[Japan] PM Kishida considers development of new nuclear reactors

On August 24, 2022, Japanese Prime Minister Fumio Kishida said the country will restart more idled nuclear power plants and consider developing safer, smaller nuclear reactors, signaling a renewed emphasis on nuclear energy a decade after the Fukushima disaster.[1] PM Kishida also said the government would look at extending the lifespan of existing reactors. The prime minister made the announcement at a "green transformation" conference focused on the country’s efforts to meet its environmental goals. The statement represents a policy shift; previously, the Japanese government has said it was not considering building new plants or replacing aging reactors.

Following the Fukushima nuclear plant disaster in 2011, most of Japan's nuclear power plants were taken offline for safety checks under tightened standards. Since then, utilities have set more than 20 reactors for decommissioning. Of the 33 reactors, 25 have been screened for safety checks by the Nuclear Safety Authority (NRA). Seventeen have been approved, but only ten have restarted. Japan’s government has previously announced plans to speed up restarts. It aims to have up to nine reactors restarted by winter 2022 to cope with energy constraints and to restart seven other reactors after summer 2023. The government also aims to extend the life of aging reactors to beyond 60 years from the initial 40 years.

[1] https://www.reuters.com/world/asia-pacific/japan-pm-call-development-construction-new-generation-nuclear-power-plants-2022-08-24/

[Japan] Mitsui and Mitsubishi cut value of their Sakhalin-2 LNG stakes by $1.7 billion

On August 2, 2022, major Japanese trade houses Mitsui & Co. and Mitsubishi Corp. said they had cut the value of their stakes in the Sakhalin-2 liquefied natural gas (LNG) project in Russia by a combined ¥217.7 billion ($1.7 billion), citing growing business uncertainty.[1] Mitsui and Mitsubishi cut their investment values by ¥136.6 billion to ¥90.2 billion and ¥81.1 billion to ¥62.3 billion, respectively, after Russian President Vladamir Putin signed a decree on June 30, 2022, to create a company to take over the rights and obligations of the project. Both companies said the move would have very little impact on their profits. Mitsui and Mitsubishi hold stakes of 12.5% and 10%, respectively, in the project.

The Japanese government has said that it will try to stay in the project but will move away from relying on Russian energy. Sakhalin-2 has an annual output capacity of about 10 million tons of LNG, with Japan importing around 6 million tons. Under the presidential decree, all assets rights linked to the project will be transferred to the new Russian company. Currently, state-owned Gazprom has a 50% plus one share stake in the project while Shell owns 27.5% minus one share, though in February 2022, Shell said it would exit the project.

[1] https://www.reuters.com/business/energy/japans-mitsui-mitsubishi-shave-17-bln-off-sakhalin-2-lng-stakes-2022-08-02/

https://www.japantimes.co.jp/news/2022/08/03/business/corporate-business/sakhalin-2-stakes-mitsui-mitsubishi/

[Japan] Major train company in Japan announces switch to 100% renewable energy

As reported in Associated Press (AP) on April 27, 2022, Tokyu Railways’ network of seven train lines and one tram service was switched to renewable energy sources starting April 1, 2022.[1] Green energy is being used at all of its stations, including for vending machines, camera screens, and lighting. Tokyu employs 3,855 people and connects Tokyo with Yokohama. The company operates more than 64 miles of railway tracks serving 2.2 million people per day. It is the first railroad operator in Japan to have reached 100% clean energy. The company says the carbon dioxide reduction is equal to the annual average emissions of 56,000 households. According to AP, the train operator paid an undisclosed amount to Tokyo Electric Power Co. (TEPCO) for certification of its use of renewables. The renewable sources used for Tokyu’s operations include hydropower, geothermal, wind, and solar according to TEPCO. Tokyu Assistant Manager Yoshimasa Kitano said, “We don't see this as reaching our goal but just a start.”

[1] https://apnews.com/article/technology-science-business-yokohama-japan-e16b51384eed8be69c10cc11d0810a4e

[Japan] METI and utilities issue warnings about tight energy supply in Tokyo, Tohoku

On March 21, 2022, Japan’s Ministry of Economy, Trade and Industry (METI) issued a warning over tight energy supply and asked people in Tokyo and Tohoku to save electricity.[1] The warning followed Tokyo Electric Power Company’s (TEPCO) announcement earlier in the day that a power shortage was possible due to cold weather and the suspension of some thermal power plants due to a powerful earthquake that hit northeastern Japan the week before on March 16, 2022. The earthquake stopped operations at six thermal plants, and the damage could leave some of them idle for weeks or months. The company requested customers to turn off unnecessary lights and set their heating at 20 C (68 F) to save electricity. Tohoku Electric Power also called on customers to limit their electricity usage. Late on March 22, 2022, METI said the country appeared likely to avoid blackouts but said they were keeping the power supply warning in place for the following day.[2]

[1] https://english.kyodonews.net/news/2022/03/b5e753617d95-japan-issues-warning-over-tight-energy-supply-in-tokyo-other-areas.html

[2] https://www.reuters.com/world/asia-pacific/japan-sees-partial-blackout-after-first-ever-power-supply-warning-2022-03-22/

[Japan] JERA and West Holdings reach agreement to develop 1 GW of solar capacity in Japan

JERA, Japan’s largest thermal power producer, and West Holdings, a solar power engineering firm, announced on February 2, 2022, that they had reached an agreement to collaborate on solar power projects in Japan, with a target of 1 GW of generation capacity over the next five years.[1] According to JERA, the agreement includes a capital participation in West Holdings, though details are still being discussed. West Holdings will focus on developing solar projects at JERA’s former power plant locations in addition to new sites in Japan. The companies are expected to reach a final agreement by the end of March 2022.

If all the projects in the agreement are constructed, JERA said that it would be one of Japan’s largest solar power producers. Currently, JERA has 1,780 MW of renewable energy capacity, most of which is outside of Japan. The power producer has 800 MW of solar in India and a few small-scale ventures in Thailand, but no domestic projects. JERA aims to achieve net-zero greenhouse gas emissions by 2050 and increase its renewable power output to 5GW by 2025. West Holdings also aims to become carbon neutral by 2025 and to be involved in 2 GW of renewable energy generating capacity in Japan and overseas.

[1] https://www.jera.co.jp/english/information/20220202_845

[Japan] JAEA and Mitsubishi Heavy Industries to cooperate in Wyoming fast-reactor project

According to an article released by the daily Yomiuri on January 1, 2022, the Japan Atomic Energy Agency (JAEA) and Mitsubishi Heavy Industries are set to cooperate in a U.S. project to build a next-generation fast reactor in Wyoming.[1] The companies will sign a memorandum of understanding as early as January with Terrapower, an advanced nuclear power startup founded by Bill Gates, and the U.S. Department of Energy (DOE). Terrapower is set to start operating the nuclear reactor in 2028. The U.S. government will provide funding to cover half of the project’s estimated cost of $4 billion. The fast reactor will have an output capacity of 345,000 kW and will use sodium as a coolant.

The U.S. government and Terrapower are seeking partners in Japan because commercial-scale development of a fast reactor has not taken place for many years in the U.S. JAEA, which is affiliated with the Japanese government, operates the Monju prototype fast-breeder reactor in Tsuruga, Fukui Prefecture, and the Joyo experimental fast reactor in Oarai, Ibaraki Prefecture. The Monju plant is now in the decommissioning and dismantling process.  JAEA and Mitsubishi are expected to provide reactor-design technologies and reactor-operation data. According to the Japan Times, safety tests might be conducted at a JAEA facility.[2] Japan’s industry and science ministries will support preparations for the safety tests.

[1] https://www.reuters.com/markets/commodities/japan-help-build-bill-gates-high-tech-nuclear-reactor-wyoming-yomiuri-2022-01-01/

[2] https://www.japantimes.co.jp/news/2022/01/05/business/corporate-business/japan-us-next-generation-fast-reactor/

[Japan] Shizen Energy and Swancor Renewable Energy announce effort to jointly develop offshore wind in Japan

On December 8, 2021, Japan-based Shizen Energy and Taiwan-based Swancor Renewable Energy announced that they have agreed to co-develop offshore wind farms throughout the Kyushu region of Japan.[1] According to the press release, the joint venture will combine Swancor Renewable Energy’s technological strengths and experience in Taiwan, which has ocean areas geologically similar to Japan, and Shizen Energy’s  “developmental strengths in introducing renewable energy that embraces local conditions. The companies noted that Japan’s offshore wind market is gaining momentum. Among other things, in 2018, the Japanese government set a goal of increasing the share of renewables to 22-24% by 2030, and in 2021, the government increased this target to 36-38% by further strengthening measures. The new goal includes plans to introduce 10 GW of wind power, including both offshore and onshore wind power.

Both companies have a track record of developing renewable energy, with a focus on offshore wind. In 2012, Swancor Renewable Energy began developing the first offshore wind project in Taiwan. The company has been involved in the development of a cumulative total of approximately 5 GW of projects, including construction, operation, and maintenance. Swancor Renewable Energy’s Formosa 1 project, which went into operation in 2019, is the only offshore wind farm currently operating in Taiwan. Shizen Energy has developed approximately 1GW of renewable energy power plants in Japan, and its portfolio has expanded from solar to onshore and offshore wind, hydro, and biomass. The company has been involved in efforts to introduce offshore wind power in Japan, starting with its participation in a zoning project in 2016 and engaging in offshore wind power development off the coast of Chiba Prefecture.

[1] https://www.shizenenergy.net/en/2021/12/08/sre-se_partnership_eng/

[Japan] Enviva and J-Power sign agreement for biomass supply for coal-fired plants in Japan

On November 16, 2021, Enviva Partners LP, a U.S.-based global renewable energy company focused on sustainable wood bioenergy, and Tokyo-based utility Electric Power Development (J-Power) announced that they have signed a memorandum of understanding (MOU) for the long-term, large-scale supply of wood biomass from Enviva’s operations in the Southeast of the U.S. to J-Power’s coal-fired power plants in Japan.[1] Under the MOU, the two companies will work to develop a plan for Enviva to build new infrastructure to produce and deliver up to 5 million metric tons of sustainable wood pellets to permanently replace coal in J-Power’s existing coal-fired power plants. J-Power has a total of 8.4 GW of coal-fired power capacity. The companies will work to repurpose the facilities into both dedicated and co-fired biomass plants, resulting in over 80% greenhouse gas emission reductions for each site. Biomass provided by Enviva will be certified under the EU’s current sustainability criteria, which guarantees that the biomass is only sourced from sustainably managed forests.

The MOU is part of J-Power’s plan to meet its “Blue Mission” goal to be carbon-neutral by 2050. The company has also recently announced various plans, including a phase-out of aged thermal power plants, to be replaced with co-firing biomass or ammonia. Enviva also announced its own net-zero goal to reduce, eliminate, or offset all of its direct emissions by 2030.

[1] https://www.businesswire.com/news/home/20211116006425/en/Enviva-and-J-Power-Join-Efforts-to-Decarbonize-Power-Generation-in-Japan

[Japan] Japan approves new energy plan, aims to double renewables by 2030

On October 22, 2021, Japan’s Cabinet approved the Sixth Strategic Energy Plan, which sets out a framework for achieving the country’s pledge of reaching carbon neutrality in 2050.[1] A draft of the plan was introduced in July 2021 under the government of former Prime Minister Yoshihide Suga, who announced the 2050 target. No major revision was made during the draft stage. The new plan, compiled by the Ministry of Economy, Trade and Industry (METI) every three years, says renewables should account for 36% to 38% of total power production by 2030, up from the 18% recorded in fiscal year 2019. For nuclear power, the plan keeps the target from the 2018 plan, which called for the energy source to account for 20% to 22% of power production in 2030. In 2019, nuclear power made up 6% of total power generation because many nuclear plants have remained closed due to stricter safety rules introduced after the 2011 Fukushima nuclear disaster. The energy policy plan also includes a target for ammonia and hydrogen to account for about 1% of the electricity mix in 2030. Notably, the plan reduces the share of fossil fuels compared to the 2018 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.meti.go.jp/english/press/2021/1022_002.html

[Japan] Eneos announces deal to acquire Japan Renewable Energy for $1.78 billion

On October 11, 2021, Eneos Holdings Inc., Japan's largest oil refiner, announced it had reached a deal to acquire Japan Renewable Energy (JRE), a renewables developer and operator, for about 200 billion yen ($1.78 billion/EUR 1.55 billion) to expand its low-carbon business.[1] Under the deal, JPE will be a wholly-owned subsidiary of Eneos in late January 2022. Eneos will buy JRE from the infrastructure arm of U.S. investment bank Goldman Sachs and Singaporean sovereign wealth fund GIC. The agreement is the first big purchase of a renewables firm by a top Japanese oil company.

Founded by Goldman Sachs in 2012, JRE has 708 MW in renewable energy assets, including those under construction on an equity basis. Most of JRE's portfolio consists of solar, onshore wind, and biomass, with some offshore wind projects under development. After the agreement, Eneos' renewable assets will reach 1,220 MW. The deal will enable Eneos to meets its target of having over 1,000 MW of renewables in Japan and abroad by March 2023. The deal will also help Eneos reach its goal to achieve carbon neutrality by 2040.

[1] https://www.reuters.com/business/energy/eneos-says-buy-japan-renewable-energy-177-bln-2021-10-11/

https://www.japantimes.co.jp/news/2021/10/12/business/corporate-business/eneos-japan-renewable-energy/

[Japan] Japan’s largest power generator to invest $1.58 billion in Philippine’s Aboitiz Power

On September 27, 2021, JERA, Japan’s largest power generator, announced that it is acquiring approximately 27% of the outstanding shares of Aboitiz Power Corporation, the leading utility in the Philippines, for approximately $1.58 billion, which is the largest investment by JERA to date.[1] JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, has signed a share purchase agreement with Aboitiz Power’s parent company Aboitiz Equity Ventures and Aboitiz & Company. The Japanese power generator hopes to benefit from growing energy demand in the Philippines while also significantly advancing the expansion of clean and renewable energy in the country. Power demand in the Philippines is expected to grow at an annual average rate of 4.2% through 2030, making the development of electric power infrastructure an urgent priority. JERA’s statement noted that the Philippines, like Japan, has limited energy resources and is subsequently reliant on imports.

JERA and Aboitiz will explore many areas of collaboration, including operation and maintenance, development of power projects, fuel procurement, and the use of cleaner fuels such as ammonia and hydrogen. Aboitiz Power aims to increase power generation capacity from 4.6 GW (including facilities under construction) to 9.2 GW by 2030. The utility also hopes to achieve a 50:50 clean energy and thermal capacity mix by 2030. JERA also has goals to reduce its emissions and is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO2 Emissions 2050” objective.

[1] https://www.jera.co.jp/english/information/20210927_765

[Japan] TEPCO releases plan to discharge radioactive water from its Fukushima Plant

Tokyo Electric Power Company (TEPCO) released its plans on August 25, 2021, to construct a roughly 1 km-long undersea tunnel to release treated radioactive water from the Fukushima Daiichi Nuclear Power Station.[1] Since the accident in 2011, more than 1 million tons of treated water has accumulated at the complex. The water was contaminated when it was pumped into the ruined reactors to cool the melted fuel and is being treated using an advanced liquid processing system. While the process removes most radioactive materials, it leaves behind tritium, which is considered low risk at low concentrations. On August 24, 2021, the Japanese government announced that it will buy marine products to support the fishing industry in case the release of treated water from the plant hurts their sales.[2] Prior to this, in April 2021, the government decided to start discharging treated water in the spring of 2023. However, the plan has been opposed by fishermen, citizens, and nearby countries.

TEPCO will construct the undersea tunnel by hollowing out bedrock on the seabed near the plant’s No. 5 reactor. The tunnel will stretch 1 km east and release the water into an area where there are no fishing rights in place. The company will dilute the treated water with seawater to reduce the tritium concentration to less than 1,500 becquerels per liter. Because the seawater in the port in front of the Fukushima Daiichi Nuclear Power Plant contains radioactive materials, the seawater will be taken from elsewhere. TEPCO plans to apply to the Nuclear Regulation Authority for a review of the construction plans and begin preparatory work soon. The company hopes to start construction in early 2022 and begin operations in spring 2023 in line with government policy.

[1] https://www.tepco.co.jp/en/hd/newsroom/press/archives/2021/20210825_01.html

[2] https://www.japantimes.co.jp/news/2021/08/24/national/fukushima-water-tunnel/

[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