[Japan] Kansai inked agreement with Iberdola for an offshore wind farm project in Germany

As of December 13, 2024, Japan’s Kansai Electric Power Co. has taken a 49% stake in Iberdrola’s Windanker offshore wind project in Germany, expanding its partnership with the Spanish renewable energy giant. [1] The wind farm will have an installed capacity of 315 MW and start operating by 2026. The project marks Kansai’s 5th offshore wind farm participation overseas and involves the installation of 21 bottom-fixed offshore wind turbines. The acquisition brings Kansai’s net capacity of overseas generation to 3,007 MW. Kansai aims to collaborate with Iberdrola on more overseas projects in various fields, such as renewable energy, since it is one of the leading energy companies in the renewable energy sector. Kansai’s goal is to use the experience from the project to expand offshore wind power projects in Japan and contribute to a future zero-carbon society.

[1] https://www.kepco.co.jp/english/corporate/pr/2024/pdf/dec13_1.pdf

[Japan] Nuclear reactor at Shimane plant restarts for first time since 2012

As of December 7, 2024, a nuclear reactor in Shimane Prefecture in western Japan has restarted for the first time in 13 years. [1] It is the 14th reactor to be reactivated after meeting Japan’s new requirements that were introduced after the Fukushima Daiichi plant meltdowns. The Chugoku Electric Power Company suspended operations of the No. 2 reactor at the Shimane nuclear power plant in 2012 for regular inspections. The unit passed the Nuclear Regulation Authority’s screening in 2021. Chugoku Electric completed construction work in October and finished putting in nuclear fuel in November. The utility stated that the reactor reached a self-sustaining chain reaction two hours after the restart, and power generation will commence later in the month. Commercial operations are expected to resume in early January. The Shimane complex in Matsue City is the only nuclear power plant in a Japanese prefectural capital.

[1] https://www.energia.co.jp/atom_info/assets/20241207a_5.pdf

[Japan] Japan’s first commercial use of electricity generated with hydrogen-fired zero-emissions thermal

As of November 29, 2024, Toho Co., Ltd. And JERA Co., Inc. are pursuing efforts to eliminate CO2 emissions from electricity consumed at Toho Studios, Japan’s largest movie studio. [1] JERA has begun supplying hydrogen-generated power to Toho Studios through its subsidiary JERA Cross. This is Japan’s first commercial use of electricity generated with hydrogen-fired zero-emissions thermal. JERA has been moving forward with the construction of an on-site hydrogen power generation facility at Sodegaura Thermal Power Station in Chiba. With the recent conclusion of construction and testing, JERA Cross has begun supplying off-site electricity to Toho Studios, where commercial use of electricity generated with hydrogen-fired zero-emission thermal began on November 29, 2024. Toho Studios has also introduced electricity sourced from JERA solar power generation facilities and aims to supply all its electricity needs with 24/7 carbon-free energy going forward.

[1] https://www.jera.co.jp/en/news/information/20241129_2071

[Japan] Nimbus and Toshiba announce joint development of next-generation pure hydrogen fuel cell stack

As of November 21, 2024, Nimbus Power Systems (Groton, Connecticut, USA) and Toshiba Energy Systems and Solutions Corporation (Kawasaki, Kanagawa, Japan) have signed a joint development agreement for a next-generation pure hydrogen fuel cell stack. [1] It is applicable to various mobility applications, like buses and trucks, as well as stationary uses. Under the agreement, Nimbus will combine its “four-fluid stack technology” with Toshiba’s “fuel cell commercialization and mass production technology” to jointly develop the pure hydrogen fuel cell stack. Nimbus has fuel cell technology aimed at large mobility applications. The “four-fluid stack technology” combines porous and metal separators to supply four fluids: hydrogen, air, pure water, and antifreeze, enabling stable operation at high output. Meanwhile, Toshiba has experience manufacturing fuel cells and possesses commercialization and mass production capabilities using porous separators. Nimbus and Toshiba aim to contribute to the expansion of the hydrogen value chain and decarbonization.

[1] https://www.global.toshiba/ww/news/energy/2024/11/news-20241121-01.html

[Japan] BP enters Japan’s power market

On November 27, 2023, BP announced that it has entered Japan’s power market after receiving approval from the Ministry of Economy, Trade and Industry (METI).[1] BP Energy Japan (BPEJ), part of the company’s trading and shipping business, will operate the new business. In a statement, BP said the move was part of its plan to expand its investment in several areas of growth, including renewable energy and electricity. BP, which has been a supplier of liquefied natural gas (LNG), oil, petroleum products, and lubricants to Japan for over 60 years, plans to expand into low-carbon energy in the coming decades as it seeks to create a business model that can survive the global transition away from fossil fuels.

[1] https://www.bp.com/content/dam/bp/country-sites/ja_jp/japan/home/%E3%83%8B%E3%83%A5%E3%83%BC%E3%82%B9/pressrelease/documents/2023/BPEJ%20Announcement_231127%20FINAL.pdf

[Japan] Japanese town allows survey for interim spent nuclear fuel storage facility

Kaminoseki, a small town in western Japan, announced on August 18, 2023, that it has agreed to a geological study to determine its suitability as an interim storage site for spent nuclear fuel.[1] Earlier in August, Chugoku Electric Power Co. proposed a plan to jointly construct the facility with Kansai Electric Power Co., whose spent fuel storage pools are almost full. If built, it would be the second such storage facility in Japan, following one already built in Mutsu, Aomori Prefecture, in northeastern Japan. According to the Ministry of Economy, Trade and Industry (METI), there is about 190,000 tons of spent nuclear fuel stored at power plants in Japan, about 80% of total storage capacity and up from 75% in 2019. The proposed interim storage facility would keep spent fuel until it is transferred to a facility to reprocess plutonium for reuse under the government’s nuclear fuel recycling policy.

The decision to allow the geological study will result in a nuclear-related state subsidy and fresh sources of tax revenues for the fast-graying municipality. During a televised news conference, Kaminoseki Mayor Tetsuo Nishi stated, “The town will only get poorer if we just keep waiting. We should do whatever is available now." According to Chugoku Electric, the town will receive a subsidy of 140 million yen ($962,000) a year during the period of the survey.

[1] https://apnews.com/article/japan-nuclear-spent-fuel-storage-fukushima-kaminoseki-b65e0710a91fc979cf0d89364d504a91

https://english.kyodonews.net/news/2023/08/7a5b19a9cd52-japan-town-oks-survey-for-interim-spent-nuclear-fuel-storage-facility.html

[Japan] Octopus Energy announces investment in Yotsuya Capital

British company Octopus Energy Generation announced on April 5, 2023, that it is investing in Yotsuya Capita, a solar developer in Japan, with the aim to accelerate Japan’s energy transition.[1] Octopus Energy Generation manages over 3 GW of renewable energy assets like wind and solar farms across 13 countries, worth nearly £6 billion. The deal is the company’s first investment in the Asian renewables market, with other projects already lined up in Japan and elsewhere across the continent. The initial seven-figure investment was made on behalf of the Sky fund, which is managed by Octopus Energy Generation, and will enable Yotsuya Capital to develop 250 MW of new solar in Japan over the next five years. Yotsuya Capital plans to sell the solar energy through long-term corporate power purchase agreements (PPAs). The new solar power could generate enough green power for the equivalent of almost 100,000 homes. The move comes as Octopus Energy’s retail business in Japan reaches 160,000 customers.

[1] https://octopus.energy/press/octopus-energy-kicks-off-asian-renewables-push-with-first-japanese-solar-deal/

[Japan] Yara Clean Ammonia to supply clean ammonia to JERA

According to a January 17, 2023, press release, Yara Clean Ammonia has been nominated as a potential supplier to supply up to 500 kilotons (kt) of clean ammonia to JERA’s Hekinan Thermal Power Plant Unit 4 in Hekinan City, Aichi Prefecture, Japan.[1] This is JERA’s first commercial-scale co-firing project. The sale and purchase of clean ammonia for 20% co-firing operations is expected to start in 2027. The expected required volume is up to 500,000 metric tonnes per year (mtpa). The two companies also plan to collaborate on blue ammonia production in the U.S. Gulf Coast and to produce more than 1 million mtpa.

Yara Clean Ammonia, headquartered in Oslo, Norway, works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production, and ammonia for industrial applications. The company operates the largest global ammonia network with 12 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. JERA is an equal joint venture of two major Japanese electric power companies, Tokyo Electric Power Company (TEPCO) Fuel & Power Incorporated and Chubu Electric Power Company. The company produces about 30% of Japan’s electricity and handles 35 million tons of LNG annually. JERA aims to achieve net zero carbon emissions by 2050.

[1] https://www.yara.com/news-and-media/news/archive/2023/yara-clean-ammonia-and-jera-announce-a-mou-for-joint-project-development-and-sales-purchase-of-clean-ammonia/

[Japan] Japan asks citizens to conserve electricity this winter

On November 1, 2022, Japan requested that households and companies conserve electricity within "a reasonable range" from December 1, 2022, to March 23, 2023, to alleviate a possible power crunch.[1] During the peak winter season, users will be asked to turn off unnecessary lights, wear additional layers of clothing indoors, and turn down their thermostats. In recent years, the country’s power supply has been tight, largely due to the slow restart of nuclear power plants following the 2011 Fukushima nuclear disaster. The Russian invasion of Ukraine has also disrupted global fuel supplies, adding further pressure. During a press conference, Trade Minister Yasutoshi Nishimura said, "The power situation remains severe though we expect to be able to secure the reserve ratio of 3% during the winter.” The trade minister also noted that other measures, such as rebooting idled power plants, making effective fuel procurement, and encouraging power conservation through a point program, were also being implemented.

[1] https://www.reuters.com/business/energy/japan-asks-households-companies-conserve-electricity-during-winter-2022-11-01/

[Japan] Pattern Energy closes financing on Japan’s largest offshore wind power+storage project, begins construction

On September 9, 2022, Pattern Energy Group and its affiliate in Japan, Green Power Investment Corporation (GPI), announced it had completed financing and begun full construction of its 112 MW Ishikari Offshore Wind project. Ishikari Offshore Wind is located about 3 km from the shore of Ishikari Bay in Hokkaido, Japan, and will feature a battery storage component with 100 MW x 180 MWh of capacity. The project and associated battery storage are expected to reach commercial operation in December 2023. The project has a 20-year power purchase agreement (PPA) with Hokkaido Electric Power Network for 100% of the power output. Ishikari Offshore Wind will utilize 14 Siemens Gamesa 8.0 MW wind turbines. The turbines are designed to meet local codes and standards regarding typhoons, seismic activities, 50 Hertz operation, and operation in high and low ambient temperatures. The turbines and associated supporting structures received ClassNK certification, which confirms that they meet the technical standards required by the Japanese government to approve construction.

Including Ishikari Offshore Wind, Pattern Energy has eight renewable energy facilities in Japan, either in operation or under construction. The other facilities include three onshore wind power facilities and two solar power facilities in operation, and three wind power facilities under construction.

[Japan] PM Kishida considers development of new nuclear reactors

On August 24, 2022, Japanese Prime Minister Fumio Kishida said the country will restart more idled nuclear power plants and consider developing safer, smaller nuclear reactors, signaling a renewed emphasis on nuclear energy a decade after the Fukushima disaster.[1] PM Kishida also said the government would look at extending the lifespan of existing reactors. The prime minister made the announcement at a "green transformation" conference focused on the country’s efforts to meet its environmental goals. The statement represents a policy shift; previously, the Japanese government has said it was not considering building new plants or replacing aging reactors.

Following the Fukushima nuclear plant disaster in 2011, most of Japan's nuclear power plants were taken offline for safety checks under tightened standards. Since then, utilities have set more than 20 reactors for decommissioning. Of the 33 reactors, 25 have been screened for safety checks by the Nuclear Safety Authority (NRA). Seventeen have been approved, but only ten have restarted. Japan’s government has previously announced plans to speed up restarts. It aims to have up to nine reactors restarted by winter 2022 to cope with energy constraints and to restart seven other reactors after summer 2023. The government also aims to extend the life of aging reactors to beyond 60 years from the initial 40 years.

[1] https://www.reuters.com/world/asia-pacific/japan-pm-call-development-construction-new-generation-nuclear-power-plants-2022-08-24/

[Japan] Mitsui and Mitsubishi cut value of their Sakhalin-2 LNG stakes by $1.7 billion

On August 2, 2022, major Japanese trade houses Mitsui & Co. and Mitsubishi Corp. said they had cut the value of their stakes in the Sakhalin-2 liquefied natural gas (LNG) project in Russia by a combined ¥217.7 billion ($1.7 billion), citing growing business uncertainty.[1] Mitsui and Mitsubishi cut their investment values by ¥136.6 billion to ¥90.2 billion and ¥81.1 billion to ¥62.3 billion, respectively, after Russian President Vladamir Putin signed a decree on June 30, 2022, to create a company to take over the rights and obligations of the project. Both companies said the move would have very little impact on their profits. Mitsui and Mitsubishi hold stakes of 12.5% and 10%, respectively, in the project.

The Japanese government has said that it will try to stay in the project but will move away from relying on Russian energy. Sakhalin-2 has an annual output capacity of about 10 million tons of LNG, with Japan importing around 6 million tons. Under the presidential decree, all assets rights linked to the project will be transferred to the new Russian company. Currently, state-owned Gazprom has a 50% plus one share stake in the project while Shell owns 27.5% minus one share, though in February 2022, Shell said it would exit the project.

[1] https://www.reuters.com/business/energy/japans-mitsui-mitsubishi-shave-17-bln-off-sakhalin-2-lng-stakes-2022-08-02/

https://www.japantimes.co.jp/news/2022/08/03/business/corporate-business/sakhalin-2-stakes-mitsui-mitsubishi/

[Japan] Major train company in Japan announces switch to 100% renewable energy

As reported in Associated Press (AP) on April 27, 2022, Tokyu Railways’ network of seven train lines and one tram service was switched to renewable energy sources starting April 1, 2022.[1] Green energy is being used at all of its stations, including for vending machines, camera screens, and lighting. Tokyu employs 3,855 people and connects Tokyo with Yokohama. The company operates more than 64 miles of railway tracks serving 2.2 million people per day. It is the first railroad operator in Japan to have reached 100% clean energy. The company says the carbon dioxide reduction is equal to the annual average emissions of 56,000 households. According to AP, the train operator paid an undisclosed amount to Tokyo Electric Power Co. (TEPCO) for certification of its use of renewables. The renewable sources used for Tokyu’s operations include hydropower, geothermal, wind, and solar according to TEPCO. Tokyu Assistant Manager Yoshimasa Kitano said, “We don't see this as reaching our goal but just a start.”

[1] https://apnews.com/article/technology-science-business-yokohama-japan-e16b51384eed8be69c10cc11d0810a4e

[Japan] METI and utilities issue warnings about tight energy supply in Tokyo, Tohoku

On March 21, 2022, Japan’s Ministry of Economy, Trade and Industry (METI) issued a warning over tight energy supply and asked people in Tokyo and Tohoku to save electricity.[1] The warning followed Tokyo Electric Power Company’s (TEPCO) announcement earlier in the day that a power shortage was possible due to cold weather and the suspension of some thermal power plants due to a powerful earthquake that hit northeastern Japan the week before on March 16, 2022. The earthquake stopped operations at six thermal plants, and the damage could leave some of them idle for weeks or months. The company requested customers to turn off unnecessary lights and set their heating at 20 C (68 F) to save electricity. Tohoku Electric Power also called on customers to limit their electricity usage. Late on March 22, 2022, METI said the country appeared likely to avoid blackouts but said they were keeping the power supply warning in place for the following day.[2]

[1] https://english.kyodonews.net/news/2022/03/b5e753617d95-japan-issues-warning-over-tight-energy-supply-in-tokyo-other-areas.html

[2] https://www.reuters.com/world/asia-pacific/japan-sees-partial-blackout-after-first-ever-power-supply-warning-2022-03-22/

[Japan] JERA and West Holdings reach agreement to develop 1 GW of solar capacity in Japan

JERA, Japan’s largest thermal power producer, and West Holdings, a solar power engineering firm, announced on February 2, 2022, that they had reached an agreement to collaborate on solar power projects in Japan, with a target of 1 GW of generation capacity over the next five years.[1] According to JERA, the agreement includes a capital participation in West Holdings, though details are still being discussed. West Holdings will focus on developing solar projects at JERA’s former power plant locations in addition to new sites in Japan. The companies are expected to reach a final agreement by the end of March 2022.

If all the projects in the agreement are constructed, JERA said that it would be one of Japan’s largest solar power producers. Currently, JERA has 1,780 MW of renewable energy capacity, most of which is outside of Japan. The power producer has 800 MW of solar in India and a few small-scale ventures in Thailand, but no domestic projects. JERA aims to achieve net-zero greenhouse gas emissions by 2050 and increase its renewable power output to 5GW by 2025. West Holdings also aims to become carbon neutral by 2025 and to be involved in 2 GW of renewable energy generating capacity in Japan and overseas.

[1] https://www.jera.co.jp/english/information/20220202_845

[Japan] JAEA and Mitsubishi Heavy Industries to cooperate in Wyoming fast-reactor project

According to an article released by the daily Yomiuri on January 1, 2022, the Japan Atomic Energy Agency (JAEA) and Mitsubishi Heavy Industries are set to cooperate in a U.S. project to build a next-generation fast reactor in Wyoming.[1] The companies will sign a memorandum of understanding as early as January with Terrapower, an advanced nuclear power startup founded by Bill Gates, and the U.S. Department of Energy (DOE). Terrapower is set to start operating the nuclear reactor in 2028. The U.S. government will provide funding to cover half of the project’s estimated cost of $4 billion. The fast reactor will have an output capacity of 345,000 kW and will use sodium as a coolant.

The U.S. government and Terrapower are seeking partners in Japan because commercial-scale development of a fast reactor has not taken place for many years in the U.S. JAEA, which is affiliated with the Japanese government, operates the Monju prototype fast-breeder reactor in Tsuruga, Fukui Prefecture, and the Joyo experimental fast reactor in Oarai, Ibaraki Prefecture. The Monju plant is now in the decommissioning and dismantling process.  JAEA and Mitsubishi are expected to provide reactor-design technologies and reactor-operation data. According to the Japan Times, safety tests might be conducted at a JAEA facility.[2] Japan’s industry and science ministries will support preparations for the safety tests.

[1] https://www.reuters.com/markets/commodities/japan-help-build-bill-gates-high-tech-nuclear-reactor-wyoming-yomiuri-2022-01-01/

[2] https://www.japantimes.co.jp/news/2022/01/05/business/corporate-business/japan-us-next-generation-fast-reactor/

[Japan] Shizen Energy and Swancor Renewable Energy announce effort to jointly develop offshore wind in Japan

On December 8, 2021, Japan-based Shizen Energy and Taiwan-based Swancor Renewable Energy announced that they have agreed to co-develop offshore wind farms throughout the Kyushu region of Japan.[1] According to the press release, the joint venture will combine Swancor Renewable Energy’s technological strengths and experience in Taiwan, which has ocean areas geologically similar to Japan, and Shizen Energy’s  “developmental strengths in introducing renewable energy that embraces local conditions. The companies noted that Japan’s offshore wind market is gaining momentum. Among other things, in 2018, the Japanese government set a goal of increasing the share of renewables to 22-24% by 2030, and in 2021, the government increased this target to 36-38% by further strengthening measures. The new goal includes plans to introduce 10 GW of wind power, including both offshore and onshore wind power.

Both companies have a track record of developing renewable energy, with a focus on offshore wind. In 2012, Swancor Renewable Energy began developing the first offshore wind project in Taiwan. The company has been involved in the development of a cumulative total of approximately 5 GW of projects, including construction, operation, and maintenance. Swancor Renewable Energy’s Formosa 1 project, which went into operation in 2019, is the only offshore wind farm currently operating in Taiwan. Shizen Energy has developed approximately 1GW of renewable energy power plants in Japan, and its portfolio has expanded from solar to onshore and offshore wind, hydro, and biomass. The company has been involved in efforts to introduce offshore wind power in Japan, starting with its participation in a zoning project in 2016 and engaging in offshore wind power development off the coast of Chiba Prefecture.

[1] https://www.shizenenergy.net/en/2021/12/08/sre-se_partnership_eng/

[Japan] Enviva and J-Power sign agreement for biomass supply for coal-fired plants in Japan

On November 16, 2021, Enviva Partners LP, a U.S.-based global renewable energy company focused on sustainable wood bioenergy, and Tokyo-based utility Electric Power Development (J-Power) announced that they have signed a memorandum of understanding (MOU) for the long-term, large-scale supply of wood biomass from Enviva’s operations in the Southeast of the U.S. to J-Power’s coal-fired power plants in Japan.[1] Under the MOU, the two companies will work to develop a plan for Enviva to build new infrastructure to produce and deliver up to 5 million metric tons of sustainable wood pellets to permanently replace coal in J-Power’s existing coal-fired power plants. J-Power has a total of 8.4 GW of coal-fired power capacity. The companies will work to repurpose the facilities into both dedicated and co-fired biomass plants, resulting in over 80% greenhouse gas emission reductions for each site. Biomass provided by Enviva will be certified under the EU’s current sustainability criteria, which guarantees that the biomass is only sourced from sustainably managed forests.

The MOU is part of J-Power’s plan to meet its “Blue Mission” goal to be carbon-neutral by 2050. The company has also recently announced various plans, including a phase-out of aged thermal power plants, to be replaced with co-firing biomass or ammonia. Enviva also announced its own net-zero goal to reduce, eliminate, or offset all of its direct emissions by 2030.

[1] https://www.businesswire.com/news/home/20211116006425/en/Enviva-and-J-Power-Join-Efforts-to-Decarbonize-Power-Generation-in-Japan

[Japan] Japan approves new energy plan, aims to double renewables by 2030

On October 22, 2021, Japan’s Cabinet approved the Sixth Strategic Energy Plan, which sets out a framework for achieving the country’s pledge of reaching carbon neutrality in 2050.[1] A draft of the plan was introduced in July 2021 under the government of former Prime Minister Yoshihide Suga, who announced the 2050 target. No major revision was made during the draft stage. The new plan, compiled by the Ministry of Economy, Trade and Industry (METI) every three years, says renewables should account for 36% to 38% of total power production by 2030, up from the 18% recorded in fiscal year 2019. For nuclear power, the plan keeps the target from the 2018 plan, which called for the energy source to account for 20% to 22% of power production in 2030. In 2019, nuclear power made up 6% of total power generation because many nuclear plants have remained closed due to stricter safety rules introduced after the 2011 Fukushima nuclear disaster. The energy policy plan also includes a target for ammonia and hydrogen to account for about 1% of the electricity mix in 2030. Notably, the plan reduces the share of fossil fuels compared to the 2018 plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.

[1] https://www.meti.go.jp/english/press/2021/1022_002.html

[Japan] Eneos announces deal to acquire Japan Renewable Energy for $1.78 billion

On October 11, 2021, Eneos Holdings Inc., Japan's largest oil refiner, announced it had reached a deal to acquire Japan Renewable Energy (JRE), a renewables developer and operator, for about 200 billion yen ($1.78 billion/EUR 1.55 billion) to expand its low-carbon business.[1] Under the deal, JPE will be a wholly-owned subsidiary of Eneos in late January 2022. Eneos will buy JRE from the infrastructure arm of U.S. investment bank Goldman Sachs and Singaporean sovereign wealth fund GIC. The agreement is the first big purchase of a renewables firm by a top Japanese oil company.

Founded by Goldman Sachs in 2012, JRE has 708 MW in renewable energy assets, including those under construction on an equity basis. Most of JRE's portfolio consists of solar, onshore wind, and biomass, with some offshore wind projects under development. After the agreement, Eneos' renewable assets will reach 1,220 MW. The deal will enable Eneos to meets its target of having over 1,000 MW of renewables in Japan and abroad by March 2023. The deal will also help Eneos reach its goal to achieve carbon neutrality by 2040.

[1] https://www.reuters.com/business/energy/eneos-says-buy-japan-renewable-energy-177-bln-2021-10-11/

https://www.japantimes.co.jp/news/2021/10/12/business/corporate-business/eneos-japan-renewable-energy/