[Japan] JERA announces retirement of its inefficient coal plants by 2030; goal of achieving net zero emissions by 2050

On October 13, 2020, JERA, On October 13, 2020, JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), announced that it will shut down all of its inefficient coal-fired power plants in Japan by 2030.[1] Shuttering inefficient coal plants is in line with the Japanese government’s policy, but this is the first time that a power company has announced that it will match that policy. The Japanese government has not set a definition of an inefficient coal-fired plant, but JERA said it sees inefficient plants as power plants that use “supercritical or less” technology. The company declined to say how many coal plants it will be closing due to competitive concerns.

JERA also announced that it aims to achieve net zero carbon emissions by 2050 to tackle climate change. To achieve this target, JERA plans to expand renewable energy through offshore wind farms while also using greener fuels like ammonia and hydrogen at its thermal power plants. The company intends to start a pilot program to use ammonia as a fuel with coal in mixed combustion at its Hekinan thermal power station in central Japan by 2030 and hopes to achieve 20% use of ammonia at its coal-fired power plants by 2035. Other measures of the plan include improving efficiency of gas-fired power plants and burning hydrogen in mixed combustion at gas-fired power stations.

[1] https://www.japantimes.co.jp/news/2020/10/13/national/power-firm-jera-shut-inefficient-coal-fired-plants-2030/

[Japan] TEPCO Power Grid Announced a Partnership Agreement on the Joint Development of New Digital Products and Services

On September 8, 2020, TEPCO Power Grid (Headquarters: Tokyo), in partnership with several Japanese companies, announced an agreement on the joint development and demonstration of new digital products and services in support of Japan’s Society 5.0 initiative. The Society 5.0 initiative, proposed by the Japanese Cabinet Office’s 5th Science and Technology Basic Plan in 2015, aims to achieve economic growth and address social challenges through a system that highly integrates cyberspace and physical space[1].[2] TEPCO Power Grid’s partners are Mitsui Sumitomo Insurance Group, a Japanese insurance company owned by MS&AD Insurance Group (Headquarters: Tokyo); NTT DoCoMo (Headquarters: Tokyo), a major Japanese telecommunication company; and Energy Gateway (Headquarters: Tokyo), an Internet of Things (IoT) platform solutions provider established by Tokyo Electric Power (TEPCO, Headquarters: Tokyo) in 2018.[3]

The partnership will collaboratively develop a variety of new digital products and services to tackle social challenges--including natural disasters, carbon emissions, and an aging population--by leveraging the four companies’ knowledge and expertise. By the end of FY2020, they will launch a demonstration test of new digital services to support disaster prevention and mitigation, energy savings, and remote monitoring to improve home-based senior and child care by collecting and analyzing residential energy consumption data to identify user behavior patterns and detect any anomalies. The test will be conducted through the DoCoMo IoT Managed Service, which provides customers with turnkey services, ranging from deployment to operations.

In the project, TEPCO Power Grid and Energy Gateway will be responsible for collecting power usage data and providing an application to control the sensors that collect data. NTT DoCoMo will support customers with the installation of IoT products at home and will provide post-installation monitoring services.[4] Mitsui Sumitomo Insurance will analyze power usage data and accident data to better understand fire risk, so that the firm can expand its insurance coverage and offer customers better discounts.[5]

[1] https://www8.cao.go.jp/cstp/english/society5_0/index.html

[2] https://onuglobal.files.wordpress.com/2018/05/japon_5basicplan_en.pdf

[3] https://www.energy-gateway.co.jp/company/summary.html

[4] https://www.nttdocomo.co.jp/biz/service/managed_services/

[5] https://www.tepco.co.jp/pg/company/press-information/press/2020/1552478_8615.html

[Japan] Hokkaido Electric Power Enters the City-Gas Retail Business in Hokkaido Prefecture

On August 18, 2018, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that it will enter the city-gas retail business[2] in Hokkaido Prefecture. It has registered HEPCO as a Gas Retailer based on the Gas Business Act, along with “Hokuden Gas” as a business trademark. Starting from October 1, 2020, HEPCO will supply gas to its customers in six cities in Hokkaido Prefecture, including Sapporo City, Otaru City, Ishikari City, Kitahiroshima City, Chitose City, and Eniwa City.

HEPCO is working on the creation of a secure system to ensure customer safety with affordable gas rate plans. For business customers, HEPCO will offer value-added energy related services, including energy audit service using the city-gas, in addition to delivering Liquefied Natural Gas (LNG).

HEPCO has become the seventh major utility company to register as a gas retailer after Japan’s deregulation of the city-gas retail business in April 2017, after Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), and Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture).[3]

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

[2] The city-gas retail business is equivalent to the natural gas retail business specializing in selling and supplying the gas to residential and commercial & industrial customers in the U.S.

[3] http://www.hepco.co.jp/info/2020/1250975_1844.html

[Japan] PXiSE and Toshiba sign agreement to microgrid projects in Japan

On September 22, 2020, PXiSE Energy Solutions (PXiSE) and Toshiba Energy Systems & Solutions (Toshiba ESS, Headquarters: Kanagawa Prefecture) announced that they have signed a Memorandum of Understanding (MOU) that provides a framework for collaboration on developing new project opportunities for microgrids with an initial focus on Japan and plans to expand to the global market.[1] Mitsui & Co., a Japanese company and PXiSE investor, will also participate in the venture. PXiSE, a Sempra Energy subsidiary based in California, produces a software-based microgrid control platform that can remotely and locally manage interconnected distributed energy resources (DER) and loads. The control platform works in real time, can be grid-connected or standalone, and is designed to efficiently dispatch resources to increase resilience of the system.

The companies believe that by combining Toshiba ESS’s energy system products and expertise in operating virtual power plants with PXiSE software they will be able to capitalize on the growing global need for more flexible and resilient energy systems. According to Guidehouse, a consulting firm formerly known as Navigant Research, the global microgrid market is expected to reach $40 billion by 2028 and total global microgrid capacity is expected to increase from 3.5 GW to 20 GW by 2028. Latin America represents the fastest growing market, but the Asia-Pacific region remains the largest overall market for microgrids and is expected to grow to 7.5 GW by 2028.[2]

[1] https://www.globenewswire.com/news-release/2020/09/22/2097286/0/en/PXiSE-Energy-Solutions-and-Toshiba-Sign-Agreement-to-Develop-Renewable-Energy-and-Microgrid-Projects.html

[2] https://microgridknowledge.com/microgrids-navigant/

[Japan] Osaka Gas Participates in the Three Rivers Natural Gas-Fired Power Plant Project in Illinois, U.S.

On August 25, 2020, Osaka Gas (Headquarters: Osaka) announced that it will participate in the Three Rivers Natural Gas-Fired Power Plant Project, which is in development in Illinois, U.S., through its wholly-owned subsidiary. On August 21, 2020, Osaka Gas signed an agreement to acquire 15% of the equity of Three Rivers from a subsidiary of Competitive Power Ventures (CPV), an Independent Power Producer headquartered in Silver Spring, Maryland, U.S. The transaction amount has not been disclosed, but according to Japanese media it is estimated to be worth several billion Japanese yen.

The facility is a 1,250MW natural gas-fired combined-cycle power plant with about 61% generation efficiency. The plant is expected to begin commercial operations in May 2023 and will produce and sell electricity in the PJM wholesale market, located in the eastern U.S.

Based on its long-term management vision and medium-term plan, “Going Forward Beyond Borders 2030”, Osaka Gas’s parent company, Daigas Group, will continue to explore overseas energy business opportunities and create a strong position in the U.S. as a priority market.[1] [2]

[1] https://www.osakagas.co.jp/en/whatsnew/__icsFiles/afieldfile/2020/08/24/20200825.pdf

[2] https://www.osakagas.co.jp/company/press/pr2020/1289500_43661.html

[Japan] Kansai Electric Power Developed an AI-based Self-Driving Robot for Thermal Power Plant Inspections

On August 25, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced that it had developed an AI-based self-driving robot for inspecting thermal power plants. KEPCO partnered with K4 Digital (Headquarters: Osaka) and Kanden Systems (Headquarters: Osaka) to develop the robot. K4 Digital is a digital technology solution company jointly established by KEPCO and Accenture Japan (Headquarters: Tokyo) in 2018.[1] Kanden Systems is KEPCO’s wholly owned subsidiary that provides energy IT solutions.

Field workers need to conduct on-site inspections of thermal power plants on a regular basis, which requires substantial time and effort. Since Japan expects to face a labor shortage due to the future retirement of a large number of older workers, utility companies are concerned that they will face a shortage of skilled workers to conduct regular inspections. KEPCO’s robot design aims to address this expected labor shortage.

KEPCO, K4 Digital and Kanden Systems have worked together to develop the robot since December 2018. A demonstration testing for the robot that began in Sakaiko Power Station, Osaka, in December 2019, had successful results. The robot is expected to be introduced in KEPCO’s power plants and offered to other utilities in 2021.[2] [3]

[1] https://www.kepco.co.jp/corporate/pr/2018/0801_1j.html

[2] https://www.kepco.co.jp/corporate/pr/2020/0825_1j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/0825_1j_01.pdf

[Japan] NEDO will Establish a Demonstration Research Site for Carbon Recycling Technology at Osaki Power Station

On August 5, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) announced that it will establish a demonstration research site to promote the commercialization of carbon recycling technologies. The facility will be built within Osaki Power Station, a coal-fired power plant owned by Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), located in Osakikamijima, Hiroshima Prefecture.

Osaki Coolgen[1], a clean coal technology subsidiary funded by EnerGia and Tokyo-based Japanese power producer J-Power, is currently demonstrating the feasibility of Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) and CO2 separation and capture technologies at the station with the support from NEDO. The decision to establish the new demonstration research site for carbon recycling technologies at the station is part of NEDO’s plans to aggregate multiple R&D capabilities at Osaki Power Station to accelerate the commercialization of carbon reduction technologies. NEDO will lead the establishment of the site in partnership with Osaki Coolgen.

NEDO will also fund the following additional projects to support the R&D and demonstration of CO2 utilization technologies.

·  Research and demonstration for producing concrete utilizing CO2 / EnerGia, Kajima, and Mitsubishi

·  Research and demonstration of synthesis technology for chemical products using carbon recycling / Kawasaki Heavy Industries, Osaka University

·  Development of Gas-to-Lipids Bioprocess / Hiroshima University, EnerGia

NEDO has provided total funding of approximately $5.7 million from FY2020 to FY2024 to support the creation of the demonstration research site and the three R&D projects.

NEDO’s funding for the site is part of a broader Japanese governmental effort to mitigate climate change through promoting carbon recycling technologies. In June 2019, the Ministry of Economy, Trade, and Industry (METI) issued a Roadmap for Carbon Recycling Technologies, which identified challenges and opportunities for the use of CO2 as fuel or raw materials.[2] In September 2019, METI established the Carbon Recycling 3C initiative, which identifies concrete activities that the Japanese government can carry out to accelerate the technological development of carbon recycling and utilization.[3] In January 2020, the Government of Japan issued the Innovative Environmental Innovation Strategy, which aims to develop technologies that will enhance global carbon neutrality and reduce CO2 emissions by 2050.[4][5]

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

[2] https://www.meti.go.jp/press/2019/06/20190607002/20190607002.html

[3] https://www.meti.go.jp/press/2019/09/20190925005/20190925005.html

[4] https://www.meti.go.jp/shingikai/energy_environment/kankyo_innovation/index.html

[5] https://www.nedo.go.jp/news/press/AA5_101342.html

[Japan] Kansai Electric Power Developed a Drone to Conduct Chimney Inspections for Thermal Power Plants

On August 6, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced that it has developed a drone that can be used to inspect the interiors of chimneys installed at thermal power plants.

Traditionally, workers had to set up a scaffold inside the chimney to inspect the interior to identify any deterioration. This work posed some significant risks for worker safety because the height of chimneys installed at thermal power plants can reach approximately 200m.

The use of drones was previously considered to be too difficult since Global Positioning System (GPS) is not available inside the chimney. However, the drone developed by KEPCO is equipped with Visual Simultaneous Localization and Mapping (SLAM), a mapping technology that can determine the position and orientation of the drone, as well as LiDAR, a method for measuring distances, in order to enable autonomous drone operation without GPS. It is the first time that Japan has developed a drone technology that can determine the position of a drone in a cylindrical space where GPS is not available.

In addition to improving worker safety, the drone is expected to reduce the time necessary to conduct inspections by approximately 90% and the inspection costs by more than 50%.

KEPCO partnered with Kanso (Headquarters: Osaka), a civil engineering consulting company, and Autonomous Control Systems Laboratory (Headquarters: Tokyo), an autonomous control solutions company, to consider marketing the drone to utilities and local governments.[1] [2]

[1] https://www.kepco.co.jp/corporate/pr/2020/0806_1j.html

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/0806_1j_01.pdf

[Japan] Japan and U.S. to conduct a study on methane hydrate extraction in Alaska

On September 9, 2020, a Japanese government source said Japan and the U.S. will conduct a year-long joint study in northern Alaska starting in April 2021 to produce gas from methane hydrate in permafrost.[1] Methane hydrate, an ice-like substance in which a large amount of methane is trapped within a crystal structure of water, is seen as a potential alternative source of energy to traditional fossil fuels. Reserves of methane hydrate have been confirmed to be in the seabed of Japan’s coastal water.

The joint study will be conducted by Japan Oil, Gas and Metals National Corporation and the U.S. National Renewable Energy Laboratory. They plan to conduct another test to manufacture methane gas in the Pacific in fiscal 2023 or later. According to the source, the Ministry of Economy, Trade and Industry (METI) is set to allocate funds in its request for the fiscal 2021 budget. The study comes as Japan plans a project aimed at commercializing the use of methane hydrate from Japan’s coastal waters by March 2028. Tokyo is trying to strengthen the development of its domestic energy resources while also promoting the use of wind power and other renewable sources. Tokyo is seeking to strengthen the development of domestic energy resources such as methane hydrate, while promoting the use of wind power and other renewable resources.

[1] https://www.japantimes.co.jp/news/2020/09/10/national/japan-methane-hydrate-alaska/

[Japan] JERA unveils 520MW offshore wind project in Japan

On August 24, 2020, JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), announced its plans to construct a 520 MW offshore wind farm in Hokkaido, Japan’s northernmost island.[1] The facility, called the Ishikari Bay Offshore Wind Farm Construction Project, will consist of up to 65 wind turbines and be located at least 2.5 km offshore from the cities of Ishikari and Otaru. The number of turbines may be lower if the power producers choose to go with a more powerful wind turbine. The project will also include the installation of an energy storage system. Once construction begins, the project will take 36 months to complete. According to JERA, the project location presents ideal conditions for bottom-fixed offshore wind power generation because of the favorable wind conditions, shallow seabed, and close connection to the power grid. JERA submitted a Planning Phase Environmental Impact Statement for the project to the Minister of Economy, Trade and Industry (METI). A public review process for the Environmental Impact Statement is now open and will end on September 24, 2020.

[1] https://www.jera.co.jp/english/information/20200824_524

[Japan] J-Power Concluded a New Share Subscription Agreement with Australian Renewable Energy Company Genex Power

Tokyo-based Japanese power producer J-Power announced on August 3, 2020 that it had concluded a new share subscription agreement with Genex Power, a renewable energy development company in Sidney City, Australia. Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia.

J-Power’s decision to invest in Genex Power is aligned with its business strategy to expand its renewable energy investments in both Japan and abroad. Australia has abundant renewable energy resources and the share of renewable energy in Australia is expected to increase in the future. The need for services and energy storage technologies is also expected to increase to accommodate higher levels of intermittent renewable energy sources.

J-Power has also signed a Technical Services Agreement with Genex Power to provide technical advice for the construction and operation of the Kidston Pumped Storage Hydro Project (K2-Hydro), located in northern Queensland. J-power will leverage the technical expertise that it has gained from Genex’s experience with pumped storage hydro power plant projects in Japan. Once completed, K2-Hydro is expected to have a capacity of 250MW.[1] [2]

[1] https://www.jpower.co.jp/news_release/2020/08/news200803.html

[2] https://www.jpower.co.jp/english/news_release/pdf/news200803.pdf

[Japan] METI and MLIT Held the First Meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation

On July 17, 2020, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly held the first meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation. In the meeting, the Council members discussed the state of wind power generation utilization in Japan and the potential challenges for expanding offshore wind power generation in the mid- to long-term.

Japan aims to increase the total share of wind energy generation from the current level of approximately 0.7% to 1.7% by 2030 as part of Japan’s 5th Strategic Energy Plan.[1] Under the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, which was enacted in April 2019, METI and MLIT have been making progress in designating sea areas for wind energy projects to achieve this goal.[2]

METI and MLIT established the council to collaborate with industry members to advance the systematic and continuous introduction of offshore wind power generation. The council also seeks to enhance Japan’s industrial competitiveness, build up domestic industrial clusters, and develop the infrastructure environment for the wind power generation industry. The council members consist of Japanese utility companies, including Kyuden Mirai Energy (Headquarters: Fukuoka Prefecture), TEPCO Renewable Power (Headquarters: Tokyo), and other major companies in the manufacturing, construction, and financial sectors.

During the first meeting, the council underscored the importance of enhancing the industrial competitiveness of the offshore wind power sector and reducing costs in order to make offshore wind power one of the main energy sources in Japan. The key measure discussed at the council meeting was to increase the investment in wind power generation. Currently, the lack of certainty in the wind generation market outlook is prohibiting investors from actively engaging in the sector. The council is committed to continue the dialogue with industry members to identify areas for public private collaboration to reduce investment obstacles, and to strengthen infrastructure, R&D, human resources, and public engagement.[3]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.
The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources aims to promote the utilization of wind power generation through measures such as the formulation of basic policies, designating maritime areas as targets of promotion projects, creating a certification system for plans related to the licensed use of such designated maritime areas.

[3] https://www.meti.go.jp/shingikai/energy_environment/yojo_furyoku/001.html

[Japan] Hokkaido Electric Power Network Selects Sumitomo Electric Industries’ Redox Flow Battery for Wind Power Generation

On July 14, 2020, Sumitomo Electric Industries (Headquarters: Osaka City, Sumitomo Electric) announced that its redox flow battery was selected for Hokkaido Electric Power Network’s (Headquarters: Sapporo City, Hokkaido Prefecture) wind energy grid interconnection expansion project. The project aims to connect fifteen wind power generation facilities, reaching a total capacity of 162MW.

In this project, Sumitomo Electric will install and maintain a redox flow battery with an installed capacity of 51MWh at Hokkaido Electric Power Network’s Minami-Hayakita Substation which is located in Yufutsu District, Hokkaido Prefecture. A redox flow battery is a type of battery storage that charges and discharges via the oxidation-reduction reactions (redox reactions) of metal ions in the electrolyte. Sumitomo Electric’s redox flow battery features a long life, high reliability, and durability to fire hazards.

The installation of Sumitomo Electric’s redox flow battery will begin in FY 2020 and is expected to be completed by the end of March 2022. The operational period is scheduled from April 2022 to March 2043. Prior to this installation, Hokkaido Electric Power Network has been conducting a large-scale demonstration project since 2015 using Sumitomo Electric’s redox flow battery at Minami-Hayakita Substation to test its operational reliability and safety. [1]

[1] https://sei.co.jp/company/press/2020/07/prs078.html

[Japan] Japan’s Agency for Natural Resources and Energy Held a Discussion About Phasing Out Inefficient Coal-Fired Power Plants

On July 3, 2020, the Ministry of Economy, Trade, and Industry (METI) announced its plan to develop specific measures for phasing out inefficient coal-fired power plants by 2030. The announcement was made by Hiroshi Kajiyama, the minister of METI, in a press conference.

Japan’s decision to phase out inefficient coal-fired power plants is described in the 5th Strategic Energy Plan[1] issued in 2018; however, no detailed implementation plans were developed thus far. Minister Kajiyama described the need to develop concrete steps towards phasing out inefficient coal-fired power plants and accelerating the implementation of renewable energy to achieve a decarbonized society while carefully balancing Japan’s energy mix with consideration of limited energy resources to ensure a stable energy supply. The minister said that he had ordered METI’s officials to start discussion to develop the phase out plans by the end of July 2020.

Following this announcement, on July 13, 2020, the Agency for Natural Resources and Energy’s Electricity and Gas Industry Committee held a meeting to discuss specific measures to phase out coal-fired power plants.  The discussion focused on addressing the following topics:

1)   Introduce new regulatory measures in order to phase out inefficient coal-fired power plants

2)   Create new mechanisms to promote the early retirement of inefficient coal-fired power plants while ensuring a stable energy supply

3)   Review the current utilization rules on transmission lines to implement measures to accelerate the expansion of renewable energy, while considering various specific regional conditions.

Currently, coal-fired power generation accounts for 32 percent of Japan’s energy mix and inefficient coal-fired generation accounts for 16 percent of the total. Japan plans to reduce the share of coal-fired power generation to 26 percent by FY 2030. Japan plans to continue supporting the long-term use of coal generation by promoting innovative technologies to enhance the efficiency of coal-fired power plants, including Integrated Coal Gasification Combined Cycle (IGCC), Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC), and Carbon Capture Utilization and Storage (CCUS). [2] [3] [4]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.

The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] https://www.meti.go.jp/speeches/kaiken/2020/20200703001.html

[3] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/pdf/026_03_00.pdf

[4] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/026.html

[Japan] J-Power Consolidates its Thermal Power Generation and Service under J-POWER Generation Service

Tokyo-based Japanese power producer J-Power announced on June 25, 2020, that it will transfer the operation of its thermal power generation plants to JPEC (Headquarters: Tokyo).[1] JPEC is J-Power’s wholly owned subsidiary that provides construction and maintenance services for power generation equipment.[2] JEPC will be renamed J-POWER Generation Service to reflect this change.

Since 2004, J-Power and JPEC have shared responsibility of operations and maintenance (O&M) of thermal power plants. However, in response to the rising competition introduced by the deregulation of the electricity market, J-Power plans to streamline its businesses to improve efficiency and reduce the cost of O&M by consolidating O&M under J-POWER Generation Service. In the long term, J-Power plans to strengthen its investment in renewable energy and overseas business development.

Starting in August 2020, the O&M for seven of J-Power’s Thermal Power Plants will be managed by J-POWER Generation Service. J-Power will integrate its Thermal Power Generation Department and Thermal Power Construction Department into the Thermal Energy Department, which will be responsible for developing the company’s strategy for thermal generation and maintaining and improving the thermal generation technology. J-Power will continue to be responsible for fuel supply and electricity sales. [3]

[1] https://www.jpec.co.jp/company/index.html

[2] https://www.jpec.co.jp/service/index.html

[3] https://www.jpower.co.jp/news_release/2020/06/news200625_4.html

[Japan] JERA, ADEME Investment SAS, and IDEOL Agreed to Jointly Invest in the Development of Commercial Scale Floating Offshore Wind Projects

JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo)  and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), 100% French state-owned infrastructure investment company ADEME Investment SAS (Headquarters: Angers City, France)[1], and the leading French floating offshore wind technology company IDEOL (Headquarters: La Ciotat, France) announced on June 22, 2020, that they have agreed to establish an investment vehicle that will finance the development and construction phase of several commercial-scale floating offshore wind projects around the world. This includes two upcoming wind farms in Scotland and France, which will use IDEOL’s patented Damping Pool technology. The three parties are in discussion to determine the details of the partnership, including the investment amount.

Offshore wind power generation technologies can generally be divided into  two types: fixed structures connected to the offshore foundations called “bottom-mounted foundations” and “floating-type” structures where the foundation is floating on the sea.[2] Floating-type offshore wind turbines, which can be installed even in deep water, have significant potential to help expand the use of renewable energy in the future. The three companies are therefore trying to better understand floating-type offshore wind power and accelerate its global development through this partnership.[3] [4]

[1] https://www.ademe.fr/en/about-ademe

[2] https://www.nedo.go.jp/news/press/AA5_100970.html

[3] https://www.jera.co.jp/information/20200622_508

[4] https://www.jera.co.jp/english/information/20200622_508

[Japan] NEDO and the Advanced Hydrogen Energy Chain Association for Technology Development Jointly Conducted the World’s First Global Hydrogen Supply Chain Demonstration Project

On June 25, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) and the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD, Headquarters: Yokohama City, Kanagawa Prefecture)[1] announced that they have conducted the world's first global hydrogen supply chain demonstration project, which transports hydrogen from Brunei Darussalam to Japan. NEDO is Japan’s largest public R&D funding organization specialized in innovative energy technologies. AHEAD was established in 2017 by four Japanese companies: global chemical engineering company Chiyoda (Headquarters: Yokomaha City, Kanagawa Prefecture)[2], Japanese shipping company Nippon Yusen (Headquarters: Tokyo)[3], and two Japanese trading companies, Mitsui & Co (Headquarters: Tokyo)[4] and Mitsubishi (Headquarters: Tokyo).[5] AHEAD is an association that supports hydrogen research in order to accelerate the development of hydrogen supply chains.

The project uses the "organic chemical hydride method" to build the hydrogen supply chain. Methylcyclohexane (MCH) generated in Brunei is transported by sea to Japan. The MCH is then separated into hydrogen and toluene at a dehydrogenation plant located in Kawasaki City, Kanagawa Prefecture. The toluene is then sent back to Brunei’s hydrogeneration plant and processed to re-bond with hydrogen.

The first MCH transportation process was carried out in December 2019. The dehydrogenation plant in Kawasaki City began extracting hydrogen from MCH in April 2020 and has been supplying hydrogen to the gas turbine of the Mizue power plant owned by Toa Oil (Headquarters: Kawasaki City, Kanagawa Prefecture) since May 2020.[6] In June 2020, the project began transporting the toluene processed by the Kawasaki dehydrogenation plant to Brunei. NEDO and the AHEAD will operate the demonstration test until the end of 2020 to evaluate the performance of the hydrogenation/dehydrogenation plant equipment and identify any issues.

NEDO has contributed to the development of hydrogen technology since FY2015. Through this project, NEDO intends to establish a large-scale hydrogen utilization system that can transport hydrogen from overseas and use it for Japan’s hydrogen power generation.[7]

[1] https://www.ahead.or.jp/jp/organization.html

[2] https://www.chiyodacorp.com/jp/about/profile/

[3] https://www.nyk.com/profile/profile/

[4] https://www.mitsui.com/jp/ja/company/outline/profile/index.html

[5] https://www.mitsubishicorp.com/jp/ja/about/profile/

[6] https://www.toaoil.co.jp/company/location.html

[7] https://www.nedo.go.jp/news/press/AA5_101322.html

[Japan] Hokuriku Electric Power and JFE Engineering Seeks to Expand the Use of AI-based WinmuSe System to Optimize Dam Operation

On June 12, 2020, Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture) and JFE Engineering, an engineering company headquartered in Tokyo, announced that they had jointly developed an optimal operating system for dams using AI (Artificial Intelligence) technology, which will help increase hydroelectricity power plants’ generation. The system mainly utilizes the WinmuSe, an AI-based water inflow forecasting application developed by JFE Engineering.

The two companies have jointly demonstrated WinmuSe at Rikuden’s Asaida Dam, located in Takayama City, Gifu Prefecture, since FY 2017. Its forecasting function was successfully improved through advanced analysis of large amounts of data related to Asaida Dam’s amount of rainfall and water inflow in past years. The results of the demonstration project showed excellent performance, with a high level of accuracy in forecasting water inflow. The project also confirmed that the system could be expected to increase the generation of hydroelectricity power plants by approximately 5 GWh per year.

Based on the results, Rikuden and JFE Engineering plan to apply the AI-based optimal operating system to other dams in the entire Jinzu River Water System, aiming to maximize their power generation.[1]

[1] http://www.rikuden.co.jp/press/attach/20061201.pdf

[Japan] Japan Business Federation Launched the Challenge Zero Project

Amid concerns about climate change, the Japan Business Federation, also known as Keidanren, announced on June 8, 2020 that it had launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Keidanren is an economic organization that represents a membership comprised of 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).

The Challenge Zero Project has been endorsed by over 130 participating companies and groups, ranging from energy companies and utilities to manufacturers, financial institutions, and retailers. Among them, some Japanese utilities and energy producers are part of the project: Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Prefecture), and Electric Power Development Company (J-POWER, Headquarters: Tokyo).[1]

Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges. Challenges are different for each member, such as developing CO2 utilization technology, improving the efficiency of reusing Electric Vehicles’ (EV) batteries, etc.[2] Keidaren and participating entities aim to contribute to CO2 emission reductions by addressing these challenges.[3] [4]

[1] https://www.challenge-zero.jp/jp/member/

[2] https://www.challenge-zero.jp/jp/casestudy/

[3] https://www.keidanren.or.jp/policy/2020/052.html

[4] https://www.challenge-zero.jp/jp/about/

[Japan] The Japanese Cabinet Approved the FY 2019 Annual Report on Energy (Japan’s Energy White Paper 2020)

On June 5, 2020, the Japanese Cabinet approved the Fiscal Year 2019 Annual Report on Energy, known as “Japan’s Energy White Paper 2020”, which was created by the Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI). In accordance with Article 11 of the Basic Act on Energy Policy (Act No. 71 of 2002), ANRE publishes and submits the white paper to the National Diet on an annual basis. It highlights the current energy trends in domestic and global markets, and provides a general overview of the major initiatives that were implemented in the previous fiscal year.

The FY 2019 Japan’s Energy White Paper emphasizes the following areas:

· The progress of the recovery and reconstruction in Fukushima Prefecture, such as supporting the victims of the nuclear accident, cleaning up contaminated water, and decommissioning of the Fukushima Daiichi Nuclear Power Plant

· Japan’s measures to strengthen the resilience of the energy infrastructure to the potential risks of damage by natural disasters, such as improving regional power networks

· Japan’s implementation of global warming countermeasures in accordance with the Paris Agreement

The White Paper also discusses the impact of COVID-19 on the global oil market and highlights the importance of ensuring a stable international crude oil market. In addition, it compares the current progress and situation of Japan’s CO2 emission reduction efforts to meet greenhouse gas reduction targets with the progress made by the European Union (EU) and other major countries, including the United Kingdom, the United States, France, and Germany. It notes that Japan ranked No. 1 in the G7 reduction rate of demand-based CO2 emissions from 2013 to 2015.[1] [2] [3] [4]

[1] https://www.meti.go.jp/press/2020/06/20200605002/20200605002-2.pdf

[2] https://www.oecd.org/sti/ind/carbondioxideemissionsembodiedininternationaltrade.htm

[3] https://www.meti.go.jp/press/2020/06/20200605002/20200605002.html

[4] https://www.meti.go.jp/english/press/2020/0605_001.html