Action for 2030July 9, 2015

Hiroshi KuniyoshiExecutive Director

Chief of Energy and Environment Headquarters

New Energy and Industrial Technology Development Organization

1. Japan’s Energy Outlook

1

Source: METI （2015）

Heat andothers75%

Electricity25%

Energy Demand

Economic growth

1.7% per year

Heat andothers72%

Electricity28%

50.3 million kl reduction in energy consumption

(13% reduction from 2013)

FY2013 FY2030 FY2030

Oil30%

LPG 3%

Coal30%

Natural gas18%

Nuclear10%–11%

Renewables

13%–14%

489 million kl

Self-sufficiency

rate

24.3%

Primary Energy Supply

22000–2010 (average) FY2030

Nuclear 27%

Renewables11%

Oil 12%

Coal 24%

LNG 27%

Oil 3%

Coal 26%

LNG 27%

Nuclear 20%–22%

Renewables22%–24%

（Total power generation capacity）

About 1,065 billion kWh

Structure of Power ResourcesGeothermal1.0%–1.1%

Biomass 3.7%–4.6%

Solar 7%

Hydropower8.8%–9.2%

Wind 1.7%

Source: METI （2015）1. Japan’s Energy Outlook

3

Midterm

20502030

20502030

Diffusion of

Existing

Technologies

Diffusion of

Innovative

Technologies

Long term

Geothermal

Nuclear

High-efficiency Coal-fired Power Plant

Biomass

Offshore Wind Power

CCS

High-spec Devices

Transportation SystemHeat Pump

Cogeneration

ZEB / ZEH

Insulation Tech.

Rechargeable Battery

Methane Reduction Vegetation

Global Mitigation Climate Change Forecasting

Superconducting Cable

Marine Energy

New Steel Manufacturing System

Nuclear Fusion

Space Solar

Solar Energy

Solar Heat

Artificial Photosynthesis

20202040

50% global GHG

reduction

Fuel Cell

Hydrogen Energy

New-generation Vehicle

HEMS/BEMS/CEMS

Power Interchanging System

CFRP

Process Improvement

1. Japan’s Energy Outlook Source: Council for Science, Technology and Innovation（2013)

Energy Conservation (\29 bn.)

•HEMS/BEMS/CEMS•Superconductingcable•Heat pumps•ZEB/ZEH

Rechargeable Batteries (\23 bn.)

•High-efficiencystorage system

Discovery of Technology Seeds

National Projects Practical Application Promotion

Others (\11 bn.)

¥363.2 bn. ¥4 bn. ¥20.5 bn.

New Energy(¥119.3 bn.)

• Solar power•Wind power•Fuel cells & hydrogen•Biomass•Geothermal power•Marine energy

International Projects (\99.3 bn.)

CCT, Environment, and Resource Conservation

(\24 bn.)•Methane reduction •New steelmanufacturing system

NEDO: Budget for FY2013–FY2015 ¥393.1 billion

Electronics, IT, Materials, and Nanotechnology

(\69.2 bn.) •Carbon fiber reinforced

plastic (CFRP)•Innovative devices

4

Source: NEDO2. NEDO’s Role and Achievements

5

1980

20102005

2000

2015

High-efficiency

industrial furnace

Blue LED

Solar panels

SKYACTIVE-D

(Mazda)EcoCute

Fuel cell vehicle

(FCV)

ENE-FARM

IGCC

Source: NEDO2. NEDO’s Role and Achievements

Photovoltaic power generation

2030202002013 2015 2025

Pow

er g

ener

atio

n c

ost

Equivalent to commercial electricity price in Japan

Reduction of power generation cost through contribution of NEDO projects

Equivalent to conventional power generation cost in Japan

Source: NEDO3. Activities of NEDO (Solar)

\14/kWh

\7/kWh

6

- From on-shore to off-shore

- Trend of further increase in scale

Rotor diameter (m)

Year of operationCapacity (MW)

Source: NEDO3. Activities of NEDO (Wind)

7

8

Dissemination Scenario for FCVs and Charging Stations

Ch

argi

ng

Stat

ion

FCV

Phase 1

Technology Demonstration

Phase 2

Technology and Market Demonstration

Phase 3

Early Commercialization

Start Expansion

Phase 4

Full Commercialization(Profitable Business)

Year

FY2015

Start selling FCVs to general public

FY2025

Increase FCVs and stations

based on profitable business

2010 2011 2015 2016 2025 2026

3. Activities of NEDO (Hydrogen Energy) Source: NEDO (2015)

9

石炭ガス化燃料電池

複合発電 (IGFC)

超々臨界圧石炭火力

発電（ USC ）

A -IGFC

65%

55%

先進的超々臨界圧石炭

火力発電 (A -USC)700℃級

46%

750℃ 級

48%

A -IGCC

57%

1500 ℃級 GT

46～ 48%

1700 ℃ 級GT

50%

石炭ガス化複合発電

（ IGCC ）

600 ℃級

42%

35

45

50

55

60

65

70

1990 2000 2010 2020 2030 2040 2050Year

IGFC

IGCC

Tra

nsm

issio

n E

nd E

ffic

ien

cy

[%]

(with

ou

t C

O2

Captu

re)

(Hig

her

Heatin

g V

alu

e)

USC40

EAGLE

OCG

Entrained flow steam gasification

Energy saving oxygen production

Establishment of technology

3. Activities of NEDO (CCT) Source: NEDO

10

Energy Conservation Target in 2030:

50.3 million kl reduction (crude oil equivalent)

Fro

m E

ne

rgy

Sup

ply

to

En

erg

y D

eman

d Energy Conversion and Supply

Crossover Fields

Industry Household & Business Transportation

• High-efficiency coal-fired power plant

•Cogeneration/Heat utilization system

• Next-generation cars (e.g. FCVs)

• Smart transportation system

•Next-generation energy management system

• Next-generation heat pump system

•ZEB/ZEH

• Energy saving electronic devices

• System improvement for manufacturing

3. Activities of NEDO (Energy Conservation) Source: NEDO

11Source: NEDO（2011）

Lyon (France)Smart city applications for

a redeveloped urban area

Malaga (Spain)Navigate EV drivers to

charging stations

efficiently considering

power system and

traffic congestion

Java (Indonesia)Supplying reliable quality

electricity to industrial parks

Maui (USA)Maximizing use of

renewable energy by

managing EV charging

New Mexico (USA)Energy management for

power systems with

large-scale PV systems

Manchester (U.K.)Energy switching of heat

consumption of households

and aggregate energy

storage capability

NEDO’s Overseas Smart Community Projects

3. Activities of NEDO (Smart Community) Source: NEDO

Development targets for stationary use batteries

200

150

100

50

0 5 10 15 20

Surp

lus

po

wer

sto

rage

co

st(t

ho

usa

nd

ye

n/k

Wh

)

Surplus power storage

Load frequency control

2020sCost: \70,000/kWLife span： 20 yearsEfficiency： 80％

150

100

250

200

Load

fre

qu

en

cy c

on

tro

l co

st

(th

ou

san

d y

en

/kW

)

2020sCost: \20,000/kWhLife span： 20 yearsEfficiency： 80％

50

Present

Life span (years)

Target

Target

Ni-MH

Ni-MH

Li-ion

Li-ion

Lead-acid

3. Activities of NEDO (Energy Storage) Source: NEDO

12

The Model Project for Coke Dry Quenching

Partner Country People’s Republic of China

ImplementationPeriod

1997–2000

Project Site Shougang (Group) Corporation

Entrusted Company

Nippon Steel Corporation

CO2 Reduction 125,000 tons

The Model Project for Cement Plant Waste Heat Recovery Power Generation

Partner Country People’s Republic of China

ImplementationPeriod

1995–1997

Project Site Ningguo Cement Plant, Ningguo

Entrusted Company

Kawasaki Heavy Industries, Ltd.

CO2 Reduction 62,000 tons

13

4. Importance of Diffusion Source: NEDO

14

▪ Innovation is a key to solving energy and

environmental issues.

▪ Technology is nothing if it is not used. We must

transfer leading technologies from one country to

another through international cooperation.

▪ Transfer of existing leading technologies as well

as innovative technologies can contribute a lot to

solving the problems.

5. Conclusion

Thank you

for your attention.