Communications Office, Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry. Agency for Natural Resources and Energy,

Transcription

1 Japanese Public Agencies Energy-related Organizations Communications Office, Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry Kasumigaseki, Chiyoda-ku, Tokyo TEL: (switchboard) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

2 Energy in Japan 2005 C O N T E N T S Energy Demand in Japan Consumption has increased as people seek greater comfort and convenience. Energy Supply in Japan With its extremely low degree of energy self-sufficiency, Japan must rely heavily on imports. Japan and the Global Energy Situation Two priorities must be addressed: a stable supply and global environmental requirements. Japanese Basic Policies for Energy Supply & Use Japan takes a multifaceted approach. Energy Conservation Even greater energy efficiency is essential. New Energy Sources Hope is increasingly being placed in earth-friendly energy sources. Nuclear Power Generation and the Nuclear Fuel Cycle Japan is committed to using uranium effectively while ensuring safety. Natural Gas Growing use is being made of natural gas as a clean and abundant energy source. Coal Progress is being made in the development of technologies for cleaner coal use. Oil Efforts are focused on ensuring a reliable supply of this important energy source. LPG A national stockpile system is being created to ensure a stable supply. Data Sheets

3 Energy Demand in Japan The two energy crises of the 1970s were turning points which saw Japan achieve considerable success in energy conservation. However, the continued pursuit of comfort and convenience by the Japanese in recent years has increased energy consumption. The Simultaneous Achievement of Economic Growth and Energy Conservation After World War II, Japan set about reconstructing its economy. During the almost two decades of high economic growth between the 1950s and the 1970s, the nation's energy consumption steadily increased (Figure 1). The two oil crises of the 1970s were severe shocks to the Japanese economy, and brought the period of high economic growth to an end. The nation's industries thereafter implemented serious energy conservation measures, such as finding ways to use energy more effectively. These efforts were an enormous success, reducing energy intensity (energy consumption per unit of production output). Development of energy-conserving appliances advanced simultaneously, and they progressively found their way into Japanese homes. The result was the continuation of economic growth without an accompanying increase in energy demand. Energy Consumption Begins to Rise Again Energy Demand in Japan In the latter half of the 1980s, against a background of falling oil prices, lifestyle changes and an increased concern for comfort and conven-ience among Japanese citizens, the demand for energy began once again to increase. More widespread use of progressively larger and more sophisticated electrical appliances has spurred significant increases in the demand for energy in the commercial / residential sector. Energy demand has also increased in the transport sector, with a higher rate of vehicle ownership and a decline in actual fuel economy (due in part to an increased Energy consumption in Japan has increased in the commercial/residential and transport sectors (Figure 1) Trends in energy consumption and GDP in Japan Sources: Compiled from Cabinet Office, "Annual National Accounts Bulletin"; Institute of Energy Economics, Japan, "Handbook of Energy and Economic Statistics"; and Agency for Natural Resources and Energy, "Concerning Confirmed Energy Demand in Fiscal 2002." (Million kl crude oil equivalent) First oil crisis Second oil crisis Gross Domestic Product (Right-hand Scale) Transport sector Automobile, rail, shipping, aviation, etc. Commercial/residential sector Homes, stores, commercial buildings, etc. Industrial sector Factories, etc. (Trillion yen) Note 1 : Crude oil equivalent is a figure generated by converting units of different sources (coal, natural gas, etc.) to the amount of crude oil that would produce the same amount of energy Increase in energy consumption ( ) 2.1 times 2.3 times 1.1 times The demand for more comfortable lifestyles is increasing household electricity consumption (Figure 2) Trends in home electricity consumption by appliance Source: Agency for Natural Resources and Energy, Outline of Electricity Consumption. Electricity consumption (TWh) More than 50% of households own an air conditioner More than 50% of households own two color televisions More than 50% of households own a microwave oven '00 '01 '02 Note: Electricity consumption is calculated on the basis of the metered rate (A/B) by nine EPCos. More than one air conditioner/household 2002 Total:197.7Bwh Other appliances:45.3 Bwh (22.9%) Refrigerators:31.2 Bwh (15.8%) Lighting:30.8 Bwh (15.6%) Heaters:27.9 Bwh (14.1%) Air conditioners: 20.6 Bwh (10.4%) Televisions: 18.8 Bwh (9.5%) Electric carpets: 8.1 Bwh (4.1%) Toilet with warm-water washlets : 7.1 Bwh (3.6%) Clothes dryers: 5.1 Bwh (2.6%) Dishwashers/dryers: 2.8 Bwh (1.4%) 3 4

4 Energy Supply in Japan Before the oil crises, oil supplied approximately 80% of Japan's energy needs. The introduction of natural gas and nuclear power and the increase in coal imports since that period have reduced the nation's dependence on oil for its energy to its present figure of approximately 50%. However, Japan's energy self-sufficiency remains at a low level of around 4% (20% if nuclear power is included). Decline in Oil Dependence and Diversification of Energy Sources As the domestic coal industry lost its competitiveness, oil took the place of coal as the energy source fueling Japan's high economic growth. Oil was produced in tremendous quantities during this period, and Japan imported large amounts at low costs. In FY1973, oil supplied 77% of the nation's energy (Figure 3) Trends in Japan's primary energy supply and electrification ratio Source: Agency for Natural Resources and Energy, "Energy Balance Chart" 1973 Crude oil equivalent million kl requirements. When the first oil crisis occurred in 1973 after the outbreak of the fourth Arab-Israeli War, crude oil prices soared and supply was threatened with interruptions. To stabilize its energy supply, Japan endeavored to reduce its dependence on oil through the introduction of nuclear power and natural gas. Crude oil prices once again increased dramatically during the second oil The introduction of nuclear power and natural gas has reduced Japan s dependence on oil 2002 Crude oil equivalent million kl crisis in 1979, accelerating the process of introducing nuclear power and natural gas, and propelling the development of alternative sources of energy. Japan's present level of oil dependence is high at 50%, but that represents a significant improvement over the 77% level at the time of the first oil crisis. The use of nuclear power and natural gas has increased to provide alternatives to oil, with the former supplying 12% and the latter supplying 14% of the total. Thus, Japan continues to diversify its energy mix (Figure 3). However, both natural gas and the uranium used in nuclear power generation are imported from overseas, and Japan's energy self-sufficiency is a low 4%. Uranium can be considered a domestic energy source in view of the fact that it can be utilized for some years after importation. Even with this added in, however, Japan's selfsufficiency increases to only approximately 20%, which is still low compared with other countries (Figure 4). Half of Japan's Energy Sources Are Converted to Electricity About half of the primary energy sources such as coal and oil used by Japan are converted into the secondary energy source of electricity. Electric power is safe, clean, and easy to use, and demand therefore continues to increase. The ratio of electricity consumption to the total Japan s energy self-sufficiency is low in comparison to other nations (Figure 4) Energy self-sufficiency of major countries (2002) Source: IEA, "Energy Balances of OECD Countries ( )" Note: Figures for electric power include imports and exports as primary energy. Figures in excess of 100% indicate exports primary energy supply grew from 25.8% in FY1970 to 42.3% in FY2002. This trend is expected to grow even more pronounced in the future. The transition from the use of oil to nuclear power and natural gas in the generation of electricity has made significant progress, and in FY2003 these were the major power sources, with nuclear power supplying 25.7% and natural gas 27.9% of the nation's electricity (Figure 5). The use of nuclear power and natural gas is increasing in the power generation sector (Figure 5) Trends in power generation Source: Agency for Natural Resources and Energy, "Outline of Electric Power Development." Note: Figures through fiscal 1971 are for nine EPCos. Figures have been rounded off, and percentages may not total 100. Energy Supply in Japan (Million kl crude oil equivalent) First oil crisis Second oil crisis Proportion of electrification ratio Trends in electrification ratio Proportion in fiscal 2002 Note: Before FY1989, a different method was used to calculate statistics. 5 6

5 Japan and the Global Energy Situation As world demand for energy continues to increase, resource-poor Japan faces the possibility of being seriously affected by changes in the global energy situation. We are also required to reduce emissions of CO2 generated by energy consumption in order to prevent global warming. In addition, Japan's high energy prices must be reduced to enhance the international competitiveness of its industries. Limited Resources and a Fragile Supply Structure Japan's efforts to increase the use of nuclear power and natural gas, introduce energy conservation measures, and maintain oil reserves have ensured the stability of the nation's energy supply. On the surface, at least, its energy situation appears calm compared to the situation in the 1970s. However, future global economic growth, and particularly growth in developing countries such as China and other Asian nations, is predicted to dramatically increase demand for fossil fuels such as oil, coal and natural gas (which were created by the fossilization of animals and plants that died millions of years ago) (Figures 6 and 7). Today's recoverable coal reserves will last an estimated 192 years, but recoverable reserves of oil and natural gas will only last an estimated 41 years and 67 years, respectively. While new Energy resources are finite, and oil is the most limited (Figure 8) Years of future availability of world energy resources (2003) Source: BP Statistics 2003 (Oil, natural gas and coal) OECD/NEA, IAEA URANIUM 2001 (Uranium) oil fields may be discovered in the future, oil must be considered a finite resource (Figure 8). The consumption of oil is expected to increase more than that of any other resource, and much of the oil is located in the politically unstable Middle East. If global demand increases as predicted, the entire world will be dependent on imports from this region, and will be susceptible to the vicissitudes of the regional situation (Figure 9, Table 1). In addition, the dwindling of reserves of oil and natural gas could send energy prices spiraling, and Japan would face potentially serious difficulties in securing its energy supply. Because Japan is poor in resources and remains dependent on oil and other fossil fuels for the majority of its energy supply, it could be extremely sensitive to changes in the global energy situation. The large reserves of oil in the Middle East mean that dependence on the region for oil will increase in the future (Figure 9) Outlook for world oil supply by region Source: Figures are converted on the basis of IEA, "World Energy Outlook 2002." Totalamount supplied: 72 million barrels/day Demand (Million barrels/day) 1997 Level of import-dependence Global dependence on oil imports will increase in the future (Table 1) Changes in oil demand and import-dependence by region Source: IEA, "World Energy Outlook 2002." North America Europe Asia Japan and the Global Energy Situation The increase in world energy demand will center on China and the rest of Asia (Figure 6) Forecast for trends in world energy demand by region Source: Figures have been converted on the basis of the IEA, "World Energy Outlook 2002." (Billion kl crude oil equivalent) 1.3 times 1.7 times 1.5 times 2.2 times 2.0 times 2.4 times 2.8 times 2.0 times Figures for the OECD represent totals for the 30 member nations of the Organization for Economic Corporation and Development. In the future, demand for fossil fuels such as oil, coal and natural gas will increase globally (Figure 7) Forecasts for trends in world energy demand by fuel Source: Figures are converted on the basis of IEA, "World Energy Outlook 2002." (Billion kl crude oil equivalent) Demand (Million barrels/day) 2020 Level of import-dependence 1.7 times 2.7 times 1.6 times 1.0 times 2.0 times 1.5 times 1.6 times Note: Asia includes Japan, Australia, China, Korea, Indonesia, Malaysia, etc. 7 8

6 Japanese Basic Policies for Energy Supply & Use Targets for Combating Global Warming Global warming, one of the most critical environmental problems facing the world, must also be taken into consideration. Future increases in temperature and the level of the oceans will have overwhelmingly grave effects on food supplies and living environments. In an attempt to prevent this, numerous nations around the world have committed themselves to controlling emissions of greenhouse gases by becoming signatories to the Kyoto Protocol in Japan has made a commitment to reduce its total average greenhouse gas emissions by 6% against 1990 levels between 2008 and 2012, and to control its CO2 emissions (generated by energy consumption and accounting for about 90% of greenhouse gas emissions) to FY1990 levels by FY2010 (Figure 10). Increasing CO2 emissions from the consumption of energy must be reduced to FY1990 levels in FY2010 (Figure 10) Actual figures for CO2 emissions produced by energy consumption in Japan Source: Figures are converted on the basis of IEA, "World Energy Outlook 2002." Approx.12% increase between 1990 and 2002 Gas and electricity prices are higher in Japan than in other countries (Figure 11) International comparison of gas prices (2002) Household consumption Industrial consumption Japan's High Energy Costs Compared with Foreign Countries While the use of different methods of analysis makes direct international comparison impossible, Japan's electricity and gas prices are relatively high by international standards. There are various reasons for this. In addition to structural factors specific to Japan, such as geographical conditions and high wages and land prices, the system of regional monopolies on electricity and gas supply, while ensuring stable supply, also suppresses the development of market competition. Many countries have liberalized their energy markets to increase efficiency through the introduction of competition, and these measures appear to have produced positive results. (Figure 12) International comparison of electricity prices (2002) Energy Prices & Taxes, 2nd Quarter Note 1: Calculations are based on average unit cost, without defining the form of use in each country for the period of one year. Rates for industrial use include commercial use in some cases and not in others. In Japan's case, industrial use rates include commercial use. Note 2: Prices for the US are shown before tax. Household consumption Industrial consumption Japan is therefore implementing systemic reforms to increase the efficiency of its electricity and gas supply and the international competitiveness of its industries (Figures 11 and 12). In these efforts, stability of supply and conservation of the environment are the major concerns. Japan's energy policy is based on market principles, but at the same time seeks to ensure a stable supply and environmentally friendly production and consumption of energy. The following are important practical measures based on the following underlying goals. Promoting energy conservation measures More efficient use of energy and less energy consumption will reduce the amount of energy required. The increased application of energy conservation measures will not only contribute to the stability of the energy supply, but will be a significant factor in preventing global warming by reducing the level of CO2 emissions generated by burning fossil fuels. Development and introduction of diverse sources of energy Lowering the level of dependence on a single energy source through the development and introduction of diverse forms of energy reduces the risk of being negatively affected by disruptions in energy supply or soaring energy costs, and therefore contributes to the stability of supply. From the perspective of the prevention of global warming, nuclear power and renewable energy sources, which produce no CO2, and natural gas, which produces relatively little CO2 in comparison with other fossil fuels, are particularly important for energy diversification. Ensuring a stable supply of oil Oil provides approximately half of Japan's energy, and is expected to continue playing a central role in Japan's energy supply. This centrality makes the securing of a stable supply of the required quantities of oil at an appropriate price an important focus of energy policy. Of particular importance in this respect are efforts to ensure domestic reserves of oil and to independently develop oil fields. Basing the energy market on market principles The continuing advance of globalization is bringing manufacturing and other industries in every country into international competition. Against this background, the reduction of costs through liberalization and deregulation has become an increasingly important consideration, and energy markets have not been excepted from this process. Japan is also moving ahead with the liberalization and deregulation of its energy markets. However, energy differs from other products and services in that freeing the market could have a negative impact on the stability of supply and the preservation of the environment. It will therefore be essential to give adequate consideration to these two fundamental principles of energy policy in proceeding with structural reforms of energy markets. Japanese Basic Policies for Energy Supply & Use 9 10

7 Energy Conservation Energy conservation in Japan has already progressed to a high level, but in the future it will be essential for every citizen to take up the effort to achieve further energy savings. Efforts to Conserve Energy in Each Sector The first energy crisis spurred the establishment of energy conservation measures in Japan. As a result, Japan's use of energy is highly efficient compared with other leading industrialized nations (Figure 13). However, to respond to the problem of global warming and address the issues of Japan's fragile energy supply structure, it is important to take even further steps to conserve energy in all sectors. Industry Circulatory economy Residential/ commercial Improved consumption efficiency Transport Improved fuel efficiency Japan leads the major industrialized nations in efficient energy use (Figure 13) Comparison of energy consumption by GDP in leading nations Source: Institute of Energy Economics, Japan, Handbook of Energy and Economic Statistics in Japan. The industrial sector is actively progressing with voluntary measures to enhance energy conservation. The Keidanren (Nippon Keidanren: Japan Business Federation) has announced the "Voluntary Action Plan on the Environment," and has been moving ahead with energy conservation programs since The plan sets voluntary targets for the business community with regard to global warming and the establishment of a recycling-based socioeconomic system. Progress made towards the achievement of these targets is assessed in annual follow-up studies. The "Top Runner" Standards To increase the use of highly energyefficient appliances, the Energy Conservation Law (Law Concerning the Rational Use of Energy) requires manufacturers to meet target energy conservation standards in their appliances. The concept behind the formulation of these standards was to improve on the energy conservation performance of the best products ("top runners") presently available. At present, 18 product categories are covered by the standards, including air conditioners, televisions, lighting fixtures (fluorescent lights), refrigerators, computers, gasoline and diesel vehicles and electric heaters. Efforts are also being made in the commercial and residential sector to reduce energy consumption. For example, the "Top Runner" standards have been adopted to raise the energy efficiency of household appliances and office equipment, and a concerted effort is being made to promote the use of insulating materials in residential and other building construction. In addition, the use of IT-based home and building energy management systems (HEMS and BEMS) are being promoted, and the number of energy service companies (ESCO) offering comprehensive energy-saving services is being increased. In the transport sector, increased passenger car ownership and other factors accounted for an 105 kwh/ 98 kwh/ Product A Satisfaction of energy conservation standard 108% Product B Satisfaction of energy conservation standard 55% approximately 90% increase in energy demand in the 1990s. To combat this, the "Top Runner" standards system is also being used to increase automotive fuel efficiency, and high fueleconomy vehicles equipped with idle stop mechanisms and similar technologies are being disseminated in greater numbers. Energy conservation is an effective means of both ensuring a stable energy supply and addressing environmental issues. As further efforts are made to thoroughly reduce energy consumption, it is hoped that energy awareness will be heightened among all Japanese citizens. Energy conservation labeling system Judgment of energy conservation performance at a glance How to read the labels Actual energy conservation labels are shown. Energy conservation mark Target year Indicates the year by which the product should satisfy the standards. The target year is stipulated for individual products by the Energy Conservation Law. Satisfaction of energy conservation standard (%) Indicates the degree to which the product satisfies the standard as a percentage. Target values for energy conservation standards are established for individual products on the basis of the Energy Conservation Law. Energy efficiency Provides a figure (annual power consumption, etc.) indicating how much energy the appliance consumes. These figures are calcu-lated using measurement methods established for individual products. Energy-conserving appliances help the household budget Energy-saving appliances lower electricity bills. Consumers can make savings not only by comparing prices, but by comparing running costs. The Importance of Individual Efforts (1) This system provides for labeling indicating energy conservation performance. (2) The energy conservation mark allows consumers to judge excellent performance at a glance. (3) Standardized labeling allows the energy conservation performance of products to be easily compared in catalogs. JIS standards relating to the energy conservation labeling system were published on August 21, This system provides for labeling of household appliances and other products that indicates whether the product satisfies national energy conservation standards (target values). This will enable consumers to easily compare energy conservation performance when they replace products. Example of an air conditioner with a cooling capacity of 2.5kW in a 13.2m 2 tatami-matted room Purchase price Purchase price The energy conservation mark is normally orange. The green mark is only on products with outstanding energy conservation performance (products that satisfy the energy conservation standards by 100% or more). The green mark therefore functions as an easily interpretable guide for consumers when choosing products. Electricity 101,800 yen 1year 19,021yen 8 years 152,168 yen Electricity Approx. 110,000 yen can be saved in 8 years!! 53,800 yen 1year 38,594 yen 8 years 308,752 yen Energy Conservation 11 12

8 New Energy Sources New energy sources do not rely on imports and are environmentally friendly. At present these sources provide only a small portion of the nation's energy, but active efforts are being made to promote them. Advantages and Disadvantages New energy sources are domestically generated and produce little or no CO2, making them particularly desirable from the perspectives of ensuring a stable supply of energy and alleviating environmental problems. However, there are a number of drawbacks. Their cost is high in comparison with other forms of energy, due to the enormous capital required for each facility and the low load factor. In addition, solar and wind power are affected by environmental conditions, making output unstable, and facilities can only be established in a limited number of areas. Japan leads the world in solar power generation (Figure 14) International comparison of rate of solar power generation (end of December, 2002) Source: IEA/PVPS Japan is a world leader, producing 48.5% of the world's total solar power! Japan Germany US Australia Holland Italy Switzerland Mexico As of the end of FY2002, Japan had generated 63.7MW of solar electric power for the year, making Japan the number one producer of solar power in the world (Figure 14). Although the cost of this energy has dropped, it is still high at yen per kwh, some two to three times the cost of the electricity currently supplied to households. In addition, the output from solar installations is affected by climatic conditions and the amount of available sunlight, and is therefore unstable (Figure 15). Changing weather conditions make the output of solar power installations unstable (Figure 15) Changes in amount of solar power generation caused by weather conditions Source: New Energy Division, Advisory Committee for Natural Resources and Energy Fine Cloudy Rainy Wind power generated 46.3MW in FY2002, representing a six-fold increase compared with three years before. Technological advances and increases in the scale of wind power generation facilities have reduced costs and contributed to greater recognition of the viability of wind power generation. Large-scale facilities continue to be established, predominantly in Hokkaido and Tohoku. However, there are concerns that the instability of the output of wind power could adversely affect the power grid (by disrupting frequencies, etc.), and research has therefore begun towards stabilizing wind power output and preventing any negative impact on the existing power supply. The cost of new energies is a problem (Table 2) A comparison of nuclear power generation, solar power generation and wind power generation For business use For household use Number of power generating units required to generate equivalent electricity to one block of a 1 million kw nuclear plant Necessary investment (For reference) (For reference) Required site area Comparison with the costs of the competing energies listed below Assumed costs of competing energies (Almost equivalent to 1,500 Tokyo Domes) Mean price (Houseold use):66 yen/kwh (Lowest price (Houseold use):46 yen/kwh) Large-scale: 9-14 yen/kwh Unit cost of electric light for household: Unit cost of thermal power 23.3 yen/kwh generation:7.3 yen/kwh These estimates are calculated on the basis of fixed preconditions using the average cost of power generation facilities established in FY1999 (calculated for 20 years of operation in the case of solar power generation and 17 years of operation in the case of wind power generation). The unit price for thermal power represents an average of the cost of thermal generation using oil, coal, and natural gas. The target for FY2010 is to increase the share of new energies to approximately 3% (Table 3) Actual figures and targets for new energies (Proportion of total primary energy supply) Reference Case Current Additional measures Case measures Case Continued Promotional Efforts At present new energy sources account for only about 1% of the primary energy supply, but the goal is to increase this figure to around 3% by To achieve this, active support is being offered to local governments, businesses and non-profit organizations (NPOs) that are introducing renewable energy sources. (Almost equivalent to 5,550 Tokyo Domes) Under current goals What Are New Energy Sources? Solar power generation, wind power generation, generation from waste products, biomass power generation, solar thermal energy, thermal energy from waste products, biomass thermal energy, ice thermal energy, production of fuels from waste products, production of fuels from biomass, temperature differential energy, electric vehicles (including hybrid cars), natural gas vehicles, methanol vehicles, natural gas cogeneration, fuel cells. Support for NPOs. To accelerate the introduction of effective new energy schemes on the grass-roots level, support is being offered to non-profit organizations seeking to establish new energy facilities that operate on a not-for-profit basis. New Energy Sources 13 14

9 Nuclear Power Generation and the Nuclear Fuel Cycle Nuclear power plays an important role as a basic source of electric power within Japan's energy supply. Uranium is the fuel used in nuclear power generation. To use it effectively, steps are being taken to recycle spent fuel. Nuclear Power as a Basic Energy Source Nuclear power is an important energy source for a number of reasons. Uranium, the fuel used in generating nuclear power, is widely available in politically stable countries, making it a highly stable energy source. Also, nuclear power does not produce CO2 in the generation process, and so does not contribute to global warming (Figures 16 and 17). Uranium is imported from politically stable countries (Figure 16) Countries from which Japan imports uranium Source: The Federation of Electric Power Companies of Japan Reusing Resources Like other resources, reserves of uranium are limited, and if it is disposed of after being used once, reserves can only last approximately 85 years. However, more than 90% of spent fuel from nuclear power plants is made up of uranium and plutonium that can be recovered and reused as fuel. The remaining waste is disposed of as high-level radioactive waste (Figure 18). Plutonium and uranium which can still be used is recycled (Figure 18) Composition and reprocessing of spent fuel The burning of recovered plutonium and uranium at existing nuclear power plants is called "pluthermal" generation. Pluthermal generation has been safely used for over thirty years in nine countries, including France. In Japan, MOX fuels containing plutonium have been used on a trial basis at the Japan Atomic Power Company's Tsuruga No. 1 Reactor and at the Kansai Electric Power Company's Mihama No. 1 Reactor. The results of these trials have been encouraging, and plans are progressing for a more extensive use of MOX fuels by electric power companies. Uranium mine Disposal of Radioactive Waste Low-level radioactive waste accounts for the majority of the radioactive waste from nuclear power generation. Part of the low-level radioactive waste from Japan's reactors is disposed of at the Low-level Radioactive Waste Disposal Center maintained by Japan Nuclear Fuel, Ltd., in Rokkasho-mura, Aomori Prefecture. After the plutonium and uranium content is recovered from the spent fuel, the remaining high-level radioactive waste is vitrified and stored for cooling for 30 to 50 years. The vitrified waste is then encased in thick metal and clay, and disposed of in a stable geological formation more than 300 meters below the earth's surface. Nuclear Fuel Cycle Nuclear Power Generation and the Nuclear Fuel Cycle Total amount imported: 8,200 short tons U3O8 The short ton is a unit of weight mainly used in the US. 1 short ton = Approx. 970 kg Spent fuel Reprocessing facility Recycled fuel Disposal as vitrified waste MOX fuel fabrication plant The use of fossil fuels produces a large amount of CO2 Uranium fuel fabrication plant Fuel assembly Spent fuel reprocessing plant High-level radioactive waste disposal facility (Figure 17) CO2 emissions for different types of electric power generation Source: Central Research Institute of the Electric Power Industry, Nuclear power station CO2 emissions produced by total energy consumption required for mining/drilling, construction, transport, refining, operation of facility (actual generation), maintenance, etc. (Ex.) Coal Mining, Dressing Transport Generation Disposal of ash Low-level radioactive waste disposal facility Interim storage facility for spent fuel High-level radioactive waste (Vitrified in a glass matrix) High-level radioactive waste is to be disposed of more than 300 meters below the surface (Operations scheduled to begin sometime between 2033 and 2038) 15 16

10 Natural Gas Natural gas is abundantly available throughout the world, and is an environmentally friendly energy source. Japan is promoting its increased use. Clean Energy The abundant global reserves of natural gas led to its promotion as an alternative to oil after the oil crises. At the time of the first oil crisis, natural gas supplied only 2% of the nation's energy, but its use has increased to 14% today. Compared to other fossil fuels such as coal and oil, natural gas produces little CO2 (a cause of global warming) and NOx (a cause of acid rain) when burned, and no SOx. Natural gas is therefore expected to be used more extensively in the future (Figure 21). High Dependence on Imports Unfortunately, Japan's reserves of natural gas are poor, and, like oil, 97% of the nation's supplies are imported. In Europe and the US, natural gas can be transported by pipelines in its gaseous state. Japan, however, is far from the gas fields, and the gas is therefore cooled to 162 C at the fields themselves so that it liquefies. This liquid natural gas (LNG) takes up 1/600 the volume of the gas, and it is transported to Japan in this state in tankers lined with thermal insulation. After arrival, it is reconverted into gas at the receiving station and supplied to power generation facilities and households by pipeline. Dissemination and New Technologies Several schemes are under consideration to expand the use of natural gas in the future. These include converting thermal power plants from the use of oil and coal to natural gas, replacing oil with natural gas as the raw material for urban gas supplies, and promoting the use of vehicles fueled by natural gas*. Another new plan is to modify the gas and use it as liquid fuels. These new fuels, called gas-to-liquid (GTL) and dimethyl ether (DME), are expected to provide fuel for transport and industry in the future. The realization of these plans will require the systematic establishment of a domestic pipeline network to supply the natural gas. As of March 2001, there were 7,811 natural gas vehicles and 138 fuel stations in operation in Japan. (Source: The Japan Gas Association) Natural Gas (Figure 20) Countries from which Japan imports natural gas Source: Ministry of Finance, "Monthly Report of Japanese Trade." Total amount imported: million tons Environmentally friendly natural gas (Figure 21) Comparison of CO2, NOx and SOx emissions Source: CO2 NOX SOX Coal Oil World dependence on natural gas (Figure 19) Major world reserves of natural gas Source: "BP Statistics 2004" Natural gas

11 Coal As the competitiveness of domestic coal declined, the level of imports increased. Today Japan is almost 100% reliant on imports for its coal, which provides 20% of the nation's energy. Efforts are being made to increase the use of coal as a cleaner energy source. Transition from Coal to Oil in the 1960s Coal has been a major source of energy since the Industrial Revolution. In the period between the two world wars, coal provided three-quarters of Japan's energy. With the discovery of vast oil fields in the Middle East after World War II, however, oil became the world's greatest source of energy from the 1960s onward. Current Status and Issues to Be Addressed At one time, coal was mined extensively in Japan, as in other countries. Until the 1960s, the domestic mining industry supplied more coal than the nation imported, but imports of low-cost overseas coal steadily increased. One by one, domestic mines were eventually closed down, and today Japan is almost entirely dependent on imports (Figure 24). Coal reserves are widely distributed around the world (Figure 22) Coal reserves by country Source: "BP Statistics 2003" Oil Crises Prompt the Reconsideration of Coal The two oil crises that rocked Japan in the 1970s prompted the reconsideration of coal in the 1970s for three reasons. First, there are abundant recoverable reserves that are projected to last 192 years. Second, unlike oil, which is concentrated in the Middle East, reserves of coal are distributed widely throughout the world, enabling Japan to import it from countries such as Australia and Canada that have relative political stability (Figure 22 and 23). Third, the cost of coal per thermal unit is low in comparison to oil, making it highly economical. Coal currently provides Japan with 20% of its energy requirements. Coal imports come from the Pan-Pacific region (Figure 23) Countries from which Japan imports coal Source: METI, "Resources and Energy Statistics" When burned, coal has the drawback of emitting more of the greenhouse gas CO2 than other types of fossil fuels. At present, Japan and other advanced industrialized nations are engaging in international cooperative programs and working to develop clean coal technologies (highefficiency combustion, etc.) that will reduce the environmental impact of using coal. The introduction of these clean coal technologies is expected to significantly increase the use of coal as a clean energy source. Coal Total amount imported: million tons As domestic coal lost its competitiveness, coal imports increased (Figure 24) Amount of domestically produced and imported coal Source: METI, "Statistical Yearbook of Energy Production, Supply and Demand" Imported coal Domestic coal 19 20

12 Oil Oil accounts for about 50% of Japan's total energy supply, and almost all of it is imported. More specifically, 90% of it is imported from the Middle East. To ensure a stable supply, Japan works to deepen relations with oilexporting countries in the Middle Eastern region and stockpiles oil reserves. High Dependence on Middle Eastern Oil After the two oil crises, Japan instituted energy conservation measures and began to replace oil with other energy sources. Despite these efforts, however, the nation still depends on oil for about 50% of its total energy supply. Also, Japan made efforts to diversify its sources of oil to avoid over-dependence on any specific country or region, a policy that temporarily helped reduce its energy dependence on the Middle East. However, the East Asian nations (China in particular), from which Japan had been importing oil, have become net oil importers themselves as their domestic energy consumption has increased. As a result, Japan's dependence on the Middle East has been climbing again since the 1990s (Figures 25 and 26). Japan s level of dependence on Middle Eastern oil is rising again Japan's high dependence on oil imports from the Middle East is expected to continue, so the Japanese government is steadily implementing human exchange with oil-producing countries and actively engaging in joint research projects and technological cooperation in oil-related fields, such as the development of high-precision refining technologies. Emergency Stockpiles To prepare for the contingency of a sudden cessation of oil imports, both the central government and private companies are stockpiling oil reserves. As of the end of July 2004, a total of million kl of oil, or 168 days' supply, was held in reserve (Figure 28). Japanese companies also hold long-term drilling rights in oil-producing countries and are involved in surveying and developing oil fields. Part of the oil produced by these fields is exported to Japan. Oil (Figure 26) Trends in dependence on Middle Eastern oil imports (Figure 27) Demand for oil products by application (Figure 25) Countries from which Japan imports oil 169 days' supply of emergency oil reserves (Figure 28) Trends in amount/days' supply of oil reserves in Japan 90% of Japan's oil is imported from the Middle East Total amount imported: million barrels/day Source: METI, "Resources and Energy Statistics" 21 22

13 LPG Liquefied petroleum gas (LPG) is used broadly in the residential and industrial sectors. Progress is being made in diversifying supply sources and building national stockpiles with the aim of further ensuring a stable supply. Clean Energy When burned, LPG emits virtually no sulfur oxides (SOx) (a cause of acid rain) and relatively little carbon dioxide (CO2), a greenhouse gas that contributes to global warming. This makes it a clean energy source that is gentle on the global environment. Diverse Applications LPG is used in approximately 28 million households in Japan, which is about half of all households. It is also used in a wide range of other fields, including manufacturing and other industries, taxis and other LPG vehicles, as a chemical resource, and in the electric power industry. High Dependence on Middle Eastern Supplies LPG is obtained from natural gas fields and oil fields, and is also produced through the process of refining crude oil. Each of these sources accounts for about one-third of the total (Figure 29). Approximately three-fourths of all LPG used in Japan is imported, with the rest produced through the domestic process of refining crude oil that is also imported. About 30% of the imported LPG comes from Saudi Arabia, and about 80% comes from the Middle East as a whole. This makes the supply structure extremely fragile (Figures 30 and 31). However, because LPG can be produced from natural gas fields, it is possible to increase production and diversify supply sources outside the Middle East by developing natural gas fields. Emergency Stockpiles As noted above, Japan imports most of its LPG, and most of the imports come from the Middle East. To help ensure a stable supply, Japanese importers are currently required by law to stockpile 50 days' worth of the total amount imported annually. In addition, a national stockpiling system is being constructed that will store 1.5 million tons (about 40 days' worth) by FY National storage facilities are currently being built at five locations: Nanao City in Ishikawa Prefecture; Fukushima Town in Nagasaki Prefecture; Namikata Town in Ehime Prefecture; Kurashiki City in Okayama Prefecture; and Kamisu Town in Ibaraki Prefecture. LPG LPG is also obtained from natural gas fields. (Figure 29) Structure of world LPG production (FY2002) Approximately 80% of LPG is imported. (Figure 30) Japan's LPG Supply (FY2003) Approximately 80% of LPG imports come from Middle Eastern regeion. (Figure 31) Countries from which Japan imports LPG Accompanying crude oil 25 Accompanying natural gas 35 Oil refining 40 Domestic production (refining) 23 Imports 77 Fiscal

14 Data Sheet Data Sheet Long-term outlook for energy supply and demand Reference Case Current Measures Case Additional Measures Case Industry Residential and Commercial Household Business Transport Passenger Cargo, etc. Total final energy consumption (Increase compared with FY1990) (Change compared with FY1990) (Increase compared with FY1990) (Change compared with FY1990) Outline of energy measures Industrial sector Residential and commercial sector Transportation sector Across sectors 25 26

15 Data Sheet Data Sheet Introduction of new energies: present status and targets Merits of each type of energy source Coal Oil Natural gas Uranium Proven reserves Annual output Limit of exploitation Annual consumption Japan's dependence on imports Amount of fuel needed to operate a 1 million kw power plant for one year Target under current Guidelines: Current Guidelines: About 1.3 million kl (3.48 million vehicles) Natural gas cogeneration/4.64 million kw fuel cells/2.2 million kw Reference case About 0.20 million kl (0.67 million vehicles) Current measures case About 0.60 million kl (1.89 million vehicles) Additional measures case About 1.10 million kl (2.80 million vehicles) Reference case Total cogeneration: about 7.67 million kw Current measures case Total cogeneration: about 9.83 million kw Additional measures case Total cogeneration: about million kw Natural gas cogeneration: about 30.3 million kw Fuel cell cogeneration: about 0.04 million kw Natural gas cogeneration: about 4.62 million kw Fuel cell cogeneration: about 2.20 million kw Natural gas cogeneration: about 4.91 million kw Fuel cell cogeneration: about 2.20 million kw Main countries from which Japan imports Composition of primary energy supply in Japan 27 28

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