1 Eurasian Forum September 7th, 2017 Akihiko Miyamoto President of NEDO
2 Self-sufficiency Japan’ self-sufficiency ratio in the primary energy supply is quite low: the second lowest in 34 OECD countries after Luxembourg. After the Great East Japan Earthquake that occurred in 2011, all nuclear power plants stopped operating. As a result, imports of natural gas as an alternative of nuclear power increased. From that, self-sufficiency decreased to 6.2%, far less than 19.9%, which was recorded in 2010 before the disaster. 1st Norway 2nd Australia 3rd Canada 9th U.S.A. 14th U.K. 16th France 22th Germany 33th Japan 34th Luxembourg ・・・ ※ IEA includes nuclear power in the first primary energy self-sufficiency rate. Primary Energy Self-Sufficiency Rate of OECD Countries (2013) 【Source】 IEA “Energy Balance of OECD Countries 2015” １７１．８％ ８６．０％ ５７．７％ ５３．８％ ３７．９％ ６．２％ ３．５％ ２６６．３％ Coal Oil Natural Gas Hydro-Power Nuclear Power Renewable Energy, etc. （geothermal, solar etc.） *IEA regards nuclear power as domestic energy and includes it in primary energy self-sufficiency. The Strategic Energy Plan of Japan regards nuclear power as semi-domestic energy.
3 issued by the Agency for Natural Resources and Energy.”Japan’s Energy Supply Structure Followed by the Oil crisis, Japan had expanded nuclear power generation while strengthening energy conservation efforts. These measures contributed to lower dependence on oil in Japan. After the Great East Japan Earthquake, all the nuclear power plants stopped operation, consequently, dependence on oil slightly rised again. 4%* Japan’s Primary Energy Source 3% 0.4% 24% 25% 43% Source: Prepared based on “Comprehensive Energy Statistics (Preliminary Report for 2012)” issued by the Agency for Natural Resources and Energy.”
4 Impact of 1973 Oil Crisis Source確認のことIn response to the beginning of the Arab-Israeli war, some Arab countries proclaimed an oil embargo to US, UK, Japan and other countries, globally making the oil price rising high, and seriously damaging many economies. Japan is one of the most severely influenced by oil crisis among the other industrialized economies, due to its heavy dependence of imported oil from the Gulf countries. Source確認のこと ％ Annual GDP Growth Rate around Oil Crisis US UK Germany France Italy Japan Sharp Decline
5 Struggle for Energy EfficiencyIn response to Oil Crisis, the Japanese government enacted “the Energy Conservation Act" and urged the industry to stick to energy conservation, specifically 1) obligated manufacturing plants and transport firms to make efforts in compliance with standards set by the government, 2) obligated clients of buildings and houses to make efforts in compliance with standards set by the government (construction is not allowed if efforts are not sufficient), 3) established “Top Runner program” applied to household appliances and automobiles. (1) Manufacturing Plants (2) Transport Firms ◆ Obligation for business operators to make efforts in compliance with the standards ◆ Obligation for transport firms to make efforts in compliance with the standards (3) Buildings and Houses (4) Household Appliances and Automobiles ◆ Obligation for construction clients and owners to make efforts in compliance with the standards ◆ The Top Runner Program is applied to automobiles, air conditioners, TV sets, etc., 31 items, which comprise about 70% of household energy consumption.) P6 explains about “Energy conservation Law”. The Law plays a very important role in energy conservation policy together with various supporting tools such as subsidies for R&D and introduction. I’m going to explain outline of the Law from the next page. Energy Conservation Law, which was introduced in 1979 just after 2nd oil crisis, covers the energy consumption in industry, commercial & residential and transportation sectors. The law has three major features, which are(and these are described in this slide). 1) First, the framework, which requires the business operators to annually measure their energy consumption and report it to the Government, 2) Second, the energy efficiency standards for buildings and houses 3) Third, the “Top Runner” program which is applied to household appliances, equipment and automobiles. I will explain them in detail later. Source: METI Official Homepage In addition, the government launched a large-scale energy-saving technology development project called the “Moonlight Plan”. Technologies on power generation by fuel cell and waste heat utilization, highly efficient gas turbine for power plants, and etc. were developed.
6 Achievement of Top Runner Program Gasoline passenger vehiclesThe “Top Runner Program” is a mandatory program for companies (manufacturers and importers), to fulfill the efficiency targets within 3 to 10 years. The efficiency targets are set in reference to the energy efficiency of the most efficient products in the market. The program has contributed to improving energy efficiency of consumer electronics and automobiles in Japan. The Government had expected energy efficiency improvements of 16.0km/L for medium class gasoline passenger vehicles in fiscal year 1999, but actually, it attained 19.9km/L. Achievement of Top Runner Program Gasoline passenger vehicles 74.4％ (FY1996→FY2012) Refrigerators 43.0％ (FY2005→FY2010) P8 is another mandatory program of Energy Conservation Law, the “Top Runner Program”. The “Top Runner Program” is a mandatory program for manufacturers and importers (companies) to fulfill the efficiency targets within 3 to 10 years, which encourages competition and innovation among the manufacturers. Objects of this program are mainly consumer electronics and automobiles, and 28 categories are designated now. This program achieved significant improvement of energy efficiency. For instance, medium class gasoline passenger vehicles achieved 19.9km per liter, although we had expected 16.0km per liter when the target had decided in fiscal year 1999. (絵の説明) I’d like to introduce how we decide the top runner target. Please see the right hand side picture, the middle. Each small circle shows the energy efficiency of each car. In this case, the circle on the dotted line, is selected as the current maximum performance. After that, we discuss how much the will improve the efficiency based on this current top value in the target period, 2010. And decide 16.0 km per liter as the target standard. Air-conditioners (Types other than direct airflow & wall-mount) 32.3％ (FY1997→FY2007) TV sets (LCD and PDP TVs) 29.6％ (FY2004→FY2008) Source: METI Official Homepage
7 Achievements As the result of positive actions by both private and public sectors, Japan has improved energy efficiency and conservation by approx. 40% after the oil crises in the 1970s. Japan achieved the lowest level of energy consumption per GDP in the world. Source）Total Energy Statistics by ANRE/METI Primary energy use per real GDP of Japan （Oil converted Mt /1 trillion yen） Approx. 40% improvement Calculated according to IEA statistics Primary energy supply per GDP unit （2013） （Index : Japan=1.0）
8 Primary energy supply per GDP unit of each country（2013）Efficacy of Energy Efficiency Considerable difference exists in energy efficiency between OECD countries and non-OECD countries. Huge possibility of improvement in energy efficiency, remains in non-OECD countries. Despite the growth of the world economy, CO2 emissions in the world have shifted to minus in The fact that energy saving took the lead, shows that energy efficiency is a valuable measure against global warming. Calculated according to IEA statistics Primary energy supply per GDP unit of each country（2013） （Index : Japan=1.0）
9 Cooperation for Energy EfficiencyAlthough there remains much room for the improvement of energy efficiency in non-OECD countries, efficiency improvement has been much slower than OECD countries. It is necessary to promote the spread of technologies to enhance energy efficiency in non-OECD countries through international cooperation. NEDO has conducted many demonstration projects to introduce energy efficiency technologies in non-OECD countries. Reduction in energy intensity accelerates with higher income levels Source: IEA, World Energy Outlook 2016
10 Bio Jet Fuel derived from microalgaeFuel consumption and CO2 emission have steadily increased as air transport in the world increases. Electricity cannot be used as a source of power due to the nature of aircraft. Jet fuel generation technology derived from carbon neutral microalgae has attracted attention. NEDO project has established a large pool for algae in Thailand and will conduct technology development to establish the integrated production process for commercialization aimed around 2030. NEDO is selecting growth environments and conditions of microalgae, striving to reduce the cost of algae breeding process. 2020年度末時点では、2030年頃に2030年のジェット燃料予想価格120円（1.03＄）/リットル程度を実現する道筋を示す。 microalgae Appearance of 1500 m² outdoor large-scale incubator constructed in southern part of Japan
11 Technology DisseminationNEDO International Demonstration Project Demonstration Project Scheme The purpose of NEDO’s demonstration projects is to demonstrate the effectiveness of clean energies and environmental technologies of Japan through the introduction of such technologies into overseas countries. Scheme Fundamental Research Follow-up Activities for Dissemination Feasibility Studies (F/S) Demonstration Projects The purpose of these international projects is to demonstrate the effectiveness of advanced Japanese clean energy technologies through the introduction of such technologies in overseas countries. Please let me explain our basic project scheme. Firstly, feasibility study is conducted . If the study results are favorable for both Japan and the host country, a demonstration project is launched. Upon completion of the project, follow-up activities are carried out to promote technology dissemination. Tasks and costs are shared between Japan and the host country. 国際実証事業の目的は、海外における日本の先進的なクリーン・エネルギー技術や環境技術の導入を通じて、その有効性を検証することです。 このスライドでは、基本的なプロジェクトのスキームについて説明します。 はじめに、FSを行います。FSに進むのが適切と判断されれば、FSに進み、FSにおいて両国にとって実証に進むのが適切と判断されれば、実証事業を開始します。 実証事業終了後、技術の普及促進のため、フォローアップ活動が行われます。 タスクと費用は、日本と相手国との間で分担されます。 Technology Dissemination Costs are shared between Japan and the host country
12 Contractual FrameworkNEDO International Demonstration Project Contractual Framework Japan Host country Memorandum of Understanding (MOU) Government Financial and Other Support Instructions Implementation site firm Entrusted private company This is the contractual framework for a demonstration project. NEDO and the host country conclude an MOU for the project. Actual work is carried out by a Japanese company with appropriate technology that is entrusted by NEDO. The host country selects the project site and implementation site firm. The government of the host country has the responsibility to provide necessary instruction and guidance to the implementation site firms to implement the project. An Implementation Document, or ID, is concluded between the entrusted Japanese company and the implementation site firm. Whether or not the host country funds the implementation site firm depends on the project. In cases in which the host country does provide funding, as both countries pay for the cost of necessary work that they are each responsible, this can be referred to as a kind of a parallel funding scheme. このスライドでは、実証事業の基本的な実施体制を紹介します。 通常、NEDOと相手国側の間で事業の基本協定書（MOU）を締結します。 技術の普及可能性を高め、事業を成功裏に進めるために、基本協定書（MOU）には相手国に対する特定の要望事項、例えば法令の履行、免税支援、許認可取得支援、サイト企業の指導・監督、将来の普及に係る支援、などが記載されます。 このような実施体制をとることにより、実証事業の円滑な実施及び将来の普及に対する支援が受けやすくなります。 実際に実証事業を遂行するのは、NEDOがその業務を委託し、適した技術を有する日本企業です。 相手国側では事業の実施サイトと事業を実施する企業を選択します。 NEDOの委託先企業と相手国側によって選出されたサイト企業の間では、IDと呼ばれる協定付属書を締結します。 Implementation Document (ID)
13 Demonstration in Fergana,Demonstration of Cogeneration Systems in Uzbekistan Electricity supplied to a small city or town in remote area, is usually transmitted from large-scaled power plant located so far away that considerable transmission loss is inevitable. In order to avoid transmission loss, small-sized power plant with gas turbine cogeneration system, is built and distribute electricity over 8000 households in the vicinity. A cogeneration system realizes supply of electricity as well as heat. It attains approximately 40% energy saving compared with the conventional system by collecting exhaust heat after generating power with gas turbine and using it as steam or warm water. Demonstration in Fergana, Uzbekistan
14 Coke Dry Quenching (CDQ) in steel plantsIn steel plants, coke is necessarily used to deoxidize iron ore which is iron oxide. Coke is produced by steaming coal at high temperature, dry distillation process, and then cooled down by water to the temperature that allows use. Coke Dry Quenching is a kind of technology in this cooling process. Inert gas used instead of water, recovers heat and uses the heat for power generation. CDQ has attracted a lot of attention due to its efficient energy recovery and ability to reduce pollution from coke cooling process. The steel industry emits more CO2 than any other industry, so that introduction of energy conserving technology is extremely effective. NEDO had conducted demonstration projects of this technology in China and India.
15 Mobility as a System in the PhilippinesIn the Philippines, gasoline motorcycle taxis are widely used as a short distance transportation means in cities. This NEDO project currently ongoing, is to reduce environmental footprint by replacing gasoline motorcycles with electric vehicles in the city of Manila, managing 50 vehicles by cloud computing, and making whole the vehicles a kind of public transportation system in which the vehicles run at constant time intervals. Unlike railroads and subways, this system does not require a large-scale construction work. Public transportation services can be easily and promptly introduced into the city. ■ Utilizing LSEV and dynamic operation management system, energy consumption is reduced 85%. ■ Easy and fast to start mass transit service since MaaS is a cloud based technology and LSEV doesn’t require heavy construction unlike train. Demonstration of Vehicle Transforming Technology (“VTT”) is the next milestone of enhancement of MaaS. VTT enables LSEV to play multiple roles like train, bus and taxi by attaching and separating from each units. In separate mode, LSEV covers both needs, regular service and on-demand service. Telematics Charging Infra Communication Equipment Service Platform Revenue Accounting Fare Collection Barcode Ticket SVC Asset Management Positioning, Vehicle Allocation, Operation control Activate Slow Down On Board Device Smartphone Charging Station, Authentication SoftBank’s cloud server LSEV Power Charger Mobile Network (3G/4G) Smart Mobility Operation Cloud PackeT Infra Clearance CRM EV Stop LSEV Charging Station Service Route ③Adjust the number of LSEV corresponding to charging schedule and supply/demand balance ① Getting on and off only at EV stops ② Keeping same intervals Operate LSEV as “Train without Rail” (Low Speed EV)
16 Thank you for your kind attention!