Circumstances surrounding the utilization of. Biomass

Transcription

1 Circumstances surrounding the utilization of The change after the establishment of the Fundamental Law of Promoting Usage of 1.History of Major -Related Measures 1 2.Overview of the Fundamental Law of Promoting Usage of 2 3.Promotional organization for biomass-related measures 3 4.Overview of biomass commercialization strategy 4 5.Goals of the new basic plan for biomass usage 5 6.Overview of the new basic plan for biomass usage promotion 6 Progress of the basic plan for biomass utilization promotion 7.Goals that the nation should achieve in the basic plan for biomass usage promotion 8 8.Expansion of biomass usage 9 9.Drawing on the plan for promoting biomass usage Scale of biomass industries About Industrial Area Selected regions of biomass industrial Area Commercialization project of the selected regions The fixed price purchase system for renewable energy (Feed-in Tariff) The introduction of biomass power generation power generation using the fixed price purchase system Expansion of woody biomass usage The conditions of other biomass industries 22 (Reference)Examples of major activities 23 A p r i l, Policy Division Food Industry Affairs Bureau M A F F

2 1. History of Major -Related Measures Comprehensive Nippon Strategy (decided on by the Cabinet in December 2002, revised in March 2006) Agriculture, forestry and fishery biofuel law (enacted in May 2008, enforced in October 2008) The Fundamental Law of Promoting Usage of (enacted in June 2009, enforced in September 2009) Basic plan for promoting usage of biomass (decided on by the Cabinet in December 2010) Great East Japan Earthquake and Fukushima nuclear power plant accident (2011.3) Comprehensive Nippon Strategy (Goal setting in 2010) Utilization of wasted-based biomass 80% or more and unutilized biomass 25% or more, etc. The Fundamental Law of Promoting Usage of Aims comprehensive and promotion of biomass utilization policy Drawing up the National Plan for the Promotion of Utilization Setting up the National Policy Council commercialization strategy Drawn on "Technology roadmap" which has assessed a wide variety of biomass utilization technologies Promotion of the commercialization by selecting and concentrating technology and biomass Town and village whose main industry will be made into a biomass oriented industry (promotion of biomass industrial city) Long-term energy supply and demand outlook The target amount of biomass power generation in 2030 Approximately 3.7 to 4.6% of power supply (39.4 to 49.4 billion h) Draft of commitments to reduce greenhouse gasses Reduction of -26.0% in FY2030 compared to FY2013 (-25.4% compared to FY2005) Global warming measure plan (Mid-term goal) In FY2030, making it the level of -26.0% compared to FY2013 (-25.4% compared to FY2005) (Long-term goal) Aim to reduce 80% of greenhouse gasses by 2050FY The Act on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Electric Utilities (FIT laws) (enacted in August 2011, enforced in July 2012) Started the fixed price purchase system commercialization strategy (decided by the biomass utilization promotion council on September 2012) Basic plan for promoting the formulation of recycling-oriented society (decided by the Cabinet on May 2013) Environmental Energy Technology Innovation Plan (decided by the Council for Science and Technology Policy on September 2013) Energy basic plan (decided by the Cabinet on April 2014) Basic Plan for Food, Agriculture and Rural Areas (decided by the Cabinet on March 2015) Long-term energy supply and demand outlook (decided by the Ministry of Economy, Trade and Industry on July 2015) Draft of commitments to reduce greenhouse gasses (decided by the Global Warming Prevention Headquarters on July 2015) Priority plan for social capital equipment (decided by the Cabinet on September 2015) Science and technology plan (decided by the Cabinet on January 2016) Basic plan for biomass usage promotion (Goal setting in 2025) Use about 26 million tons of carbon biomass per year Drawn on the biomass usage promotion plan in 600 municipalities Forming a market of 500 billion yen Global warming measures plan (decided by the Cabinet on May 2016) Basic Plan for Forest and Forestry (decided by the Cabinet on May 2016) New basic plan for biomass usage promotion (Decided by the Cabinet on September 2016) 1

3 2. Overview of the Fundamental Law of Promoting Usage of (June 12, 2009, Law No. 52) Basic principles Comprehensive, integrated and effective promotion Promotion for the prevention of global warming Promotion for the formation of a recycling-oriented society Contributing to strengthening of industrial development and international competitiveness Promoting contribution to the revitalization of agricultural, forestry, and fishing villages Maximum utilization in accordance with the characteristics of each type of biomass Diversifying energy supply sources Promoting independent-minded efforts in area Fostering social momentum Ensuring stable supply of food Consideration for conservation of environment Strengthening responsibilities and cooperation Clarifying the responsibilities of the nation, local governments, and businesses and strengthening the cooperation of each entity. Drawing on the basic plan for promoting biomass usage National biomass usage Nation's basic plans for biomass usage promotion Prefectural & municipal biomass usage promotion plans Legislative measures, etc. The government shall take necessary measures such as legislation, fiscal, taxation or financial measures and other measures in order to carry out the policies regarding the promotion of utilization of biomass. National measures Maintaining required infrastructure Creating businesses to supply biomass Research & development and diffusion of technology Developing and ensuring human resources Promoting the utilization of biomass products Promoting voluntary activities of private organizations Promoting the activities of local governments Promoting international coordination and cooperation Collecting information Increasing the nation's understanding Promotion conference for biomass usage 1 By coordinating mutually the related administrative authorities, the government shall establish the promotion conference for biomass usage in order to carry out comprehensive, integrated and effective promotion of biomass usage. 2 The related administrative authorities shall establish the expert meeting for biomass usage promotion consisting of people who have expertise regarding biomass usage, and when coordinating 1, the authorities shall hear their opinions. 2

4 3. Promotional organization for biomass-related measures Based on the Fundamental Law of Promoting Usage of (June 12, 2009, Law No. 52), " usage promotion council" consisting of the government businesses of the relevant 7 ministries (Cabinet office, Ministry of Internal Affairs and Communications, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, and Ministry of the Environment) was set up, and promotes the measures contributing to biomass utilization in cooperation. Cabinet Office Fundamental National Policies Ministry of Internal Affairs and Communications Regional administrative and fiscal policies Firefighting legislation The member of utilization promotion council State Minister of Agriculture,Forestry and Fisheries Ministry of the Environment Global warming measures Waste policies B i o m a s s utilization promotion council Ministry of Education, Culture, Sports, Science and Technology Science and technology policies Educational policies Parliament Vice-Minister of Cabinet Office Parliament Vice-Minister of Internal Affairs and Communications Ministry of Land, Infrastructure, Transport and Tourism Land, infrastructure, transport and tourism policies Development of social infrastructure (Sewer, etc.) (Consisting of political affairs of 7 ministries) Ministry of Economy, Trade and Industry Industry policies Energy policies Ministry of Agriculture, Forestry and Fisheries Agriculture, forestry and fisheries policies Agriculture, mountain, fishing village area policies Food industry policies Parliament Vice-Minister of Education, Culture, Sports, Science and Technology Parliament Vice-Minister of Economy, Trade and Industry Parliament Vice-Minister of Land, Infrastructure, Transport and Tourism Parliament Vice-Minister of the Environment 3

5 4. Overview of the new basic plan for biomass usage promotion (Decided by the Cabinet Council on September 16, 2016) Plan to determine basic policies on measures to promote the utilization of biomass, goal to be achieved by the national government, matters concerning research and development of technology, based on the Fundamental Law of Promoting Usage of (Heisei 21, law No. 52). Under the previous basic plan (decided on by the Cabinet December 17, 2010), The market size of the biomass industry was expanded mainly on energy use, but the bias was seen in the activities of selling electricity leveraging the fixed price buying system, and in activities other than the selling of electricity, the challenge is to establish a continuous business model which is based in an area and about for the economy can be ensured. 1 Basic policy on measures By leveraging the biomass existing in areas, create the businesses led by area, and promote measures which lead to the development of agricultural, forestry, and fisheries and revitalization by returning profits to areas. 2 Goals which the nation should achieve (Target: 2015) Sustainable society with less environmental impact Use about 26 million tons of carbon of biomass per year Revitalization of agricultural, forestry, fishery industries and agricultural, forestry, fishery villages Drawing on the biomass usage promotion plan in all prefectures and 600 municipalities Creation of new industry Forming the market of 500 billion yen 3 Measures which the government should take comprehensively and effectively Support activities led by regional areas such as multi-step use and advanced utilization that generates more economic value. Expanding the dissemination of heat use with high energy efficiency, and promoting the proactive usage of biogas as a heat source. Promoting horizontal development of activities by broadly sharing knowledge of successful cases Priority items Strengthening the activities which secured economy Promoting the sustainable and self-reliant activities which return profits to regional areas 4 Matters related to research and development of technology Mixture usage of various biomass according to the actual circumstances of regional area, and the establishment of the production and usage methods of hydrogen gas derived from sewage sludge. Establishing the usage technology of by-products such as the surplus heat accompanying power generation and the digestion liquid occurring in the producing process of biogas. Promoting the research and development of next-generation biofuels by micro-algae, etc in anticipation of industrialization Priority items Promoting practical use and high added value 4

6 5. Goals of the new basic plan for biomass usage Activities to generate more economic value Advanced use <Traditional> Livestock excrement <Advanced use> Livestock excrement Digestive juice Reduction to farmland & meadow (Generate more economic value) Composting Methane Fermentation Compost Biogas Cogeneration Electricity Self-consumption & selling electricity, etc. Reduction to farmland & meadow Refining & Concentrating Gas Facility horticulture & City gas substitutions Heat Heating & hot water supply, etc. of facilities Multi-step use (Use the limited resources thoroughly) Logs for lumbering Small-diameter logs Branches and leaves (Straight timber) (Bend material, short-size material) (Low-quality material) (Treetop) Sawdust Lumber & Processing (sawmills) Mills ends Chip manufacturing Sawing products (Boards, squared timbers, etc.) Waste woods Dismantled wood Wooden board Pap er Fertilizer & feed Pellet production Electricity & heat (Construction materials) (Reuse) (Collecting) (Utilization) (Collecting ash & CO2) Heat utilization (Promoting better energy-efficient heat use) In the agricultural production sites and regional heat demand facilities, heat utilization can be expected to be alternative for fossil fuel. Half of energy demand is for heat, especially about 80% of the energy consumption in agricultural production sites is heat utilization, so promote heat utilization of biomass. * The energy efficiency of heat utilization is better than power generation. (Heat utilization: about 60 to 90%, Power generation: about 10 to 40%) Accelerate the activities of "cogeneration" that precedes the utilization of surplus heat in power generation which is not currently utilized sufficiently. (Image of action) (Farm products) To processing facilities & retailers To processing facilities & retailers (Livestock products) Building an integrated system ensuring economy Agricultural residue, etc. Electricity, heat, letter Sustainable and self-sustainable activities Upland farming farmer & horticultural farmer Food processing facilities Electricity, heat, fluid fertilizer Food waste Electricity & heat Biogas plant Food waste & excreta To local public bodies, etc. retailers (Products) Municipal biomass utilization promotion plan (Regional construction based on the biomass industry) Livestock excrement Electricity & heat Cattle farmer Public facilities & retail stores, etc. Activities in which the earned profits are returned to regional areas 1Industrial development & job creation Create new industries by which biomass existing in regional areas can be transformed and utilized as energy or products. The cost saving by 2 & 3 can be allocated for the expansion of operation size, etc. New employment opportunities can be created by the above activities. 2Reduce waste disposal costs and efforts The processing costs and efforts for transportation are reduced by using the waste biomass to advanced use, such as livestock excrement and non-edible parts of farming products occurring at the agricultural livestock industry production sites where waste disposal was conducted until now. 3Supply cheaper energy and products The bearing of costs required for energy until now is reduced by providing the products and electric & heat energy at a low cost which is obtained by conversion technology of biomass to regional farmers or public facilities. Sharing successful cases widely & horizontal deployment of businesses Sustainable society with less environmental impact Revitalization of agricultural, forestry, fishery industries and agricultural, forestry, fishery villages Creation of new industry 5

7 6. Overview of biomass commercialization strategy (decided by the biomass utilization promotion council on September 6, 2012) Strategy 1: Basic strategy Prioritized promotion of commercialization by selecting and concentrating technology and biomass Building an integrated system from raw material production, collection, transportation, production, to utilization by stakeholders' cooperation Creating regional industries by promoting commercialization by leveraging regional biomass, and strengthening autonomy & distributed energy supply system. Strategy 2: Technology strategy (technology development and manufacturing) Organize practical use technology and biomass utilized for commercialization, based on the technology road map Technology Methane fermentation & composting, direct combustion, solid fuelification, liquid fuelization Wood, food waste, sewage sludge, livestock excrement Accelerate the development of technologies aiming for practical application through cooperation among research institutes of industry, academia, and government Strategy 3: Exit strategy (creation & expansion of demand) Proactive utilization of the Fixed price purchase system Promote the biomass-related tax system to encourage the participation of investors and businesses Promote the reduction of greenhouse gasses by utilizing each Credit system Promote commercialization by creating high added-value products Strategy 4: Entry strategy (raw material procurement) Strategy 5: Individual priority strategy Improve the upriver agricultural and forestry organizations integrated with biomass utilization Build an effective collecting and transportation system for biomass Develop energy crops and plants of high biomass quantity and easy decomposability, etc. Mixed use of a wide variety of biomass resources and thorough use of waste Strategy 6: Comprehensive support strategy Create industries utilizing regional biomass and construct biomass industrial area for building regional recycle-oriented energy system (development and sophistication of biomass town) Study of the system to promote the activities for commercialization through cooperation with businesses from raw materials production to collection, transportation, manufacturing, and utilization (review of agriculture, forestry, and fishery biofuel law) 1 Woody biomass 2 Food waste 3 Sewage sludge 4 Livestock excrement Build an effective collecting and transportation system of the unused lumber from thinning, etc and promote integrally and intensively the use of energy at woody power plants Promote the thorough and strengthened classification waste dumping, bio-gasification, mixed use with other biomass, and conversion of waste to solid fuels As the base for regional biomass utilization, promote bio-gasification, mixed use with food waste, and recycling by conversion of waste to solid fuels Promote the utilization of recycling by methane fermentation, direct combustion, and mixed use of food waste, etc. Strategy 7: Overseas strategy Build sustainable biomass utilization system in Asia, etc. Promote the creation of international standards, etc. for sustainable biomass utilization 5 Bio fuel Study measures to embody the possibility of regional recycle-oriented biofuel utilization integrated with regional farmers whose regions have a large production plant Diffuse low-concentration utilization by the bio-diesel fuel tax system, etc. and develop a high-efficiency and low-cost production system Accelerate the development of next-generation biofuel production technology through collaboration among research institutes 6

8 Progress of the basic plan for biomass utilization promotion

9 7. Goals that the nation should achieve in the basic plan for biomass usage promotion The current basic plan assumes a society with advanced biomass utilization that should be realized in the future, and as an indicator to determine the level of achievement of "global warming prevention", "development of new industry", and "revitalization of agricultural, mountains and fishery village" which are pillars, it sets a target value which the nation should achieve by 2025 with the evaluation axis of the expansion of biomass utilization, the size of new biomass industries, and drawing on the biomass utilization promotion plan. A society with advanced biomass utilization that should be realized in the future Sustainable society with less environmental impact Creation of new industries and revitalization of agricultural, forestry, fishery industries and agricultural, forestry, fishery villages New lifestyles centered on biomass utilization utilization under international cooperation Set the required goals (2025) to achieve future image Prevention of global warming and formation of recyclingoriented society Expansion of biomass usage of approximately 26 million tons of carbon per year in carbon conversion amounts are utilized by substituting the energy and products produced by using fossil resources for what is derived from biomass Set the goal of utilization rate for each type of biomass Revitalization of agricultural, forestry, fishery industries and agricultural, forestry, fishery villages Drawing on the plan for promoting biomass usage Draw on the prefectural biomass utilization promotion plan in all prefectures Draw on the municipal biomass utilization promotion plan in 600 municipalities which are equivalent to one-third of all municipalities Development of new industries and strengthening of international competitiveness Scale of biomass industries Cultivate environmentally harmonious industries which utilize biomass for energy and products, and form a market of 500 billion yen with the assumption that these industries would will progress 8

10 8. Expansion of biomass usage The amount of generated biomass (potential quantity) tends to decline over the mid-and-long term due to activities of suppressing the occurrence of waste-based biomass. The carbon quantity conversion value of usage is approximately 24 million tons at present, but the aim is that approximately 26 million tons will be utilized in Set the goals for each type of biomass in order to promote the advanced utilization that creates more economic value, while considering the existing usage method (Heisei 22) 2015 (Heisei 27) Mid-and-long term trends 2025 (Heisei 37) Generated amount of biomass (Equivalent carbon value) Approx. 35 million tons Approx. 34 million tons Waste-based biomass tends to be declining due to the activities of suppressing occurrence, etc. [Forecast] Approx. 32 million tons Usage of biomass (Carbon equivalent value) Approx. 23 million tons [Utilization ratio] About 65.7% Waste biomass Unused biomass Types of biomass Approx. 24 million tons [Utilization ratio]about 70.6% : generation amount : usage Utilization ratio [Promotion measures] Promote the multi-step utilizationthat is repeatedly utilized as much as possible in high-value order as a product and heat utilization with high-energy efficiency Support the creation of a plan that leads to a virtuous circle of regional economies according to the actual regional circumstances, and promote the activities by which the created value can lead to the development of agriculture, forestry, and fishery and return profit to regions [Target Value] Approx. 26 million tons Utilization ratio Generation amount: 4.86 million tons Livestock excrement Utilization amount: 4.19 million tons 87% About 90% Sewage sludge 900 thousand tons 560 thousand tons 63% About 85% Black liquor Paper Food waste 4.13 million tons 100% 4.13 million tons Promote utilization, while million tons striving for compatibility 81% between materials use and 8.29 million tons energy use so as not to affect 690 thousand tons the stable wood supply 170 thousand tons 24% 100% About 85% About 40% Waste materials from 3.2 million tons sawmill factories, etc. 3.1 million tons 97% About 97% Wood chips derived from 2.2 million tons construction 2.07 million tons 94% Non-edible parts of crops (except for plowed-in parts) 4.48 million tons 1.42 million tons 4 million tons Leftover forest wood 360 thousand tons 9% 32% About 95% About 45% Over 30% * The forecast of biomass generation amount in 2025 is estimated by approximate expression from the past actual value. 9

11 9. Drawing on the plan for promoting biomass usage The drawn number of the biomass utilization promotion plans is currently 16 prefecture plans and 41 municipality plans (if including similar measures, 374 municipalities excluding duplications), and the aim is to have drawn plans for all prefectures and 600 municipalities by The drawing of a regional plan to promote biomass utilization (surveyed by the Ministry of agriculture, forestry and fishery (as of October 2016)) Prefecture Name Prefecture Planning Municipaliti es of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Prefecture Name Prefecture Planning Municipalit ies of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Prefecture Name Prefecture Planning Municipaliti es of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Hokkaido (December 24, 2013) Niigata (March.20, 2014) Yamaguchi (March.27, 2013) Aomori Iwate Akita Miyagi Yamagata Fukushima Ibaraki Tochigi (December.22, 2011) (March. 2017) Toyama Ishikawa Fukui Gifu Aichi Mie Shiga Kyoto (March. 2017) (October.5, 2012) Tokushima Kagawa Ehime Kochi Fukuoka Saga Nagasaki (June.11, 2012)

12 9. Drawing on the plan for promoting biomass usage Prefecture Name Prefecture Planning Municipaliti es of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Prefecture Name Prefecture Planning Municipalit ies of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Prefecture Name Prefecture Planning Municipaliti es of Japan Number of plans (Reference) Similar measures Number of municipalities that have plans town plan Industrial city plan Gunma Saitama Chiba Tokyo Kanagawa Yamanashi Nagano Shizuoka (March, 2017 revision) (April.1, 2012) (August.2, 2011) (March 30, 2017 revision) Osaka Hyogo Nara Wakayama Tottori Shimane Okayama Hiroshima (April.18, 2016) (March.29, 2013) Kumamoto Miyazaki Oita Kagoshima Okinawa (March.30, 2012) (April.12, 2013) (March.1, 2016) (March, 2017 revision) Total Overlap is excluded Goal

13 10. Scale of biomass industries Regarding the market size of the biomass industry, although it was about 120 billion yen including the economic ripple effect at the time of formulating the basic biomass utilization plan, it expanded mainly on the power generation efforts utilizing the fixed price acquisition system, Approximately 350 billion yen (about 70%) Under the new basic plan, we will aim to establish a market of 500 billion yen in 2025, while also promoting expansion of the market size for efforts other than power generation. Estimation of the market size of the biomass industry (surveyed by the Ministry of Agriculture, forestry, and fisheries: preliminary version) billion yen Market size 0 Expanding mainly on efforts for power generation utilizing fixed price purchase system of renewable energy At the time of formulating the basic plan for promoting utilization of old biomass 2010 (heisei 22) Approximately 120 billion yen Promote expansion of Cefforts other than power generation C C C C Current 2015 (heisei 27) Approximately 350 billion yen Target value 2025 (heisei 37) Approximately 500 billion yen Note) Fertilizers, feeds, etc., which clearly have markets since the formulation of the Basic Promotion Plan, are excluded from estimation Note) The economic ripple effect is calculated using a simplified calculation tool for economic ripple effect by the integrated large classification (37 divisions) based on the input-output table published by the Ministry of Internal Affairs and Communications 12

14 11. About Industrial Area A biomass industrial area is a region for building an integrated system that ensures economy and aims to develop a town/ village centered biomass industry that makes use of distinctive characteristics, and that is environmentally-friendly and strong for disasters, and the related 7 ministries jointly selected. *Related 7 government departments: Cabinet Office, Ministry of Internal Affairs and Communications, Ministry of Education, Culture, Sports, Science and Technology, Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, Ministry of the Environment Image Cattle farmer Pasture Crop cultivation farmer Livestock excrement Energy Liquid fertilizers & litter Biogas production facility Power generation facility (selling electricity) (Electric power company) Wood biomass power generation facility Unused material (selling electricity) Wood pellet manufacturing facility Fuel for boilers Pruned branches Food waste Energy use within a region Fuel for agricultural machinery Fuel for transportation BDF production facility Waste edible oil Food factory Cattle shed Schools Welfare facility General household Hot spring facility Greenhouses for agriculture Revitalization of regions using biomass 13

15 12. Selected regions of biomass industrial area FY 2013(36 Municipalities) FY 2015(12 Municipalities) Primary Selection(28Municipalities) 23.Hiratori-cho, Hokkaido 1.Tokachi region, Hokkaido 24.Osaki-shi, Miyagi (19 Municipalities) 2.Shimokawa-cho, Hokkaido 3.Bekkai-cho, Hokkaido 25.Mogami-machi, Ymagata 26.Motegi-machi, Tochigi 27.Kai-shi, Yamanashi 28 (10 Regions) FY 2016(16 Municipalities) 4.HigashiMatsushima-shi, MIyagi 28.Kyotango-shi, Kyoto 35.Shiriuchi-cho, Hokkaido 5.Ushiku-shi, Ibaraki 29.Nantan-shi, Kyoto 36.Otoineppu-mura, Hokkaido 6.Niigata-shi, Niigata 7.Obu-shi, Aichi 30.Iinan-cho, Shimane 31.Tsuyama-shi, Okayama 1 37.Nishiokoppe-mura, Hokkaido 38.Shibetya-cho, Hokkaido 8.Mitoyo-shi, Kagawa 32.Munakata-shi, Hukuoka 1 39.Hirakawa-shi, Aomori Secondary Selection (8 Municipalities) 9.Kushiro-shi, Hokkaido 10.Okoppe-cho, Hokkaido 11.Minamisanriku-cho, Miyagi 12.Hamamatsu-shi, Shizuoka 13.Tsu-shi, Mie 14.Okuizumo-cho, Shimane 15.Maniwa-shi, Okayama 16.Nishiawakura-son, Okayama FY 2014(6 Municipalities) 33.Usuki-shi, Oita 34.Kobayashi-shi, Miyazaki Ichinoseki-shi, Iwate 41.Kami-machi, Miyagi 42.Tokamachi-shi, Niigata 43.Nanto-shi, Toyama 44.Kakegawa-shi, Shizuoka 45.Handa-shi, Aichi 46.Kyotanba-cho, Kyoto 47.Itoshima-shi, Hukuoka 48.Kunisaki-shi, Oita 49.Satsumasendai-shi, goshima 50.Nagashima-cho, Kagoshima 17.Imizu-shi, Toyama 18.Sumoto-shi, Hyogo Okinoshima-cho, Shimane 20.Miyama-shi, Hukuoka 21.Saga-shi, Saga Number in is that of Municipatilies selected each prefecture 13 14

16 13. Commercialization project of the selected regions Use/ raw material Woody biomass Livestock excrement Food waste Sewage sludge Power generation Utilizatio n of FIT Others (including undecided) Shimokawa-cho, Higashimatsushima-shi, Mogamimachi, Imizu-shi, Kai-shi, Hamamatsu-shi, Tsu-shi, Tsuyama-shi, Maniwa-shi, Saikishi, Usuki-shi Tokachi region, Kushiro-shi, Okoppe-cho, Okinoshima-cho, Kobayashi-shi Tokachi Region, Shimokawacho, Okoppe-cho, Bekkai-cho, Nantan-shi Kushiro-shi, Osaki-shi, Mogami-cho, Munakata-shi, Kobayashi-shi Higashimatsushima-shi, Hamamatsu-shi, Obu-shi, Kyotango-shi, Nantan-shi, Sumoto-shi, Saiki-shi, Usukishi Okoppe-cho, Osaki-shi, Minamisanriku-cho, Mogamicho, Niigata-shi, Tsu-shi, Munakata-shi, Miyama-shi, Saga-shi, Kobayashi-shi Okoppe-cho, Hamamatsu-shi, Nantan-shi, Sumoto-shi, Saikishi Minamisanriku-cho, Mogamicho, Niigata-shi, Munakata-shi, Miyama-shi Heat utilization Tokachi region. Kushiro-shi, Shimokawa-cho, Hiratori-cho, Higashimatsushima-shi. Osaki-shi, Minamisanriku-cho, Mogamimachi, Ushiku-shi, Motegi-cho, Niigata-shi, Kai-shi, Hamamatsushi, Tsu-shi, Kyotango-shi, Nantan-shi, Sumoto-shi, Okuizumo-cho, Iinan-cho, Okinoshima-cho, Tsuyama-shi, Nishiawakura-son, Mitoyo-shi, Miyama-shi, Saga-shi, Saiki-shi, Usuki-shi, Kobayashi-shi Tokachi Region, Kushiro-shi, Shimokawa-cho, Okoppe-cho, Bekkai-cho Okoppe-cho, Higashimatsushima-shi Minamisanriku-cho, Mogamicho, Niigata-shi, Tsu-shi, Okinoshima-cho, Usuki-shi Mogami-cho, Niigata-shi 15

17 13. Commercialization project of the selected regions Use/ raw material Woody biomass Livestock excrement Food waste Sewage sludge Fertilizer & feed, etc Motegi-cho, Imizu-shi, Sumotoshi, Iinan-cho, Tsuyama-shi, Mitoyo-shi, Munakata-shi Tokachi Region, Shimokawacho. Kushiro-shi, Okoppe-cho, Bekkai-cho, Osaki-shi, Mogami-cho, Motegi-cho, Kai-shi, Nantan-shi, Iinan-cho, Munakata-shi, Saga-shi, Kobayashi-shi Okoppe-cho, Higashimatsuhima-shi, Osakishi, Minamisanriku-cho, Mogami-cho, Motegi-cho, Niigata-shi, Kai-shi, Hamamatsu-shi, Obu-shi, Kyotango-shi, Nantan-shi, Mitoyo-shi, Okinoshima-cho, Munakata-shi, Miyama-shi, Saga-shi, Usuki-shi, Kobayashi-shi Minamisanriku-cho, Mogamicho, Kyotango-shi, Nantan-shi, Munakata-shi, Miyama-shi Fuel Shimokawa-cho, Hiratori-cho, Osaki-shi, Minamisanriku-cho, Ushiku-shi, Niigata-shi, Tsu-shi, Okinoshima-cho, Saga-shi, Usuki-shi, Kobayashi-shi Nantan-shi Tokachi Region Shimokawacho, Osaki-shi, Ushiku-shi, Motegi-cho, Niigata-shi, Imizushi, Kai-shi, Obu-shi, Nantanshi, Sumoto-shi, Iinan-cho, Maniwa-shi, Munakata-shi, Mitoyo-shi, Miyama-shi, Usukishi, Kobayashi-shi Tsu-shi, Kyotangos-hi, Nantan-shi Others (utilization of material, etc.) Motegi-cho, Kyotango-shi, Sumoto-shi, Okinoshima-cho, Tsuyama-shi, Maniwa-shi, Mitoyo-shi Niigata-shi, Hamamatsu-shi, Kyotango-shi 16

18 14. The fixed price purchase system for renewable energy (Feed-in Tariff) The fixed price purchase system is the system by which electric power companies promise to purchase the electricity generated from renewable energy sources at a certain price, and the electricity derived from solar energy, wind, hydro, geothermal, and biomass. The purchase price (procurement price) and period (lead time) are set by the Minister of Economy Trade and Industry every year, respecting the opinions of the procurement price calculation committee consisting of experts. The procurement price of electricity from bi-mass power generation in FY FY2019 is 13 to 40 yen / h (excluding tax). Distinguished procurement price of equipment of 20,000 kw or more where scale merit is confirmed in general woody biomass agricultural residue residue in power generation efficiency etc. Overview of the system Procurement price and procurement period from FY2017 to FY2019 (-related) Power generation of renewable energy suppliers (, Solar, wind, etc.) Power generation facility Types of biomass Methane fermentation gas (derived from biomass) Procurement price Per 1h 39 yen + tax Lead Time Organization to adjust the cost burden (The organization collecting & distributing the levy) Issue the buying cost Pay the levy Selling electricity Buying electricity Electricity company (Collecting the electricity fee & the levy) Supply electricity Set the purchase price, respecting the opinions of the committee Electricity users Certification Minister of Economy, Trade and Industry Opinions about the purchase price, etc. Procurement price calculation committee Determine the unit price of the levy Applying Woody biomass derived from thinning timber, etc.* 1 Less than 2,000 2,000 or more General woody biomass* 2 Agricultural residue Construction waste material General waste & other biomass 40yen + tax 32yen + tax 24yen + tax 21yen + tax *3 13yen + tax 17yen + tax * 1 For those without the proof based on the "Guidelines for the proof of wood biomass used for power generation utilization", they are treated equally with construction waste materials. * 2 Including biomass caused by harvesting of crops. * 3 Until the end of September, yen+tax 20 years 17

19 15. The introduction of biomass power generation For biomass power generation utilizing the fixed price purchase system, approximately 760 thousand was already being produced by the end of November When combining this with the facility capability of power generation introduced under the RPS system, approximately 3.07 million has been produced. Approximately 5.39 billion h was the amount of electricity purchased by the fixed price purchase system of biomass power generation in FY The circumstances surrounding the introduction of biomass power generation at the end of November 2016 Plant capacity (one that started operation) Qualified capacity Before introducing FIT (RPS system) to June 2012 FY 2012 FY 2013 July 2012 to March 2014 FY 2014 April 2014 to March 2015 After introducing FIT FY 2015 April 2015 to March 2016 FY 2016 April 2016 to November 2016 Total After introducing FIT Cumulative total July 2012 to November 2016 Methane fermentation gas (derived from biomass) 14.7 thousand 3.2 thousand 6.0 thousand 7.4 thousand 8.5 thousand 39.8 thousand 64.5 thousand Woody biomass derived from thinning timber 14.5 thousand 12.9 thousand 55.9 thousand thousand 71.6 thousand thousand thousand General woody biomass Agricultural residue thousand 29.8 thousand 11.8 thousand 96.1 thousand thousand thousand 3,160.5 thousand Construction waste material thousand 0.3 thousand 3.5 thousand 5.4 thousand thousand 37.0 thousand General waste Other biomass 1,681.4 thousand 76.2 thousand 24.3 thousand 47.1 thousand 25.9 thousand 1,854.9 thousand thousand Total 2,313.8 thousand thousand thousand thousand thousand thousand 3,073.8 thousand 3,941 thousand Note) There is a case where the total value does not match due to rounding off. For one before FIT introduction (RPS system), it includes the facility capability switched from RPS to FIT. Note) It aggregated the estimated value obtained by multiplying by the biomass ratio at the time of facility certification. (After the introduction of FIT, it does not include the facility capacity switched from RIP to FIT.) 18

20 16. power generation using the fixed price purchase system National total Methane gas General waste General wood Construction waste material Unused wood * The displayed output is the one where the certified output of the power generation facility is multiplied by the biomass ratio (total output of each prefecture) These are the ones that have already started operation as of February 2016, and the facilities switched from RPS to FIP are not included. (Materials) (Created by the Ministry of Agriculture, Forestry and Fisheries, based on the materials of the Agency of Natural Resources and Energy) Output No. of introductions 36,300 kw (114 cases) 873,142 kw (215 cases) 347,569 kw ( 28 cases) 341,216 kw ( 31 cases) 287,449 kw ( 41 cases) Gifu Pref. 370 (1 case) 6,068 (3 cases) 4,300 (1 case) 600 (1 case) 6,250 (1 case) Mie Pref. 330(2 cases) 18,061(6 cases) 26,800(2 cases) 5,800(1 case) Aichi Pref. 30(1 case) 74,406(12 cases) 7,450(1 case) Toyama Pref. 195(1case) 13,330 (2 cases) 990 (1 case) 5,750 (1 case) Ishikawa Pref. 425 (2 cases) 9,925 (3 cases) Nagano Pref. 710(3 cases) 4,700(3 cases) Shizuoka Pref. 215(2 cases) 38,919(7 cases) 93,594(4 cases) Akita Pref. 4,760 (2 cases) 21,490 (2 cases) 3,750 (2 cases) Yamagata Pref. 300 (1 case) 2,267 (2 cases) 3,562 (2 cases) Niigata Pref. 660 (3 cases) 7,559 (3 cases) 5,750(1 case) Gunma Pref. 600 (2 cases) 5,395 (2 cases) 13,600 (1 case) Yamanashi Pref. 848 (2 cases) Aomori Pref. 960(2 cases) 6,624(2 cases) 6,250(1 case) Kanagawa Pref. 5,600(2 cases) 43,682(7 cases) 49,000(1 case) 2,064(1 case) Hokkaido Pref. 8,626(51 cases) 33,983(10 cases) 4,700(1 case) 53,820(2 cases) Chiba Pref. 8,932(8 cases) 47,557(3 cases) Tokyo Pref. 1,120(1 case) 153,938(23 cases) Iwate Pref. 280(2 cases) 11,272(4 cases) 19,800(2 cases) 6,871(3 cases) Miyagi Pref. 793(2 cases) 13,383(3 cases) 240(1 case) 800(1 case) Fukushima Pref. 25(1 case) 9,941(4 cases) 10,800(1 case) 25,420(2 cases) 5,745(2 cases) Tochigi Pref. 2,235 (8 cases) 9,214 (6 cases) 265 (1 case) 18,250 (1 case) 2,500 (1 case) Ibaraki Pref. 375(2 cases) 11,161(6 cases) 68,334(3 cases) 5,750(1 case) Saitama Pref. 28,229(12 cases) 18,810(1 case) 146(1 case) 19

21 16. power generation using the fixed price purchase system Okinawa Pref. 1,820 (2 cases) 8,048 (4 cases) Shimane Pref. 5,400(3 cases) 12,700(1 case) 6,250(1 case) Hiroshima Pref. 35,035(7 cases) 10,800(2 cases) 219(1 case) Tottori Pref. 1,110 (1 case) 2,360 (1 case) 5,700 (1 case) Okayama Pref. 8,756 (3 cases) 1,950 (1 case) 10,000 (1 case) Fukuoka Pref. 1,285(2 cases) 73,940(9 cases) Saga pref. 4,290(2 cases) 9,850(1 case) Nagasaki Pref. 250(1 case) 2,149(2 cases) 5,200(1 case) Kumamoto Pref. 808(1 case) 2,850(1 case) 6,250(1 case) 750(1 case) 6,280(1 case) Kagoshima Pref. 13,115(5 cases) 29,450(2 case) Yamaguchi Pref. 25(1 case) 6,283(4 cases) 23,760(2 cases) 47,083(3 cases) Oita Pref. 390(2 cases) 7,416(3 cases) 45,000(1 case) 12,000(1 case) 25,416(3 cases) Miyazaki Pref. 2,161(2 cases) 14,893(3 cases) 19,620(3 cases) 31,820(3 cases) Ehime Pref. 660 (1 case) 12,984 (2 cases) Kochi Pref. 4,574(2 cases) 8,850(1 case) 20,205(2 cases) 12,750(2 cases) Hyogo Pref. 857 (3 cases) 47,468 (14 cases) 18,554 (2 cases) 16,530 (1 case) Tokushima Pref. 710(1 case) 6,220 (1 case) Osaka Pref. 1,700(3 cases) 86,184(11 cases) 14,200(3 cases) Kagawa Pref. 525 (2 cases) 1,484 (1 case) Nara Pref. 50 (1 case) 2,500 (1 case) 6,500 (1 case) Wakayama Pref. 2,690(2 cases) Kyoto Pref. 695 (2 cases) 16,446 (3 cases) Fukui Pref. 7,270 (1 case) Shiga Pref. 25 (1 case) 1,671 (2 cases) 3,550 (1 case) * The displayed output is the one where the certified output of the power generation facility is multiplied by the biomass ratio (total output of each prefecture) These are the ones that have already started operation as of February 2016, and the facilities switched from RPS to FIP are not included. (Materials) (Created by the Ministry of Agriculture, Forestry and Fisheries, based on the materials of the Agency of Natural Resources and Energy) 20

22 17. Expansion of woody biomass usage The utilization of wood biomass contributes to not only the promotion of renewable energy but also the revitalization of forestry and regional economy and the assurance of employment. Especially, there is a large possibility for leftover forest wood. Wood biomass is processed to wood chip and wood pellet, and its utilization as energy has been increasing at sawmills, public facilities, and power stations, etc. Transition of the number of woody biomass boilers Over 2,000 units of wood biomass boilers are installed at places centered at sawmills, the introduction to public facilities, hot springs, and agricultural facilities has been proceeding. (Unit) ,218 1,461 1,701 2,023 The number of wood pellet manufacturing facilities and production quantity Recently, both the number of production facilities and production amount have been increasing with the background of the growing interest in global warming and of the reduction of management risks by switching from fossil fuel to renewable energy heat. (No. of facilities) ,693 58,243 36, , ,092 98, ,035 (t) 200, , , , ,000 75,000 50,000 25,000 0 H H H22 H H24 H H26 台数 Number of boilers H H21 H H H24 H H No. of facilities (First axis (left)) Production quantity (Second axis (right)) 21

23 18. The conditions of other biomass industries products such as bioplastic have the equivalent physical properties of those of petroleum-derived products, and they are almost comparable, but the cost tends to be slightly higher. Since the adoption of plastic bags and food containers has progressed, the market size has gradually expanded, and continuous growth can be expected from now on. For expanding the number of companies to adopt products, it is important to suppress production cost and to enhance the competitiveness in the market. Identification system of bioplastic Examples of familiar bioplastics In addition to plastic bags of retail stores, blister packs such as home appliances and batteries, window portions of windowed envelopes, the trays and packaging bags of fresh foods, egg packs, etc., the cases to be used for packaging materials for various products has been increasing. In July 2006, the Japan BioPlastic Association (JBPA) launched the "BioPlastic Identification system" to distinguish it from plastic products of petroleum-derived plastic in order to improve and disseminate and promote the awareness of bioplastic products. (t) 160, , , ,000 80,000 60,000 40,000 20,000 Transition of bioplastics production quantity and market size (Created by the Ministry of Agriculture, Forestry, and Fishery based on the survey results of JBPA) 126, , , , , , , (Billions of yen) H H H H H H H25 - Production quantity (First axis (left)) Market size (Second axis (right))

24 (Reference) Examples of major activities L F Livestock excrement Food waste W S Woody biomass Sewage sludge O Waste edible oil Toyosato-cho, Shiga Aburatou Shoji, Co., Ltd This company produces biodiesel fuel by the separation and purification of waste edible oil salvaged from school lunch programs and the food Service industry and sells it as mixed light oil (B5) at gas stations. O Suzu, Ishikawa S Suzu City Purification Center This center installs the fermentation facility to process concentration and mixing of sewage sludge and garbage, etc. at purification center. The heat of generated biogas is utilized for warming a fermenter and for drying fermentation residues. F Shimokawa-cho, Hokkaido Shimokawa-cho This town utilizes wood biomass as a heat resource for regional hot springs and greenhouses, etc. Wood biomass accounts for approximately 60% of heat energy consumption of all public facilities. W Kobe, Hyogo S KOBE Biogas (Higashinada Sewage treatment plant) This plant makes sewage sludge methane fermentation and utilizes it for natural gas vehicles as KOBE Biogas. It also supplies biogas that is highly purified as city gas for the first time in Japan. Shihoro-cho, Hokkaido L Shihoro-cho agricultural cooperative organization This organization produces methane gas from livestock excreta generated from adjacent farms to conduct power generation. It also utilizes generated heat as warm water to prevent freezing of fermenters, etc. Maniwa, Okayama W MEIKEN LAMWOOD CORPORATION This company makes chips from bark generated from thinning timber, forest residues, and sawmills to utilize it as fuel for power generation within the factory. Kuzuishi-cho, Iwate Power Shizukuishi This company utilizes biogas generated from livestock excreta and food waste to conduct power generation business. It also sells digestive juice and compost to Koiwai farm, and the farm uses it in pastures. L F Hita, Oita Hita This city generates biogas by methane fermentation of food waste and pig excreta to utilize power generation. The digestive juice generated in the process of power generation is also provided to citizens as compost and liquid fertilizer. L F Taketoyo-cho, Aichi EIZEN Co., Ltd. This company ferments food waste discharged from food production companies and utilizes the good quality part as feed and the other as fertilizer. Fertilizer is used for cultivating feed crops. F Asahi, Chiba Bright Pig Co.,Ltd This company utilizes food waste discharged from convenience stores, etc. and rice for feed produced in the region to produce liquid feed to use it at pig farms. F 23