Meti Enomoto

GLOBAL CCS INSTITUTE

Japan Regional Member’s Meeting 2014

The role for coal in Japan’s energy policy

June 19, 2014

Hiroshi ENOMOTO

Coal Division, Natural Resources and Fuel Department,

Agency for Natural Resources and Energy,

METI

1. Coal in Japan’s energy mix

2. Security of coal supply

3. Environment surrounding CCT （Trends in

environmental regulations and the world CCT

market）

4. Promotion of coal utilization technology

5. Summary

1

1. Coal in Japan’s energy mix

2

World coal consumption（2012 possibility）

Source：IEA Coal Information2013

Coal import of Japan（2013）

Source：Ministry of Finance, Trade statistics

Deposits, a consumption and quantity of trade

○Japan depends on Australia(64%) and Indonesia(19%) for approximately 80% of

the import.

○Japan is the second import country in the world following China, and import 99%

of domestic consumptions.

○The quantity of world trade is approximately 1.3billion tons. (Import of Japan is

14% of those.)

-Quantity of trade is approximately 16% of the whole coal production.（The coal is

local production of local consumption resources basically.）

1,255,340,000t

3

World coal export（2012 possibility）

World coal import（2012 possibility）

Australia

63.6%Indonesia

19.1%

Russia6.4%

Canada5.2%

The United Status

3.5 %

China1.1% Others

1.1%

191,540,000t

China23%

Japan14%

India12%

Korea10%

Taiwan5%

Germany4%The U.K.

4%

Russia2%

Spain2%

France

1%

Others23%

1,276,030,000t

China48%

The United States11%

India10%

Russia3%

Germany3%

South Africa2%

Japan2%

Poland2%

Australia2%

Korea2%

Others15%

7,696,900,000t

Indonesia

30%

Australia

24%Russia

11%

9%

Columbia7%

South Africa6%

Canada3%

Kazakhstan, 2%

China1%

Poland

1%

Others6%

The United States

Changes in Domestic Primary Energy Supply

Source: "General energy statistics" in Japan’s Energy White Paper 2013, Agency for Natural Resources and Energy

Oil

Natural gasHydro

CoalNuclear

Geothermal,

New energy,etc

(FY)

4

○Change in power supply sources of (general and

wholesale) power generation companies after the

Earthquake

○ Fuel cost increase by termination of nuclear power plants

* For FY2013, the influence to cost is calculated by correcting the

exchange rate used for the estimation in FY2012 to the current value

of 100 yen/dollar and assuming that the operation status of the

nuclear power plants would not change in FY2013 from FY2012.

○No operating nuclear power plants →About 30% loss of power supply, Tight balance between demand and supply

○Due to stop of nuclear power plants, the fuel cost for thermal power generation is expected to increase by about 3.8

trillion yen in FY2013, which is about 20% of electricity prices

○ The cost would increase more if the oil price increases by a tense situation in Hormuz

Composition of Power Generation after the Quake Disaster

Power

source

Fuel cost

(FY2012)

Influence to cost

Estimation in

FY2012

Estimation in

FY2013 (*)

Nuclear

power1 yen/kWh - 0.3 trillion yen - 0.3 trillion yen

Coal 4 yen/kWh + 0.1 trillion yen + 0.1 trillion yen

LNG 11 yen/kWh + 1.4 trillion yen + 1.6 trillion yen

Oil 16 yen/kWh + 1.9 trillion yen + 2.4 trillion yen

Total － + 3.1 trillion yen + 3.8 trillion yen20% 25% 26%

25%20%

27% 26% 26% 24%

23%

38%41% 42% 47%

50%46% 48% 48% 49%

32%

5%

7%13%

17%16% 13% 16% 18% 13%

5%

28%

16%10% 5% 1% 1%

3% 2%3%

32%

9% 11% 8% 5% 12% 12% 7% 6% 11% 8%

63%

73%81% 90% 87% 87% 90% 92% 86%

28%

16%10%

5% 1% 1%3%

2% 3%

Apr 2011 Jul Oct Jan 2012 Apr Jul Oct Jan 2013 Apr FY2010

Coal thermal power generation LNG thermal power generation

Oil thermal power generation Nuclear power generation

hydro-electric power generation Thermal power generation

Nuclear power generation

5

Change in Fuel Price

○ In comparison to crude oil and LNG, the change of the coal price has been stable at a low level.

○ As of April 2013, the crude oil price (7.36yen/1000kcal) is about 4.1 times higher and the LNG price (6.32/1000kcal) is

about 3.5 times higher than the coal price (1.81 yen/1000kcal).

(Yen/1000kcal) Change in fuel price (CIF)

Ref: The Institute of Energy Economics, Japan

0.0

2.0

4.0

6.0

8.0

10.0

12.0

原油 一般炭 ＬＮＧOil General coal LNG

6

2. Security of coal supply

7

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2000 2005 2010 2015 2020 2025 2030 2035

再生可能エネルギー等水力原子力天然ガス石油石炭

Role of coal in world’s energy resources

○ Coal occupies about 25% of the energy demand in the world. The demand for coal is expected to increase by about 1.2 times by 2035.

Coal occupies more than 40% of generated power in the world. The amount is expected to increase by 1.4 times by 2035.

○ Competition for acquiring coal resources has become severe in the world due to rapid expansion of the coal demand in developing

countries such as China and India.

［Expectation of energy demand in the world］ ［Expectation of power generation in the world］

Ref.: IEA, “World Energy Outlook 2012”

［Power generation composition of major countries (2010) ］［Primary energy composition of major countries (2010)］

41%

Increase by a factor of about 1.4

Source: IEA, "World Energy Outlook 2012"& "Energy Balances of OECD/non-OECD

Countries (2012 Edition)"Source: IEA, "World Energy Outlook 2012"& "Energy Balances of OECD/non-OECD

Countries (2012 Edition)"

Ref. IEA, “World Energy Outlook 2012”

(TWh)

33%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2000 2005 2010 2015 2020 2025 2030 2035

再生可能エネルギー等水力原子力天然ガス石油石炭

27%

25%Increase by a factor of about 1.2

(Mtoe)

41%

5%

29%

44%

26%

27%

46%

68%

78%

5%

1%

1%

1%

3%

9%

1%

3%

0%

22%

4%

46%

14%

23%

27%

23%

12%

2%

13%

76%

16%

23%

28%

26%

19%

3%

2%

16%

11%

1%

3%

11%

7%

6%

12%

17%

4%

3%

6%

15%

10%

3%

4%

2%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

世界計

フランス

英国

ドイツ

EU

日本

米国

インド

中国

石炭 石油 天然ガス 原子力 水力 再生可能エネルギー等

27%

5%

15%

24%

16%

23%

23%

42%

66%

32%

29%

31%

32%

33%

41%

36%

23%

18%

21%

16%

42%

22%

26%

17%

25%

8%

4%

6%

43%

8%

11%

14%

15%

10%

1%

1%

2%

2%

0%

1%

2%

1%

1%

1%

3%

11%

5%

4%

10%

9%

2%

5%

25%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

世界計

フランス

英国

ドイツ

EU

日本

米国

インド

中国

石炭 石油 天然ガス 原子力 水力 再生可能エネルギー等

Renewable energy, etc.WaterNuclear power Natural gasOilCoal

Renewable energy, etc.WaterNuclear power Natural gasOilCoal

China

India

US

Japan

EU

Germany

UK

France

World total

Coal Oil Natural gas Nuclear power Water Renewable energy, etc. Coal Oil Natural gas Nuclear power Water Renewable energy, etc.

China

India

US

Japan

EU

Germany

UK

France

World total

8

Crude oil (2012) Natural gas (2012)

Ref.: Trade statistics, Ministry of Finance

Ref.: Trade statistics, Ministry of Finance

Coal (2012)

Leading Fossil Fuel Exporters to Japan

Straits of Hormuz

Ref.: Trade statistics, Ministry of Finance

120.7

79.939.3

28.0

19.1

7.010.5

17.2

13.68.3

22.2 Saudi Arabia33.0%

UAE21.8%

Qatar10.7%

Kuwait7.6%

Iran5.2%

Iraq 1.9%

Oman2.9%

Russia4.7%

Indonesia3.7%

Vietnam2.3% Others

6.1%

15.7

5.5

4.0

15.914.6

8.3

6.2

5.9

4.86.2

Qatar 17.9%

UAE6.3%

Oman 4.6%

Malaysia 18.2%

Australia 16.7%

Indonesia 9.5%

Russia7.1%

Brunei 6.8%

Nigeria 5.5%

Others7.1%

114.836.1

12.5

9.96.3

3.52.2

Australia 62.0%

Indonesia 19.5%

Russia6.7%

Canada5.3%

US3.4%

China1.9%

Others 1.2%

Middle-East

dependence 83%

(Hormuz dependence 80%)

Total import: 3.66 million BD

Middle-East

dependence 29%

(Hormuz dependence 24%)

Total import: 87.31 million t/year

Middle-East dependence 0%

(Hormuz dependence 0%)

Total import: 185.15 million t/year

9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

3,334

13

0.4%

931

97

10.5% 545

4.4

0.8%376

309

82.3%

345

285

82.5%

256

124

48.3%

253

72

28.3 %

111

34

30.7 %

84

76

90.1 %

76

7

9.0 %

62

8

12.8 %

57

34

58.8 %

45

24

54.9 %

Top: Production

Middle: Exports

Bottom: Percentage of exports to production

Exports

China, the US and India (the top three coal producers) consume large amounts of coal

themselves; coal is basically produced for local consumption.

Australia and Indonesia, by contrast, are export oriented.

Production (excluding lignite) and exports (estimates for 2011) from major coal producers

Exports from major coal producing countries and their domestic consumption

Production

Exports

(Million tons)

China The US India Indonesia Australia Russia South Africa Kazakhstan Columbia Poland Ukraine Canada Vietnam

Source：IEA, “Coal Information 2012”

10

Change of coal resource price (in case of long-term contract)

53.553.5 50.95

41.939.75 42.7548.1

46.257.2

125115

97

300

128.5

200

225

209

225

330

315

285

206

225

170

165

172

40.337.65

34.5

29.9528.75

34.5 31.85

26.75

45 5352.5

55.5

125

69

9898 98

98

130130

130 130

115 115 115 115

95

0

50

100

150

200

250

300

350

1996 1998 2000 2002 2004 2006 2008 2010 2011 2012 2013

US$/t

Fiscal year

<Change in long-term contract price of coal>

原料炭

一般炭

○ The long-term contract price of coal had not changed much but in recent years it has been increasing because of the increase of the coal

demand in the world, in particular in Asia, and so on.

○ The price had been rising from 2005 to 2011 due to natural disasters in the coal countries and due to the rapid increase of the coal demand

in China and India. However in very recent years, the price starts decreasing because of the worldwide economic recession and the

excessive energy supply due to increased production of shale gas.

*FOB price of typical Australian coal

(1) Increase by coal demand increase in China, India, etc.

(2) Increase by paralyzed traffic in China due to heavy snow

Sudden drop by worldwide recession starting from the subprime loans problem

(1)Production stop at a coal mine due to rain in QLD state, Australia

(2) Paralyzed traffic and temporary stop of export in China due to

snow

Decrease by production increase

in Australia and Canada

Increase by global coal

supply-demand imbalance

Increase by short

supply due to rain

from December

2010

1st quarter

in FY2013

Decrease by excess of supply due to global economic recession

Raw coal

General coal

11

3. Environment surrounding CCT

（Trends in environmental regulations

and the world CCT market）

12

774 1,766

3,070

0

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 2012

46.4%

45.3%

46.6%

43.1% 42.8% 41.8%43.1%

44.7%

11.4% 11.5%11.9% 13.6% 13.2% 13.7%

13.6% 11.3%

26.3% 26.3%

22.0%23.3% 22.8% 22.3%

17.7%16.0%

9.7% 11.0%

13.6% 14.3% 15.5%16.5%

20.6%22.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2005 2006 2007 2008 2009 2010 2011 2012

石炭 天然ガス 原子力 再生可能エネルギー

Impact of Shale Revolution --Changes in the Percentage of Coal in Western Electricity Consumption--

[Changes in US Power Source Structure]

[Changes in US Fuel Coal Exports (from 2010 to 2012)](million tons)

About 2.3 times

2,271

5,016

About 1.5 times

About 1.7 times

3,370About 1.5

times

About 2.2 times

About 4.0 times

34.4%

38.1%

34.7%

32.1%

27.5% 28.4%

30.0%

40.2%

37.1%

34.3%

40.5%

44.7%

43.8%

45.7%

39.3%

25.9%

20.8%19.2%

15.8%

13.4%

18.3%

16.2%

18.9% 19.5%

0.7% 0.7% 1.6% 2.2% 2.7%4.1%

6.6%9.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2005 2006 2007 2008 2009 2010 2011 2012

石炭 天然ガス 原子力 再生可能エネルギー

[Changes in UK Electricity Generation]

[Changes in German Electricity Generation]

Increase in US Fuel Coal Exports and Changes in Power Source Structure

Changes in European Electricity (Rise in Percentage of Coal)

49.6% 49.0% 48.5% 48.2%

44.4% 44.8%42.3%

37.4%

18.8%

20.1% 21.6% 21.4% 23.3% 23.9%24.7%

30.4%19.3%

19.4%19.4% 19.6%

20.2% 19.6% 19.3% 19.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2005 2006 2007 2008 2009 2010 2011 2012

Coal

Natural Gas

Nuclear

Declining

Coal Natural gas Nuclear Renewable energy

Coal Natural gas Nuclear Renewable energy 13

(1) Large Combustion Plant Directive (LCPD)・Target: Combustion plants (coal-fired power plants, etc.) with generating

capacity of 50,000 kilowatts or more

・ Details: It sets emissions restrictions on both existing and new

facilities with the aim of reducing air pollutant emissions (SO2, NOx, PM) in

the EU.

Although the power plants that were constructed before 1987 and did not

meet the standard were to be decommissioned in 2007, by developing a plan

for the decommissioning after 2016, each country can operate these plants

within an operating time of 20,000 hours from 2008 to the end of 2015.

Current regulations on Coal-fired Power Generations in Europe

(1) Energy and Climate Change Package・Target: EU

・Goal:・To reduce greenhouse gas (GHG) to 20% below 1990 levels by

2020.

・To boost the share of renewable energy in final consumption to 20%

by 2020.

・To improve energy efficiency by 20% by 2020.

(2) Restriction on emissions by new coal-fired power

plants in the UK・Target: UK

・Details: When a coal-fired power plant is established, it needs to have a

standard for CO2 emissions of 450g-CO2/kWh and to apply CCS.

Regulation concerning Air Pollution Prevention

Regulation of Greenhouse Gas Emissions

News Reports about Coal-fired Power

Generations in Europe

Increased coal-fired power generation and an sluggish gas-fired power generation are accounted for by soaring natural gas prices and falling prices for CO2 emissions credits. <Snip> As a result, German policy of breaking with nuclear power generation promotes coal-fired power generation. On August 15, RWE has formally started operating a brown coal-fired power plantwith power generation efficiency of 43% that introduced the latest technology near Korn in the midwest of Germany. Environment Minister Peter Altmaier praised this for "making significant contributions to successful energy conversion in addition to promoting CO2 emissions reductions". (Source: Bloomberg, August 21, 2012)

In the EU, the percentage of coal-fired power generation in electricity generation rose by as much as 7% year-on-year in 2012. The growth rate hit the highest level in the past 40 years. According to a chief economist at the International Energy Agency (IEA), "Coal has been plentiful in the US, where shale gas was found, and cheap coal that has no where to go has flowed into Europe. Far cheaper gas prices in North America than appropriate prices has boosted coal consumption." (Source: Nikkei Business, March 5, 2013)

On May 6, 2013, Germany Kreditanstalt fur Wiederaufbau announced that it would continue financial assistance to projects of coal-fired power plants.It will financially support the replacement of coal-fired power plants and the construction of highly-efficient thermal power plants, and promote the introduction and spread of sophisticated power-generating technologies. (Source: the Federation of Electric Power Companies of Japan, information on topics related to overseas electricity)

14

* IEA World Energy Outlook 2012

Calculated by 79.97yen/dollar (exchange rate as of 2011)

with new construction and replacement of plants included

Expected introduction of coal thermal generation in the world (2012→2035)

○According to IEA, the coal thermal power generation has a world market of about 129 trillion yen

including new construction and replacement of plants in 2012 through 2035 .

○ In particular in Asia, it is about 79 trillion yen and the demand of coal thermal power generation is

expected to expand in Asia.

Europe11.6 trillion yen

(311GW→188GW)

Russia5.9 trillion yen

(52GW→42GW)

Middle East0.1 trillion yen(0GW→1GW)

Africa9.1 trillion yen

(41GW→79GW)

East Europe5.5 trillion yen

(57GW→42GW)

India27.7 trillion yen

(101GW→341GW)

Asian Pacific(except China, India)

24.0 trillion yen(159GW→300GW)

North America16.6 trillion yen

(360GW→272GW)

South America0.8 trillion yen(4GW→9GW)

China27.3 trillion yen

(671GW→1,122GW)

Upper: Area, Middle: Investment from 2012 to 2035

Lower: Facility capacity from 2010 to 2035

World Total

129 trillion yen

(1,649GW⇒2,250GW)

15

Coal-fired Plants(Site B)

Thermal efficiency(%, HHV)

0 10 20 30 40Years since Commissioning

Coal-fired Plants(Site A)

Designed

Efficiency

Designed

Efficiency

Efficiency

Degradation

Maintenance and improvement of Efficiency for existing

thermal power plants

Source : The Federation of Electric Power Companies

Coal fired power generation technologies in Japan is the most efficient in the world and

proper operation and maintenance keeps high efficiency.

Changes in the efficiency of coal fired power generation

by country

20%

25%

30%

35%

40%

45%

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Japan

Korea

Indonesia

China

Australia

India

Germany

United

States

Source: Energy balances of OECD/Non-OECD countries-2011

(LHV)

Achieving Low Carbon Economies with Technical Transfers

for Overseas Coal Fired Power Generation

16

Ref.:

・ IEA CO2 EMISSIONS FROM FUEL

COMBUSTION Highlights(2011

Edition)

・Global warming countermeasure

plan (J-POWER, Nov. 30, 2010)

・ RUPTL10-19, CEA "National

Electricity Plan“

・INSTITUTE of ENERGY "VIETNAM

POWER sector power master plan"

○Coal thermal power generation efficiency in Japan is now in the world’s highest level and kept high for a long period

of time after starting the power generation. This is due to Japan’s high efficiency technology (supercritical pressure,

ultra supercritical pressure) and know-how of the operation and control.

○CO2 reduction is expected to be about 450 million tons (in trial calculation) if Japan’s latest coal thermal power

generation efficiency is applied to coal thermal power plants planned in India, Indonesia, and Vietnam with which

Japan is currently negotiating for the Joint Crediting Mechanism.

○Overseas expansion of Japan’s high-efficiency coal thermal power generation is promoted by the technology transfer

of the high-efficiency coal thermal power generation technologies or by the system export of the technologies and

the coal power generation operation control technology (O&M), while the technology competitiveness is maintained

Efficient CO2 emission reduction in foreign countries(International development of coal thermal power generation)

CO

2e

mis

sio

n(M

t-C

O2

)

0

200

400

600

800

1,000

895

227

432575

172

354

India Indonesia Vietnam

Case 1: The case where the currently-

used technologies are used

again

Case 2: The case where Japanese

technologies are introduced

Case 1 Case 2 Case 1 Case 2 Case 1 Case 2

320Mt-CO2

DOWN

55Mt-CO2

DOWN

78Mt-CO2

DOWN* Operating rate of a new coal thermal

power plant is assumed to be 70%.

[CO2 emission from coal thermal power generation (Comparison technologies to be applied;

Existing technology and Japanese technology) ]

115,800MW(-2022) 32,697MW(-2019) 71,311MW(-2030)

Country

Newly-built facility capacity

450 million tons

17

When applying the efficiency of the most advanced coal-fired power plants in operation in Japan to

ones in the US, China and India, the CO2 reduction effect is estimated to be about 1,500 million tons.

With global demand for coal-fired power generation expected to continue to increase, we will promote

overseas expansion of Japan's highly-efficient coal-fired power generations and seek to maintain

technological competitiveness by transferring highly-efficient coal-fired power generation technologies

tailored to the partner countries' industrial structure and exporting systems in combination with

technologies for operating and managing (O&M) coal-fired power generations.

International Expansion of Coal-fired Power Generations(CO2 Emissions Reduction through Technological Transfer)

Source: "IEA World Energy Outlook 2011", "Ecofys International Comparison of Fossil Power Efficiency and CO2 Intensity 2012"

Actual CO2 Emissions from Coal-fired Power Generation (2009) and Case of Maximum Efficiency in Japan

CO

2e

mis

sio

ns (

Mt-

CO

2)

361 (million tons)

+811 (million tons)

+292 (million tons)

About 1,470 million tons

Japan US China India

Actual Case of best practice Actual Case of best practice Actual Case of best practice Actual Case of best practice

(27)

(361)

(811)

(292)

18

the Joint Crediting Mechanism

Accelerates the spread of excellent technologies, products, systems, services and infrastructures for

reducing carbon emissions, and the implementation of mitigation activities, and contributes

sustainable development in developing countries.

Evaluates the contribution to reducing and absorbing greenhouse gas emissions from Japan in a

quantitative and appropriate way by applying measurement, reporting and verification (MRV)

methodologies to utilize the results in achieving Japan's emissions reduction targets.

Contributes to the achievement of the ultimate objective of the United Nations Framework Convention

on Climate Change by complementing the Clean Development Mechanism (CDM) and promoting

actions to reduce and absorb greenhouse gas emissions on a global basis.

Japan

Host countrySpread of excellent technologies, etc. for

reducing carbon emissions and implementation of mitigation activities

MRV

JCM

Project

Amount of greenhouse gas emissions

reduced and absorbed

Joint Committee develops MRV

methodologies

Utilized to achieve Japan's emissions reduction

targets Credit

19

2020

Japan’s CCT contributing to the world

[Power generation and gasification] USC, SC, circulating fluidized bed, lignite-fired USC, IGCC,

co-combustion of anthracite

[Environmental equipment ] Desulfurization and denitrification equipment

[Use of low-grade coal] Lignite drying systems, UBC, slurrification,

gasification (two-column gasification, eco-processes, IGCC)

[Coal segregation technology] Wet segregation, dry segregation

[Coal for direct combustion] Carbonized semi-coke

[CO2 separation and recovery] Post-combustion recovery

(Future plan)[Power generation, gasification] IGCC, A-USC, IGFC

[CO2 separation and recovery ] Pre-combustion recovery, oxygen combustion systems

[Power generation – CCS system]

[CMM] Methane concentration technology

\

21

4. Promotion of coal utilization technology

22

○CO2 emissions per thermal unit are approximately – Coal : Petroleum : LNG = 5 : 4 : 3

○Coal fired power has approximately twice as much CO2 emissions per kWh compared to LNG power.

○Since coal has more CO2 emissions per unit compared to other fossil fuel, clean utilization is

required.

Ref.: Japanese Government’s report based on “United Nations Framework

Convention on Climate Change “

CO2 emissions per heat CO2 emissions per kWh from in generating fuel

Comparison of CO2 Emissions of each Fuel in Power Generation

0

20

40

60

80

100

120

石 炭 石 油 ＬＮＧ

(g-C

/1000kcal)

石 炭 石 油 ＬＮＧ

0

20

40

60

80

100

120

石 炭 石 油 ＬＮＧ

(g-C

/1000kcal)

石 炭 石 油 ＬＮＧ

５ 　 ：　　４　　： 　３

Coal Oil LNG

Coal Oil LNG

1195

967907 889

958863.8

809.7

695.1

476.1375.1

0

200

400

600

800

1000

1200

1400

インド 中国 米国 ドイツ 世界 石炭火力

（日本平均）

ＵＳＣ ＩＧＣＣ ＩＧＦＣ 石油火力

(日本平均）

ＬＮＧ火力

（汽力）

ＬＮＧ火力

（複合平均）Coal fired power USC IGCC IGFC Oil fired power LNG power LNG power (average) (average) (average) (Combined

(g-CO2/kWh)

CO2 emissions from coal fired power generation overseas

CO2 emissions from coal fired power generation domestic

average)

India China USA Germany World

Source: Based on the development targets of various research businesses by the Central

Research Institute of Electric Power Industry (2009) , CO2 Emissions from Fuel Combustion 2012

23

Coal, etc.36%

Oil, etc. 40%

Natural gas, etc.18%

Industrial process

4%Waste

2%

(Ref.: Green house gas emission and absorption inventory)

CO2 emissionin FY2010

1.192 billion tons

○ 98% of the entire CO2 emission in Japan is occupied by the energy sector. 34% of direct emission is

occupied by energy conversion sector and 35% of indirect emission by industrial sector.

○40% of emission is occupied by oil and 36% by coal. About 0.2 billion tons of CO2 is emitted from coal

power plants.

CO2 emission in Japan

34%

29%

19%

8%

5%3%2%

Energy conversion

7%

Industry35%

Transportation20%

Business, others18%

Household14%

Industrial process

4%

Waste2%

CO2 emissionin FY2010

1.192 billion tons

Outer: Indirect emission

Inner: Direct emission

Coal produces about 0.43

billion tons of CO2 and about

0.2 billion tons of CO2 is

from coal power plants.

CO2 emission from each sector in FY2010 CO2 emission from each fuel in FY2010

24

○ Introducing highly efficient thermal power generation (coal/LNG)

・ The Ministry of the Environment and the Ministry of Economy, Trade and Industry agreed with the clarification

of requirements and streamlining the procedure of environmental impact assessments for power plants. Based

on the agreement, the government will advance introduction of highly efficient thermal power

generation (coal/LNG) with environmental considerations, and make efforts to improve power

generation efficiency further by advancing technology development.

In addition, the government promotes thorough utilization of highly efficient thermal power generation to reduce

cost for energy. Tender will be introduced for expansion, installation and replacement of thermal power sources

in principle so that efficiency as well as transparency will be increased. Also the government will clarify

requirements and streamline the procedure of environmental impact assessments to provide an environment

where private companies will be able to make smooth investment for highly efficient thermal power (coal/LNG).

At the same time, the government aims to accelerate development of advanced technologies, introduce thermal

power generation of the highest efficiency level in the world and deploy them positively to overseas.

○ Supporting technological development of thermal power

・ The government aims to achieve practical use of advanced ultra-supercritical (A-USC) thermal power

generation in 2020s (generating efficiency: around 39% at present to improve to around 46%).

・ The government aims to achieve practical use of integrated coal gasification combined cycle (IGCC)

power generation systems of 1500 °C class in 2020s (generating efficiency: around 39% at present

to improve to around 46%).

・ The government aims to establish technology of integrated coal gasification fuel cell combined cycle

(IGFC) by 2025 and achieve practical use in 2030s (generating efficiency: around 39% at present to improve to

around 55%)

・ For LNG thermal power generation, the government aims to achieve practical use of gas turbine of 1700 °C

class by around 2020 (generating efficiency: around 52% at present to improve to around 57%).

Description of Coal in "Japan Revitalization Strategy" (Excerpt)

Implementing “Infrastructure Export Strategy” (May 17, 2013) promptly and steadily25

Chapter 2. Section2. Position of each energy source and policy time frame

（１） Renewable energy

Renewable energy has various challenges in terms of stable supply and

cost at this moment, but it is a promising, multi-characteristic and

important energy source which can contribute to energy security as it can

be domestically produced free of greenhouse gas emissions.

（２） Nuclear power

Nuclear power’s energy output per amount of fuel is overwhelmingly large

and it can continue producing power for several years only with domestic

fuel stockpile. Nuclear power is an important base-load power source as a

low carbon and quasi-domestic energy source, contributing to stability of

energy supply-demand structure, on the major premise of ensuring of its

safety, because of the perspectives; 1) superiority in stability of energy

supply and efficiency, 2) low and stable operational cost and 3) free

from GHG emissions during operation.

Description of "Strategic Energy Plan" (Excerpt)

26

（３） Coal

It is now being re-evaluated as an important base-load power supply. It is

an energy source that we should use while reducing the environmental

load through the utilization of highly efficient coal thermal power

generation technology, etc.

（４） Natural Gas

Natural gas plays the central role as an intermediate power source.

Natural gas is an important energy source whose role is expected to

expand.

（５） Oil

It’s advantage lies in its wide applicability as fuel in the

transportation, consumer, power supply sectors and also as

materials for chemical and other products. Especially, the

transportation sector relies heavily on oil. It will continue to be used as

an important energy source.

27

Description of "Strategic Energy Plan" (Excerpt)

Chapter 3. Section5. Section 5. Environmental arrangement of an environment

for efficient and stable use of fossil fuels

1. Promotion of effective use of high-efficiency coal and gas thermal power

generation

In order to reduce greenhouse gas emissions into the atmosphere,

the development and practical application of next-generation high-efficiency

coal thermal power generation technology (e.g., IGCC) will be promoted.

Research and development will be conducted with a view to practical use of

the carbon capture and storage (CCS) technology around 2020 and a study

will be conducted on introducing CCS-ready facilities as early as possible

with due consideration given to the possible timing of the

commercialization of CCS. Through these measures, the introduction of

coal thermal power generation that gives consideration to further reduction

of the environmental impact will be promoted.

28

Description of "Strategic Energy Plan" (Excerpt)

29

Chapter 4. Promotion of strategic technology development (energy-

related technologies for which research and development should be

intensively conducted in order to implement measures related to energy

supply and demand in a comprehensive and systematic manner in the long-

term)

1. Technical challenges to be addressed

From now, it steadily promotes technologies related to production,

storage, transportation and utilization of hydrogen.

Description of "Strategic Energy Plan" (Excerpt)

Position

Though coal has a problem ― it emits a large amount of greenhouse gas ― it is

now being re-evaluated as an important base-load power supply because it

involves the lowest geopolitical risk and has the lowest price per unit of heat

energy among fossil fuels. It is an energy source that we should use while

reducing the environmental load through the utilization of highly efficient coal

thermal power generation technology, etc.

Policy Direction

30

Position of the coal in "Strategic Energy Plan"

In addition to promoting the replacement of aging thermal power plants

and introducing available leading-edge technology through the construction of

new facilities and the expansion of existing ones, GOJ further promotes the

development of technologies to drastically reduce greenhouse gas emissions per

unit of generated power (e.g., IGCC) by largely improving the power generation

efficiency. It is necessary to use coal while reducing the global environmental load

by promoting the introduction of such high-efficiency technologies not only in

Japan but also globally.

Integrated coal gasification fuel cell combined system experiment project (Osaki Cool Gen)

Project details

○ Oxygen injection coal gasification technology (oxygen blown IGCC) which

makes it efficient and easy to separate and collect CO2 is established.

Experiments of triple-combined power generation technology by

combining fuel cell of the hydrogen obtained by future oxygen injection

gasification are conducted.

(1) Technical characteristics

○ Gross thermal efficiency 55% (←current USC 41%)

○ Use of subbituminous coal, which can be easily gasified (use of low-

grade coal)

○ Easy separation and collection of CO2 by oxygen injection (CO2

reduction)

○ Use of hydrogen by oxygen injection (fuel cell)

(2) Organizer: Osaki Cool Gen (J-POWER, Chugoku Electric Power)

(3) Project term: 2012-2021(Total of 30 billion yen, total project cost of 90 billion yen) *Only 1st stage

Combustible gas H2, CO etc.

Air

Air separation unit Oxygen

Gasification furnace

Steam

turbine

Gas

turbine

H2

Burner

Aircompressor

Generator

Waste heat collection boiler

Chimney

CO

H2

H2

CO H2

CO2 transport and storage

Shift reactorCO2 collection and separation

<1st stage>

<2nd stage>

<3rd stage>

Integrated coal Gasification

Combined Cycle (IGCC)

CO2 collection technology

Fuel cell

H2

Project overview

Existing waste water

treatment facilities

Coal gasification

facilitiesGas purification

facilities

New waste water

treatment facilities

CO2 separation

and collection

facilities

Air separation

facilities

Combined power

generation

facilities

Rendering

Project site: Kamijimacho, Osaki, Toyoda, Hiroshima

Future schedule

FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1st stage

Oxygen blown

IGCC

experiments

2nd stage

CO2separation

and collection

type GCCexperiments

3rd stage

CO2 separation

and collection

type IGFC

experiments

Demonstration

test

Oxygen blown IGCC detailed design and

construction

Demonstration

test

detailed design and construction of

CO2separation and collection

Application technology

assessment

Image design

CO2 transport and

storage test

Demonstration

test

CO2 collection integrated type of

IGCC/IGFC:

Detailed design and construction

Technical survey,

Image design

31

32

Ideal fuels for IGCC include untapped low-grade coal such as subbituminous coal, which can

readily be gasified (effective use of untapped coal supplies).

The gasification furnace to be demonstrated (the EAGLE furnace) is designed to efficiently gasify a

wider range of coal supplies (thus can accommodate a variety of coal supplies)

Efficient use of untapped coal supplies

Application range of conventional gasification furnaces

Application range of the EAGLE gasification furnace Coal types compatible with pulverized coal combustion

EAGLE coal

Ash melting temperature [C]

Fu

el co

mp

ositio

n [-]

32

Oxyfuel combustion Co2 recovery power generating system CO2 transportation/storage

Oxygen generator

Coal

Re-circulated gas (mainly CO2）

O2Air（N2, O2）

Noncondensable gasN2

Dust collector

CO2 liquefaction and recovery

plant

Boiler

CO2Underground storage

CO2 storage transportation equipment

G

Condenser

ST Smokestack

P

2008 – 2012 Retrofit of existing power station

2012 – 2014 Oxyfuel demonstration operation

2014 – 2016 CO2 injection and monitoring

Japan : Japan-Australia Oxyfuel Combustion Demonstration

Project Japan Limited Liability Partnership(formed

by J-POWER, IHI and Mitsui & Co.)

JCOAL (Supporting Collaborator)

Australia: CS Energy, Xstrata, Schlumberger,

Australian Coal Association (ACA)

Features

・Applicable to both existing and new power plants

・Has a potential to reduce CO2 recovery energy and costs

・Has a potential to reduce NOx emissions

System

Oxyfuel Combustion is: Technology to facilitate CO2 recovery by burning fuel such as coal using only oxygen to make CO2 the principal component of exhaust gas from the boiler.

・Oxygen generation (air separation) equipment is installed.・Exhaust gas is re-circulated and flame temperature is adjusted to

use existing boiler technology.

At Callide A pulverized coal power station (generation capacity: 30MWe) in Central Queensland, Australia,

low-emission coal thermal power generation using Oxyfuel Combustion Technologies is being demonstrated

toward practical application of CCS (Carbon Capture and Storage) technology.

Project image

Partners

Schedule

Callide A pulverized coal power station 33

Technological Innovation toward Zero Emission

International Joint Research and Demonstration on Oxyfuel Combustion

圧縮機 貯槽設備

Coal gasification power plant

CO2 level of exhaust

gas from burning:

7-40%

Off gas(Return to chimney)

Liquefaction facilities Injection well

ポンプ＆気化器

Storage facilities

<Underground storage><Transportation><Separation, collection>

Transport by ships

<Gasification, burning>

CO2回収装置

CO2CO2

Und

erg

round s

tora

ge

○Reduction of CO2 emission from coal thermal power plants is required to respond to the global warming

issues.

○ In the total system from power generation to CO2 storage, efficient thermal power plant is combined with

CCS facilities.

Total System of Highly-efficient Low-carbon Coal Thermal Power Generation

○ Storage potential of Japan?

○ Environmental impact, safety, monitoring?

○ Technology development of separation and collectionExpected cost?

Incentive?

Who pays?

34

○ Power generation cost with CCS

- In the direct storage case (1), total power generation cost increases by 45% (approximately the same as in NETL cases1) which increases

the cost by 40%). In the transport cases (2)-(6) the total cost increases by 80% (larger than in NETL cases which increases the cost by

45%).

- Transport (incl. transport of liquefied and pressurized CO2) and storage occupy 10% of the power generation cost in the direct storage

case and 30% in the transport cases. (The construction cost of CO2 tank for shipment, base for receiving shipped CO2, and dedicated ship

is large.)

○ CO2 treatment cost breakdown

- Cost of the transportation (incl. liquefaction and pressurization) and storage is relatively large, occupying 50-70% of the CO2 treatment

cost.

1) Cost and Performance Baseline for Fossil Energy Plants DOE/NETL-2010/1397

Taken from the result of “Zero Emission Coal-Fired Power Technology Development Project” in Zero Emission Coal-Fired Power Technology Development Project

(Note) Condition of each case

-Storage near power plant (no transport): Case (1) Direct Storage

-Transport of liquefied CO2 by ship: Case (2) Land Base (that allows berthing of ship), Case (3) Ocean base fixed to the seafloor (for shallow ocean), Case (4) Ocean Floating Base (for deep ocean)

-Transport through pipe line: Case (5) Liquid, Case (6) Gas

Preliminary calculation of CCS cost

Transport, storage

Power

generation

Po

wer

ge

nera

tio

n c

os

t (y

en

/kW

h)

No CCS Case (1) Case (2) Case (3) Case (4) Case (5) Case (6)(No transport: 0km)

Power generation: Capital charge

Transport: O&M cost

Power generation: O&M cost

Storage: Capital charge

Power generation: Fuel cost

Storage: O&M cost

Transport: Capital charge

CO

2 t

reatm

en

t co

st

(yen

/to

n C

O2)

Case (1) Case (2) Case (3) Case (4) Case (5) Case (6)(No transport: 0km)

Separation and collection

Energy penalty Liquefaction and pressurization

Transport Storage

35

(1) Development of gasification and slurrying technologies in accordance with the energy supply-demand balance in the coal countries

(2) Hydrogen, Methane and DME, etc created by the gasification of low-grade coal will be able to contribute to the clean energy supply to

Japan in future

(3) Development of multi-use of gasified products: Chemical materials such as fertilizer, in addition to fuel

(1) Technological development of dehydration and drying for efficient transport and better combustion efficiency

低品位炭

発電用一般炭

産炭国

CO2

回収・貯留

メタノールDME

FT合成油など

既存のLNG製造設備

で液化

LNG

ガス化 液体燃料製造

SNG製造

大量消費国

既存のLNG輸送インフラに合流

CO2

回収・貯留

灰

灰

山元発電

国内需要を賄うとともに、海外へも輸出

高効率乾燥システムによる発電効率向上

1. Development and introduction of low-rank coal gasification and slurrying technologies

2. Development and introduction of low-rank coal improvement technologies for

effective use of unused resources

Efficient use of low-grade coal

改質炭

Ensuring export capacity

and relaxing of energy

supply-demand balance

in coal countries

Relaxing of supply shortage

In Asian countries

Stable supply of coal to Japan

Diversification of energy sources

Coal country

General

coal for

power

generation

Low-grade

coal

Improved

coal

Mine mouth power

generation

Gasifica-

tion

Liquid fuel

production

SNG

productionCO2

collection

and storage

Ash

Methanol,

DME, FT

synthetic oil,

etc.

Power generation efficiency

improvement with high-efficiency drying

system

Not only supply for domestic demand but

also export to overseas

Liquefaction at existing LNG production

facilities

CO2

collection

and storage

Ash

Major consumer country

Transported by existing LNG transport infrastructure

36

Slurrying technologies

Drying

Carbonization

SNG production technologies(Methanation, High Calorie Gas)

Circulating fluidized bed

gasification technology

Coal Flash Partial

Hydropyrolysis Technology

【 Technical Field 】

JGC ：Demonstration

MHI : Demonstration

Babcock Hitachi

IHI : Demonstration

TSK(Tsukishima) ：Demonstration

KOBELCO ：Demonstration

Kyusyu Electric：FS

IHI : Demonstration

【 Leading Development : Stage】

Osaka Gas：Element R&D

NIPPON STEEL & SUMIKIN ENGINEERING：FS

Utilization Technologies of Low Rank Coal

Gas processing

Gasification

technologies

37

５. Summary○ Coal will continue to play a role in diversifying energy sources in Japan.

Coal has advantages in terms of economics and security.

The use of coal will continue to be one of the major energy sources.

We seek to improve efficiency, develop CCS-related technologies with the aim of reducing

carbon emissions.

○ Japan's clean coal technologies (CCT) contribute to the reduction of global CO2 emissions

and the economic development throughout the world.

By replacing coal-fired power plants in the major consumers of coal with the most advanced

coal-fired power plants in operation in Japan, CO2 emissions can be reduced by 1,500 million

tons.

We provide CCT tailored cooperation to the partner countries' economic levels and needs.

The government also support them through policy dialogue, assistance in verification tests and

feasibility study (FS), etc.

For assistance in emissions reduction, the utilization of bilateral credit is considered.

38

Thank you for your listening!

資源エネルギー庁

39