[USA] NextEra Energy announces Real Zero plan to eliminate its carbon emissions by 2045

On June 14, 2022, NextEra Energy announced its Real Zero plan, which would eliminate carbon emissions from its operations no later than 2045 while leveraging low-cost renewables to increase energy affordability for its customers.[1] NextEra said the plan is the most ambitious carbon-emissions reduction goal by an energy producer and is the sector’s only goal not to require carbon offsets for success. The goal would transform the company’s generation fleet by eliminating all scope 1 and scope 2 carbon emissions across its operations while enhancing reliability, resiliency, affordability, and cost certainty for its customers.

To achieve its plan, NextEra has created a Zero Carbon blueprint, a carbon-emissions reduction plan. NextEra intends to help decarbonize the U.S. economy, a more than $4 trillion market opportunity, by increasing low-cost renewable energy deployment. The plan would generate only carbon-emissions-free energy from a mix of wind, solar, battery storage, nuclear, green hydrogen, and other renewable sources. The company has set interim milestones to reach carbon emissions reduction of 70% by 2025, 82% by 2030, 87% by 2035, and 94% by 2040, relative to 2005. A large portion of the company’s plan to decarbonize will happen within its subsidiary Florida Power & Light Company (FPL). As part of Real Zero, FPL's goal is to reach 36% decarbonized by 2025, 52% by 2030, 62% by 2035, 83% by 2040, and 100% by no later than 2045.

[1] https://www.investor.nexteraenergy.com/news-and-events/news-releases/2022/06-14-2022-130240303

[USA] AGA Report: Natural gas key for a net-zero transition

According to a new report released on February 8, 2022, by the American Gas Association (AGA), natural gas will be essential for meeting the U.S.’s net-zero emissions goals.[1] The report, called Net-Zero Emissions Opportunities for Gas Utilities, underscores the advantages of gas technologies and distribution infrastructure. It analyzed four pathways to achieve net-zero emissions by 2050. All four pathways included expanded efficiency initiatives, a shift to renewable and low-carbon gas, reduced emissions from natural gas operations and pipelines, carbon offsets, and negative emissions technologies. According to the report, the number of natural gas customers will grow in all the scenarios.

The AGA’s report found that scenarios that include natural gas and existing utility delivery infrastructure offer opportunities to incorporate renewable and low-carbon gases, help minimize customer impacts, maintain high reliability, improve overall energy system resilience, and accelerate emissions reductions. It also found that the U.S. can achieve significant emissions reductions by accelerating the use of tools like high-efficiency natural gas applications, renewable gases, and methane reduction technologies. Further, supportive policies and regulatory approaches will be essential for gas utilities to achieve net-zero emissions. According to the AGA, the industry has already made great progress in reducing emissions: there has been a 69% reduction in methane emissions since 1990 and a 47% reduction in residential emissions per customer since 1971. Improvements in natural gas efficiency and the growth of renewable energy have led to carbon dioxide emissions from energy sources hitting 30-year lows.

[1] https://www.aga.org/globalassets/research--insights/reports/aga-net-zero-emissions-opportunities-for-gas-utilities.pdf

[USA] Exelon subsidiary announces goal to achieve net-zero emissions by 2050

Exelon Utilities, a subsidiary of Exelon Corporation, announced its "Path to Clean" goal on August 4, 2021, which includes reducing its operations-driven emissions by 50% by 2030 compared to 2015 levels, and reach net-zero by 2050 as part of its efforts to address climate change.[1] Exelon Utilities is comprised of six utilities: Atlantic City Electric, Baltimore Gas & Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power, PECO, and Potomac Electric Power Company (PEPCO). Together, the utilities deliver electricity and gas to more than 10 million customers across five states and the District of Columbia. Exelon Corporation has previously met or exceeded three other emissions reduction goals spanning both its generation company and utilities.

Exelon Utilities' plans to meet the new goal include electrifying 30% of its vehicle fleet by 2025 and 50% by 2030, concentration technology and infrastructure investments on increasing energy efficiency and utilizing clean electricity for operations, and modernizing natural gas infrastructure to reduce methane leaks and increase safety and reliability. In addition, Exelon Utilities will aim to reduce emissions beyond its company by continuing to advocate for climate policies, partnering with state and local leaders to achieve community emissions goals, and piloting new grid technologies. The company will also continue to prioritize energy efficiency programs, which it says helped customers save money on their energy bills and reduced usage by 22.3 million MWh in 2020.

[1] https://www.exeloncorp.com/newsroom/exelon-utilities-announces-goal-to-achieve-net-zero-emissions-by-2050

[Japan] JERA announces carbon-free synthetic methane use study in the U.S.

On June 16, 2021, JERA, a joint venture between TEPCO Fuel and Power and Chubu Electric Power, announced that it had secured a grant from the New Energy and Industrial Technology Development Organization (NEDO), state-controlled research and development institute, to conduct a feasibility study on CO2 capture and methanation in the U.S.[1] The purpose of the study is to investigate the potential business case of producing carbon-free methane gas from hydrogen. The hydrogen would be generated from renewable energy and carbon captured from existing thermal sources in the U.S. Methanation enables the production of carbon-free LNG from carbon-free methane gas, allowing countries to utilize existing infrastructure to achieve low-cost decarbonization. The company’s subsidiary, JERA Americas, will conduct the feasibility study from June 2021 to February 2022. Under its “JERA Zero CO2 Emissions 2050” objective, the company is committed to cutting carbon emissions from its domestic and overseas businesses by 2050, promoting the adoption of greener fuels, and pursuing non-emitting thermal power.

[1] https://www.jera.co.jp/english/information/20210616_697

[World] 23 Governments launch Mission Innovation 2.0 to achieve Paris Agreement’s goals

On June 2, 2021, during the Innovating to Net Zero Summit in Santiago, Chile, 23 governments[1], including the U.S. and Japan, launched Mission Innovation 2.0, the second phase of the Mission Innovation initiative.[2] The Mission Innovation initiative was launched alongside the Paris Agreement at the 2015 COP21 conference to make clean energy affordable by accelerating investment, collaboration, and innovation. Since 2015, member governments, collectively responsible for over 90% of global public investment in clean energy innovation, have increased clean energy innovation investments by $18 billion.

As a part of the initiative, each member will develop National Innovation Pathways to describe their plans to encourage innovation to meet their climate and energy goals up to 2030. Mission Innovation 2.0 will initially focus on three “missions” to scale up “clean” hydrogen, zero-emission shipping, and renewable power systems in various locations. First, the Clean Hydrogen mission will be led by Australia, Chile, the U.K., the U.S., and the European Union, and aims to make clean hydrogen cost-competitive by reducing costs to $2/kg by 2030 by increasing research. The mission also intends to develop at least 100 geographic hubs for hydrogen production, storage, and end-use by 2030. Second, Denmark, the U.S., and Norway, together with the Global Maritime Forum and the Maersk McKinney Moller Center for Zero Carbon Shipping, will lead the Zero-Emissions Shipping mission, with the goal of zero-emissions ships making up at least 5% of the global deep-sea fleet by 2030. Third, the Green Powered Future mission, led by China, Italy, and the U.K., aims to demonstrate that power systems in various locations will be able to integrate up to 100% renewable energy by 2030. These missions will be underpinned by a new “global Innovation Platform” that will strengthen confidence and awareness in emerging technologies and maximize national investment impacts.

[1] Austria, Australia, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Morocco, the Netherlands, Norway, Saudi Arabia, Sweden, the United Arab Emirates, the United Kingdom, the United States of America, and the European Commission (on behalf of the European Union)

[2] http://mission-innovation.net/2021/06/02/decade-clean-energy-innovation-mi-6/#_ftn1

[Japan] Japan raises 2030 emissions reduction target to 46%

On April 22, 2021, the Japanese prime minister, Yoshihide Suga, announced the country's new target for cutting greenhouse gas emissions.[1] Prime Minister Yoshihide Suga said, "I have pledged to achieve a carbon-neutral society by 2050 and have made it a pillar of our growth strategies. Japan is now taking a giant step forward toward solving global challenges. In line with our goal for 2050, and as a more ambitious goal, we now aim to cut greenhouse gas emissions by 46% by 2030, compared with fiscal 2013 levels. In addition, Japan would further try to push the reduction as high as 50%." The 46% reduction will be a significant increase from the current 2030 target set 6 years ago of a 26% reduction from 2013. The prime minister acknowledged that the new target would not be easy and said, “In order to achieve the target, we will firmly implement concrete measures, while aiming to create a positive cycle that links the economy and environment and achieve strong growth.” Specifically, the plan calls for the maximized use of decarbonized power sources like renewable energy, stimulus measures to encourage investment, and the establishment of a "Green International Financial Center" to attract global funding, which is said to be worth 3000 trillion yen. It also calls for support for decarbonization within Japan and around the world, including Asian countries.

[1] http://www.kantei.go.jp/jp/99_suga/actions/202104/22ondanka.html

[USA] Biden administration sets a goal of 50% emissions reduction by 2030

On April 22, 2021, President Joe Biden announced that the U.S. will reduce greenhouse gas (GHG) emissions 50-52% below 2005 levels by 2030.[1] The goal was decided through a government process that included the National Climate Task Force, which was formed when the U.S. re-entered the Paris Accord. The 2030 goal advances previous targets set by former President Barack Obama to reduce emissions up to 28% below 2005 levels by 2025. While many details on the new 2030 emissions target have not been released, the plan is consistent with the administration’s efforts to reach net-zero emissions in the power sector by 2035. The announcement was made on the first day of the Leaders Summit on Climate, a two-day virtual summit hosted by President Biden that is expected to include 40 foreign leaders. The event also included executives from financial institutions like the World Bank, union officials, green energy companies, and entrepreneurs.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/

[USA] Biden’s budget proposal includes major increases in overall clean energy spending

On April 9, 2021, President Joe Biden sent a preliminary outline of his budget request for Fiscal Year 2022 to Congress.[1] The $1.52 trillion budget request included new climate change investments, totaling more than $14 billion more compared to FY2021, across nearly all agencies. This is the first time that a budget request has detailed funding of specific climate programs. The administration is requesting a 10.2% increase to $46.1 billion for the Department of Energy (DOE), a 21.3% increase to $11.2 billion for the Environmental Protection Agency (EPA), and a 16.3% increase to $17.4 billion for the Department of the Interior (DOI). At the DOE, funding for clean energy programs includes $1.9 billion to support the development of a new energy efficiency and clean electricity standard, provide local grants to incentivize clean energy workforce support, and support the development of streamlined transmission. For the EPA, funding requested by the administration includes $110 million to restore EPA staff capacity to pre-Trump administration levels and $1.8 billion in programs to reduce greenhouse gas emissions. Biden’s budget request for the DOI includes $450 million to remediate orphaned oil and gas wells, remediate mining sites, and develop new jobs.

Proposed clean energy spending in other agencies includes $6.5 billion to the Department of Agriculture to spur rural clean energy projects and $300 million to the General Services Administration to electrify its vehicle fleet. The budget request follows the April 2021 release of the administration’s $2 trillion infrastructure plan, which proposed a federal clean electricity standard[2] and expanding clean energy tax credits. Both the budget request and the infrastructure plan are intended to put the U.S. on a path to achieve net-zero emissions by 2050.

[1] https://www.whitehouse.gov/wp-content/uploads/2021/04/FY2022-Discretionary-Request.pdf

[2] A clean electricity standard requires a percentage of retail electricity sales to come from low- and zero-carbon electricity sources. The share of clean electricity typically increases with time. Clean electricity standards are similar to renewable portfolio standards, which require that a certain percentage comes from renewable sources.

[USA] FPL files 10-year plan that would expand emissions-free energy

Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, filed a Ten-Year Site Plan with the Florida Public Service Commission on April 1, 2021.[1] The plan includes opening a 409 MW solar-powered battery storage facility and seven new solar energy centers by the end of 2021. The solar-power battery storage facility, currently under construction in Manatee County, will be the largest facility of its kind in the world. According to FPL, zero-emissions sources will generate 40% of its power by the end of the decade, a more than 65% increase from 2020. Under the plan filed with the commission, FPL would install 30 million solar panels and have more than 11,000 MW of installed solar capacity by 2030. Currently, FPL is the state’s largest solar producer and has 40 solar energy centers in Florida. By 2030, FPL also plans to have 700 MW of battery storage, a 186% increase compared to 2021.

Regarding coal, FPL has shut down less efficient coal-fired units to save customers millions of dollars, and on January 1, 2021, the company closed its last remaining coal-fired plant in the state. FPL is also currently building the FPL Dania Beach Clean Energy Center, an ultra-efficient power plant in Fort Lauderdale. The company does not currently anticipate the need to build another new natural gas power plant through 2030. For nuclear, FPL plans to request that the Nuclear Regulatory Commission extend the licenses of St. Lucie Units 1 and 2, allowing for up to 20 additional years of operations.

[1] http://newsroom.fpl.com/news-releases?item=126215

[Japan] Kansai Electric Power, Chugoku Electric Power and J-Power Each Released 2050 Carbon Neutrality Roadmaps

On February 26, 2021, two Japanese electric utilities and one power producer-- Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), and J-Power (Headquarters: Tokyo)--each announced 2050 carbon-neutral realization roadmaps.

KEPCO’s Zero Carbon Vision 2050 envisions three key pillars to achieve its goal of carbon neutrality by 2050: demand-side carbon neutral strategies, supply-side zero emission management, and adjusting to a transition into a hydrogen society. It emphasizes the importance of accelerating the adoption of new technologies, including hydrogen, ammonia, and Carbon Capture Utilization and Storage (CCUS) which mainly focuses on carbon-recycling technologies. It plans to expand the deployment of ammonia mixed fuel combustion into its existing coal-fired power plants and will utilize CCUS to tackle the CO2 generated by existing plants. KEPCO will also increase the deployment of offshore wind power and distributed energy resources (DERs) as well as  develop next-generation advanced nuclear reactors.[1] [2]

EnerGia also aims to be carbon neutral by 2050 and has set a goal to increase its renewable energy output from 300MW to 700MW. Like KEPCO, EnerGia plans to reduce the CO2 emissions from its coal-fired power plants by utilizing CCUS technologies and an ammonia mixed fuel combustion method. In recent years, EnerGia has conducted a demonstration project for the method at Mizushima Power Station in Okayama Prefecture. Meanwhile, the company has been contributing to the development of hydrogen power through the Osaki CoolGen Project. The project, which has been operating since FY2012, aims to assess the feasibility of Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) and Integrated Coal Gasification Combined Cycle (IGCC).[3] [4] [5] [6] [7]

J-Power, Japan’s largest coal-fired power operator, aims to reduce its CO2 emissions by 40% by 2030, and be carbon neutral by 2050 by achieving the following goals:

·       Replace its old coal-fired power plants with hydrogen power plants

·       Accelerate the expansion of renewable energy, including onshore and offshore wind power and geothermal power, and increase their output from 9.5GW (FY2017) to 10.5GW by FY 2025

·       Promote the development of the Ohma Nuclear Power Plant Project

·       Improve power infrastructure for widespread introduction of renewable energy in the future[8] [9] [10]

[1] https://www.kepco.co.jp/corporate/pr/2021/0226_3j.html

[2] https://www.kepco.co.jp/corporate/pr/2021/pdf/0226_3j_01.pdf

[3] https://www.osaki-coolgen.jp/project/overview.html

[4] https://www.energia.co.jp/press/2021/13005.html

[5] https://www.energia.co.jp/assets/p20210226-1b.pdf

[6] https://www.energia.co.jp/assets/p20210226-1a.pdf

[7] https://sustainablejapan.jp/2021/02/27/j-power-kepco-carbon-neutral/59484

[8] https://www.jpower.co.jp/news_release/pdf/news210226_4-2.pdf

[9] https://www.jpower.co.jp/news_release/pdf/news210226_4-3.pdf

[10] https://www.jpower.co.jp/news_release/2021/02/news210226_4.html

[World] Report: Japan needs steep emissions reductions to reach decarbonization goals

On March 4, 2021, the International Energy Agency (IEA) published its Japan 2021 Energy Policy Review, which provides energy policy recommendations to help Japan achieve its clean energy transition.[1] In October 2020, the Prime Minister of Japan announced that Japan will aim to achieve net-zero greenhouse gas (GHG) emissions by 2050. However, despite making substantial progress in the last decade, Japan remains reliant on imported fossil fuels. Japan’s energy supply carbon intensity is among the highest of IEA member countries, according to the report. The IEA report makes several recommendations for reaching Japan’s 2050 carbon neutrality goal. The IEA says that Japan should develop several scenarios for decarbonization to prepare for the case that some low-carbon technologies are not deployed as quickly as expected. Japan should also establish market-based methods to encourage investments in efficient and low-carbon technologies. The IEA recommends that the government encourage investments in the electricity network and system operations to facilitate the large-scale deployment of variable renewable electricity sources. In the light of the January 2021 energy crisis, the IEA recommends advances in electricity and gas market reforms, including making the Electricity and Gas Market Surveillance Commission a more independent regulator. For nuclear, the IEA report recommends investing human and financial resources to accelerate the Nuclear Regulatory Commission’s safety reviews of nuclear reactors.

[1] https://www.iea.org/reports/japan-2021

[Japan] Japan Ministry of Economy, Trade and Industry Released a Roadmap for Expanding the Use of Ammonia

The Public-Private Fuel Ammonia Promotion Council, led by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), released an interim report on its work after holding its third meeting on February 8, 2021. From now on, the council will be held about once every six months to review the progress made by the public and private sectors.

In December 2020, METI issued the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050 and identifies fourteen policy priority areas, one of which is increasing the use of ammonia. Based on the Action Plan and the third meeting, the committee’s interim report highlights challenges and issues in expanding the use of ammonia and the roles of the public and private sectors to be addressed.

The interim report elaborates on the four key priorities to work towards the expansion of ammonia use, as follows:

1)   Stabilize the supply of fuel ammonia

2)   Reduce costs of ammonia utilization in terms of procurement, production, transportation, and storage

3)   Tackle CO2 emissions by adopting an ammonia mixed fuel combustion; and

4)   Advance the overseas expansion of the use of ammonia.

The interim report also formulates a roadmap for introducing and expanding the use of ammonia. The report has estimated that Japan will need 3 million tons of ammonia per year in 2030 and 30 million tons per year in 2050. The current price of ammonia in Japan is in the low 20s Japanese yen ($0.21 USD[1]) per Nm3, and the council aims to reduce the price to the high 10s yen ($0.18USD) per Nm3 by 2030.

The report has set 2030 and 2050 goals to meet Japan’s needs for ammonia. By 2030, Japan aims to introduce and deploy 20% ammonia mixed fuel combustion into coal-fired power plants. By 2050, Japan aims to increase the mixed fuel combustion ratio to nearly 50%. In the long term, Japan aims to establish a supply chain that will ensure a stable ammonia supply in Japan and overseas.[2] [3]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of February 23, 2021.

[2] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/20200208_report.html

[3] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/pdf/20200208_1.pdf

[Japan] Mitsubishi Heavy Industries Engine & Turbocharger Conducted a Combustion Test for a Pure Hydrogen Engine in Collaboration with AIST

On January 21, 2021, Mitsubishi Heavy Industries Group (MHI, Headquarters: Tokyo) announced that its subsidiary company, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET, Headquarters: Sagamihara, Kanagawa Prefecture), had conducted a combustion test for a pure hydrogen engine in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST, Headquarters: Tokyo), a Japanese research institute.

This combustion test installed a modified single cylinder gas engine (bore 170mm x stroke 220mm) made by MHIET at the AIST Fukushima Renewable Energy Institute in Koriyama City, Fukushima Prefecture. The test aims to validate and confirm certain conditions for combusting hydrogen without emitting CO2.

MHIET and the MHI Research and Innovation Center have jointly developed and produced the hydrogen engine by leveraging their knowledge of hydrogen combustion technologies, diesel engines, and natural gas engines. Since AIST has prior experience in developing large-scale, high-power, high thermal efficiency, and low NOx hydrogen engines, the research institute has been responsible for building and testing the hydrogen power generation facility, as well as collecting data from the test. Based on the test results, the hydrogen power output is expected to increase up to 340kW for a 6-cylinder engine and 920kW for a 16-cylinder engine. MHIET plans to conduct further tests and gather more data in order to build a multi-cylinder hydrogen engine with 1MW of output.

Both MHI and MHIET have prior experience in hydrogen R&D: MHI has been developing zero-CO2 emission products, while MHIET has also been developing hydrogen engines and has been partnering with AIST to conduct hydrogen engine combustion research since FY2019. MHIET plans to replace its gas engine generator with EBLOX, its triple-hybrid, self-sustaining power supply system, including a hydrogen engine generator. MHI has stated that it will continue to contribute to an energy-stable and carbon-free society by utilizing solar power, batteries, and hydrogen energy.[1]

[1] https://www.mhi.com/jp/news/210121.html

[USA] National Academies report maps path to zero-carbon goa

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.

[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.

[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[Japan] Federation of Electric Power Companies Established the 2050 Carbon Neutral Realization Promotion Committee

On December 18, 2020, the Federation of Electric Power Companies (FEPC, Headquarters: Tokyo[1])[2] announced that it has established the 2050 Carbon Neutral Realization Promotion Committee. FEPC is an industry organization of the electric utilities in Japan that supports the harmonization of electric development planning. The committee will consider and discuss solutions to overcome various barriers for electric power businesses to achieve Japan’s 2050 carbon neutrality goal, which was announced by the Suga administration in October 2020.

The Committee will discuss five significant issues for achieving carbon neutrality: 1) Maximizing the use of nuclear power; 2) Making renewable energy Japan’s main energy source; 3) Promoting the development of low-carbon thermal power generation and decarbonization technologies; 4) Innovating new technology development (technologies include hydrogen, ammonia, Carbon Capture Utilization and Storage (CCUS)), carbon recycling, and next-generation furnaces); and 5) Promoting electrification. Based on the discussions, the committee will create and publish a roadmap and action plan.

The major members of the committee include Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[3]), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Pref.), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Pref.), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Pref.), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.), Japan Nuclear Fuel (JNFL, Headquarters: Aomori Pref.[4]), Japan Atomic Power Company (JAPC, Headquarters: Tokyo), and J-Power (Headquarters: Tokyo).[5][6]

[1] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[2] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[3] http://www.hepco.co.jp/english/company/corporateprofile.html

[4] https://www.jnfl.co.jp/ja/company/about/

[5] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[6] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[Japan] Japan Gas Association Discussed Focus Areas for Japan’s Gas Industry to Transition to Carbon Neutral

On November 24, 2020, Michiaki Hirose, the Chairman of the Japan Gas Association (JGA, Headquarters: Tokyo), held a press conference to discuss the Japanese gas industry’s perspective on Prime Minister Suga's recent announcement to achieve a carbon neutral society by 2050. JGA is an industry association that promotes the development of city gas utilities in Japan.

JGA recognizes the importance of the goal to achieve a carbon neutral society and made a commitment to accelerate decarbonization efforts in the industry. It laid out the focus areas for the industry to meet the ambitious goal of transitioning to carbon neutral by 2050, while ensuring a stable energy supply. JGA’s priorities are:

1)   Promoting innovation in gas technologies: support innovation and the implementation of technologies such as hydrogen, methanation, biogas, and Carbon Capture Utilization and Storage (CCUS) that reduce CO2 emission and facilitate carbon recycling, while expand the use of carbon neutral Liquefied Natural Gas (LNG).

2)   Expand the use of natural gas and its applications: potential applications include the use of natural gas for balancing the grid to support the expansion of renewable energy and distributed energy systems, such as co-generation and fuel cells.

3)   Strengthen international cooperation: facilitate sharing of advanced gas-related technologies, including hydrogen, with the international community.

JGA expects that the future of the Japanese gas supply and infrastructure will change with as a result of technological advancement. JGA expects to see the development of infrastructure to support the production and transportation of methane gas produced from imported hydrogen. JGA also predicts that there will be increased use of methane produced through methanation in the urban and regional areas in Japan to ensure a secure carbon neutral energy supply. [1]

[1] https://www.gas.or.jp/newsrelease/20201124.pdf

[Japan] New Prime Minister of Japan sets goal to become carbon neutral by 2050

On October 26, 2020, in his first policy speech since taking office in September 2020, Japanese Prime Minister, Yoshihide Suga, set an ambitious target for his country to be carbon neutral by 2050.[1] According to Prime Minister Suga, achieving that goal will not only good for the world, but also for Japan’s economy and global standing. “Taking an aggressive approach to global warming will bring about a transformation in our industrial structure and economic system that will lead to big growth” in the economy, he said. The prime minister said he would accelerate research and development on key innovative technologies such as next-generation solar batteries and carbon recycling. He also promised a stable energy supply by conserving energy, maximizing the use of renewable energy sources, and promoting nuclear energy policies that place the highest priority on safety. He also plans to radically change Japan's long-standing policy on coal-fired power generation.

Japan is the world’s fifth-largest emitted of greenhouse gases. In 2018, Japan emitted 1.24 billion metric tonnes (1.36 billion US tons) of greenhouse gases, which was 3.9% less than 2017 and 12% less than its peak in 2013.[2] Previously, Japan had committed to going carbon neutral “at the earliest possible date,” and had a goal to reduce greenhouse gas emissions 80 percent by 2050.

[1] https://www.nytimes.com/2020/10/26/business/japan-carbon-neutral.html

[2] https://www.cnn.com/2020/10/26/asia/japan-emissions-target-2050-scli-intl/index.html

[USA] Report: Carbon price in PJM would cut emissions by 30%

According to a study released on October 28, 2020 by the consulting firm Energy + Environmental Economics (E3) and commissioned by the Electric Power Supply Association (EPSA), a national trade group representing competitive power suppliers, PJM Interconnection, the nation’s largest grid operator, could reduce greenhouse gas (GHG) emissions nearly 30% and save consumers $2.8 billion by 2030 by setting a modest carbon price.[1]

The report examined four scenarios: a Business as Usual (BAU) scenario that is representative of current policy; a Renewables Portfolio Standard (RPS) scenario where increased renewable generation is mandated; a Clean Energy Standard (CES) scenario that credits any form of qualifying clean power; and a Greenhouse Gas (GHG) Reduction scenario that places a price on carbon through a cap-and-trade program. Of these scenarios, the report found that the most cost-effective policies are ones directly target carbon emissions, either by placing a price on carbon or by placing a limit on electricity-sector carbon emissions. The report found that a carbon price of $10 per ton could reduce 80 million metric tons of GHG emissions in PJM. The study also found that current state policies that mandate low-carbon goals such as RPS are "costly and ineffective" at reducing emissions. These policies would increase system costs by over $3 billion per year by 2030 while only achieving 40 million metric tons of emissions reductions.

[1] https://www.eenews.net/assets/2020/10/29/document_ew_02.pdf

[Japan] Kansai Electric Power, Kawasaki Heavy Industries, and RITE Agreed to Build a Test Facility to Conduct CO2 Capture Demonstration Project

On September 24, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture); Kawasaki Heavy Industries (KHI, Headquarters: Tokyo)[1], a heavy machinery manufacturer; and the Research Institute of Innovative Technology for the Earth (RITE, Headquarters: Kyoto), a research institution that develops carbon dioxide capture and storage technologies[2], announced that they had reached an agreement to conduct a joint study on “Applicability to Capture Gas Generated by Coal Combustion using CO2 Solid Sorbents.”

KHI and RITE will work with KEPCO to build a pilot-scale test facility with a CO2 capture capacity of 40t-CO/day at KEPCO’s Maizuru coal-fired power plant to conduct the demonstration project. They were selected and financially supported by the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japan-based public funding organization that promotes the development and deployment of new clean energy technologies. The project marks the first demonstration test in Japan using solid sorbents for CO2 separation and capture at a thermal power plant. The method has the potential to significantly reduce the energy required for CO2 separation compared with conventional technologies.

The test facility is expected to begin the CO2 capture demonstration test in FY2022. KHI will be responsible for designing and constructing the test facility and conducting the CO2 capture and recovery test. KHI and RITE have been developing a solid absorber and a Kawasaki CO2 Capture (KCC) system for separating and recovering CO2 under the Carbon Dioxide Recovery Technology Practical Use Research Project, which was commissioned by the Ministry of Economy, Trade and Industry (METI) in FY2015. Since 2016, KEPCO has been collaborating with them toward the implementation of a pilot-scale tests to evaluate the durability and economic feasibility for solid sorbents at the Maizuru coal-fired power plant.

By leveraging the knowledge developed through the efforts of KEPCO’s engineering services branch, the Kansai-Value Creation Service (K-VaCS), KEPCO hopes to continue to contribute to the reduction of CO2 emissions and move towards a low-carbon society.[3] [4]

[1] https://www.khi.co.jp/corporate/outline.html

[2] http://www.rite.or.jp/en/about/outline/

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/0924_1j_01.pdf

[4] https://www.kepco.co.jp/corporate/pr/2020/0924_1j.html