[Japan] Project financing for Seagreen Offshore electricity transmission project in UK

As of March 10, 2025, the Japan Bank for International Cooperation signed on March 6 a loan agreement with Seagreen Phase 1 of OFTO Project Limited (Seagreen), a British company invested in by Kyuden International Cooperation, Kyushu Electric Power Transmission and Distribution Co., Inc., and Equitix Investment Management Limited of the United Kingdom. [1] JBIC will provide project financing up to approximately GBP283 million (JBIC portion) for an offshore electricity transmission project for Seagreen offshore wind farm in the UK. Co-financed with Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., and Aviva Life & Pensions UK Limited, the total amount goes to approximately GBP568 million. Seagreen will own and operate the facilities for offshore electricity transmission located about 27 km off the east coast of northeast Great Britain. Seagreen will also transmit the electricity generated by the wind farm, with total generation capacity of 1,075 MW, to the National Grid for 24 years. The expertise gained from the electricity transmission service for the offshore wind farm is expected to be utilized in future projects in Japan and other countries in addition to the UK.

[1] https://www.jbic.go.jp/en/information/press/press-2024/press_00151.html

[Japan] Kansai and Iberdrola agree to expand global strategic alliance

As of February 21, 2025, Kansai Electric Power Co. (Kansai), announced that it signed a new memorandum on global strategic collaboration with Iberdrola. [1] The strategic partnership aims to focus on renewables and transmission and distribution, with both companies accelerating global business development. Iberdrola is a major company in the renewable energy sector with a worldwide footprint in almost 30 countries. Kansai is collaborating with Iberdrola on joint investments in projects, including the Windanker offshore wind farm in Germany, and the UK distribution network (Electricity North West (ENW) group). This collaboration aims to expand its global business and contribute to the achievement of a zero-carbon society.

[1] https://www.kepco.co.jp/english/corporate/pr/2025/pdf/feb21_1.pdf

[Japan] Government of Japan cabinet decision on the Seventh Strategic Energy Plan

As of February 18, 2025, the Government of Japan made a Cabinet Decision on the Seventh Strategic Energy Plan after going through the public comment procedure and other processes. [1] The Strategic Energy Plan is formulated under the Basic Act on Energy Policy to show the basic directions for Japan’s energy policies. The Advisory Committee for Natural Resources and Energy began discussions on the Seventh Strategic Energy Plan in May of 2024 and presented the draft version of the plan on December 17, 2024. Most recently, a cabinet decision was made such that the GX2040 Vision and the Plan for Global Warming Countermeasures were approved, with the intention of furthering a stable energy supply, economic growth, and decarbonization simultaneously. The previous revision occurred in October 2021, with the newer one being implemented in light of the changing energy situation in Japan.

 [1] https://www.meti.go.jp/english/press/2025/0218_001.html

[Japan] NYK conducts biofuel trial on coal carrier for Tohoku Electric Power

As of February 9, 2025, NYK started a biofuel test run on its coal carrier Noshiro Maru, which is operated for Tohoku Electric Power Co., Inc. [1] This is the first time in Japan that a coal carrier has been used to test biofuel for a domestic power utility company. Mitsubishi Corporation Energy Co., Ltd. in the Keihin area facilitated the supply of the biofuel. Biofuels are made from organic resources (biomass) of biological origin, and are considered to produce virtually zero carbon dioxide (CO2) emissions when combusted. Since they can be used in heavy-oil powered ship engines, biofuels are considered a key means of reducing GHG emissions during the energy transition. Using biofuels in sea navigation also reduced Scope 3 GHG emissions generated by transporting customers’ cargo. NYK intends to continue introducing biofuels and reducing GHG emissions in their customers’ supply chains, while promoting decarbonization in maritime transport.

[1] https://www.nyk.com/english/news/2025/20250210_04.html

[Japan] Sumitomo Electric initiates project for redox flow battery system in the Oki Islands

As of February 5, 2025, Sumitomo Electric Industries, Ltd. has initiated a project for constructing a storage battery system using redox flow batteries (final scale: output 4,000 kW, capacity 12,500 kWh) in Ama Town, Oki County, Shimane Prefecture in Japan. [1] This storage battery system is an initiative that three parties – Chugoku Electric Power Transmission & Distribution Co., Inc., Ama Town, and como-gomo. company – have worked on under a subsidy from Japan’s Ministry of the Environment titled “Facility Introduction Support Project for Mainstreaming Renewable Energy in Remote Islands.” Sumitomo Electric plans to contribute to the promotion of carbon neutrality and the enhancement of resilience to disasters in the Oki Islands through the redox flow battery system. The aforementioned three parties will accelerate efforts to realize a decarbonized society in Ama Town through a tripartite public-private partnership. The project will build a next-generation power network that can respond to disasters, including independent power supply operation (microgrid) during emergencies. This initiative is also expected to contribute to renewable energy development in the Oki islands.

[1] https://sumitomoelectric.com/press/2025/02/prs013

[Japan] JERA and Yamato group sign agreement on renewable energy collaboration for decarbonizing logistics

As of January 8, 2025, JERA announced that it has signed a basic agreement with Yamato Transport related to collaboration on renewable energy equipment and its optimal utilization aimed at achieving decarbonization of logistics. [1] The Yamato Group has the goal of achieving net-zero greenhouse gas emissions by 2050 and a 48% reduction in emissions by 2030. Under the basic agreement with Yamato Transport, JERA’s subsidiary JERA Cross, acting as an aggregation coordinator, will support Yamato Energy Management in managing supply and demand operations to maintain a balanced volume of renewable and other energy. Furthermore, tracking renewable energy from electric vehicles and solar power generating equipment used at the sales locations of the Yamato Group is intended to enable more efficient utilization of renewable energy. JERA aims to achieve decarbonization of logistics by supplying the Yamato Group with 24/7 carbon-free energy.

[1] https://www.jera.co.jp/en/news/information/20250108_2103

[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] MOL, KEPCO sign MoU for joint study of liquefied hydrogen carrier

As of November 19, 2024, Mitsui O.S.K. Lines Ltd. (MOL) and the Kansai Electric Power Company (KEPCO) announced the signing of a memorandum of understanding (MoU) for the joint study of a liquefied hydrogen carrier. [1] This is the first such agreement between a shipping company and a power generation company in Japan regarding marine transport of liquefied hydrogen. The companies will conduct a detailed review of the optimal vessels and operations in the liquefied hydrogen supply chain and their safety. They will also analyze international laws and regulations related to the marine transport of liquefied hydrogen. MOL and KEPCO will continue to study the specifics of marine transport of liquefied hydrogen and work toward the establishment of a hydrogen supply chain and realization of a zero-carbon society.

[1] https://www.mol.co.jp/en/pr/2024/24118.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