[Japan] JCI member companies request renewable energy regulatory reforms during meeting with Japanese government

On Wednesday, November 18, 2020, the CEOs of Nissay Asset Management, Kao, Ricoh, and Sony, all members of the Japan Climate Initiative (JCI), had a meeting with Taro Kono, Minister for Administrative Reform & Regulatory Reform, to discuss regulatory reforms that will expand renewable energy.[1] During the meeting, JCI representative, Takejiro Sueyoshi, presented a proposal for regulatory reform on renewable energy expansion. According to the CEOs, about half of the energy used at European locations have already been switched to renewable energy, but in Japan, the companies cannot procure renewable energy as expected and therefore their renewable energy usage remains around 1%. Additionally, the companies’ customers are increasingly requiring that their products be made with 100% renewable energy. For example, Apple, a major customer of Sony, is calling for its manufacturing partners to switch to 100% renewables by 2030, but there is only limited renewable energy supply in the factory location. The companies acknowledged that if companies in Japan collaborate, it would be possible to accelerate the development of new technologies for decarbonization. It was also emphasized that the investment risk of renewable energy can be reduced with clear indication of Japanese government’s long-term energy policy. The CEOs requested Japan’s energy mix target of renewable energy by 2030 be set at 40% or more.

[1] https://japanclimate.org/english/news-topics/re-expansion-topleader/

[Japan] JERA Released its Vision for the Digital Transformation of Power Plants

On October 1, 2020, JERA released its vision to implement "Digital Power Plants,” which describes the firm’s plans to integrate digital technology to optimize the operation and maintenance (O&M) of thermal power plants. JERA is one of Japan’s major energy companies and was established through a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture). JERA has established a Digital Power Plant Promotion Office within its O&M Engineering Department to spearhead this initiative. 

JERA's broad vision for the realization of digital power plants is as follows:
·       Facilities and equipment will continue to evolve by adopting shared data platforms, standardization, and advancing their operational processes.
·       World-class O&M professionals will transform the way that power plants operate.
·       Power plant workers will shift their focus from time-consuming work to data-driven innovations.

JERA has already taken actions to digitalize its power plant O&M prior to the release of its digital power plants vision. Since January 2018, JERA has been remotely monitoring for signs of abnormalities at power plants through utilizing Internet of Things (IoT) sensors, which has resulted in fewer shutdowns and forced outages. In April 2020, JERA implemented an Artificial Intelligence (AI) solution to optimize the operation of a boiler at Hitachinaka Thermal Power Plant in Ibaraki Prefecture, which has reduced the plant’s environmental impact and fuel consumption.

JERA’s vision anticipates that future improvements to power plant operations will link real-time data collected from plant operations with the technology expertise and “Kaizen know-how” (continuous improvement) that JERA has developed over the years. Specifically, JERA’s digital improvements will enable existing plants to 1) improve operations through automated, remote inspections, 2) reduce O&M costs and enhance equipment reliability by optimizing the planned outages schedule and incorporating predictive maintenance, and 3) improve the power generation efficiency and reduce the consumption of chemical agents and electricity. JERA will offer its digital power plant solutions to power generation companies in Japan and overseas.[1] [2]

[1] https://www.jera.co.jp/information/20201001_535

[2] https://www.jera.co.jp/english/information/20201001_535

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

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

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

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

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

[Japan] Hokkaido Electric Power’s First LNG Cargo from the United States arrived at Ishikari LNG Terminal, Hokkaido Prefecture

On September 21, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that its first Liquefied Natural Gas (LNG) cargo ship, the Shinshu Maru, has arrived at the Ishikari LNG terminal at Ishikari Bay, Hokkaido Prefecture from Freeport City, Texas in the United States.

The newly arrived LNG will fuel HEPCO’s Ishikari Bay New Port Power Plant. The 70,000-ton LNG order is based on an LNG spot sales contract between HEPCO and JERA Global Markets (JERAGM, Headquarters: Singapore[2]), a group company of JERA (Headquarters: Tokyo) that specializes in LNG trades. JERA is a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture).

The Ishikari LNG terminal is operated by Hokkaido Gas (Headquarters: Sapporo City, Hokkaido Prefecture) and is shared with HEPCO. At the terminal, HEPCO owns the No. 3 tank, which was completed in July 2018, and the No. 4 tank, which is scheduled to be completed in October 2020. Once the No. 4 tank is completed, HEPCO will be able to accept imported fuel at a wide range of time periods, which will enable more flexible fuel purchases.

HEPCO decided to choose the U.S. as its LNG importer based on their desire to work with an attractive LNG supplier. Their decision took into account factors such as country’s stable political situation and its steady productivity of LNG, according to a Japanese media outlet. HEPCO will continue to combine long-term contracts with spot sales in order to ensure the stability of future fuel supplies.[3]

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

[2] http://www.jeragm.com/contactus

[3] https://www.hepco.co.jp/info/2020/1251027_1844.html

[Japan] Shikoku Electric Power and Norinchukin Bank will Jointly Establish an Agricultural Technology Solutions Company

Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture) and Norinchukin Bank (Headquarters: Tokyo) announced on September 25, 2020, that they will establish Aitosa (Headquarters: Nankoku City, Kochi Prefecture), an agricultural technology solutions company, on November 2, 2020. The total investment in Aitosa is 25 million yen (approximately $237,000).[1] Yonden will own 95% of the shares of the company, and Norinchukin Bank will own the remaining 5% of the company. This marks the second time that Yoden has participated in an agricultural business since its entry into the agricultural sector in 2018. Yoden has also participated in a strawberry production project in Miki Town, Kagawa Prefecture, Shikoku.

Agriculture is the primary industry of the Shikoku region. However, the region’s agricultural industry has been facing many challenges, such as an aging workforce, a reduction in the total number of workers, and an increase in abandoned farms. Yonden and Norinchukin Bank believe that cutting-edge agriculture technologies like smart agriculture have the potential to address these issues. Smart agriculture technologies include robotic, Artificial Intelligence (AI), and Internet of Things (IoT) products.

Aitosa aims to develop smart agriculture technologies that will help the region revitalize its agriculture industry by addressing labor shortages. The company will build two green-housing facilities in Nankoku City, Kochi Prefecture, and will contribute to keeping and expanding the regional farming area for shishito pepper, which is a major local agricultural commodity. Aitosa will collaborate with Kochi Prefecture's Internet of Plants (IoP) project, a private-public partnership initiative, to develop an efficient cultivation method that utilizes environmental data inside the facilities, along with biological plant data.[2]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of October 18, 2020.

[2] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2020/09/25/pr010.pdf

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

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

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

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

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

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

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

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

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

[Japan] Kyuden International Partnered with Enernet Global to Build a Local Electricity Supply Network Utilizing Renewable Energy

On September 14, 2020, Kyuden International (Headquarters: Fukuoka Prefecture), a subsidiary of Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), announced that it has invested in New York-based microgrid provider Enernet Global and signed a strategic partnership agreement with the vendor to build a local electricity supply network that utilizes renewable energy.

Launched in 2015[1], Enernet Global develops, finances, builds, and operates microgrids and Distributed Energy Resources (DER) projects for customers that operate diesel-fuel generators. The company uses its proprietary software platform to rapidly design the optimal equipment configuration and operations for its customers by combining a wide variety of DER, such as renewable energy generation and battery storage. Enernet Global is currently operating in Asia, Oceania, the Caribbean, and Australia.

Investing in Enernet Global is part of Kyuden’s strategy to transition from its diesel power generation by promoting renewable energy businesses. Based on the Kyuden Group Management Vision 2030, Kyuden will continue to reduce its carbon footprint to achieve a sustainable society.[2] [3]

[1] http://www.enernetglobal.com/company/

[2] http://www.kyuden.co.jp/press_h200914-1.html

[3] https://www.kyuden.co.jp/english_company_news_2020_h200914-1.html

[Japan] Kansai Electric Power, Kanden Power-Tech, and PT Medco Power Indonesia Formed a Strategic Partnership

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and Kanden Power-Tech (KPT, Headquarters: Osaka Prefecture) announced on September 7, 2020, that they reached an agreement with PT Medco Power Indonesia (MPI, Headquarters: Jakarta, Indonesia), an Indonesian power generation company, to establish a joint venture that will accelerate the development of gas-fired power plants and operations and maintenance (O&M) businesses in Indonesia. KEPCO’s investment amount for the joint venture has not been disclosed, but according to Japanese media it is estimated to be a small amount of money.

Kanden Power-Tech is a wholly owned subsidiary of KEPCO which offers O&M services for power generation facilities.[1] MPI was established in 2004[2] as a group company for the power generation business unit of PT Medco Energi Internasional, the largest Indonesian energy company. MPI is actively developing power plants and is responsible for O&M services for 18 generation facilities in Indonesia, with a total capacity of over 3.3GW.

It is the first time that the KEPCO Group has entered into a strategic alliance with an overseas electric power developer. Based on its Medium-Term Management Plan, KEPCO views the development of its overseas business as an important earnings pillar and will continue to expand its overseas investments.[3][4]

[1] https://www.kepco.co.jp/corporate/pr/2020/pdf/0907_2j_01.pdf

[2] https://medcopower.co.id/about_us

[3] https://www.kepco.co.jp/corporate/pr/2020/0907_2j.html

[4] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/sep07_1.pdf

[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