[USA] PG&E reaches 96% greenhouse gas-free electricity in 2022

Pacific Gas and Electric Company (PG&E) announced on March 20, 2023, that its customers received 96% of their electricity from greenhouse gas-free sources in 2022, making PG&E’s mix among the cleanest electricity portfolios in the world.[1] About 40% of PG&E’s total electricity mix came from renewable resources such as biopower, small hydroelectric, solar, and wind power in 2022. 49% of electricity came from nuclear power generated by Diablo Canyon Power Plant and 7% came from large hydroelectric power.

According to the press release, PG&E was the first energy company to support the California Global Warming Solutions Act of 2006, which set the stage for the state's transition to a sustainable, low-carbon future. PG&E is also planning to exceed the state's requirements under Senate Bill 100, which requires 60% renewables by 2030 and 100% renewables and zero-carbon resources by 2045. PG&E’s Climate Strategy Report outlines the company’s plan to meet California's carbon neutrality goals five years early in 2040 and remove more greenhouse gases than it emits by 2050. Going forward, PG&E plans to deploy thousands of battery energy storage projects through 2025 and beyond. PG&E has contracts for battery energy storage projects totaling more than 3,000 MW of capacity being deployed through 2025. The company is also working to enable electric vehicles to participate in vehicle-to-grid integration programs to support grid reliability and climate resilience.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=58e51c06-83b5-4c6e-bfb2-c10eeae99d59&ts=1679514345499

[USA] New report finds clean energy investments totaled $40 billion since the IRA passed

According to a new report released by the American Clean Power Association (ACP) on December 14, 2022, over $40 billion of new grid-scale clean energy investments have been announced over the last three months, equal to the entire amount invested in 2021.[1] The Clean Energy Investing in America report covers a period of growth between August 16, 2022, the day the Inflation Reduction Act (IRA) was signed, and November 30, 2022. The report found that 20 new grid-scale clean energy manufacturing facilities have been announced in the U.S., which are expected to add 7,000 jobs. Twelve of these facilities are solar manufacturing facilities, a more than a 300% increase in solar module manufacturing capacity in the U.S. In total, 13 GW of clean energy project capacity has been announced.

The ACP report also found that utility companies expect consumer savings of over $2.5 billion. These utilities attributed these savings to federal incentives that make new project investments less expensive. In the press release, ACP interim CEO and Chief Advocacy Officer JC Sandberg urged “the administration and Congress to continue improving trade policies, enacting common sense permitting reform and finalizing effective tax implementation” to ensure the investments reach their full potential.

[1] https://cleanpower.org/news/new-report-clean-energy-industry-sees-massive-investments-since-august/

[USA] Ford announces clean energy purchase with DTE Energy

On August 10, 2022, Ford Motor Co. announced that it has entered a clean energy power purchase agreement with DTE Energy.[1] Under the agreement, the utility will add 650 MW of new solar energy in Michigan for Ford, a nearly 70% increase in the amount of solar energy installed in Michigan. According to the press release, it is the largest corporate renewable energy purchase made with a utility in the U.S. DTE estimates that the construction of the solar arrays will create 250 temporary jobs and 10 permanent jobs. Through the agreement, every Ford vehicle manufactured in Michigan will be assembled with 100% clean energy by 2025, 10 years earlier than its company-wide goal.

Ford is purchasing clean electricity through the utility’s MIGreenPower program, one of the largest voluntary renewable energy programs in the U.S. To date, more than 600 businesses and 62,000 residential customers have enrolled in the MIGreenPower program. On an annual basis, program customers have enrolled 2.8 million MWh of clean energy in the program. The utility plans to add thousands of megawatts of new clean energy projects to support the program.

[1] https://media.ford.com/content/fordmedia/fna/us/en/news/2022/08/10/ford-motor-company-and-dte-energy.html

[USA] TVA announces request for 5 GW of carbon-free energy

The Tennessee Valley Authority (TVA), a federally owned electric utility cooperation[1], issued a request on July 12, 2022, for up to 5 GW of carbon-free energy that must be operational by 2029, representing one of the largest clean energy procurement requests in the U.S.[2] TVA will consider solar, onshore or offshore wind, hydropower, geothermal, biomass, nuclear, renewable gas, battery energy storage systems, and hybrid combinations. While the power would serve TVA’s seven-state territory in the Southeast, clean energy power could come from outside the region. The deadline for proposals is October 19, 2022. TVA said it will announce selected projects in the spring of 2023. TVA aims to reduce carbon from 2005 levels by 70% by 2030, 80% by 2035, and net zero by 2050. To achieve this goal, the agency is planning to bring an additional 10,000 MW of solar energy capacity online by 2035. Currently, TVA has about 35 GW to 38 GW of capacity daily through its own generation and power purchases from other places. In 2021, TVA got more than half of its electricity from carbon-free resources like hydroelectric and nuclear.

[1]  TVA covers all of Tennessee, portions of Alabama, Mississippi, and Kentucky, and small areas of Georgia, North Carolina, and Virginia.

[2] https://www.tva.com/newsroom/press-releases/tva-issues-one-of-the-nation-s-largest-requests-for-carbon-free-energy

[USA] New York approves transmission contracts for Clean Path NY and Champlain Hudson Power Express projects

New York Governor Kathy Hochul (D) announced on April 14, 2022, that the New York Public Service Commission (PSC) approved contracts with Clean Path New York for its Clean Path NY (CPNY) project and H.Q. Energy Services for its Champlain Hudson Power Express (CHPE) project to deliver solar, wind, and hydroelectric power from upstate New York and Canada to New York City.[1] CPNY is scheduled to come online in 2027 and will connect resources in the upstate and western regions of the state to NYC. CHPE is expected to come online in 2025 and will deliver power from Canada. State officials said that by 2030, the two projects will reduce NYC’s need for fossil fuel generation by 50%. Governor Hochul said the approval of the contracts is "a major step forward” in achieving the state’s goal of producing 70% of its electricity from renewable resources by 2030. The projects are also expected to deliver up to $5.8 billion in overall societal benefits and $8.2 billion in economic development across the state.

[1] https://www.governor.ny.gov/news/governor-hochul-announces-approval-contracts-deliver-clean-renewable-electricity-new-york-city

[USA] Report finds U.S. clean power surpassed 200 GW in 2021 despite slowing deployment

According to the American Clean Power Association’s (ACP) Clean Power Quarterly 2021 Q4 Market Report, the U.S. surpassed 200 GW of utility-scale clean power capacity in 2021 despite the installations falling 3% compared to 2020.[1] The report, released on February 15, 2022, stated that 27.7 GW was installed in 2021, representing $39 billion in investments across the sector. More than 11.4 GW of projects that were expected to come online in 2021 were pushed back until 2022 or 2023. For solar, this was due to trade policies and lack of regulatory certainty, while the solar sector faced policy uncertainty, including the expiration of tax credits for wind projects. The ACP warned that the pace of installations fell short of what is needed to achieve a net zero emissions goal of 2035. Although 2021 was the second largest year on record for clean energy, it is only 45% of what is needed each year to achieve the 2035 goal.

Overall, wind grew by 12,747 MW, solar grew by 12,364 MW, and battery storage grew by 2,599 MW. Texas deployed the most clean energy, with 7,352 MW of new capacity, while the next nearest was California, with 2,697 MW. The ACP report found that Texas accounts for 17% of clean power under construction or in advanced development, and California with 11%. Over 1,000 clean energy projects are under development, totaling 120,171 MW of new capacity. Power purchase agreements included 28 GW last year.

[1] https://cleanpower.org/news/u-s-surpasses-200-gigawatts-of-total-clean-power-capacity-but-the-pace-of-deployment-has-slowed-according-to-acp-4q-report/

[USA] Arizona Corporation Commission vote to reject 100% clean energy rules package

During a meeting on January 26, 2022, the Arizona Corporation Commission voted 3-2 to reject the adoption of a set of clean energy rules.[1] Included in the rules package was a proposal to require the state’s investor-owned utilities to provide all of their electricity from zero-carbon resources by 2070. In the interim, the package would have required utilities to cut their carbon emissions by 50% by 2032 relative to average emissions between 2016 and 2018. The package also included new demand-side resource standards and integrated resource planning reforms. In addition, the package would have expanded energy efficiency programs for Arizona Public Service (APS) and Tucson Electric Power (TEP). APS and private companies that do business in Arizona like Apple Inc., PayPal Holdings Inc., and Ikea have expressed support for the package.

Although the commission had previously voted in favor of the 100% clean power plan, the three Republican members ultimately voted against the package. Commission Chair Lea Marquez Peterson, R, cited cost concerns. Commissioner Jim O'Connor, R, also said state-level rules were not necessary as utilities have already made commitments to clean energy. Democrat commissioners Anna Tovar and Sandra Kennedy argued that the rules would cut customer bills and spur investments in clean energy.

[1] https://www.utilitydive.com/news/arizona-regulators-reject-100-clean-energy-rules-package-energy-efficienc/617823/

[USA] PSE announces new target of 63% clean energy by the end of 2025

On December 20, 2021, Puget Sound Energy (PSE), a utility based in Washington, announced a new goal of reaching 63% clean electricity by the end of 2025 and net-zero carbon by 2045.[1] In October 2021, PSE filed its draft plan to achieve those goals with the Washington Utilities and Transportation Commission (UTC). On December 17, 2021, the utility filed its final Clean Energy Implementation plan (CEIP), which further defines a course of action for clean electricity programs and investments for the next four years. The plans align with the state’s Clean Energy Transformation Act (CETA).

The updated plan projects that the utility will have 63% clean energy by the end of 2025, up from 59% in the October draft plan and 34% in 2020. The plan proposes removing coal as a source of electricity by the end of 2025. It also aims to ramp up utility-scale renewables like wind and solar generation and calls for nearly doubling the installation of distributed energy resources (DERs). The plan also creates more ways for customers to save energy and reduce costs through energy efficiency improvements. In addition, it introduces new programs and incentives to reduce or shift energy use during peak times. The PSE’s implementation plan is under review by the UTC, which will conduct a public comment period and review process before making a decision.

[1] https://www.pse.com/press-release/details/Puget-Sound-Energy-raises-target-for-expanding-clean-energy-goals

[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

[USA] Maine voters reject planned $1 billion transmission line, developer files lawsuit

On November 2, 2021, 59% of Maine voters approved an initiative, known as Question 1, to prohibit the construction of the New England Clean Energy Connect (NECEC) project.[1] The NECEC is a proposed transmission line developed by Avangrid to bring 9.45 million MWh of hydroelectric power from Hydro-Québec in Canada through Maine and into Massachusetts, helping both states meet their clean energy targets. The line would account for about 8% of the electricity used in New England. While the NECEC has support from clean energy advocates and the Biden administration, it has received backlash from many stakeholders. Competing energy companies argue that the transmission line will reduce energy and capacity prices in ISO-NE. Conservation groups, Canadian First Nations, and some state legislators say it could harm wildlife, tourism, and views in Maine.

In response to the vote, NECEC Transmission and Avangrid Networks, subsidiaries of Avangrid, filed a lawsuit in the Maine Superior Court on November 3, 2021, challenging the ballot initiative.[2] The lawsuit argues that the measure was unconstitutional and violates state and federal laws because NECEC has already received all necessary permits, and construction began earlier in 2021. The lawsuit asks the Superior Court to declare that the initiative was unlawful and unenforceable. In addition to Avangrid’s lawsuit, a spokesperson from Hydro-Québec said it is also exploring legal options in response to the ballot initiative.[3]

[1] https://www.pressherald.com/2021/11/02/statewide-and-town-by-town-maine-results-for-election-2021/

[2] https://www.necleanenergyconnect.org/necec-milestones/2021/11/3/necec-files-suit-challenging-constitutionality-of-question-1

[3] https://subscriber.politicopro.com/article/eenews/2021/11/04/1b-northeast-transmission-line-isnt-dead-developers-say-282803

[USA] ADNOC sells first blue ammonia cargo to Japan's Itochu

On August 3, 2021, Abu Dubai National Oil Company (ADNOC), the state-owned oil company of the UAE, announced that, in partnership with Fertiglobe, it had sold its first blue ammonia cargo to Itochu in Japan to be used in fertilizer production.[1] The agreement builds upon the Japanese Ministry of Economy, Trade and Industry's (METI) first fuel ammonia deal in cooperation with ADNOC in January 2021 to support the development of new UAE-Japan blue ammonia supply chains. Blue ammonia can be used as a low-carbon fuel in many different industrial applications, including transportation, power generation, and steel production, among other things. As a carrier fuel for hydrogen, which is hard to transport in its natural state, blue ammonia is expected to play an important part in Japan’s ongoing efforts to decarbonize its industrial sector.

In a statement, Masaya Tanaka, Executive Officer of Itochu Corp, said, "Starting with this trial of blue ammonia for fertilizer applications, we aim to create a wide range of ammonia value chains for existing industrial applications as well as future energy use. By collaborating with ADNOC and Fertiglobe, we expect to initiate and enhance our industrial portfolio in the fertilizer sector while achieving our commitments towards decarbonization activities in other industries."

Fertiglobe, a 58:42 partnership between Dutch chemicals company OCI and ADNOC, will produce blue ammonia at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi for delivery to ADNOC's customers in Japan. The Fertil plant has a production capacity of 1.2 million mt/year of ammonia and 2.1 million mt/year of urea. While the plant produces ammonia that is usually defined as “grey” ammonia, it will be fitted with CO2 liquefaction units. CO2 will then be transferred to and reinjected into underground reservoirs by the ADNOC Al Reyadah carbon capture and storage (CCUS) plant to enable the production of blue ammonia.

[1] https://www.adnoc.ae/en/news-and-media/press-releases/2021/adnoc-and-fertiglobe-partner-to-sell-uaes-first-blue-ammonia

[Japan] Japan sets new 2030 target for renewables

Japan's Ministry of Economy, Trade and Industry (METI) released a draft of its latest energy policy on July 21, 2021, which includes raising the share of non-fossil fuels for electricity generation to about 60% of total production by fiscal 2030—2.5 times the current level.[1] The first revision of the energy policy comes after Japan nearly doubled its 2030 target in April 2021 to 46% from 26% from 2013 levels. Mitsuhiro Nishida, METI’s director of energy strategy office, said that the revised 2030 energy plan is an "ambitious outlook on what needs to be done to fulfill the 46% reduction target.”[2] The policy draft says renewables should account for 36% to 38% of total power production by 2030, up from 22% to 24% in the previous plan. The draft plan keeps the target for nuclear power at 20% to 22% in 2030. Renewables and nuclear power made up 18% and 6% of total power generation in fiscal 2019, respectively. The draft basic energy policy also projects that ammonia and hydrogen will account for about 1% of the electricity mix in 2030. The new draft also reduces the share of fossil fuels compared to the previous 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.reuters.com/business/energy/japan-boosts-renewable-energy-target-2030-energy-mix-2021-07-21/

[2] https://www.spglobal.com/platts/en/market-insights/topics/hydrogen

[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

[Japan] EU and Japan commit to a Green Alliance to accelerate the energy transition

The European Union (EU) and Japan announced on May 27, 2021, that they are forming a Green Alliance to accelerate decarbonization efforts across both economies.[1] The alliance was finalized during the 2021 EU-Japan Summit, where the two parties discussed global issues such as climate change. Both the EU and Japan have goals of becoming carbon-neutral by 2050, and the Green Alliance will help both parties achieve these decarbonization goals.

There will be five priority areas for the Green Alliance. (1) Achieve a cost-effective, safe, and sustainable energy transition by deploying low-carbon technologies like renewable energy, renewable hydrogen, energy storage, and carbon capture, utilization, and storage (CCUS). (2) Strengthen environmental protection by promoting sustainable, circular practices in production and consumption. The parties will also contribute to the global goal of protecting at least 30% of both land and sea to conserve biodiversity. (3) Increase regulatory cooperation and business exchange between the two parties to drive uptake of low-carbon technologies and environmental solutions. (4) Consolidate existing collaboration on research and development (R&D) on decarbonization, renewable energy, and the bioeconomy. (5) Maintain leadership on international sustainable finance to help unite on a definition of sustainable investments. In addition to these priority areas, the EU and Japan also agreed to work together to promote cooperation on climate action in developing countries.

[1] https://ec.europa.eu/clima/news/eu-japan-green-alliance_en

[USA] Marine energy industry sets deployment goal of 1GW by 2035

In a new report released on April 14, 2021, the National Hydropower Association (NHA) announced new industry deployment targets of 50 MW by 2025, 500 MW by 2030, and 1 GW by 2035.[1] The report, titled “Commercialization Strategy for Marine Energy,” considers the accelerated commercialization of marine energy technologies that generate electricity from waves, tides, and currents in oceans and rivers, as well as from the ocean's heat cycles. The NHA report follows the release of a Department of Energy (DOE) report on marine energy released in February 2021 that found that the total marine energy resource in the U.S. is roughly equivalent to 57% of U.S. electricity generation in 2019. The NHA report argues that marine energy could be essential for remote areas of the U.S. dependent on fossil fuels by providing zero-carbon power generation without the need for expensive new transmission lines. Marine technologies could also help produce green hydrogen and could be a strong complement to more intermittent renewable technologies.

The NHA report calls for the federal government to accelerate the commercialization of marine energy technologies by increasing financial support for research development, reducing market barriers, and creating financial incentives for marine energy deployment. Specifically, the NHA is looking for substantial new investments in the DOE’s Water Power Technologies Office and the Navy Energy Program, which will accelerate technology demonstration, reduce costs, and increase technology adoption.

[1] https://www.hydro.org/wp-content/uploads/2021/04/NHA_MEC_Commercialization_Strategy_Marine_Energy.pdf

[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

[USA] Biden announces sweeping $2 trillion infrastructure plan

On March 31, 2021, President Joe Biden unveiled a $2 trillion, 8-year infrastructure plan, called the American Jobs Plan, which includes billions of dollars of investment in electric vehicles (EVs), transmission, and clean energy.[1] The plan is intended to create millions of new jobs, rebuild the country’s infrastructure, and position the U.S. as a global leader. According to the administration, the proposal would put the U.S. on the path to achieve 100% clean electricity by 2035 and a net-zero emissions economy by 2050. If signed into law, the plan would be one of the largest federal efforts to reduce greenhouse gas emissions.

Biden’s plan proposes investing $174 billion in EVs, $100 billion in the electric grid, $46 billion in clean energy manufacturing, and $35 billion in research and development to address the climate crisis. The proposal would also create a national Energy Efficiency and Clean Electricity Standard (EECES) to reduce electricity bills, increase market competition, encourage more efficient use of existing infrastructure, and boost carbon-free energy from existing sources like nuclear and hydropower. For tax credits, the administration proposes extending the tax credit phasedown by another decade and expanding tax credits to include a direct pay option for clean energy resources.[2] Biden’s plan also calls for the repeal of subsidies and foreign tax credits for fossil fuels.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/

[2] Expanding tax credits to include a direct pay option would allow tax credit holders to receive a direct cash payment from the U.S. Treasury instead of getting benefits through the tax equity market.

[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