[USA] National Grid and PPL announce pair of multi-billion-dollar deals

On March 18, 2021, National Grid (Headquarters: London, U.K.) and PPL Corp. (Headquarters: Allentown, Pennsylvania) announced two agreements that the companies claim will help them better align their assets with their clean energy strategies.[1][2] PPL will sell its U.K. utility business, Western Power Distribution (WPD), to National Grid for $10.9 billion. WPD is comprised of four electricity distribution companies that serve 7.9 million customers in central and southwest England and south Wales. In a separate transaction, National Grid will sell its Rhode Island utility, Narragansett Electric Company, for an equity value of $3.8 billion. Narragansett Electric is the largest electricity transmission and distribution service in Rhode Island, serving roughly 780,000 customers. As a part of the announcement, National Grid says it will also initiate a sales process for a majority stake in its National Grid Gas Transmission business in the U.K. The transactions follow an August 2020 press release in which PPL announced that it planned to sell WPD in order to shift its focus to U.S. utility investments and clean energy investments to improve share value.[3] National Grid says the “increased exposure” to the U.K.’s electricity sector will allow that company to take “a more holistic approach” and help the UK’s net zero ambitions.[4]

[1] https://www.nationalgridus.com/News/2021/03/The-Narragansett-Electric-Company-to-join-PPL-Corporation-/

[2] https://pplweb.mediaroom.com/2021-03-18-PPL-Corporation-to-sell-U-K-utility-business-to-National-Grid-and-acquire-National-Grids-Rhode-Island-utility-strategically-repositioning-PPL-as-a-high-growth-U-S-focused-energy-company

[3] https://pplweb.mediaroom.com/2020-08-10-PPL-Corporation-Launches-Process-to-Sell-U-K-Business-Reposition-Itself-as-U-S-Focused-Utility-Company

[4] https://www.nationalgrid.com/repositioning-national-grids-portfolio

[World] Report: Japan needs steep emissions reductions to reach decarbonization goals

On March 4, 2021, the International Energy Agency (IEA) published its Japan 2021 Energy Policy Review, which provides energy policy recommendations to help Japan achieve its clean energy transition.[1] In October 2020, the Prime Minister of Japan announced that Japan will aim to achieve net-zero greenhouse gas (GHG) emissions by 2050. However, despite making substantial progress in the last decade, Japan remains reliant on imported fossil fuels. Japan’s energy supply carbon intensity is among the highest of IEA member countries, according to the report. The IEA report makes several recommendations for reaching Japan’s 2050 carbon neutrality goal. The IEA says that Japan should develop several scenarios for decarbonization to prepare for the case that some low-carbon technologies are not deployed as quickly as expected. Japan should also establish market-based methods to encourage investments in efficient and low-carbon technologies. The IEA recommends that the government encourage investments in the electricity network and system operations to facilitate the large-scale deployment of variable renewable electricity sources. In the light of the January 2021 energy crisis, the IEA recommends advances in electricity and gas market reforms, including making the Electricity and Gas Market Surveillance Commission a more independent regulator. For nuclear, the IEA report recommends investing human and financial resources to accelerate the Nuclear Regulatory Commission’s safety reviews of nuclear reactors.

[1] https://www.iea.org/reports/japan-2021

[USA] Texas governor declares billing errors an emergency matter

On March 9, 2021, Governor of Texas, Greg Abbott (R), announced that the correction of billing errors is an emergency matter to be considered immediately by the Texas legislature.[1] The announcement comes after regulators at the Texas Public Utility Commission (PUC) declined on March 8, 2021 to direct the Electricity Reliability Council of Texas (ERCOT) to retroactively reprice its artificially inflated prices during the February 2021 cold weather event.[2] The commissioners expressed concern that there was too much uncertainty in how customers might be impacted by directing ERCOT to reverse its pricing. The decision goes against the recommendation of Potomac Economics, the region’s independent market monitor (IMM). According to the IMM, ERCOT should have immediately lowered prices after load shed instructions ended on February 17, 2021, but prices remained high through February 19, 2021 which cost the market $16 billion over the course of 32 hours. On March 8, 2021, Texas Lt. Gov. Dan Patrick called on the PUC to retroactively change the prices from that time period. On the same day, Texas PUC Commissioner Shelly Botkin resigned effective immediately. Her departure comes just a week after the resignation of Chair DeAnn Walker and leaves the commission with just one member left, Chair Arthur D’Andrea.

[1] https://www.utilitydive.com/news/texas-puc-loses-2nd-commissioner-as-lt-gov-presses-ercot-to-correct-16b/596378/

[2] https://www.utilitydive.com/news/texas-regulators-decline-to-act-after-market-monitor-reports-16b-of-inapp/596252/

[USA] Ohio House votes to repeal $1 billion in nuclear subsidies

On March 10, 2021, the Ohio House of Representatives voted 86-7 to pass H.B. 128, which repeals many provisions in the Creates Ohio Clean Air Program (H.B. 6).[1] H.B. 6 was passed on July 23, 2019 and is a comprehensive energy bill that would provide subsidies to promote clean air. The bill created a customer-paid $1.1 billion subsidy for two nuclear power plants in northern Ohio which had been suffering economically. The bill On July 30, 2020, federal prosecutors indicted then-House Speaker Larry Householder (R) and four associates on charges of running a $61 million bribery scheme involving Energy Harbor, the FirstEnergy subsidiary that operates the two nuclear plants involved in H.B. 6. Householder and his associates are charged with receiving bribes from Energy Harbor in exchange for passing H.B. 6. Householder, who pled not guilty in court, was reelected in November 2020 and continues to serve in the Ohio House while he awaits trial. The former speaker was among those who voted to pass H.B. 128. In the wake of the scandal, there was a large push among Ohio representatives and government officials to repeal all or parts of H.B. 6. While H.B. 128 repealed many of the nuclear provisions in H.B. 6, it did not repeal H.B. 6’s subsidies for two of the Ohio Valley Electric Corp’s (OVEC) coal plants.

[1]https://www.eenews.net/energywire/2021/03/11/stories/1063727183?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[USA] ERCOT Board of Directors fires CEO after Texas power outages

The Electric Reliability Council of Texas' (ERCOT) Board of Directors voted on March 4, 2021 to issue a 60-day termination notice for CEO Bill Magness.[1] In a statement, the Board of Directors state that they will "begin an immediate search for a new President and CEO.” The vote comes just weeks after the state experienced widespread power outages during an extreme cold weather event in February 2021. In addition to this news, the Chair of the Public Utility Commission of Texas (PUCT), DeAnn Walker, resigned on March 1, 2021. In her resignation letter, Walker stated that she "accepted [her] role in the situation," but that others, including the Texas Railroad Commission, ERCOT, and the legislature, should accept blame as well.

On March 4, 2021, the chairman of the House Oversight and Reform Subcommittee on the Environment, Representative Ro Khanna (D-California), sent a letter to CEO Bill Magness that requested documents regarding ERCOT's lack of winter storm preparation.[2] In his letter he stated, "The Subcommittee is concerned that the loss of electric reliability, and the resulting human suffering, deaths, and economic costs, will happen again unless ERCOT and the State of Texas confront the predicted increase in extreme weather events with adequate preparation and appropriate infrastructure."

[1] https://www.utilitydive.com/news/texas-head-utility-regulator-deann-walker-resigns-authority-ercot-blackouts/595932/

[2] https://oversight.house.gov/sites/democrats.oversight.house.gov/files/2021-03-03.Khanna%20to%20ERCOT%20re%20Winter%20Storms%20in%20Texas.pdf

[USA] Coalition of utilities unveil plan for multi-regional EV charging network

On March 2, 2021, the Electric Highway Coalition, which was formed by six utilities in the Southeast and Midwest, announced a plan to enable long distance electric vehicle (EV) travel by creating a network of direct current fast charging (DCFC) stations connecting major highway systems in the Midwest, South, Gulf, and Central Plains regions.[1] According to the Edison Electric Institute (EEI), there will be 18 million EVs in the U.S. by 2030. Currently, one of the major concerns of drivers when it comes to EVs is the availability of charging stations during long road trips.

The Electric Highway Coalition includes Duke Energy, American Electric Power (AEP), Dominion Energy, Entergy Corporation, Southern Company and the Tennessee Valley Authority (TVA). Each of the utilities have committed to providing EV fast charging options within their service territories to facilitate interstate travel. Sites near major highways that have easy highway access and amenities are being considered. DCFC stations will allow drivers to get back on the road in about 20-30 minutes. The utilities will coordinate with one another to prevent overlap of charging infrastructure if two or more utilities are in the same state. All of the utilities in the coalition have made efforts in recent years to increase EV charging infrastructure. For example, TVA announced in February 2021 that it is partnering with the Tennessee Department of Environment and Conservation to develop and fund a fast-charging network across major roadways in the state.

[1] https://www.tva.com/newsroom/press-releases/electric-highway-coalition

[USA] Biden backs former-president Trump on solar tariff suit

On March 1, 2021, the Biden administration filed with the U.S. Court of International Trade and requested that the court dismiss a lawsuit from the Solar Energy Industries Association (SEIA) and other solar industry members that argued that former-president Trump’s tariffs on bifacial solar panels were unlawful.[1] [2] Bifacial solar was originally excluded from Trump’s 2018 tariffs on other solar products because they were a relatively small share of the market at the time. However, a 2020 midterm review of the 2018 solar tariffs by the U.S. International Trade Commission (ITC) found that bifacial solar would become more popular and that the exclusion of bifacial solar from tariffs would hurt U.S. producers. This study led Trump to issue a presidential proclamation in October 2020 that removed the exception for bifacial solar. In late December 2020, the SEIA, NextEra Energy, EDF Renewables, and Invenergy Renewables challenged the Trump proclamation, which they claimed had violated rulemaking procedure. According to the Biden administration’s recent filing, the solar industry’s complaint "fails to set forth a plausible showing that the President’s determination involves a clear misconstruction of the governing statute, a significant procedural violation or action outside delegated authority."

[1] https://www.greentechmedia.com/articles/read/biden-administration-backs-trump-on-solar-tariff-suit

[2] https://www.bloomberg.com/news/articles/2021-03-01/biden-doj-says-trump-lawfully-killed-solar-tariff-loophole

[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/

[USA] Dominion proposes retiring its South Carolina coal fleet by 2030

On February 19, 2021, Dominion Energy South Carolina filed its modified integrated resource plan (IRP) with the South Carolina Public Service Commission (PSC).[1] The South Carolina PSC rejected Dominion’s 2020 filing in 2020 after finding that the utility’s IRP had distorted its fuel cost and lacked demand side management resource options. In their ruling, the regulators requested that the utility model an early retirement of its coal fleet. The modified IRP included a preferred scenario that would retire the three coal-fired units at Wateree and Williams Stations in 2028 and convert the remaining coal plant, Cope Station, to natural gas in 2030. The preferred scenario adds substantial amounts solar and batteries while also adding natural gas resources to make up for lost generation from the coal plant retirements. Many of the other scenarios in Dominion’s IRP included adding large amounts of solar and solar plus storage between 2030 and 2048, with the possibility to add 2,000 MW of solar from 2026 to 2048. Dominion currently has 973 MW of utility-scale solar contracted and 700 to 900 MW of battery storage.

[1] https://dms.psc.sc.gov/Attachments/Matter/2ff6b38d-c8f9-4f29-8d9f-cc756de01a4e

[USA] Report: Grid-enhancing technologies could be key to solving grid congestion

According to a new study released on February 24, 2021 by the Working for Advanced Transmission Technologies (WATT) Coalition, a group of six transmission technology providers, moderate investments in technologies that boost power grid efficiency could be key to solving electric grid congestion.[1] The study, titled “Unlocking the Queue,” was done by the Brattle Group at the request of the WATT Coalition and funded by GridLab, EDF Renewables North America, NextEra Energy Resources, and Duke Energy Renewables. The study quantified the benefits of three grid-enhancing technologies (GETs): dynamic line ratings, advanced power flow control, and topology optimization. These technologies could enable Kansas and Oklahoma to integrate 5,200 MW of renewables currently in interconnection queues by 2025, which is more than double what is possible without those technologies.

At a national scale, the WATT Coalition argues that GETs would have benefits such as reduce carbon emissions by 90 million tons per year, provide $5 billion in yearly energy cost savings, create 350,000 total jobs, and double the amount of renewable energy that can integrated. To unlock the benefits the study found, the Watt Coalition recommends four legislative and regulatory actions: 1) federal infrastructure stimulus should invest in deployment of GETs, 2) the federal regulators should require GETs be considered in transmission planning, 3) federal regulators should establish incentives for GETs deployment, and 4) GETs should be offered to renewable developers as a least-cost solution to connect to the grid.

[1] https://watt-transmission.org/2021/02/22/unlocking-the-queue/

[USA] Southeast utilities file SEEM proposal with FERC

On February 12, 2021, utilities in the Southeast filed with the Federal Energy Regulatory Commission (FERC) for the approval to create a new electricity market called the Southeast Energy Exchange Market (SEEM).[1] SEEM would set up an automated trading platform to buy and sell excess wholesale energy every 15 minutes, with the aim to reduce costs to customers and boost renewable energy resources. The new electricity market is expected to increased carbon-free energy across the Southeast by making it easier for utilities to incorporate renewables while maintaining reliability. SEEM members include Southern Company, Dominion Energy, and Duke Energy.[2] In their filing with FERC, the utilities requested that the commission give stakeholders a 30-day comment period. The utilities also request that FERC fast-tracks its review of the proposal and decide by May 13, 2021. If the proposal is approved, the market would be operational by early 2022.

[1] https://southerncompany.mediaroom.com/2021-02-12-Southeast-electric-providers-submit-filing-with-FERC-for-proposed-advanced-bilateral-market-platform

[2] The full list of expected members is: Associated Electric Cooperative, Dalton Utilities, Dominion Energy South Carolina, Duke Energy Carolinas, Duke Energy Progress, Georgia System Operations Corporation, Georgia Transmission Corporation, LG&E and KU Energy, MEAG Power, NCEMC, Oglethorpe Power Corp., PowerSouth, Santee Cooper, Southern Company and TVA.

[USA] Report: Pandemic causes largest plunge in energy consumption in 30 years

According to the ninth edition of the Sustainable Energy in America Factbook, which was released in February 2021 by the Business Council for Sustainable Energy (BCSE) and BloombergNEF, the COVID-19 pandemic caused the largest year-on-year decline in energy consumption in three decades.[1] In 2020, U.S. primary energy consumption dropped 7.8%. Transportation energy demand fell 14.4% due to lower rates of commuting and traveling. Electricity use declined least, falling by 3.8% as decreased commercial and industrial demand was partially offset by increased residential demand. Renewables production rose 11% year-on-year and renewable sources generated a fifth of U.S. power in 2020. The U.S. power grid added 17 GW of wind and 16.5 GW of solar. Coal-fired power generation was 19% of the U.S. power mix, down from 45% a decade ago. The report attributes this change to weak demand and increased competition. Total U.S. emissions fell 9.2% which put 2020 20% below 2005 levels. According to the report, these changes have put the U.S. on a trajectory to meet its commitments under the Paris Agreement. However, the report notes that 2021 emissions will likely rebound with economic recovery.

[1]https://bcse.org/factbook/#:~:text=The%202020%20edition%20of%20the,natural%20gas%20and%20renewable%20energy

[USA] FERC, NERC to investigate outages following severe cold weather in central U.S.

On February 16, 2021, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) announced that they will open a joint inquiry into bulk-power system operations during the polar vortex that has hit states in the Midwest and central South.[1] FERC and NERC will investigate all regions impacted by the polar vortex, including the Electric Reliability Council of Texas (ERCOT), the Southwest Power Pool (SPP), and the Midcontinent Independent System Operator (MISO). The severe weather across the Midwest, Oklahoma and Texas, which began on February 11, 2021, led to a spike in demand on the night of February 14, 2021. Coinciding with this event, there was a drop in supply. As a result, ERCOT, SPP, and MISO directed generators to begin rolling blackouts starting on February 14, 2021 in order to avoid negative system impacts.

On February 14, 2021, President Biden declared a state of emergency in Texas and ordered federal assistance to supplement state and local response efforts.[2] On February 16, 2021, the governor of Texas, Greg Abbott (R), directed his state's legislature to investigate ERCOT following the outages.[3] According to officials, increased electricity demand due to the extreme weather, limited gas supplies, frozen wind turbines, and frozen thermal plant instrumentation lines equipment were the major contributors to rolling blackouts across ERCOT.[4] According to a news release from ERCOT on February 18, 2021, roughly 40,000 MW of generation, including 23,500 MW of thermal generation, remains on forced outage due to the extreme weather event.[5]

[1] https://www.ferc.gov/news-events/news/ferc-nerc-open-joint-inquiry-2021-cold-weather-grid-operations

[2] https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/14/president-joseph-r-biden-jr-approves-texas-emergency-declaration/

[3] https://gov.texas.gov/news/post/governor-abbott-declares-ercot-reform-an-emergency-item

[4] http://www.ercot.com/news/releases/show/225369

[5] http://www.ercot.com/news/releases/show/225742

[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

[USA] 14 states call for Biden to reinstate Keystone XL permit

In a letter sent on February 9, 2021, a coalition of 14 Republican attorneys general led by Montana Attorney General Austin Knudsen urged President Biden to reinstate the Keystone XL pipeline’s permit to cross the Canadian border.[1] The letter was also signed by attorneys general from Alabama, Arkansas, Georgia, Indiana, Kansas, Louisiana, Mississippi, Missouri, North Dakota, South Carolina, South Dakota, Texas, and West Virginia. In their letter to the president, the coalition hinted at possible legal action over Biden’s January 20, 2021 executive order that rescinded the permit for the pipeline, stating, “Please be aware that the states are reviewing available legal options to protect our residents and sovereign interests.” The Republican coalition emphasized the economic harm that the permit cancellation will bring. According to the state attorneys, states had relied on the expected tax revenue from the pipeline. In Montana, for instance, the state will lose approximately $58 million in annual tax revenue due to Biden’s decisions. The coalition also noted that more than 1,000 pipeline workers were laid off after the executive order.

[1] https://dojmt.gov/attorney-general-knudsen-leads-coalition-calling-on-biden-to-reinstate-keystone-xl-permit/