and establish our sales targets accordingly.
- Total Addressable Market (TAM)
- Serviceable Available Market (SAM)
- Serviceable Obtainable Market (SOM)
Why should customers choose TOYO?
TOYO can provide technologies that address renewable energy variability—an area where development remains limited among many competitors.
In renewable energy, which is highly dependent on natural conditions, adjustment capabilities under output fluctuation conditions (renewable energy variability*) are essential to ensure a stable power supply. TOYO is developing plant design and operational solutions that incorporate these capabilities.
Our analysis of patent filing trends—used as an indicator of competitors’ R&D direction—suggests that technologies specifically addressing renewable energy variability are not yet widely developed. In response, TOYO is strengthening competitiveness by advancing R&D in this area, securing patent rights, and accumulating proprietary know-how.
As part of our IP strategy, we prioritize technology domains where demand exists, but competitor development is limited. By securing patents and building know-how in these domains, we differentiate TOYO and provide customers with clear, rational reasons to select our solutions.
* Renewable energy variability refers to fluctuations in power generation output that occur due to the inherent characteristics of renewable energy sources, depending on weather conditions and time.
Trends in Competitors’ Patent Filings in Methanol Production
Key technologies to address renewable energy variability
- Chemical process design adapted to variability
- We provide processes that enable high-efficiency methanol production by controlling equipment loads in response to variable renewable power input.
- Plant configuration optimization (MethaMaster™)
- Using simulations based on renewable generation profiles, process performance, and equipment cost data, MethaMaster™ supports optimal facility configuration.
- Operational planning and execution (MethaDynamics™)
- By processing weather data, production plans, and other inputs, MethaDynamics™ generates and executes optimal operating plans to achieve high-efficiency methanol production even under fluctuating renewable supply.
What is the current progress and outlook for the business?
We are moving forward with commercialization.
Technical licensing initiative for Indian state-run firm NTPC
g-Methanol™ is drawing inquiries from around the world. Particularly in India, where TOYO has engaged in business for many years, the technology has become highly competitive due to declining renewable energy costs, the main component of manufacturing costs. In 2021, we licensed g-Methanol™ technology to Indian state-run firm NTPC for a project to synthesize methanol from the CO2 and hydrogen emitted from thermal power plants, with delivery of the reactor in February 2023.
How this business improves profitability and supports TOYO’s growth
We aim to improve profitability in both the EPC and license businesses (non-EPC), thereby contributing to TOYO's growth.
We aim to enhance profitability through both EPC and licensing (non-EPC) businesses, thereby supporting TOYO’s growth.
Leveraging TOYO’s core technologies—such as renewable variability solutions (including MethaMaster™ and MethaDynamics™) and our methanol synthesis reactor MRF-Z™—we seek to generate licensing revenue. While licensing currently represents a modest portion of overall sales, expanding it into a stronger pillar alongside EPC will reinforce TOYO’s financial foundation and support sustainable growth.
From an IP strategy perspective, we will leverage acquired IP as core technology and mutually apply the capabilities and know-how of both EPC and licensing businesses to expand our business. We will also strengthen our sales and delivery structure by securing and developing specialized talent for licensing activities and, where appropriate, considering consignment-based sales channels.
In the plant construction industry, license fees are often received as a one-time lump sum. In addition, TOYO will pursue more stable earnings models, including recurring royalty-type revenue linked to methanol production volumes.
(1) India, Southeast Asia, and other regions where we
have locations and can demonstrate our strengths in EPC
▶
Both EPC and licensing
(2) North America, the Middle East, and other regions where demand
for clean methanol is on the rise
▶
Focus on licensing only (exclude high-risk construction)
Promoting IP rights with a focus on growth areas
Ratio of new to existing business fields in patents held
In recent years, patent filings have increased in TOYO’s growth domains - decarbonization, a circular economy, and next-generation energy - starting with initiatives such as g-Methanol™. We expect this trend to continue and to contribute to revenue growth in these new business areas. Because patent rights generally expire 20 years from the filing date, maintaining the effectiveness of our IP portfolio requires continuous improvement and renewal of existing technologies, as well as securing rights for new innovations. In established business areas such as urea, we continuously file patents from multiple perspectives—not only on equipment and process improvements, but also on plant modifications, materials, and related elements—to preserve IP validity and enhance and sustain business value.
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