[Japan] Japan sets new 2030 target for renewables

Japan's Ministry of Economy, Trade and Industry (METI) released a draft of its latest energy policy on July 21, 2021, which includes raising the share of non-fossil fuels for electricity generation to about 60% of total production by fiscal 2030—2.5 times the current level.[1] The first revision of the energy policy comes after Japan nearly doubled its 2030 target in April 2021 to 46% from 26% from 2013 levels. Mitsuhiro Nishida, METI’s director of energy strategy office, said that the revised 2030 energy plan is an "ambitious outlook on what needs to be done to fulfill the 46% reduction target.”[2] The policy draft says renewables should account for 36% to 38% of total power production by 2030, up from 22% to 24% in the previous plan. The draft plan keeps the target for nuclear power at 20% to 22% in 2030. Renewables and nuclear power made up 18% and 6% of total power generation in fiscal 2019, respectively. The draft basic energy policy also projects that ammonia and hydrogen will account for about 1% of the electricity mix in 2030. The new draft also reduces the share of fossil fuels compared to the previous plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.

[1] https://www.reuters.com/business/energy/japan-boosts-renewable-energy-target-2030-energy-mix-2021-07-21/

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

[Japan] Vestas announces 113 MW wind order in Japan

Vestas, a Danish wind turbine company, announced on June 30, 2021, that it had secured an order to supply turbines for Green Power Investment Corporation’s (GPI) 113 MW Sumita Tono Wind Farm in Japan.[1] The order will be the first project between Vestas and GPI, a Japanese partner of U.S.-based Pattern Energy Group LP. Since 2004, GPI has focused on developing, constructing, and operating renewable projects in Japan. The site is located in complex mountainous terrain in the cities of Sumita and Tono in Iwate prefecture, which the company says demonstrates how the company can leverage its expertise to deliver site-specific solutions in all conditions. The company has developed a customized tower solution to accommodate the site’s unique transport, wind, and seismic load conditions. As a result, the project will feature the tallest hub heights for any wind turbines above a 4 MW rating in Japan, allowing the project to harness new wind resources at higher and more consistent wind speeds.

The order will include supply and supervision of the installation of 27 Vestas V117-4.2 MW turbines. Twenty-three of these turbines will be installed on 114-meter towers, while the other four will be installed on 94-meter towers. In addition, Vestas will also deliver a multi-year Active Output Management 5000 (AOM 5000) service agreement for the wind farm. The AOM 5000 service agreement will provide an energy-based availability guarantee to ensure optimized performance and long-term business case certainty for the customer. Delivery of the turbines will start in the first quarter of 2022, while commissioning is scheduled for the fourth quarter of 2022.

[1] https://www.vestas.com/en/media/company-news?l=22&n=4013797#!NewsView

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

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

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

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

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

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

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

[Japan] GE and Toshiba announce partnership on offshore wind in Japan

On May 11, 2021, GE Renewable Energy and Toshiba Energy Systems and Solutions Corporation announced that they had signed a strategic partnership agreement to localize critical phases of the manufacturing process of GE’s Haliade-X offshore wind turbine and support its commercialization in Japan.[1] As part of its goal of becoming carbon neutral by 2050, the Japanese government plans to award 10 GW of offshore wind by 2030 with tenders of 1 GW per year. Japan’s plan calls for 30 to 45 GW of offshore wind by 2040, in part by building a competitive domestic supply chain. Japan also plans to set a 60% local content target for offshore wind, which would require domestically procured parts to account for at least 60% of total capital expenditure.

According to the companies, they are well-positioned to contribute to and benefit from the success of offshore wind in Japan. Toshiba has local manufacturing capabilities, a highly skilled workforce, energy domain expertise, and knowledge in the Japanese offshore market. GE has the most powerful offshore wind turbine, engineering and project management experience, and experience in Japan. The companies also stated that the agreement will help GE’s offshore wind technology be more competitive in Japan’s upcoming auctions. Under the strategic partnership, GE will provide the technology, parts, and components for nacelle assembly and support Toshiba in jointly developing a local supply chain and completing assembly of the nacelles. Toshiba will assemble, warehouse, transport the nacelles, provide preventative maintenance services, and have sales and commercial responsibilities in the Japanese market. The companies did not disclose the financial terms and specific details of the partnership.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-and-toshiba-announce-strategic-partnership-agreement-on-offshore-wind-japan

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

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

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

[Japan] Japan and UAE sign agreement to cooperate on hydrogen technology and supply chain

On April 8, 2021, Japan’s Ministry of Economy, Trade and Industry (METI) signed a memorandum of cooperation (MOC) with the UAE’s Ministry of Energy & Infrastructure to work together on hydrogen production technology and to develop an international hydrogen supply chain.[1] [2] The UAE is an oil-producing country, but the country has abundant solar radiation and focuses on renewable energy such as solar power generation, so it has high production potential for "green hydrogen." Japan has signed the MOC with the UAE as the first step to strengthen its relationship with hydrogen resource countries. The hydrogen will most likely be produced from fossil fuels, but the emissions will be captured and used in industry. The countries will also work to boost hydrogen demand in the UAE. Currently, Japan’s hydrogen demand is 2 million tonnes per year. As a part of its green growth strategy to reach net-zero carbon emissions by 2050, Japan set a goal in December 2020 to boost demand to 3 million tonnes of hydrogen per year by 2030 and 20 million tonnes of hydrogen per year by 2050. Japan’s green growth strategy also includes plans for ammonia; in January 2021, Japan struck a deal with the UAE’s state-owned Abu Dhabi National Oil Co. (ADNOC) to cooperate on fuel ammonia production.

[1] https://www.reuters.com/article/us-japan-hydrogen-emirates/japan-uae-to-collaborate-on-hydrogen-technology-supply-chain-idUSKBN2BV1CJ

[2] https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/040821-japan-signs-first-hydrogen-cooperation-deal-with-uae-to-consider-supply-chain

[Japan] Shikoku Electric Power Invests in a U.S. Startup, LO3 Energy

On March 12, 2021, Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.) announced that it has invested in LO3 Energy, a Portland, Oregon-based venture company that provides a next-generation electricity trading platform. This will be Yonden’s first investment in an international startup.

In recent years, the movement towards decentralization has accelerated various changes in the energy sector. Yonden sees this as a business opportunity, aiming to develop new services by leveraging DER (Distributed Energy Resources) technologies. LO3 Energy has had extensive experience in developing cloud-based trading platforms that enable electricity trading among DERs in the United States and Europe. Through this investment, Yonden hopes to gain new knowledge and expertise in digital trading platforms from LO3 Energy, and will expand its platform business in Japan to promote P2P electricity trading among consumers who own and operate renewable energy sources. Yonden will continue to seek and build the next growth engine for their business expansion by aggressively investing in venture companies that can be expected to take advantage of the synergistic benefits derived from the deal.[1]

[1] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2021/03/12/pr002.pdf

[Japan] Chugoku Electric Power and Chudenko Jointly Acquired Equity in a Taiwanese Independent Power Producer

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) and Chudenko Corporation (Headquarters: Hiroshima City, Hiroshima Pref.), EnerGia’s subsidiary that provides power facilities construction services, announced on March 9, 2021 that they have jointly acquired a 25 percent share of Feng Ping Power through their investment company, C&C Investment. Feng Ping Power is a Taiwanese independent power producer (IPP) that has been constructing the Feng Ping Xi hydropower station in Hualien County, Taiwan.

It is the second time EnerGia and Chudenko have jointly invested in an overseas IPP, and the first time for both firms to invest in an overseas hydroelectric power project[1]. The Feng Ping Xi hydropower station is scheduled to begin commercial operations in 2024 and its output is expected to 37.1MW. Taiwan Power (Headquarters: Taipei, Taiwan), a state-owned utility, will be a purchaser of the station’s power. The EnerGia Group will continue its efforts to advance the development of technologies that contribute towards carbon neutrality. [2]

[1] Meanwhile, this is the eight case for EnerGia to invest oversea power generation projects.

[2] https://www.energia.co.jp/press/2021/13019.html

[Japan] Six Regional Economic Federations in West Japan Jointly Released a Statement on Japan’s Energy Policy to Achieve Carbon Neutrality by 2050

On March 12, 2021, six regional economic organizations located in western Japan jointly released a statement on Japan’s current energy policy and the goal to achieve carbon neutrality by 2050. The eight economic federation organizations, each consisting of members from various enterprises and other entities, exist nationwide to support local development and business activities. This joint statement was released by the Kansai Economic Federation (Kankeiren, Headquarters: Osaka City, Osaka Pref.), Kyushu Economic Federation (Kyukeiren, Headquarters: Fukuoka City, Fukuoka Pref.), Shikoku Economic Federation (Yonkeiren, Headquarters: Takamatsu City, Kagawa Pref.), Chugoku Economic Federation (Chugokukeiren, Headquarters: Hiroshima City, Hiroshima Pref.), Central Japan Economic Federation (Chukeiren, Headquarters: Nagoya City, Aichi Pref.), and Hokuriku Economic Federation (Hokkeiren, Headquarters: Kanazawa City, Ishikawa Pref.).

This is the first time that the six organizations have jointly provided their recommendations on Japan’s energy policy. Their statement notes that the outbreak of COVID-19 has further underscored the importance of ensuring the stability of the energy supply in Japan. In order for Japan to achieve its short-term goals for its energy mix by 2030, the report highlighted the need for the following actions:

1)   Increase the use of nuclear energy by maintaining the nuclear energy supply chain and accelerating the development of next-generation nuclear energy technologies, such as Small Modular Reactors (SMRs)

2)   Accelerate the expansion of renewable energy sources, while enhancing public awareness and understanding on the social costs resulting from the deployment of renewable energy

3)   Phase out existing coal-fired power plants and promote advanced technologies such as efficiency improvement and carbon capture and utilization storage (CCUS)

Realizing that it will be extremely challenging for Japan to meet its carbon neutrality goal by 2050, the statement recommends that the Japanese government take the following measures:

1)   Develop a research & development (R&D) strategy that supports research activities led by the public and/or private sectors on technologies that will contribute to the reduction of CO2 emissions

2)   Increase the demand for relevant products/services which contribute to the reduction of carbon emissions in industrial, transportation and consumer sectors by accelerating revolutionary innovations

3)   Facilitate the process of low/zero carbonization by utilizing nuclear energy and renewable energy

4)   Establish a mechanism to promote open information disclosures which can lead to the appropriate evaluation of Japanese business’ activities

5)   Contribute to the reduction of CO2 emissions in the global community

6)   Carefully deal with carbon pricing

7)   Formulate the domestic and overseas Public Relation (PR) strategies [1]

[1] https://www.kyukeiren.or.jp/files/release/210310023539123.pdf

[Japan] Kansai Electric Power, Keihan Bus and BYD Reached an Agreement on the Expansion of Electric Bus Fleets in the Kyoto Region

On February 24, 2021, Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.); Keihan Bus, which provides transportation services in the Kansai Region around Osaka and Kyoto (Headquarters: Kyoto); and electric automobile manufacturer BYD (Headquarters: Shenzhen, China) announced that they have reached an agreement on the expansion of electric bus fleets in the Kyoto region.

As part of the first step of the agreement, Keihan Bus, KEPCO, and BYD will deploy four electric buses on a circulating route that connects Kyoto Station, Keihan Railway Shichijo Station, and Umekoji/Hotel Emion Kyoto Station. Through this demonstration project, KEPCO will test and assess an energy management solution for the optimal charging and discharging process for electric buses. BYD will provide the electric buses and driving performance data to validate the optimal operation of the electric buses.

Keihan Bus will become the first Japanese bus company to electrify and operate all of the buses that serve a specific route. In the future, it plans to expand its electric bus fleets into other routes. Keihan Bus will also consider introducing autonomous electric buses, as well as developing a business continuity plan that will utilize electric buses’ storage batteries in an emergency situation. KEPCO, Keihan Bus and BYD will continue their efforts to promote the expansion of electric bus fleets and to contribute towards a decarbonized society.[1]

[1] https://www.kepco.co.jp/corporate/pr/2021/0224_1j.html

[Japan] Tohoku Electric Power Will Establish Tohoku Frontier to Strengthen the Monetization Strategies for Its Smart Society Businesses

Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced on February 25, 2021 that it has decided to establish a new subsidiary, Tohoku Electric Power Frontier (Tohoku Frontier), to strengthen the monetization of its smart society business development projects.

Tohoku’s smart society business activities are part of multiple goals laid out in the Tohoku Group’s Medium to Long-Term Vision. Tohoku plans to officially establish Tohoku Frontier in April 2021. The headquarters of the company will be located in Sendai City, Miyagi Prefecture.

Tohoku Frontier will leverage next-generation digital technologies and innovations to sell a wide variety of customer-oriented services that are integrated with electricity rate plans. Based on energy management technologies, the services will allow customers to save, generate, and store their energy. For instance, Tohoku Frontier will offer a bundle service to combine an electricity plan with a solar energy/storage battery installation service. The service will be exclusively provided by Tohoku Solar eCharge, which is scheduled to be established in April 2021, and will start business during the second half of FY 2021.

Tohoku Group plans to contribute to the move forward towards a smart and sustainable society by providing a wide range of innovative services that address social issues through Tohoku Frontier.[1] [2] [3]

[1] https://www.tohoku-epco.co.jp/news/normal/1219088_2558.html

[2] https://www.tohoku-epco.co.jp/news/normal/1219085_2558.html

[3] https://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/02/25/b1_1219085.pdf

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

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

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

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

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

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

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

·       Promote the development of the Ohma Nuclear Power Plant Project

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1)   Stabilize the supply of fuel ammonia

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

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

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

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

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

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

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

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

[Japan] TEPCO Renewable Power Joined an Offshore Wind Demonstration Project

On February 4, 2021, TEPCO Renewable Power (TEPCO RP, Headquarters: Tokyo) announced that it has joined Denmark’s TetraSpar Demonstrator, a demonstration project for testing the TetraSpar floating offshore wind foundation. The project was jointly launched by RWE Renewables (RWE, Headquarters: Essen, Germany), a leading renewable energy solutions provider; Shell New Energies (Shell, Headquarters: The Hague, Netherlands); and Stiesdal Offshore Technologies (SOT, Headquarters: Odense C, Denmark), a Danish company that develops wind power technologies. TEPCO RP will own a 30% share of the TetraSpar Demonstrator.

The project has assembled the TetraSpar floating offshore wind turbine foundation at the port of Grenaa in Denmark. TEPCO RP will contribute its efforts to the project by providing its technical knowledge from the electric power business that Tokyo Electric Power (TEPCO, Headquarters: Tokyo) has developed over the years.

The wind turbine foundation is comprised of a tubular steel pipe and a floating keel. The tubular pipe was manufactured by Welcon (Headquarters: Give, Denmark). The pipe was delivered to the port of Grenaa, Denmark in the summer of 2020 and was assembled on the site in less than two months. It was assembled quickly because TetraSpar does not require specific processes such as welding at the time of assembly, and because the project has validated the assembling and manufacturing method. Compared to other floating wind turbines, it is likely that the TetraSpar design concept has an advantage in simplifying the manufacturing, assembly and installation processes and reducing costs.

The project plans to mount the wind turbine on the foundation and then test it at the Marine Energy Test Centre (Metcentre) near Stavanger, Norway, where it will be fixed to the seabed with three anchor lines and connected to the power grid. The turbine is expected to start its operations in the summer of 2021. It will have an output of 3600 kW. The four companies hope that the project will: provide them with experience and knowledge in offshore wind turbine construction, installation, and operation; that it will refine the TetraSpar technology; and that the project will help to expand the use of offshore wind power.[1]

[1] https://www.tepco.co.jp/rp/about/company/press-information/press/2021/1572776_19679.html

[Japan] Okinawa Electric Power Invested in NEXTEMS, a Japanese Energy Aggregator

Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.)[1] announced on February 4, 2021 that it has invested in NEXTEMS, a Japanese energy aggregator (Ginowan City, Okinawa Pref.), and will own 23.4% of the shares of the company. NEXTEMS will become an affiliate of OEPC.

NEXTEMS, established in April 2018, provides customers with energy products, including solar power generation systems, battery storage, and EcoCute.[2] The company has been conducting demonstration tests of distributed energy resources’ (DERs) remote monitoring and control with controllable loads. The demonstration tests have been primarily in the Miyakojima area. OEPC and NEXTEMS had previously cooperated to jointly promote renewable energy service providers’ businesses in Miyakojima, and their cooperation helped the area to receive the prestigious New Energy Award in the First Fiscal Year of Reiwa Era (FY 2019) from the New Energy Foundation (NEF, Headquarters: Tokyo)[3], a Japanese organization that promotes the development of renewable energy technologies.

Promoting renewable energy as a main power source is one of OEPC’s focus areas under its long-term Zero Emission Initiative to tackle climate change. Leveraging NEXTEMS’s knowledge and experience with installing DERs control systems, OEPC aims to develop the new solar power and storage battery service that was announced in January 2021.[4]

[1] https://www.nextems.co.jp/profile/

[2] EcoCute is an energy efficient electric heat pump, water heating and supply system.

[3] https://www.nef.or.jp/english/aboutnef.html

[4] https://www.okiden.co.jp/shared/pdf/news_release/2020/210204.pdf

[Japan] Japan to bolster transition to LNG in Asian countries

The Ministry of Economy, Trade and Industry (METI) held a meeting of experts on February 19, 2021 and indicated a policy that would support the introduction of liquefied natural gas (LNG) in Asian countries. [1] The Japanese government plans to encourage the introduction of LNG infrastructure not only at LNG thermal power plants but also at LNG receiving bases and liquefaction facilities. Additionally, the Japanese government plans to support the gradual decarbonization efforts of Asian countries.

Coal is a major source of energy for countries such as Indonesia and Vietnam due to its affordability. According to the METI, a shift from coal to LNG in seven Asian countries—India, Indonesia, Vietnam, the Philippines, Malaysia, Thailand, and Myanmar—would reduce carbon emissions by about 864 million tons and increase LNG demand by 16 million tons. According to the minister of METI, increased demand for LNG in other Asian countries will lead to higher levels of production by countries in the region and may lower procurement costs of the energy source. Japan is the world’s largest LNG consumer and relies on LNG for nearly 40% of total power production. The country’s main suppliers are Australia, Qatar and the United States, but Japan is hoping to expand production in Asian countries. The increased effort to reduce purchasing costs and guarantee LNG supply follows an unseasonably cold winter which coincided with depleted LNG stocks.

[1] https://www.japantimes.co.jp/news/2021/02/23/business/lng-coal-energy/

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

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

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

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

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

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

[Japan] Daigas Group Released its Carbon Neutral Vision to achieve the 2050 Carbon Neutrality Action Plan

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

·       Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

·       Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

·       Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html

[Japan] J-Power has Begun Hydrogen Production for a Japan-Australia Hydrogen Energy Supply Chain Pilot Project

J-Power, a Tokyo-based Japanese power producer, announced on February 1, 2021 that it has begun hydrogen production at a coal gasification and hydrogen refining facility located in Latrobe Valley, Victoria, Australia. The hydrogen production is part of its Japan-Australia Hydrogen Energy Supply Chain Pilot Project, which aims to develop and demonstrate technologies for hydrogen production, storage and distribution, and to facilitate the creation of a hydrogen supply chain in Japan.

The project is financially supported by the Victoria state government and the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japanese public R&D funding organization. The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA)[1] and the Australian Consortium[2] are also cooperating in the project. HySTRA is also separately carrying out a demonstration project led by NEDO for the establishment of a mass hydrogen marine transportation supply chain derived from unused brown coal (lignite).[3]

Victoria has abundant lignite resources. The coal has a high moisture content and is considered unsuitable for exporting and it is normally exclusively used by power plants adjacent to the mining sites. However, lignite can be converted into a syngas containing hydrogen. J-Power believes that the hydrogen from undeveloped lignite reserves in Australia has the potential to accommodate Japan's electricity demand. The project therefore aims to optimize the utilization of Australia’s lignite. J-Power is responsible for operating the demonstration facility for the coal gasification and hydrogen refining.

The hydrogen generated at the demonstration plant will be shipped from the port of Hastings in Victoria, Australia to the hydrogen discharging terminal on Kobe Airport Island. In the future, J-Power will collaborate and integrate with the CarbonNet project, a CO2 storage project being promoted by the Commonwealth of Australia and the Victoria state government, in order to manage the CO2 generated from the project. The by-product CO2 will be captured and stored underground. Through these projects, J-Power hopes to contribute to the formation of a hydrogen supply chain in Japan, as well as the realization of a decarbonized society. [4] [5]

[1] The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) comprises J-Power; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Shell Japan (Headquarter: Tokyo); Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; ENEOS (Headquarters: Tokyo), a petroleum company; and Kawasaki Kisen Kaisha (Headquarters: Tokyo), a Japanese transportation company.

[2] The Australian consortium consists of J-Power, Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo), a heavy machinery manufacturer; Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; Sumitomo (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; and AGL Energy (Headquarters: Sydney, Australia), an Australian utility.

[3] http://www.hystra.or.jp/about/

[4] https://www.jpower.co.jp/news_release/2021/02/news210201.html

[5] https://www.jpower.co.jp/english/news_release/pdf/news210201e.pdf