[Japan] TEPCO Power Grid Partnership with NExT-e Solutions to Study Battery Storage Lifecycle Management

On July 17, 2019, TEPCO Power Grid announced a partnership with NExT-e Solutions, a Japanese energy battery management system company,[1] to study battery storage lifecycle management. Battery storage, such as the lithium-ion batteries used in vehicles, can be re-used to adjust the electricity supply and demand, and to balance frequency fluctuations. Currently, it is difficult to evaluate the battery storage’s performance after the first use, and there are not yet any methods to better maximize the use of battery storage.

 In this study, TEPCO Power Grid aims to build a battery storage lifecycle management platform to maximize the value of used battery storage and promote the re-use of battery storage. TEPCO Power Grid will leverage its knowledge of electricity supply and demand and the operation of battery storage as a part of the study. NExT-e Solutions will be responsible for the developing battery storage control technology and managing the Internet of Things (IoT) technology to collect, manage, and analyze the battery storage data.[2] 

[1] https://www.nextes.jp/service/?id=naiyo

[2] http://www.tepco.co.jp/pg/company/press-information/press/2019/1515883_8614.html

[Japan] Kansai Electric Power Acquires Shares of Electricity North West to Join Electricity Distribution Services in the United Kingdom

On July 30, 2019, Kansai Electric Power announced that it would acquire 17.67% of the total shares of Electricity North West Limited, an electricity distribution network operator in the United Kingdom.[1] It will be the first time for Kansai to participate in the electricity distribution network in Europe. Kansai Electric Power will be the first Japanese power utility company to invest in a large-scale electricity distribution network company that is currently in operation overseas.

The United Kingdom is expected to expand distributed energy resource and shift its primary source of heating from gas to electricity, as part of its goal to reduce greenhouse gas emissions. The country’s electricity distribution network is therefore required to be upgraded. Electricity North West Limited provides electricity to about 5 million customers in the Manchester to Cumbria area through a 57,000km distribution network. Kansai Electric Power will work with Electricity North West Limited to upgrade and maintain the local electricity distribution networks, while exploring for more business opportunities in the United Kingdom.[2]

[1] https://www.kepco.co.jp/corporate/pr/2019/pdf/0730_1j_01.pdf

[2] https://www.kepco.co.jp/corporate/pr/2019/0730_1j.html

[Japan] J-Power USA Development has ordered two M501 J-series air-cooled power turbines for the Jackson Generation Project in Illinois

Mitsubishi Hitachi Power Systems (MHPS) announced on July 1, 2019, that J-Power USA Development (J-Power), an international power generating company[1], has ordered two of Mitsubishi’s M501 J-series air-cooled (M501JAC) power turbines. The turbines will be used at the 1,298 MW Jackson Generation Project, a Gas Turbine Combined Cycle Power Plant (GTCC) that will be built in Elwood, Illinois. The facility is expected to begin commercial operations in April 2022. The electricity generated by the facility will be supplied through PJM, an energy market in the eastern U.S.

The Jackson Generation Project is the world’s first project to introduce a JAC-type gas turbine with air cooling for the combustor. The gas turbine will be operated at a turbine inlet temperature of 1,600°C, aiming to improve the plant’s efficiency and reduce greenhouse gas emissions. The project’s power generation can reach 64% efficiency, and it is anticipated to be 99.5% reliable. The project will also adopt Mitsubishi’s MHPS-TOMONI digital solutions platform to optimize power plant operations.[2]

[1] https://jpowerusa.com/about_japan/

[2] https://www.mhps.com/jp/news/20190708.html?_ga=2.69733648.1828284031.1563074247-236393945.1554096284

[Japan] Osaka Gas Singapore and Energy Pro Established OE Solar in Thailand

Osaka Gas Singapore, a wholly-owned subsidiary of Osaka Gas, announced on July 3, 2019, that it and Energy Pro Corporation, a solar power company in Thailand, had agreed to jointly establish OE Solar in Thailand. OE Solar will supply the electricity generated from solar energy to commercial and industrial customers in Thailand. OE Solar will install photovoltaic facilities on building roofs or grounds surfaces owned by its customers to produce electricity for a 15-to-20-year supply.

Daigas Group, which owns Osaka Gas, has expressed its intention to explore overseas energy business opportunities in “Going Forward Beyond Borders 2030”, its long-term management vision and medium-term plan. Daigas Group is targeting the Southeast Asian market and intends to increase its investment in the region. In accordance with Daigas Group’s goal to secure at least 1 GW of renewable energy by about 2030, the establishment of OE Solar will be Osaka Gas’s first involvement in a renewable energy generation project in Southeast Asia.

Thailand expects in its Power Development Plan 2018 that renewable energy will account for 20% (excluding hydropower imports) of all power sources in the nation in 2037. This is why renewable energy is attracting increasing attention in Thailand.[1]

[Japan] Advisory Committee for Natural Resources and Energy Held Meeting to Discuss Japan’s Energy Strategy

On July 1, 2019, Japan’s Strategic Policy Committee of Advisory Committee for Natural Resources and Energy held its first meeting in six months to exchange views on recent energy trends and to consider the progress of policies for energy conversion and decarbonization in Japan. The meeting was held after the G20 Ministerial Meeting on Energy Transitions and Global Environment for Sustainable Growth, which was jointly hosted by the Ministry of Economy, Trade and Industry (METI) and the Ministry of the Environment (MOE) on June 15 and 16.[1],[2]

During the meeting, the Agency for Natural Resources and Energy briefed the Strategic Policy Committee on the agreement that was concluded during the G20 Ministerial Meeting on the importance of energy conversion, and the concept of a virtuous cycle for the environment and growth. The Agency also reported on recent trends and changes in energy security issues, including the energy supply and demand, geopolitical risk, environmental awareness, energy technology, and Japan’s position on energy policy.  

After the briefing, the Strategic Policy Committee members gave their opinions on various issues. Given the rising tensions in the Middle East, the committee expressed the need to develop alternative plans to secure Japan’s crude oil supply without transiting the Strait of Hormuz, since currently about 80% of Japan’s crude oil supply transits through the area. Regarding the use of nuclear power, the committee raised its concerns about the lack of a clear strategy to promote nuclear power, despite the fact that the Japanese government has set a goal to expand nuclear energy from 20% to 22% of the country's energy mix by 2030. The committee also discussed the importance of technology innovation, such as IoT and digitalization, and emphasized that the government needs to consider how to promote innovation, solicit private investment, and utilize data, particularly for energy management and integration with other fields, such as the electrification of the transportation sector. [3]

[1] https://www.jaif.or.jp/190701-1

[2] https://www.meti.go.jp/press/2019/06/20190618008/20190618008.html

[3] https://www.enecho.meti.go.jp/committee/council/basic_policy_subcommittee/029/pdf/029_006.pdf

[Japan] Mitsubishi Hitachi Power Systems Established a New Company in the Philippines to Expand its Business Opportunities

Mitsubishi Hitachi Power Systems (MHPS) announced on June 24, 2019, that it had established “MHPS (Philippines) Plant Services Corporation (MHPS-PSC)” in the Philippines. Since MHPS already had a local boiler manufacturing factory in the Philippines, the launch of the MHPS-PSC aims to expand the company’s local business opportunities by providing services for thermal power plants.

MHPS has a lot of past experience with receiving orders and supplying equipment for thermal and geothermal generation facilities in the Philippines. There has been increasing local demand for the modernization of power plants and the associated efficiency improvements, due to the increased electricity demand as a result of economic growth. Accordingly, the MHPS established the MHPS-PSC in order to secure future opportunities to expand its business operations.

MHPS-PSC’s local parent company, MHPS-PLH, set up a head office and a boiler factory in Batangas City in southern Luzon, and the new head office of MHPS-PSC was established at a MHPS-PLH’s property. The MHPS-PSC began operating with about 50 employees, exploring business opportunities throughout the entire nation. Meanwhile, MHPS-PLH will assist MHPS-PSC by providing manufacturing and maintenance services from its own boiler factory. The two companies will work together on increasing their market share in Southeast Asia, taking fully advantages of synergistic effects.

[Japan] Chubu Electric Power, Keio University, and Hitachi Validated a Method to Detect Cyberattacks by Analyzing Darknet Communications

On June 18, 2019, Chubu Electric Power, Keio University, and Hitachi announced that they have validated a method to detect the evidence of difficult-to-identify cyberattacks by analyzing Darknet communications.[1] These efforts will contribute to preventing the potential damage caused by cyberattacks.

While digitalization has enhanced convenience in everyday life, it also increases the risks of cyberattacks. It is urgent for society to address cyber security challenges and strengthen the resilience of critical infrastructure. Accordingly, Keio University, Chubu Electric Power, and Hitachi have been studying Darknet communications since April 2017. After analyzing a vast number of Darknet communications, approximately 20 million cases per day, the study confirmed that the sign of cyberattacks could be identified by tracking and using correlation analysis on the communications made by multiple organizations.

[1] The darknet communications are online hidden communications that are designed specifically for anonymity.

[Japan] Japan, the EU and the United States Announced a Joint Statement on Cooperation on Hydrogen and Fuel Cell Technologies

On June 15, 2019, the Ministry of Economy, Trade and Industry of Japan (METI), the European Commission Directorate-General for Energy (EC, ENER) and the U.S. Department of Energy (US DOE) announced a joint statement on future cooperation on hydrogen and fuel cell technologies, promising to enhance the mutual cooperation among the three counties/regions. Japan, the EU, and the U.S. have been contributing to various efforts to develop hydrogen and fuel cell technologies for more than 30 years, and are global leaders in this field.

While the three governmental organizations have already been working with other countries through various international collaborations and partnerships, they decided that this new collaboration will advance the research on hydrogen and fuel cell technologies. They will pursue how to effectively develop and implement a cooperation framework, based on their energy consensus on hydrogen technology. The framework would possibly be created through a memorandum of cooperation (MOC) in preparation for the 2nd Hydrogen Energy Ministerial Meeting, which will be held on September 25, 2019.

The proposed MOC would promote the development and deployment of hydrogen and fuel cell technologies, focusing on specific aspects under the “Tokyo Statement”, which was released at the Second Hydrogen Energy Ministerial Meeting held on October 23, 2018. These include promoting technical cooperation and harmonizing regulations, codes, and standards; facilitating international joint research and development on hydrogen, sharing information on hydrogen safety and the supply chain; investigating and studying hydrogen’s potential for reducing CO2 emissions and other emissions; and supporting communication, education, and outreach.

[Japan] Hokkaido Electric Power has Partnered with INDETAIL To Conduct Blockchain Electric Vehicle Platform Research

Hokkaido Electric Power and a Japanese blockchain company, INDETAIL[1], announced on June 6, 2019, that they have jointly conducted research on the construction of electric vehicle (EV) platforms.

With the widespread use of electric vehicles and plug-in hybrid vehicles (EVs), the research project aims to facilitate the development of a platform for the management of EV charging stations by utilizing blockchain technology and Internet of Things (IoT). These advanced technologies will provide EV charging station owners and users with value-added services to improve their convenience. Through the internet, the owners will be able to perform automatic payment procedures, check the charging status of each EV charging station, and set up flexible pricing; while users can check the location/availability of the EV stations and make reservations for EV charging stations through their smartphones.

In 2019, the project will design and simulate the system for the platform. The demonstration project will be carried out after 2020. Hokkaido Electric Power will analyze the current status of EV stations in Hokkaido and will identify the requirements for building an EV platform. Meanwhile, INDETAIL will provide consulting on the use of blockchain technology. Hokkaido Electric Power and INDETAIL plan to jointly file a patent application in June 2019.[2]

[1] https://www.indetail.co.jp/company/

[2] https://www.hepco.co.jp/info/2019/1240521_1803.html

[Japan] J-Power and Chugoku Electric Power Would Begin Examining the Potential for Carbon Recycling Technology through an Integrated Coal Gasification Fuel Cell Combined Cycle Demonstration Project

On June 5, 2019, J-Power[1], a Japanese power producer, and Chugoku Electric Power announced that they would begin examining the potential for carbon recycling technology through an Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) Demonstration Project conducted by Osaki CoolGen[2]. Osaki CoolGen was established by J-Power and Chugoku Electric Power, which aims to develop the next-generation clean coal technologies. It is also supported by Japan’s Ministry of Economy, Trade and Industry and the New Energy and Industrial Technology Development Organization (NEDO).

Based on the Paris Agreement, the Japanese government has been seeking to advance carbon recycling technology that uses CO2 as a resource, as a part of CO2 Capture, Utilization, and Storage (CCUS) technology. Osaki CoolGen’s IGFC Demonstration Project, as part of Japan’s efforts to contribute to CO2 emission reduction, plans to carry out a test of CO2 capture technology from this coming December to FY 2020. Based on the results, J-Power and Chugoku Electric Power will consider demonstrating the carbon recycling technology that can be deployed for a wide variety of purposes by using CO2 captured from coal-fired power plants. The project will also research how to liquefy and transport the collected CO2 to targeted facilities as well as how to utilize it in various applications, including the acceleration of biofuel production from microalgae, production of concrete materials containing CO2, etc.[3]

[1] http://www.jpower.co.jp/english/company_info/operations_in_japan/

[2] https://www.osaki-coolgen.jp/

[3] https://b2b-ch.infomart.co.jp/news/detail.page?IMNEWS1=1490873

[Japan] The Japanese Cabinet Approved the FY 2018 Annual Report on Energy (Japan’s Energy White Paper 2019)

On June 7, 2019, the Japanese Cabinet approved the Fiscal Year 2018 Annual Report on Energy, known as “Japan’s Energy White Paper 2019”, created by the Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry. In accordance with Article 11 of the Basic Act on Energy Policy (Act No. 71 of 2002), ANRE publishes the Japan’s Energy White Paper each year and submits it to the National Diet. The White Paper highlights the current energy trends in Japan and provides a general overview of major efforts/activities that were implemented in the previous fiscal year.

The 2019 White Paper covers the current progress of reconstruction in Fukushima Prefecture; the implementation of global warming countermeasures based on the Paris Agreement; and recently implemented measures to strengthen the resilience of the nation’s critical infrastructures. For the reconstruction efforts in Fukushima Prefecture, the Government of Japan has been tackling various challenges, including promoting the Fukushima Innovation Coast Framework[1], [2], rebuilding the reputation of local agricultural and fishery products, controlling contaminated water, and making decommissioning progress, such as removing fuel from Unit 3 of the Fukushima nuclear power plant.[3]

The White Paper also compares the current progress and situation of Japan’s CO2 emission reduction efforts to meet greenhouse gas reduction targets, with other major countries, including the United Kingdom, the United States, France, and Germany. It also analyzes the per capita CO2 emissions in OECD countries, as well as their renewable energy ratio and demand scale, with current activities to increase renewable energy sources deployment.[4] The White Paper also provides a brief overview of the recovery efforts for major disasters that occurred in 2018, including Typhoon #24 and the Hokkaido Eastern Iburi earthquake.[5], [6]

[1] After the Great East Japan Earthquake and the subsequent nuclear disaster, the Government of Japan developed and adopted the Fukushima Innovation Coast Framework in order to support the community to rebuild the region. The Framework aims to revitalize industry in the Hama-Dori area in Fukushima Prefecture.

[2] https://www.meti.go.jp/press/2018/01/20190123004/20190123004.html

[3] p. 5. https://www.enecho.meti.go.jp/en/category/whitepaper/pdf/2019_outline.pdf

[4] p. 9. https://www.meti.go.jp/press/2019/06/20190607001/20190606001-2.pdf

[5] p. 15. https://www.meti.go.jp/press/2019/06/20190607001/20190606001-2.pdf

[6] https://www.meti.go.jp/press/2019/06/20190607001/20190607001.html

[Japan] Keidanren Provides Comments on Japan’s Long-Term Growth Strategy under the Paris Agreement

Japan’s Ministry of Environment released a draft Long-Term Growth Strategy under the Paris Agreement on April 25, 2019. The released plan sets goals for industry and transportation sector to reduce CO2 emissions and achieve carbon neutral society. It aims to expedite the research and development of innovative renewable energy; promote novel financing of Environmental, Social, and Governance (ESG) and green investment; and facilitate international cooperation on green policies.[1] The Ministry sought public comments on the draft strategy from April 25th to May 16th, 2019[2].

On May 16, 2019, Japan Business Federation released its comments on the strategy. Japan Business Federation, also known as Keidanren, is an economic organization that represents a membership comprised of 1,376 domestic companies, 109 nationwide industrial associations and 47 of Japan’s regional economic organizations.[3]

Keidanren’s recommendations for the Long-Term Growth Strategy are for Japan to take a flexible approach toward its carbon reduction goal of 80% by 2050, which Keidanren views as an ambitious, long-term goal. Keidanren agreed with the Long-Term Growth Strategy on the importance of facilitating energy transformation through ensuring a balance of ‘Safety + Energy Security, Economy, and Environment (S+3E)’. However, Keidanren emphasized that it hopes that Japan will continue to use nuclear power and high efficiency thermal power alongside the development of next-generation transmission and distribution networks.  

In its comments, Keidanren opposes the implementation of carbon pricing, such as carbon taxes and emission trading, arguing that it is necessary to hold professional and technical discussions regarding carbon pricing, based on the impact on the industry. Keidanren is concerned that carbon pricing will weaken Japan’s competitiveness due to the higher energy costs, and that carbon pricing may disrupt innovation by diverting investments from R&D.[4]

[1] https://www.env.go.jp/press/files/jp/111437.pdf

[2] https://www.env.go.jp/press/106752.html

[3] https://www.keidanren.or.jp/profile/pro001.html

[4] http://www.keidanren.or.jp/policy/2019/043.html

[Japan] Kyushu Electric Power Acquired Shares of an Electricity Generating Public Company in Thailand

Kyushu Electric Power announced on May 14, 2019, that it would participate in the management of Electricity Generating Public Company (EGCO), one of the largest Independent Power Producers in Thailand, by indirectly acquiring about 6% of its shares.

Kyushu Electric Power purchased a 25% share of TEPDIA Generating B.V. (TEPDIA), a Thailand based power generation company, from Mitsubishi Corporation. TEPDIA owned a 24.57% share of EGCO. Kyushu Electric Power has endeavored to expand its overseas electricity business. The ownership of EGCO has contributed the company’s equity ownership in overseas electricity generation projects, which has reached approximately 2,300MW.[1]

In addition to Mitsubishi Corporation, JERA[2], a Japanese energy business company, also participates in EGCO’s management.

EGCO was established by the Electricity Generating Authority of Thailand in 1992 and currently operates 27 power plants (total equity ownership: 5,154MW) in six countries, including Thailand. EGCO has been focusing on renewable energy, such as solar, wind, hydro, and geothermal.

[1] http://www.kyuden.co.jp/press_h190514-1

[2] https://www.jera.co.jp/english/corporate/com_outline/

[Japan] Tokyo Electric Power Company Demonstrated its Remote Data Collection Capabilities for Maintenance and Inspection, Using an Underwater Vehicle and a Drone at Choshi Offshore Wind Farm

On May 14, 2019, Tokyo Electric Power Company (TEPCO) announced that it had completed a demonstration of its remote data collection capabilities for maintenance and inspection, using a remotely controlled underwater vehicle and a drone at the Choshi offshore wind power farm. The demonstration was conducted from November 2018 to January 2019 to examine the feasibility of automating remote maintenance and inspection activities for offshore wind farms. In the future, the use of autonomous underwater vehicles (AUV) and drones is expected to improve the efficiency of maintenance and inspection activities in harsh environments. 

The demonstration project confirmed that the underwater vehicle was able to be controlled remotely and take images under difficult conditions, such as in murky and/or turbulent water, at water depths of ​​20m or less. The drone test demonstrated that it can take images of turbine blades to inspect any damage or dirt while the wind turbines were turned off. Based on the results of the project, TEPCO will further examine how to improve the efficiency of autonomous underwater vehicles under severe conditions, and how to enable the use of drones while the wind turbine blades are running.

[Japan] Shikoku Electric Power and Shikoku Research Institute Launch Demonstration Project to Verify the Feasibility of Remote Control of Solar Power Systems Supplying Electric Water Heaters

Shikoku Electric Power and its subsidiary, Shikoku Research Institute[1], announced on May 22, 2019, that they will launch a demonstration project to examine the feasibility of remotely controlling solar power systems for supplying electricity to electric water heaters and EcoCute heat pump systems that are installed in its residential customers’ houses. EcoCute is an energy efficient electric heat pump system that generates hot water by recovering heat energy from air.

By forecasting the expected level of solar power generation for the next day, the project will shift some normal usage of customer electric water heaters from nighttime hours to daytime to use excess solar electricity produced during daytime. This shift is enabled by demand response technology developed by Shikoku Research Institute, and would lead to optimization of solar power generation operations as well as stabilization of power supply and demand. The project will collaborate with 40 customer households in Takamatsu City and the Chusan/Seisan area in Kagawa Prefecture. Data collection, analysis, and evaluation will be carried out over approximately one year beginning fall 2019. Data will be collected remotely about 60 times throughout this period, without any inconvenience for customers.

The project aims to verify the feasibility of the remote-control technology for solar power, as part of Shikoku Electric Power and Shikoku Research Institute’s efforts for improving effective energy utilization[2]

[1] http://www.ssken.co.jp/

[2] https://www.yonden.co.jp/press/2019/__icsFiles/afieldfile/2019/05/21/pr005.pdf

https://www.yonden.co.jp/press/2019/1190011_2420.html

[Japan] Hokuriku Electric Power Released its 2030 Long-Term Vision Plan and its Medium-Term Management Plan from 2019 to 2022

On April 25, 2019, Hokuriku Electric Power Company released its 2030 Long-Term Vision Plan, along with an implementation plan, the Medium-Term Management Plan from 2019 to 2022. The plans recognize the changing landscape of Japan’s energy industry and present a set of action plans for Hokuriku Electric Power Company to achieve sustainable growth. Hokuriku Electric Power Company serves customers in the northwestern part of Japan, in the Hokuriku region, which includes Toyama, Ishikawa, and part of Fukui and Gifu prefectures.

Japan’s energy industry has experienced significant changes caused by population decline, the introduction of emerging technologies such as IoT, AI, and EVs, environmental regulations for climate change, and by the intensifying competition led by the implementation of a deregulated electricity retail market. Hokuriku Electric Power expects further changes in the future and foresees the disruption of existing business models due to the adoption of innovative technologies and the growing awareness of the need to promote a sustainable society.

To accommodate the changes, Hokuriku Electric Power developed its 2030 Long-Term Vision Plan and its Medium-Term Management Plan from 2019 to 2022. The two pillars of the plans are 1) the expansion of a comprehensive energy business, including increasing clean energy generation capacity, maintaining a stable electricity supply, and increasingly providing more value-added services to customers; and 2) cultivating new growing businesses, including expansion into domestic and overseas business markets, new products, and service development.

[Japan] Tohoku Electric Power and Toshiba ESS Agreed to Conduct Joint Research on Peer-to-Peer Electricity Trading Between Individuals Using Distributed Energy Resources

On April 26, 2019, Tohoku Electric Power and Toshiba Energy Systems & Solutions (Toshiba ESS) jointly announced that they had agreed to conduct research on peer-to-peer (P2P) energy trading between customers who are using distributed energy resources (DER). The study will assess the potential business model for P2P energy trading as well as the impact on electrical distribution systems. Toshiba ESS, a subsidiary of Toshiba Corporation, was founded in 2017 to develop technologies, such as Internet of Things (IoT) and Artificial Intelligence (AI) to improve energy systems and services.[1]

As the use of renewable energy and energy storage expands, it is predicted that in the future customers will be more likely to engage in P2P energy trading systems to trade the excess energy generated from their home. However, the utility’s business model for P2P energy trading is still uncertain. In addition, the impact of the increasing P2P energy trading on electrical power distribution systems is unknown. Tohoku Electric Power and Toshiba ESS began this joint research project in order to better understand and address these issues.

As part of the project, Tohoku Electric Power and Toshiba ESS will test the effectiveness of blockchain technologies, which will be utilized to record energy transactions. The project team will also build simulation models for P2P energy trading to optimize the distribution infrastructure and its operation. The project aims to develop potential business models to prepare for the expansion of P2P energy trading. The research will be carried out until the end of March 2020.[2]

[1] https://www.toshiba-energy.com/en/company/about.htm

[2] https://www.toshiba-energy.com/info/info2019_0426.htm

[Japan] NEDO Initiated the Third Phase of an Integrated Coal Gasification Fuel Cell Combined Cycle Demonstration Project

New Energy and Industrial Technology Development Organization (NEDO) recently announced that it had initiated the third phase of an Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) Demonstration Project on April 17, 2019. The third phase of the IGFC Demonstration Project will focus on combining an Oxygen-blown Integrated Gasification Combined Cycle (IGCC) with CO2 capture technology and fuel cells, aiming to verify the system performance. This system will capture CO2 from syngas to produce hydrogen-rich gas to use as fuel. The project is being conducted by NEDO and OSAKI CoolGen Corporation, a joint venture company between Chugoku Electric Power and Electric Power Development Company (J-POWER).

In Japan, coal-fired power generation accounts for approximately 30% of the domestic power generation. However, coal-fired power generates more CO2 than other fossil fuels. NEDO has launched the IGFC Demonstration Project in order to explore opportunities to reduce CO2 emissions from coal generation in FY2018. The project aims to develop a commercial-scale IGFC system (500 MW-class) with approximately 47% Higher Heating Value (HHV) and a CO2 capture rate of 90 percent. The first phase of the project consisted of a demonstration of Oxygen-blown IGCC and the second phase included testing the IGCC with CO2 separation and capture technology. The IGFC Demonstration Project will run until FY2022.[1]

[Japan] Kansai Electric Power Will Provide Power Distribution and Retail Electric Business in New Clark City in the Philippines

Kansai Electric Power announced on April 4, 2019, that it has obtained electric power distribution services in New Clark City in the Philippines. Kansai Electric Power will work with Marubeni[1] (a major integrated trading and investment business conglomerate), Chubu Electric Power, and the Manila Electric Company (MERALC) to provide power distribution service in New Clark City for 25 years.

The Philippines is currently developing New Clark City, an industrial city which used to be a U.S. Air Force Base. The project is operated by the Bases Conversion and Development Authority (BCDA), a government-owned and controlled development corporation.[2] In order to support the development of New Clark City, the group led by Kansai Electric Power will be responsible for retail electric business activities as well as design, construction, operation, and maintenance of the power distribution system through smart grid technologies. Through its subsidiary KPIC Netherland, Kansai Electric Power also plans to establish a local power distribution company with Marubeni, Chubu Electric Power, MERALCO, and BCDA, and to invest in a 9% stake in the company.

The group is currently preparing for the installation of the power distribution system. The system is scheduled to begin operation at the end of November in 2019, when a biennial multi-sports event, the Southeast Asian Games, will be held. The project is the first time that Kansai Electric Power has joined the power distribution and retail electric business outside of Japan.[3]

[1] https://www.marubeni.com/en/

[2] https://bcda.gov.ph/about-us

[3] https://www.kepco.co.jp/corporate/pr/2019/0404_2j.html

[Japan] Chugoku Electric Power and Shikoku Electric Power with Other Partners Will Acquire a Total of 27% Stake in the Yunlin Offshore Wind Farm in Taiwan

On April 5, 2019, Chugoku Electric Power and Shikoku Electric Power announced that they would participate in the Yunlin Offshore Wind Farm project in Taiwan, through the acquisition of interests from a German-based large renewable energy developer, wpd A.G., in collaboration with other Japanese companies, including Sojitz Corporation and JXTG Nippon Oil and Energy.

The Japanese consortium will acquire a total of a 27% stake in the 640MW Yunlin Offshore Wind Farm project from wpd A.G.[1], which will secure the remaining 73% stake in the company. Sojitz Corporation, a Japanese trading company[2], will have a 9.1% stake in the wind farm. C&C investment, established by Chugoku Electric Power Company, will have a 6.75% stake. JXTG Nippon Oil and Energy[3], a Japanese petroleum company, will also have a 6.75% stake, and Shikoku Electric Power will have a 4.4% stake.

The wind farm is expected to begin operation in December 2021 and will supply power to the Taiwan Electric Power Company for 20 years at a fixed price. It is the first time for Chugoku Electric Power and Shikoku Electric Power to join the oversees offshore wind power business. Chugoku Electric Power and Shikoku Electric Power plan to continue to participate in new overseas projects and will work to improve their profitability.[4]

[1] http://www.wpd.de/en/wpd/profile/

[2] https://www.sojitz.com/en/corporate/profile/index.php

[3] https://www.noe.jxtg-group.co.jp/english/

[4] https://www.yonden.co.jp/press/2019/__icsFiles/afieldfile/2019/04/05/pr004.pdf