[Japan] Japan Gas Association Discussed Focus Areas for Japan’s Gas Industry to Transition to Carbon Neutral

On November 24, 2020, Michiaki Hirose, the Chairman of the Japan Gas Association (JGA, Headquarters: Tokyo), held a press conference to discuss the Japanese gas industry’s perspective on Prime Minister Suga's recent announcement to achieve a carbon neutral society by 2050. JGA is an industry association that promotes the development of city gas utilities in Japan.

JGA recognizes the importance of the goal to achieve a carbon neutral society and made a commitment to accelerate decarbonization efforts in the industry. It laid out the focus areas for the industry to meet the ambitious goal of transitioning to carbon neutral by 2050, while ensuring a stable energy supply. JGA’s priorities are:

1)   Promoting innovation in gas technologies: support innovation and the implementation of technologies such as hydrogen, methanation, biogas, and Carbon Capture Utilization and Storage (CCUS) that reduce CO2 emission and facilitate carbon recycling, while expand the use of carbon neutral Liquefied Natural Gas (LNG).

2)   Expand the use of natural gas and its applications: potential applications include the use of natural gas for balancing the grid to support the expansion of renewable energy and distributed energy systems, such as co-generation and fuel cells.

3)   Strengthen international cooperation: facilitate sharing of advanced gas-related technologies, including hydrogen, with the international community.

JGA expects that the future of the Japanese gas supply and infrastructure will change with as a result of technological advancement. JGA expects to see the development of infrastructure to support the production and transportation of methane gas produced from imported hydrogen. JGA also predicts that there will be increased use of methane produced through methanation in the urban and regional areas in Japan to ensure a secure carbon neutral energy supply. [1]

[1] https://www.gas.or.jp/newsrelease/20201124.pdf

[Japan] J-Power and Genex Power Signed a Development Funding Agreement to Develop a New Wind Power Project in Australia

Tokyo-based Japanese power producer J-Power announced on November 27, 2020 that it has signed a Development Funding Agreement with Genex Power, a renewable energy development company in Sydney, Australia, to develop a 150MW capacity wind project, “Kidston State-3 Wind (KS3)”, in the state of Queensland in north-eastern Australia. The construction of the wind power plant is expected to begin in 2022 and it is expected to commence commercial operations in 2024.

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. [1] [2]

J-Power and Genex Power will develop the Kidston wind power project by leveraging J-Power’s technical expertise in wind power operation in Japan and overseas, and Genex Power’s experience in the development of renewable energy in Australia. This project is J-Power’s first renewable energy project in Australia. J-Power will continue to work on its overseas expansion for power generation businesses, including renewable energy.[3] [4]

 

List of J-Power’s Renewable IPP Project (Overseas)

[Japan] JERA Has Begun a Demonstration Test for a Battery Energy Storage System Data Platform

On November 25, 2020, JERA announced that it has begun a demonstration test for a Battery Energy Storage System Data Platform (BESS Platform). JERA is a major Japanese energy company that was established through a joint venture between Tokyo Electric Power Fuel & Power (Headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture).

The BESS Platform is a membership-based platform that provides users services by utilizing the operational data collected from the battery storage installed on the user's premises. It was built on JERA’s Internet of Things (IoT) platform.

A survey conducted by JERA reported that the main reason that users install battery storage is to securely back up their electricity supply during a disaster. Therefore, the batteries have surplus capacity in normal times. JERA aims to develop services to enable optimal energy use, such as the visualization of power consumption and peak-loading shifts. The demonstration test will verify the performance of the BESS platform, including the automatic collection of battery storage operational data, and JERA evaluate the services based on the data collected. The demonstration test started in November 2020 and will run until the end of March 2021.

JERA aims to become the leading company to offer innovative clean energy solutions. The BESS Platform demonstration project is JERA’s latest effort to contribute to achieving a carbon-free society.[1] [2]

[1] https://www.jera.co.jp/information/20201125_553

[2] https://www.jera.co.jp/english/information/20201125_553

[Japan] TRENDE, the University of Tokyo, and the Frontier Research Center of Toyota Motor Corp. Completed a Demonstration Test for a Next-Generation Peer-to-Peer Electricity Trading System

On November 13, 2020, TRENDE (Headquarters: Tokyo), a subsidiary of TEPCO Ventures; the University of Tokyo; and the Frontier Research Center of Toyota Motor Corp. (Toyota, Headquarters: Aichi Prefecture), which develops robotics and technologies for medical care and energy, announced that they had completed a demonstration project for a peer-to-peer (P2P) electricity trading system.

The system uses blockchain technologies to enable P2P electricity transactions between customers who are using distributed energy resources (DER), including solar generation systems, battery storage, and plug-in hybrid (PHV). The transaction is conducted based on consumers’ electricity consumption and generation forecasts created through Artificial Intelligence (AI).

The demonstration test was conducted from June 17, 2019 to August 31, 2020 at Toyota’s Higashifuji Technical Center in Susono City, Shizuoka Prefecture, and in the surrounding areas. The test examined the performance of the P2P electricity trading system and its impact on lowering electricity bills for commercial and residential customers. The demonstration test verified that the system enabled homes and businesses to trade electricity from DERs and contributed to reducing electricity bills by approximately 9% among residential participants.

TRENDE, the University of Tokyo, and Toyota plan to provide the system to households and EV users. They expect that it will contribute to reducing electricity bills and CO2 emissions, as well as enhancing disaster resiliency. The team is also considering collaborating with various companies and universities for overseas expansion.[1][2]

[1] https://www.tepcoventures.co.jp/news/news-367/

[2] https://trende.jp/news/press/20201113/

[Japan] Keidanren Released the “New Growth Strategy”

Keidanren, also known as Japan Business Federation, released a “New Growth Strategy” on November 17, 2020 describing its action targets for 2030 in several areas. Keidanren is an economic organization that represents 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).[1]

The New Growth Strategy focuses on sustainable capitalism, and urges Japanese companies to address various environmental, societal, and economic challenges that have worsened due to the COVID-19 pandemic. The Strategy lays out vision and action targets for 2030 in each of the five following areas: (1) achieving new growth through digital transformation (DX), which aligns with one of the priorities of the newly established Suga administration; (2) reforming the traditional time-based work management to allow various work styles; (3) regional revitalization; (4) rebuilding the international economic order, and 5) achieving green growth.

As part of the mission to achieve green growth, the Strategy has addressed the importance for Japan to take the following measures in order to become carbon-neutral by 2050, which is the goal established in Prime Minister Suga's recent policy speech:

1)   Accelerating innovation towards a carbon-free society: promoting innovations such as battery storage, hydrogen, and carbon capture utilization and storage (CCUS); supporting innovation through public-private partnerships (PPP); and addressing challenges through the Challenge Zero[2] project;

2)   Prioritizing support for the development of renewable energy: developing policy measures, infrastructure and supply chain to accelerate the installation of renewable energy that is expected to be cost competitive and can be installed at a large scale, such as rooftop solar power and large-scale offshore wind power;

3)   Utilizing nuclear power that can achieve both decarbonization and economic efficiency: facilitate the restart of existing nuclear power plants and the development of advanced nuclear reactors while improving safety and building public acceptance;

4)   Accelerating electrification: promote the electrification of homes, office buildings, and cars; encourage investment in Japan’s energy sector by facilitating the creation of large-scale power demand such as data centers; and

5)   Formation of the Green Growth National Alliance: lead the formation of a Green Growth National Alliance and introduce a wide range of green technologies while promoting sustainable financing.

Keidanren noted that Japan faces various energy challenges, particularly since the Fukushima accident in 2011. The investment required to comply with new safety measures for nuclear power plants has made it difficult for utilities to invest in new energy technologies in the last decade. Keidanrenemphasized the importance of creating a mechanism to promote investment in green innovation in order to meet Japan’s carbon-neutral goals.[3] [4]

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

[2] In June 2020, Keidanren launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges.

[3] https://www.keidanren.or.jp/speech/kaiken/2020/1109.html

[4] https://www.keidanren.or.jp/policy/2020/108.html

[Japan] Toshiba Energy Systems & Solutions and Next Kraftwerke Agreed to Launch Joint Venture, Next Kraftwerke Toshiba

On November 4, 2020, Toshiba Energy Systems & Solutions Corporation (Toshiba ESS, Headquarters: Tokyo), a subsidiary of Toshiba, announced that it has signed an agreement with Next Kraftwerke GmbH (Headquarters: Cologne, Germany), a German operator of large-scale virtual power plants (VPP), to establish a joint venture called Next Kraftwerke Toshiba.

The joint venture aims to provide services using VPP technology for renewable energy power generation companies and aggregators. Their services will help firms to balance their electricity supply and demand, and to optimize their trading operations for improved profitability. Toshiba ESS and Next Kraftwerke will leverage their experience on power supply and demand forecasting, distributed energy resources (DER) management, and energy trading. Toshiba ESS will own 51% of the shares of the joint venture and Next Kraftwerke will own the remaining 49%. The joint venture is expected to begin operations by the end of November 2020.

The joint venture was launched ahead of Japan’s plans to apply new mechanisms to promote the implementation of renewable energy and DER. Japan is set to launch a control reserve market in April 2021 in order to efficiently utilize DER, including renewable energy and battery storage. Furthermore, Japan will make a shift from feed-in tariffs (FIT) to feed-in premiums (FIP) to make renewable energy the main generation source by April 2022. This change will require utilities to be responsible for balancing their supply and demand based on accurate power generation forecasts while mitigating market risks under fluctuating market prices. Since October 2019, Toshiba ESS and Next Kraftwerke have jointly studied the potential for VPP technology to address these challenges.

The joint venture will primarily focus on the Japanese market but will also consider overseas expansion by leveraging Toshiba ESS and Next Kraftwerke’s global operations and networks.[1] [2]


[1] https://www.toshiba-energy.com/info/info2020_1104.htm

[2] https://www.toshiba-energy.com/en/info/info2020_1104.htm

[USA] DOE releases its first energy storage strategy

On December 21, 2020, the Department of Energy (DOE) released the Energy Storage Grand Challenge Roadmap, the DOE’s first comprehensive energy storage strategy.[1] Announced in January 2020 by Secretary of Energy Dan Brouillette, the Energy Storage Grand Challenge (ESGC) seeks to increase domestic production of energy storage and create American leadership in storage. DOE also released two companion ESGC reports, the 2020 Grid Energy Storage Technology Cost and Performance Assessment and the Energy Storage Market Report 2020, to provide easily accessible data and information to energy stakeholders.

DOE’s roadmap includes a goal to develop and domestically manufacture energy storage technologies that can meet all U.S. market demands by 2030. To achieve this, DOE has a suite of initiative including promoting continued research, boosting the manufacturing and supply chain for batteries, providing relevant energy storage data, and enhancing workforce development programs. The DOE aims to achieve a $0.05/kWh levelized cost of storage for long-duration stationary applications, which include utility-scale battery storage facilities that can store energy for 10 hours or more, by 2030. The reduction would be a 90% reduction in costs and would help facilitate “commercial viability” for storage across a wide range of uses. The DOE also aims to lower the costs of battery packs for EVs with a driving range of 300 miles to $80/kWh by 2030, which is 44% lower than current battery packs. If achieved, the DOE projects that electric cars would be competitive with standard gasoline cars.

[1] https://www.energy.gov/articles/department-energy-releases-energy-storage-grand-challenge-roadmap

[Japan] JERA Signed Memorandum of Understanding (MOU) with ExxonMobil and the People’s Committee of Hai Phong City to Participate in an Integrated LNG to Power Project in Northern Vietnam

On October 28, 2020, JERA announced that it has signed a Memorandum of Understanding (MOU) with ExxonMobil Hai Phong Energy (EMPHE, Headquarters: Texas, the United States), and the People’s Committee of Hai Phong City, Vietnam to jointly work on an Integrated Liquefied Natural Gas (LNG) to Power Project. The project aims to establish an LNG value chain that consists of an LNG import terminal and an LNG-fired power plant in Hai Phong City, Vietnam. 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).

Hai Phong City is the largest port city in northern Vietnam. The city has seen fast economic growth over the years and its annual power consumption is expected to double over the next decade. EMPHE aims to meet the city’s future electricity demand with cleaner energy. EMPHE has submitted an application to the Vietnamese government for the project to be considered and potentially included in Vietnam’s National Power Development Plan (PDP), which sets out the long-term vision for Vietnam’s energy security and development.

The project is being conducted as part of the Japan US Strategic Energy Partnership (JUSEP), a Japan-US collaborative framework that facilitate economic growth and global security through developing an affordable and reliable energy supply in Southeast Asia, South Asia, and Sub-Saharan Africa. [1] The MOU was signed at the Indo-Pacific Business Forum hosted by the U.S. Trade and Development Agency, with the presence of government officials from Japan, the U.S., and Vietnam.

JERA aims to become a provider of cutting-edge solutions to solve global energy problems. Through this mission, JERA will contribute to addressing energy challenges in Vietnam by leveraging its experience in LNG value chains.[2] [3]

[1] https://www.meti.go.jp/english/press/2017/pdf/1107_001a.pdf

[2] https://www.jera.co.jp/information/20201028_545

[3] https://www.jera.co.jp/english/information/20201028_545

[Japan] Kansai Electric Power and e5 Lab Agreed to Form a Partnership for the Joint Development and Promotion of Urban Water Mobility Project in the Kansai Bay Area

On October 30, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and e5 Lab (Headquarters: Tokyo)[1], a Japanese electrically powered vessel developer, announced that they had agreed to form a partnership for the joint development and promotion of Urban Water Mobility Project, which would utilize electrically powered vessels to provide improved transportation options in the Kansai Bay area.

KEPCO and e5 Lab will develop and promote the electrification and automation of vessels to help resolve transportation challenges such as labor shortages and the need to achieve zero emission goals.

e5 Lab will contribute to the development of next generation electrically powered vessels that achieve both sustainability and comfort, and that can be used for multiple purposes, such as transportation and entertainment. KEPCO will be responsible for developing a two-way wireless charging and discharging system for electrically powered vessels. If successful, the partnership will be the first in Japan to install such systems on a vessel.

Electrically powered vessels offer several unique benefits, including reduced emissions, noise, and vibrations compared with traditional vessels. They also offer larger space, since the vessel does not need an engine room. In addition, KEPCO’s battery will provide efficient charging and will require less frequent maintenance. The batteries installed in the vessels can also be used to supply electricity in an emergency.

KEPCO and e5 Lab aim to contribute to the sustainable development of Japanese shipping industry through offering electrically powered vessels to governments and businesses in the future.[2][3]

 

*The video clip on KEPCO’s electrically powered vessels for Urban Water Mobility Project can be accessed from the following URL.

https://www.youtube.com/embed/SIkRpsqyBMA?enablejsapi=1&feature=oembed&wmode=opaque&vq=hd720

[1] https://e5ship.com/

[2] https://www.kepco.co.jp/corporate/pr/2020/1030_3j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/1030_3j_01.pdf

[Japan] Kansai Electric Power Transmission & Distribution Launched a Pilot Project for a Parcel Delivery Locker Service in Kyoto, Japan

On October 19, 2020, Kansai Electric Power Transmission & Distribution (Headquarters: Osaka Prefecture) announced that it would launch a pilot project for a parcel delivery locker service in Seika Town, Kyoto. The pilot project was launched in partnership with Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture); Nihon Network Support (Headquarters: Osaka Prefecture), a KEPCO subsidiary that produces power generation equipment; Kyoto Prefecture; Seika Town; and Toyota Industries (Headquarters: Aichi Prefecture) as well as some major Japanese logistics companies.

The growth of e-commerce in Japan in recent years has led to an increase in parcel delivery volumes, and labor shortages in the logistics sector. The COVID-19 outbreak further accelerated these issues and increased the demand for contactless parcel delivery. KEPCO Transmission & Distribution partnered with other companies to address these challenges through a contactless parcel delivery locker service.  

KEPCO Transmission & Distribution installed parcel delivery lockers alongside its electric poles in residential areas in Seika town. Community members who missed a delivery at home can request for their parcels to be stored at the lockers to pick them up later. KEPCO Transmission & Distribution aims to use this system to lessen the burden on logistic operators by reducing the need for re-delivery and hopes that the service will contribute to sustainability though improving operational efficiency.

The parcel delivery locker services are managed and operated by KEPCO Transmission & Distribution. The lockers were provided and maintained by Toyota Industries. Nihon Network Support assisted in developing the equipment to install the lockers. The delivery services will be operated by Yamato Transport (Headquarters: Tokyo), Japan Post Service (Headquarters: Tokyo), and Seino Transportation (Headquarters: Gifu Prefecture[1]).

The pilot project is being conducted as part of the Ministry of Land, Infrastructure, Transport and Tourism’s “Smart Keihanna Project”, an initiative to promote smart city projects in the “Keihanna” region on the border between Kyoto, Osaka, and Nara Prefectures. The pilot project started on October 19, 2020 and will run until January 31, 2021.[2] [3]

[1] https://www.seino.co.jp/seino/company/overall-condition/

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/1019_1j_01.pdf

[3] https://www.kepco.co.jp/corporate/pr/2020/1019_1j.html

[USA] NC Supreme Court rules Duke won’t foot $9B coal ask cleanup bill, shareholders may still pay half

On December 11, 2020, the North Carolina Supreme Court ruled that Duke Energy and its shareholders will not have to bear the full brunt of the coal ash cleanup costs.[1] In January 2020, Duke reached a settlement with environmental groups that requires the utility to excavate a total of 124 million pounds of coal ash from Duke’s coal plant sites over the next 10 to 15 years.[2] Duke estimates the total cost of the cleanup to cost $8-9 billion. Duke has repeatedly said that absorbing these costs would likely weaken its balance sheet.[3] The CEO has also said the company would be unwilling to reach a settlement with environmentalists on whether the utility can profit from the cleanup.

The NC Supreme Court decision partially upholds the North Carolina Utilities Commission’s (NCUC), the government agency that regulates utilities in the state, initial ruling that coal ash costs should be included in the cost of service used to establish the utilities’ retail rates, essentially putting the cost on Duke’s ratepayers. The NCUC’s decision was challenged by the state’s attorney general who argued that Duke should bear the costs of the cleanup and filed a brief in the NC Supreme Court to appeal the decision. The court also ruled that the NCUC should reconsider its rejection of North Carolina Public Staff’s “equitable sharing” proposal. The NC Public Staff’s, which helps consumers resolve disputes with utility companies, proposal would split the cost of cleanup between ratepayers and shareholders and extend the timeline for paying off the costs, but would not allow the utility to profit from the cleanup. The court's ruling does not mean the NCUC has to implement the NC Public Staff’s proposal, only that the commissions needs to consider "all potentially relevant facts."

[1] https://appellate.nccourts.org/opinions/?c=1&pdf=39826

[2] https://www.southernenvironment.org/news-and-press/news-feed/n.c-settlement-results-in-largest-coal-ash-cleanup-in-america

[3] https://www.utilitydive.com/news/uncertainty-over-earnings-return-for-8b-north-carolina-coal-ash-cleanup-we/583267/

[Japan] Vena Energy breaks ground on 162-MW PV facility in northern Japan

On December 16, 2020, Vena Energy, a Singapore-based independent power producer (IPP), announced that it has broken ground on the Amateras Shiroishi Solar Project, a 162-MW solar photovoltaic (PV) facility in Japan's Miyagi prefecture.[1] The project will be one of the largest renewable energy projects in the region. According to the press release, Vena Energy acquired Amateras Solar GK, the developer of the Amateras Shiroishi Solar Project, from X-ELIO, a Spain-based global solar developer. The deal expanded Vena Energy’s construction portfolio to 17 projects totaling 604 MW across Japan. During the peak of its construction, the project is expected to create over 200 jobs. When if begins operations, the project if expected to produce up to 175,000 MWh of clean renewable energy per year which will power roughly 35,000 Japanese households. The project will also reduce up to 104,000 tonnes of greenhouse gas emissions and save up to 165 million litres of water every year compared to thermal energy generators.

[1] https://www.venaenergy.com/all_news/vena-energy-expands-renewable-energy-construction-portfolio-in-japan-with-landmark-162mw-solar-project-in-miyagi-prefecture/

[USA] Biden picks two-term Michigan Governor Granholm to lead DOE

According to Politico on December 15, 2020, President-elect Joe Biden will pick former Michigan Governor Jennifer Granholm to be the head of the Department of Energy (DOE).[1] Granholm, who served two terms as Governor of Michigan from 2003 to 2011, has been a strong advocate for zero-emissions vehicles and has argued that the U.S. risks being left behind by other countries if it does not develop alternative energy technologies. In an op-ed in the Detroit News, Granholm wrote, “[T]he private sector needs greater support and political will from our policymakers to help us fully realize the potential of a zero-carbon future. The economics are clear: The time for a low-carbon recovery is now.”

Picking Granholm for DOE secretary is a clear sign that Biden wants the department to play a central role in achieving the targets of Biden’s climate plan. While the DOE’s budget is primarily devoted to maintaining the U.S.’s nuclear weapons arsenal, it also operates 17 national labs that help develop advanced technology used in renewables, nuclear energy and fossil fuel production. Under the Obama administration, the DOE oversaw tens of billions of dollars in loan guarantees and grants that expanded the adoption of solar and wind power and helped drive down the costs of renewables. The DOE also sets appliance standards, conducts research on innovations like electric heat pumps, and oversees building and residential energy efficiency programs, all of which will be key to reducing emissions from buildings.

[1] https://www.politico.com/news/2020/12/15/biden-to-tap-former-michigan-gov-granholm-to-lead-energy-department-445782

[Japan] KEPCO Joined the Preparatory Committee to Establish the Hydrogen Value Chain Promotion Council

On October 14, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced that it had joined the Preparatory Committee which will work to establish the Hydrogen Value Chain Promotion Council by early December 2020. The Council will seek to promote global cooperation in the development of the hydrogen sector and the formation of hydrogen supply chains. The Preparatory Committee consists of nine companies[1] including KEPCO.[2]

Many countries, including Japan, are currently working towards the realization of a hydrogen society due to the potential for hydrogen technologies to help reduce CO2 emissions. The Hydrogen Value Chain Promotion Council will take the following actions:

·       Promote cross-cutting initiatives to build a hydrogen value chain.

·       Accelerate the application of hydrogen technologies to solve societal needs and challenges.

·       Promote the creation of a hydrogen financing scheme in collaboration with financial institutions.

Prior to joining the Preparatory Committee, KEPCO has already been working on accelerating the development of hydrogen technology, such as establishing Hydro Edge (Headquarters: Osaka City, Osaka Prefecture)[3], a joint venture involving KEPCO and other investors that manufactures and sells liquid hydrogen. KEPCO has also conducted a series of hydrogen demonstration tests and studies with the support of the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo). The research has included demonstrations of the efficiency of hydrogen co-generation systems (CGS) and hydrogen-fueled gas turbine operations with dry low NOx combustion technology[4], as well as exploring the possibility of integrating hydrogen into existing thermal power plants.

KEPCO plans to further accelerate its efforts to promote hydrogen utilization as a member of the committee through collaboration with the other participating organizations and businesses to explore hydrogen’s potential and through future work to overcome barriers to the realization of a hydrogen society.[5]

[1] The Preparatory Committee consists of KEPCO; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use ; ENEOS (Headquarters: Tokyo), a petroleum company ; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Kobe Steel (Headquarters: Kobe City, Hyogo Prefecture), a steel manufacturer ; Toshiba (Headquarters: Tokyo); Toyota (Headquarters: Toyota City, Aichi Prefecture); Sumitomo Mitsui Financial (Headquarters: Tokyo), a financing group provides banking services ; and Mitsui & Co (Headquarters: Tokyo) , a Japanese trading company.

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/1014_2j_01.pdf

[3] http://hydroedge.co.jp/

[4] https://www.nedo.go.jp/english/news/AA5en_100427.html

[5] https://www.kepco.co.jp/corporate/pr/2020/1014_2j.html

[Japan] J-Power and KDDI Completed a Drone Demonstration Test at Tomamae Winvilla Wind Farm

J-Power (Headquarters: Tokyo), a power producer and KDDI (Headquarters: Tokyo), a  telecommunications operator, announced on October 7, 2020, that they had conducted a drone demonstration test at J-Power’s Tomamae Winvilla Wind Farm from September 1, 2020 to September 30, 2020.

The drone was equipped with auto-flight software that was manufactured by Drone Base (Headquarters: Tokyo), a drone software developer.[1] The software enables the drone to automatically capture images of wind turbine blades when they are in shutdown mode. The demonstration test showed that the drone was able to capture images of all three blades of a wind turbine from four different directions in one flight. The captured images were then uploaded to a cloud server along with additional data, such as positioning and altitude information. It took approximately 20 minutes for the drone to capture images of each wind turbine, which means that the drone reduced inspection times approximately 90% compared with conventional manual inspections.

Based on the results of the test, J-Power and KDDI will continue to advance their automated drone inspection methods by utilizing Artificial Intelligence (AI), robots, and Internet of Things (IoT) technologies.[2]

[1] https://drone-base.jp/

[2] https://www.jpower.co.jp/news_release/2020/10/news201007.html

[USA] GE Renewable Energy announces first U.S. wind turbine blade recycling program

On December 8, 2020, GE Renewable Energy announced that it has signed a multi-year agreement with Veolia North America (VNA), a consulting firm that provides solutions to promote sustainability and a circular economy, to recycle blades removed from its onshore turbines in the U.S. during upgrades and repowering efforts, the first program of its kind in the U.S.[1] GE plans to use this agreement to recycle the majority of blades that are replaced during repowering efforts. Once the blades are removed from the turbines, they will be shredded at VNA’s processing plant in Missouri and then used as a replacement for coal, sand, and clay at cement manufacturing facilities. Nearly 90% of the blade material, by weight, will be reused as repurposed material for cement production. More than 65% of the blade weight will replace raw materials and about 28% of the blade weight will provide energy for the chemical reaction that takes place in the kiln. Environmental impact analysis by Quantis U.S. found that the process will make while reducing CO2 emissions from cement production by a net 27%. According to the GE press release, similar recycling processes in Europe have been effective at a commercial scale. GE has committed to reducing the environmental impacts of its products throughout their life cycles. To this end, GE announced a pledge in 2019 to decarbonize its operations and achieve carbon neutrality by the end of 2020.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-announces-us-blade-recycling-contract-with-veolia

[USA] NRDC Report: LNG as bad for climate as coal over next 20 years

According to a report released on December 8, 2020 by the Natural Resources Defense Council (NRDC), a non-profit environmental advocacy group, projected increases in U.S. exports of liquefied natural gas (LNG) are likely incompatible with holding the rise in global temperature at 1.5° Celsius.[1] [2] The report, titled “Sailing to Nowhere: Liquefied Natural Gas Is Not an Effective Climate Strategy”, found that although greenhouse gas (GHG) emissions from U.S. LNG are lower than coal over a 100-year time span, methane’s more immediate impact compared to CO2 means the "near-term" climate effect of LNG over the next 20 years is similar to coal. The emissions from the LNG industry will generate up to 213 million metric tons of new GHG emissions by 2030, which is equal to the annual emissions of 28 to 45 million fossil fuel-powered cars, according to the report. Much of LNG’s climate impact also comes from the extraction, transport, liquefaction, and re-gasification of LNG. The report also emphasized that the long lifespan of LNG infrastructure “locks in” fossil fuels instead clean energy which prevents of clean energy technologies like wind and solar, which produce significantly lower life-cycle GHG emissions, from expanding. The report concluded that the estimated social cost of U.S. LNG exports was $8.1 billion in 2019 and would be $30.5 billion per year by 2030.

[1] https://www.nrdc.org/resources/sailing-nowhere-liquefied-natural-gas-not-effective-climate-strategy

[2] https://www.nrdc.org/sites/default/files/sailing-nowhere-liquefied-natural-gas-report.pdf

[USA] LBNL releases annual studies on wind and solar, solar gaining ground

The Lawrence Berkeley National Laboratory (LBNL) released its annual wind energy data update in August 2020 and its annual utility-scale solar data update in November 2020.[1] [2] During a webinar on December 8, 2020 that compared the data from these studies, Mark Bollinger, one of the lead authors on the studies, concluded that solar is gaining ground on wind and natural gas in terms of projects seeking approval to connect to the grid.[3] On average, although solar is still more expensive, it delivers a greater net financial benefit to customers on average, according to Bollinger.

LBNL noted that new solar projects are benefiting from a growing trend toward "hybrid" combinations of renewable generation with battery storage which help with the “duck curve” challenge. This growing trend is helped by the federal investment tax credit, for which solar and battery hybrid projects are eligible while wind and battery pairings are not. However, whether wind or solar power is cheaper depends heavily on the region due to varying environmental conditions. The lab also emphasized that wind and solar still total no more than 10% of U.S. electricity output and there are several issues that could slow renewable market growth. Phaseouts of federal tax credits could significantly slow down market growth. Bollinger also added that in regions where the two power sources compete, "they tend to cannibalize their own market value” which could further slow down renewable growth.

[1] https://eta.lbl.gov/publications/wind-energy-technology-data-update

[2] https://eta.lbl.gov/publications/utility-scale-solar-data-update-2020

[3] https://www.youtube.com/watch?v=gUXDG7SzIl8

[USA] Vineyard Wind selects GE as wind turbine supplier; puts project on hold

On December 1, 2020, Vineyard Wind, a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners (CIP), announced that it has selected General Electric (GE) as the supplier of wind turbine generators for its Vineyard Wind 1 project.[1] Vineyard Wind 1 is an 800MW project located off the coast of Martha’s Vineyard, Massachusetts and will be the first large-scale offshore wind farm in the U.S. As a part of this decision, Vineyard Wind has decided to temporarily withdraw its Construction and Operations Plan (COP) from further review by the Bureau of Ocean Energy Management (BOEM) in order to conduct a final technical review associated with the inclusion of GE Renewable Energy’s Haliade-X wind turbine generators. According to Vineyard Wind’s CEO, Lars T. Pedersen, the company believes that the move will avoid more federal delays and provide the shortest timeline for delivering the project. Vineyard Wind expects the review to take several weeks after which it will continue the permitting process with BOEM. The company still plans to reach financial close in the second half of 2021 and begin delivering energy to Massachusetts in 2023.

[1] https://www.vineyardwind.com/press-releases/2020/12/1/vineyard-wind-selects-ge-renewable-energy-as-preferred-turbine-supplier

[USA] Senate Votes to Confirm Christie and Clements to FERC

The Senate voted on November 30, 2020 to confirm the nominations of Republican-pick Mark Christie and Democrat-pick Allison Clements to the Federal Energy Regulatory Commission (FERC).[1] Clements, who will be filling the spot left by Commissioner Cheryl LaFleur in July of 2019, will serve on the commission until 2024 and Christie, who will fill the spot left by Commissioner Bernard McNamee in June 2020, until 2025. Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004. The pair was nominated by the White House in July 2020 and advanced by the Senate Committee on Energy and Natural Resources in November 2020. Their confirmation by the Senate means FERC will have a full quorum for the first time since before the departure of Commissioner Robert Powelson in 2018. The other members of FERC are Chairman James Danly (Republican), former Chairman Neil Chatterjee (Republican), and Commissioner Richard Glick (Democrat). FERC will be a majority Republican body until June 2021 when former Chairman Neil Chatterjee's term ends.

[1] https://www.ferc.gov/news-events/news/senate-votes-confirm-christie-clements-commission