Smart Communities. No.2. Developing Towns of the Future that Coexist with the Environment. Japan s Clean Coal Technology 2014.

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1 2014. No.52 Reporting on Today and Tomorrow s Energy, Environmental and Industrial Technologies No.1 Smart Communities Developing Towns of the Future that Coexist with the Environment No.2 Attracting Global Attention Japan s Clean Coal Technology

2 Reporting on Today and Tomorrow s Energy, Environmental and Industrial Technologies CONTENTS No.52 No.1 Smart Communities Developing Towns of the Future that Coexist with the Environment What is a smart community? A smart community is a mechanism to use energy intelligently by sharing data in both directions between the supply and demand sides of the system using ICT. This enables the optimal use of renewable energy such as solar power, wind power, and biomass while limiting the impact on the environment and increasing energy efficiency. No.1 No.2 Smart Communities Developing Towns of the Future that Coexist with the Environment 2 s Ongoing Demonstration Projects in Collaboration with Other Countries 2 Director General, Masaaki Yamamoto Discusses: Initiatives in the Area of Smart Communities 4 Future Cities Coming to Life Current Status of s Demonstration Projects 6 New Mexico, USA Aiming for the Stable Supply of Solar Power 6 Hawaii, USA Maximizing the Use of Renewable Energy 8 Málaga, Spain Building Infrastructure for an Electric Vehicle Society 9 Lyon, France Constructing a Model City of the Future in an Ancient City 10 Java, Indonesia Aiming for the Development that Balances Economy and Environment 11 Attracting Global Attention: Japan s Clean Coal Technology 12 Environment Clean Coal Group Director, Nobuyuki Zaima Discusses: Making Great Contributions to Resolving Global Environmental Problems through Clean Coal Technology 12 Supporting the Improvement of Global Energy Efficiency and the Diversification of Energy Sources Project Formation Research on High- Efficiency Coal Utilization Systems 15 Topics 16 s Ongoing Demonstration Projects in Collaboration with Other Countries Constructing total solutions to address the unique energy situations in each country by combining technologies from both countries, then verifying practical operability through demonstration projects. Lyon, France Page 10 We aim to create an eco-friendly, futuristic smart community model city in Lyon, the Confluence district where the Rhone and Saone Rivers meet, with introducing large-scale renewable energy and expanding the use of electric vehicles (EV). 1. PEB (Positive Energy Building) 2. EV charging management system and EV sharing utilizing Photovoltaic power 3. Home energy monitoring system 4. CMS (Community Management System) What is PEB? PEB stands for Positive Energy Building. By actively introducing power from renewable energy sources and storage batteries to the electrical grid, a PEB produces energy in excess of what it consumes from the grid. Málaga, Spain Page 9 We are constructing a management system to guide each individual electric vehicle driver to their optimal charging station through their navigation system in advance of the large-scale expansion of electric vehicles and the necessary infrastructure to support them. Through mass dissemination, we aim to mitigate overloads in the electrical grid through mass dissemination and make effective use of renewable energy. What is CMS? CMS stands for Community Management System. By aggregating and analyzing data collected from a variety of sources such as PEBs and EV charging management systems, a CMS reveals important indicators that can be used to manage power throughout an entire region. Manchester, UK Page 16 Six Demonstration Projects Underway Worldwide Java, Indonesia Page 11 First demonstration project in Asia. We aim to establish a stable power supply by introducing a system that solves issues such as voltage fluctuations and sudden power outages at industrial park enabling what we call a smart and ecofriendly industrial park model that makes optimal use of energy. 1. Power quality stabilization technology 2. Promotion of energy conservation through FEMS (Factory Energy Management System) and control demand through DSM (Demand Side Management) 3. Development of an ICT (Information and Communication Technology) platform to support 1. and 2. mentioned above New Mexico, USA Pages 6-9 A smart grid demonstration project was launched in 2009, the same year when Green New Deal policy proposed by the Obama administration drew attention. This project aims to resolve issues related to the largescale penetration of solar power generation in commercial buildings as in Albuquerque site as well as in typical individual homes as in Los Alamos site. 1. Demonstration of a smart grid in Los Alamos 2. Demonstration of smart houses in Los Alamos 3. Demonstration of a commercial district smart grid in Albuquerque 4. Comprehensive research What is a smart grid? A smart grid is a power grid that optimizes power supply by using information on both energy supply and demand utilizing the networked control functions of devices with communication capabilities such as smart meters. What is a smart house? A smart house is a home that manages the energy supply and demand balance of an entire house by introducing a HEMS (Home Energy Management System). Hawaii, USA Page 8 A demonstration project was launched in 2013 on Maui Island in Hawaii where the use of renewable energy is expanding. The goal is to construct a smart grid that integrates electric vehicles to resolve problems related to the large-scale introduction of renewable energy. Front cover: Post-redevelopment image of the Lyon Confluence, France, the subject of s Project Source: SPL Lyon Confluence, Les espaces verts. Depaule/Asylum 1. Technology to reduce the load 2. Charging guidance through navigation systems 3. Integrated ICT (Information and Communication Technology) platform 4. Integrated services (car-sharing, charging guidance based on location, etc.) What is FEMS? FEMS is a factory energy management system that controls energy consuming devices using ICT. It enables the visualization of energy consumption and the optimization of the industrial facility operations. What is DSM? DSM is a demand side management system for electric power. It suppresses factory power consumption based on demand suppression requests from the power company to adjust the balance of power supply and demand in the system. 1. Demonstration of a smart grid for remote islands utilizing EVs on Maui Island 2. Demonstration of a smart grid at the distribution substation level in the Kihei District 3. Demonstration of a low voltage (low voltage transformer level) smart grid system 4. Comprehensive research 2 3

3 Interview Initiatives in the Area of Smart Communities Since around the year, has been developing grid interconnection technologies to deal with the large-scale connection of power generated from sources such as solar and wind as well as conducting demonstration projects, and our efforts to expand their practical use have advanced. Building upon our knowledge and experience, we are conducting our demonstration projects with the aim of realizing smart communities that use not only electricity but also heat as an energy source, and can share information with the consumer side and the transportation system, and improve efficiency and optimize overall local energy supply and demand. We spoke with Director General Masaaki Yamamoto about the current situation and progress in this area. Addressing shared global environmental issues through international cooperation to counter global environmental issues as well as micro-grids used to prepare for natural disasters. These are shared global technological challenges, and this is the reason why is Column In anticipation of growing business opportunities following the completion of smart community demonstrations, JSCA was established in April The association has 322 member companies and organizations participating from a broad range of industries including power and gas, automotive, information and communications, electronics, construction, trade, local government, academia, and more. JSCA promotes collaborations Japan Alliance (JSCA) between public and private entities as well as information collection and sharing across industry boundaries. is in charge of administrative work of JSCA while promoting coordination with not only the Ministry of Economy, Industry and Trade (METI) but also other ministries and related organizations. cooperation of multiple companies on four working groups: International Strategy, International Standardization, Roadmap, and Smart House & Building. Furthermore, JSCA is active not only in Japan, but also promotes global collaboration through participation in initiatives like the Global Smart Grid JSCA deals with issues that are Federation that includes 17 alliance difficult for individual companies to work on through the participation and members from around the world. (As of August 2014) Please explain the definition of smart community and conducting technology demonstrations within an international and environmental issues among local residents, it is necessary results that correspond to local needs. tell us about the special characteristics of the demonstration cooperative framework. With the energy conservation, system to configure the environment and establish mechanisms to How will expand these projects in the future? projects is working on. control, and storage battery technologies Japan has developed encourage more and more people to cut peak energy usage and Yamamoto: The number of demonstration sites where we Yamamoto: A smart community is a mechanism to use energy over many years, we recognize the contribution we can make. participate in energy-saving behavior. are starting operations will increase going forward. I think wisely by utilizing ICT to turn what was until now a one directional energy supply mechanism focused on the supply side into a bidirectional mechanism that includes the demand Creating demonstration opportunities through bilateral partnerships between two governments. With these ideas in mind, we are currently conducting demonstration projects in the United States, France, Spain, Indonesia and the United Kingdom. that we want to contribute to worldwide smart community development by analyzing data from demonstration projects and diffusing our technical results. I also believe that it is side by sharing information. At we use the term smart Please tell us about s roles and mission, as well as Are you already seeing the results of these projects? s role to raise the awareness within global society about community rather than smart grid. More than just the power current progress of your demonstration projects. Yamamoto: As a whole the situation is that we have many the effectiveness and necessity of smart communities to save system called the grid, this definition encompasses a broader Yamamoto: In order to conduct technical and social demonstrations projects that have just recently started demonstration energy and make intensive use of renewable energy. range of fields we would like to work on, such as consumer with government agencies in other countries, is creating operations, but in New Mexico we have a demonstration that Moving forward, I think that we want to contribute the sides including transportation systems, housing and office/ demonstration opportunities through negotiations with national is starting to produce concrete experimental results such as the development of smart communities by pursuing the dual tracks commercial buildings. and local government partners. realization of a micro-grid to contribute to a stable regional of overseas smart community demonstrations and fundamental The major characteristic of the smart community demonstration We use the term technical demonstrations because we try to power supply and economical power procurement by using technology development. projects is currently working on is that we are not just combine technologies from both countries and optimize them the actual power grid along with batteries for stationary use examining things from a technological perspective, but similar in order to meet the different needs of each partner country and to appropriately absorb fluctuations of solar power generation to demand response we are exploring human reactions from a region. based on weather forecast information, and a successful social perspective. Please tell us about the future prospects of smart communities in the world. Yamamoto: Smart communities have become a global trend Additionally, we chose to use the term social demonstrations to convey the importance of exploring the human reaction aspect in smart community demonstrations as I mentioned before. In order to make these kinds of demonstrations transition at a commercial facility to an independent power supply in the event it is cut off from the power system during an emergency. Due to measures to deal with power outages caused by natural Masaaki Yamamoto Director General with hundreds of smart community demonstration projects successful we must share a similar awareness of the issues, disasters and growing expectations that power generation will being performed in both developed countries as well as and obtain the cooperation of a local government that is move toward low-cost distributed power sources amid the emerging nations. In addition, smart community technology willing to ask for the participation of its residents in societal shale gas revolution, interest in micro-grids has been growing has become essential to the intensive use of renewable energy experiments. Furthermore, with the varying interest in energy in the United States, and we think that we are getting timely 4 5

4 Future Cities Coming to Life Current Status of s Demonstration Projects Currently is conducting various smart community demonstration projects that are designed to meet the different needs of partner countries and regions around the world. Expectations and acclaims for Japanese technology at the local level are high, and we are making a great progress in contributing to solving global environmental problems by realizing smart communities. A commercial building at the Albuquerque site (Mesa del Sol Center Building) A 1MW solar power at the Los Alamos site New Mexico, USA Aiming for the Stable Supply of Solar Power In New Mexico, which is blessed by about 300 days of sunny weather per year, we have conducted three demonstration projects aimed at providing a stable electricity supply from the irregular output of solar power generation. This includes a world-class smart building in Albuquerque, a micro-grid dealing with large amounts of renewable energy and smart house that allow the visualization of electricity use and costs in Los Alamos. Satoshi Morozumi Exploring the potential of a smart grid from smart buildings and smart houses Scope of demonstration Demonstration of a commercial building capable of autonomous operation demand-response (changing the volume of the power used on the demand side based on the available supply of electricity) as part of an actual power grid to maintain the optimal electric supply. Control micro grid via µ-ems Grid monitoring Scope of demonstration Direct charging and discharging Storage batteries Demonstration projects have been conducted to resolve issues related to the introduction of large quantities of power to the grid from unstable solar power generation at commercial buildings and ordinary homes in the state of New Mexico. In Albuquerque, a project was conducted to demonstrate a Grid monitoring Direct energy consumption level Mesa del Sol Center Building Gas engine As a distribution system-level micro-grid, this is the world s first successful implementation of power flow control that combines mega solar and storage batteries. In addition, we are promoting the demonstration of smart houses that integrate energy storage devices and smart appliances and control household energy Monitor power generation volume Monitor grid voltage and frequency building system that could provide ancillary service to absorb fluctuations from solar power generation in the grid through the building s gas engine-type electric generator. In an emergency, the building system was disconnected from the grid but yet could operate autonomously to supply power for the entire building. Monitor grid voltage and frequency BEMS Storage batteries consumption through HEMS (Home Energy Management System). In particular, the testing of communication, coordination and co-operation between micro-grid control system (µ-ems) in the grid and the smart house HEMS was the first in the world. Although most of the demonstrations in New Mexico were Substation Smart houses with HEMS, etc. installed Demonstrate real-time pricing and demand-response Communication of pricing data via high-speed PLC communication General households So far, the uninterrupted transition to independent operation Substation Absorb system fluctuations completed in March 2014, the demand-response demonstration has been successful primarily by using the flexibility of the gas engine. It is safe to say that this is a world-class smart building demonstration. Storage batteries General households in Los Alamos was extended for another year. Starting from July of 2013, we recruited volunteers to install smart meters in their residences, and as a result we had 900 households participate in Smart meters In Los Alamos, there is an ongoing smart grid demonstration that the demonstration. We are currently gathering data and already Scope of demonstration maintains an optimum electric supply through the use of electric storage batteries designed for grid and consumer household Demonstration of a smart building which is capable of responding to requests from the power grid (autonomous operation is also possible). This system will be critical when new energy accounts for most of our energy generation and consumption. getting very interesting results. Demonstration of energy management under circumstances where a large amount of solar power generation has been introduced in an actual power grid in a residential area. 6 7

5 Hawaii, USA Maximizing the Use of Renewable Energy In December of 2013, in order to provide a stable supply of electricity and reduce environmental impacts, a demonstration project to make efficient use of renewable energy and overcome issues including supply and demand fluctuations and load on the power grid by utilizing the storage capacity of electric vehicles was launched on the island of Maui in Hawaii, where the transition to renewable energy has been advancing. Kazuyoshi Takada Málaga, Spain Building Infrastructure for an Electric Vehicle Society Electric vehicles are one of the essential elements in the development of a smart community. In Spain, where transportation accounts for 40% of total energy consumption, they set a goal of introducing 250,000 EVs by Accordingly, is conducting a demonstration project in the southern city of Malaga in expectation of the large-scale introduction of electric vehicles in urban areas. Takeshi Yoshida Absorbing fluctuations in wind and solar power through electric vehicle storage capacity The introduction of renewable energy production such as wind and solar power generation has been increasing in the state of Hawaii, and Island-wide smart EV system Peak shift (utilization of nighttime surplus wind power and avoidance of EV charging during peak times) Issue EV charging termination command to correct frequency issues associated with interruptions to wind power generation Energy management system Wind power generation Renewable energy Demonstration technologies to reduce the load on the power system. Our demonstration project in Spain is part of the Japan-Spain Innovative Program based on a technology development cooperation Using 200 EVs and charging infrastructure including quick chargers, we are demonstrating smart community technology in expectation of the large-scale introduction and dissemination of EVs. From the control center, we manage the position, charging status, and navigation systems of the EVs in an integrated manner. For drivers there is a plan to meet over 40% of electricity demand through renewable energy by Underlying this are concerns about the adverse effects on the environment of heavy dependence on fossil fuels and rising fuel costs due to transportation cost increases that are a specific challenge for EVMS (Electric Vehicle Management System) EV charging station Information on power generation volume Transmission grid agreement with the Spanish government and the Centre for the Development of Industrial Technology (CDTI). The project is conducted in Spain associated with its various initiatives aimed at achieving the European who want to charge their EVs, the system presents them with the best charging location, of the nine locations in the city where we installed 23 chargers, based on consideration of the influence charging has on the grid. By guiding drivers through the navigation system, we island communities. Maui, which is the second largest island in the state of Hawaii, is Power distribution management system Distribution substation environmental targets. The project started in April 2013 as one of collaborative efforts of are taking full advantage of ICT that are linked to EV management systems and power management systems in an attempt to reduce the currently operating 72MW of wind power generation and 40MW of Malaga City s Smart City Malaga Project. load on the grid posed by the mass dissemination of EVs. solar power generation to meet an electricity demand of 90 to 200MW. However, problems have already emerged that threaten the stability of the power supply and prevent the effective utilization of renewable energy, such as power surpluses during times of lower demand, frequency variations due to changes in the volume of power generation, District where the PV system, EVs and the electric power system can communicate. Development of µ-dms capable of coordinated operation with higher-level DMS without burdening grid equipment Charging terminated during power shortage Power distribution grid EV management center Scope of demonstration Verify optimal charger allocation Provide information such as charger location EV charger locations In this project, Málaga citizens and businesses participate by leasing the EVs. Although we had a hard time gathering interested participants at first, once the vehicles started hitting the streets of the city the response was favorable, and currently there is a waiting list for people interested in leasing EVs. User reactions have also been and excessive load on the distribution line. As part of the project we are conducting demonstrations of smart grid technologies at various levels including the power grid, µ-dms Manage EV charging condition, position, and navigation system in an integrated manner EV charger extremely positive, and we ve heard comments such as I want to use it more and I want chargers installed in the suburbs too. This demonstration project is planned to continue through FY2015. distribution substations, and low-voltage transformers. For example, at the power grid level, we have introduced an EVMS (Electric Vehicle Management System) to take advantage of surplus wind power when demand is low at night and control the optimal timing to perform the charging of electric vehicles (EVs) based on the balance of supply and Low-voltage transformers General households The goal is to mitigate impacts on grid frequency due to introduction of large-scale wind power generation by realizing the charging of EVs using surplus wind power at night. EV management, navigation, etc. Storage batteries Coordination Renewable energy Our aim is to establish the technology and systems necessary for the expansion of EVs in the urban areas. * (Triple 20) is an energy policy implemented by the EU. By 2020 the aim is to, compared to 1990 levels, reduce greenhouse gas emission by 20%, increase the share of renewable energy by 20%, and improve energy efficiency by 20%. demand. In addition, we are trying to optimize the balance of electric supply and demand on the island by instantly interrupting charging in situations where the power supply is insufficient, such as when wind power generation stops unexpectedly. Smart buildings Smart mobility Regional energy management system Wind power generation Interest among the public is very high. By May 2014, 300 individuals had volunteered their own EVs and expressed interest in participating. Smart meters Based on our upcoming analysis and review results, we would like to Smart City Málaga Project expand this system that can help to achieve a low-carbon society on islands and subtropical regions that have an environment similar to Maui s. Constructing a system that does not overload grid equipment by controlling EV charging and other operations Demonstrating technology to reduce the load on the grid caused by large-scale EV recharging by encouraging changes in EV user behavior through making full use of ICT (Information and Communication Technology) quick charging station installed in Málaga City 8 9

6 Lyon, France Constructing a Model City of the Future in a Historic City In Europe, where environmental regulations are strict, has started a project to turn a historic city smart utilizing Japanese technology. We are aiming to build an environmentally friendly urban city model through demonstration projects in smart buildings and EV sharing. Shintaro Matsuoka Java, Indonesia Toward the hamonized development of Economy and Environment In Indonesia, with its remarkable economic growth, we aim to transform an industrial park with high energy density to a smart and eco-friendly industrial park by using smart community technology. Yoshinori Furukawa demonstration project with the four tasks draw high expectations from local residents In this demonstration project in the Lyon Confluence (area of 150 hectares), we are building a urban city model using electric vehicle (EV), photovoltaic (PV), and smart building technologies. There are four specific tasks involved in the project. Task 1 is the construction of PEB (Positive Energy Building) that actively introduce renewable energy and storage batteries to produce energy in excess of the amount consumed within the building. Task 2 is the implementation of EV charging management system and EV sharing that utilize PV. Task 3 is the promotion of energy-saving behavior among residents by visualizing the energy consumption of existing housing. Finally, Task 4 is to aggregate energy information from Tasks 1, 2, and 3 to construct a community management system that presents indicators for use throughout the entire region. At present, Task 2 regarding EV sharing is making the most progress, and we are compiling data received from the registered citizen users of our 30 EVs. In addition, with Task 3 on visualizing energy consumption, we began monitoring energy consumption by distributing tablets to 270 households concentrated in the target district this summer. Both countries are bringing technologies to complete the PEB in The PEB is currently under construction and this will be a pioneering project in Europe where the * initiative has been implemented. Although there are now tens of different types of smart community projects underway in Lyon, this project is considered to be a centerpiece and it has attracted great expectations. This futuristic city being constructed as a joint project between Japan and France is a message to the world, and we want to keep contributing to a low-carbon revolution not only in Europe but also globally. * (Triple 20) is an energy policy implemented by the EU. By 2020 the aim is to, compared to 1990 levels, reduce greenhouse gas emission by 20%, increase the share of renewable energy by 20%, and improve energy efficiency by 20%. Smart battery PV system EV car sharing Charging stations Implement EV charging management system and EV sharing utilizing solar power generation Community management system Demonstrate Positive Energy Building (PEB) HEMS LED P-plot building Build a system to optimize the energy use of the entire city Visualize energy consumption in the home General households Tablet BEMS Demonstration of the development of a comfortable and environmentally friendly urban city model through the integration of advanced Japanese energy technology with Europe s strict environmental goals and the environmental urban planning concept of Grand Lyon. Illustration of proposed completed Positive Energy Building (PEB) that creates more energy than the entire building consumes through implementation of solar panels, BEMS/ HEMS and energy-saving equipment.. (Source: SPL Illustration made by Asylum for SPL Lyon Confluence Illustration made by Asylum for SPL Lyon Confluence) Achieving improved power quality and energy savings through mutual cooperation As Indonesia s rapid economic development continues, its energy demand is also expanding remarkably. Because of this, insufficient electricity, frequent electricity outages and unstable electricity quality are often to be seen. In order to reduce the risk of lower productivity and equipment damage due to this, many factories are introducing their own power generation equipment. For Indonesia to develop further in the future, it is necessary to build systems that stabilize the quality of electricity and enable efficient use of energy. To that end, Japan and Indonesia are working together on a demonstration project at the industrial park in Suryacipta City of Industry, aiming to achieve high quality electricity supply and energy conservation with the goal of creating a smart and eco-friendly industrial park model. In addition to achieving a reduction in the length of outages through the implementation of automated power distribution systems, we are building a system to supply high quality electricity without fluctuation in voltage or frequency Substation PLN Load dispatching center Legend Conventional electricity High quality electricity Communication lines (monitoring/control) Demonstration of smart community technology achieved through integration of power and ICT in an industrial park with high energy density Switches by introducing equipment for voltage stabilization and uninterruptible power supplies. In addition, we are promoting the efficient use of energy through the implementation of FEMS (Factory Energy Management System) along with DSM (Demand Side Management System), with the goal of controlling power consumption in response to power shortages through cooperation between FEMS and DSM. In order to achieve this we will lay down high-quality communication infrastructure in the industrial park to build a common underlying ICT (Information and Communication Technology) platform. The Suryacipta industrial park that will become the site for the smart and eco-friendly industrial park model demonstration project PLN Industrial park Factory Automated power distribution system DAS server ICT platform Conventional electricity DSM, FEMS, EMS server High quality power supply system Voltage stabilization equipment UPS FEMS Power visualization Load control EMS Energy visualization Optimized control DSM system DSM client FEMS manager 10 11

7 No.2 Attracting Global Attention: Japan s Clean Coal Technology Interview Making Great Contributions to Resolving Global Environmental Problems through Clean Coal Technology Clean Coal Technology enables the efficient use of coal in an environmentally friendly way. Coal was one of the resources focused on for technology development when it was established. We spoke with Environment Clean Coal Group Director, Nobuyuki Zaima about the current situation and future plans. Coal is a cheap, stable resource, and its importance will increase further Why is coal now receiving global attention once again? Zaima: There are large coal reserves that are not geographically concentrated. Moreover, compared with other fossil fuels the price is low and relatively stable, and unlike oil or natural gas there is almost never a steep rise in price. For this reason, coal is currently fulfilling roughly one-fourth of the entire world s energy demand, and it is estimated that the demand for coal will expand even further heading towards In Japan, since the Great East Japan Earthquake, coal-fired power generation is being reconsidered. Please tell us about the role of coal in meeting Japan s energy demand in the future. Zaima: Due to the risk of resource-poor Japan favoring one type of energy, it is important to utilize an ideal mix of various types of energy. Coal-fired power generation amounts to roughly one-fourth of Japan s current power supply portfolio, and we believe that coal will continue to be an important energy resource in the future. In the case of oil or natural gas power generation, the cost of Mtoe Projected global energy demand Source: IEA, World Energy Outlook 2012 The role of coal among global energy resources Other Biomass Hydroelectric Nuclear Natural gas Oil Coal electricity remains high. In this respect, coal is inexpensive, and from the perspective of strengthening Japanese industry it is extremely important given that coal can generate electricity for about one-third the cost of natural gas. In this way, from the perspectives of both energy security and economics, coal will be an important energy source in the future, contributing to the stability of Japan s energy market structure. Japanese Coal-fired Power Generation Technology is Among the Most Advanced in the World I understand that coal-fired power generation has a lot of CO 2 emissions. On this point, won t there be a concern with continuing coal-fired power generation? Zaima: Japanese coal-fired power generation technology is among the most advanced in the world, and at the most cutting-edge power plant the thermal efficiency of 42% and a CO 2 emission rate of 0.8kg/ kwh make it the highest level among all other countries. If all of the world s coal-fired power generation technology were converted to Japanese technology, emissions of CO 2 would be dramatically reduced. Source: IEA, World Energy Outlook 2012 Coal satisfies one-fourth of global energy demand and accounts for more than 40% of power generation capacity; global energy demand is projected to increase by a factor of 1.2 and power generation by a factor of 1.4 by Mtoe Projected global power generation capacity is aiming for even more efficient coal-fired power generation through a project for innovative CO 2 recovery-type coal gasification technology development called EAGLE (Coal Energy Application for Gas, Liquid and Electricity). The technology developed with EAGLE is a type of combined cycle generation technology which gasifies coal, which then turns a gas turbine, and by further utilizes the waste heat to generate electricity through a steam turbine, increasing the thermal efficiency to 48%. As thermal efficiency goes up, the amount of coal used decreases, which also reduces the amount of CO 2 emissions. Aiming for Coal-fired Power Generation that Doesn t Emit CO 2 Please tell us about EAGLE s CO 2 Capture and Storage (CCS) technology. Zaima: With EAGLE we are aiming to establish technology that separates and recovers CO 2 directly as it occurs in the process of gasifying coal. When coal is burned CO 2 is released; in the same fashion, carbon dioxide is generated during the gasification process, and this technology directly captures this. However, until recently the critical problem was that it requires a substantial amount of energy in order to capture the CO 2. For this reason, we tried to reduce this energy in the EAGLE project and we have succeeded in reducing energy required roughly by 30% by using chemical and physical absorption method. Although we concluded the EAGLE pilot test this fiscal year, we have now begun a large-scale demonstration test using the EAGLE results with what is called the Osaki CoolGen Project at the Osaki Power Plant in Hiroshima Prefecture. This is a project subsidized by Ministry of Economy, Trade and Industry (METI), and they are considering a demonstration of the ultimate coal-fired power generation with an increase in thermal efficiency to 55% by integrating fuel cells utilizing hydrogen by-products produced during the gasification process in the process. How will continue the work on Japan s world-class clean coal technology in the future? Electricity generated (kwh) Composition of Japanese power supply (by amount of electricity generated) 10,000 8,000 10% Other 2% Nuclear 6,000 4,000 42% 18% power Natural gas Oil 2,000 28% Coal 0 FY Source: The Federation of Electric Power Companies of Japan Japanese coal-fired power generation accounts for roughly one-fourth of the amount of total power generation. The importance of coal-fired power generation has been increasing, especially since the Great East Japan Earthquake. Gress thermal efficiency (LHV, %) Coal-fired thermal efficiency by country Source: International Comparison of Fossil Power Efficiency and CO2 Intensity 2011, by Ecofys Japanese coal-fired power generation is recognized as having the world s highest thermal efficiency through efforts in continuing technology development, technology commercialization and appropriate operations and management. Nobuyuki Zaima Director Clean Coal Group, Environment Japan Germany USA China India Australia 12 13

8 Column Zaima: We are promoting the strategic development of clean coal technology according to three pillars of technological promotion: saving energy and reducing CO 2 in the process of high-efficiency coal-fired power generation and steel production; achieving zero emissions-type coal-fired power generation; and deploying facilities and technology related to Japan s superior high-efficiency use of coal. While we strive to make progress with the expansion of world-class cutting-edge clean coal technology as well as the development of coal-fired power generation technology with an improved efficiency, eventually we want to achieve zero-emissions coal-fired power generation that eliminates CO 2 emissions. We believe that we can reduce the load on the environment due to the use of coal and stabilize a balance between demand and supply of energy globally by advancing Japanese clean coal technology. Coal Improvement of Thermal Efficiency Although Japan s coal-based technology is already at the highest level in the world, is concentrating on developing technology for even higher efficiency coal-fired power generation in order to maintain competitiveness and contribute to resolving global energy and environmental issues. Net thermal efficiency (HHV), % Air 70 A-IGFC 65 65% Integrated coal gasification fuel cell (IGFC) 60 combined cycle A-IGCC 57% 55% C class GT Integrated coal 50% 50 gasification 1500 C class GT Ultra-supercritical 46~48% 750 C class combined (USC) coal-fired 48% cycle (IGCC) 45 power plants 700 C class Advanced ultra-supercritical 600 C class 46% 42% (A-USC) coal-fired power plants Year Compiled from CoolEarth Energy Innovative Technology Plan data Gasification furnace N2 O2 Slag Air feed compressor Coal gasification unit Syngas cooler Char Air separation unit Rectification tower Char Filter N2 GGH Comp Air GT G Gas turbine unit A-USC (Advanced Ultra-Supercritical Coal-fired power plants) Technology that increases thermal efficiency by placing steam that is being used for thermal power generation above the critical pressure of water to reduce the thermal energy. METI has been working on development of A-USC that can achieve an efficiency ratio of 46% in 2015 and 48% by IGCC (Integrated coal gasification combined cycle) High-efficiency power generation technology that uses gasified coal as fuel for gas turbines. Utilizing EAGLE results, METI plans to begin demonstration test operation at the Osaki Power Plant in Hiroshima Prefecture in IGFC (Integrated coal gasification fuel cell combined cycle) Triple combined cycle that generates electricity through a combination of fuel cells, gas turbine, and steam turbine, using gasified coal. If achieved, it is expected that the net thermal efficiency will exceed 55%, and in comparison with preexisting pulverized coalfired power plants, CO 2 emissions are also expected to decrease roughly by 30%. EAGLE 150t/d pilot plant system diagram Fine desulfurizer No.1 water scrubber tower EAGLE (innovative CO 2 capture coal gasification technology development) Tests and verification were conducted at the pilot-level, aiming to optimize highefficiency power generation and CO 2 capture for the realization of zero emissions coal-fired power plants. CO 2 capture unit (physical absorption method) Gas clean-up unit COS converter No.2 water scrubber tower Sour shift Sweet shift Air separation unit CO 2 capture unit (chemical absorption method) Absorption tower Regeneration tower CO2 capture unit (physical absorption method) CO2 capture unit (chemical absorption method) Sulfur capture tower Generated gas incinerator Coal gasification unit Gypsum Incinerator heat recovery boiler Gas clean-up unit Gas turbine unit Exterior of pilot test plant. This pilot test combining IGCC and CO 2 capture is considered as one of the world s most advanced efforts. Stack Aiming to verify the applicability of IGCC and reduce energy required for CO 2 capture. Supporting the Improvement of Global Energy Efficiency and the Diversification of Energy Sources Project Formation Research on High-Efficiency Coal Utilization Systems has started the Project Formation Research on High-Efficiency Coal Utilization Systems to promote the export of infrastructure from Japan. In order to export Japan s technologies related to highly efficient use of coal to overseas, is conducting the Project Formation Research on High- Efficiency Coal Utilization Systems. This is in line with an infrastructure export strategy by the Japanese government, which sets an export sales target for 2020 at 30 trillion yen, three times as much as the current export sales of 10 trillion yen. This export sales target includes 9 trillion yen from energy field. began this project in Specifically, a feasibility study has been conducted in order to advance the overseas expansion of highefficiency coal utilization systems that include Japan s high-efficiency power generation technology, carbon dioxide capture and storage (CCS) technology and operation management technology. Through the study we are examining each country s energy efficiency and market conditions to expand systems matched to country-specific issues. For example, Japanese technology would enable a country to make use of unused low rank coal in ways that are highly efficient and environmentally-friendly. Combustion tests and other tests for partner countries to show how they can properly make use of coal can be used as effective promoting tools for Japan s advanced technological achievements. Poland FS on implementing USC project Bosnia/Herzegovina FS on USC project India FS on Upgraded brown coal (UBC) + USC project Vietnam FS on High efficiency power generation from cofiring imported and domestic coal project Southeast Europe Foundational study on high-efficiency coal utilization system Indonesia FS on improved power plant efficiency through STD drying system project FS on high-efficiency power plant using low quality coal (CFB) project Since is a governmental agency it seems that the level of trust from partner country representatives is high. 32 research projects have been conducted in 19 countries by Since partner country representatives understand the high level of the Japanese technology, we anticipate that, while we do not predict immediate agreements, projects with signed agreements will emerge in the near future. We have high hopes because if all of the project formulation research of the past two years reaches project Research project objective: Dissemination of Japanese Clean Coal Technology 1. Promote a project by Japanese entities in areas where it is difficult for private entities to develop the project on their own. 2. Conduct activities to gain understanding and cooperation about the high level and efficacy of Japanese technology from partner countries and the management teams of partner companies through result reporting, policy discussions and bilateral meetings. 3. In addition to the research studies, provide assistance for testing processes to verify possible applications of Japanese technologies in partner countries (combustion technology, furnaces, gasification, etc.). Kazakhstan Foundational study on high-efficiency coal utilization system Kyrgyzstan, Uzbekistan and Tajikistan Foundational study on high-efficiency coal utilization system China FS on low-grade boiler operation optimization project USA FS on implementing HECA IGCC project Taiwan FS on conversion of existing power plant to a CCS facility project Australia FS on implementing hydrogen supply infrastructure chain project FS on high efficiency coal-fired CCS project Overseas dissemination of s high-efficiency CCT technology (2012 results) Our goal is to improve the energy efficiency and support the diversification of energy sources in partner countries while at the same time strengthening the global competitiveness of Japan and contributing to solving global environmental problems. implementation stage, we can achieve reductions of roughly 1,500 tons of CO 2 emissions. If coal-fired power plant construction goes forward, the scale of investment may reach the 100 billion yen mark, and this holds major significance for Japanese industry if they are selected to participate in the project. The Project Formation Research on High-Efficiency Coal Utilization Systems will serve as a part of infrastructure system export strategies and has the ability to make great contributions to both developing the Japanese economic growth and reducing CO 2. Yoshiko Yamamoto Clean Coal Group, Environment 14 15

9 TOPICS 2014 Mar. 12 th and UK Government Concludes MOU for Project in Manchester concluded on March 12, 2014 a memorandum of understanding (MOU) with the for Business Innovation & Skills (BIS), the of Energy and Climate Change (DECC) of the British government and the Greater Manchester Combined Authority (GMCA) to conduct a smart community demonstration project in Manchester leveraging Japan's heat pump technology and Information and Communication Technology (ICT). Chairman Furukawa, at the MOU signing ceremony in the presence of Mr. Hayashi, Japan's ambassador to the United Kingdom in the Houses of Parliament, stated that this unprecedented demonstrative project that would aggregate residential negawatt (conserved electricity by the demand side) to trade in the power market could play a significant role in making a shift of the principal source of energy from gas to electricity as well as in establishing a low-carbon society in England, drawing a number of lessons Japan could learn at the same time and contributing to the advancement of economic and technological exchange between Japan and England through the dissemination of the state-of-the-art smart technology. MOU signing ceremony Domestic Offices Head Office MUZA Kawasaki Central Tower, 16F-20F 1310 Omiya-cho, Saiwai-ku Kawasaki City, Kanagawa Japan Tel: Fax: Kansai Branch Office Umeda Dai Building, 6F, Umeda, Kita-ku Osaka Japan Tel: Fax: Washington L Street, N.W., Suite 605 Washington, D.C U.S.A. Tel: Fax: Silicon Valley 3945 Freedom Circle, Suite 790 Santa Clara, CA U.S.A. Tel: Fax: Overseas Offices Europe 10, rue de la Paix Paris, France Tel: Fax: New Delhi 7th Floor, Hotel Le Meridien Commercial Tower, Raisina Road New Delhi , India Tel: Fax: Beijing 2001 Chang Fu Gong Office Building Jia-26, Jian Guo Men Wai Street Beijing , P.R. China Tel: Fax: Bangkok 8th Floor, Sindhorn Building Tower Wittayu Road, Lumphini Pathumwan Bangkok 10330, Thailand Tel: Fax: New Energy and Industrial Technology Development Organization MUZA Kawasaki Central Tower, 1310 Omiya-cho, Saiwai-ku Kawasaki City, Kanagawa Japan Tel: Fax: URL: March 2015