Initiatives of Japan sCity Gas in the Context of New National … · 2019. 12. 11. · ©2011 The Japan Gas Association A global CO2 emissions reduction scenario (IEA) （1990）80％

Initiatives of Japan’s City Gas in the Context of New National Policies on Energy and the Environment

Ken YamadaCorporate Planning Department

The Japan Gas Association

11th Round Table Meeting25 May 2011

2


© 2011 The Japan Gas Association

1. Positioning of Natural Gas in Japan’s National Energy

and Environment Policies

2. Shift to Natural Gas and its Advanced Use

3. Utilization of Renewable and Unused Energy Sources

4. Development of Distributed Energy Network Systems

5. Creating a Low-Carbon Society

Contents

3



The Recent Trend of Japan’s Energy and Environment Policies

1. Positioning of Natural Gas in the National Energy and Environment Policies of Japan

Toward the low-carbon society, Japanese gas industry is continuing efforts for advancing the efficient use of natural gas.

PEAK : USD147.27/bbl (2008.7)PEAK : UPEAK : USSDD147.27/147.27/bbl (bbl (2008.72008.7)) 20072007--0808

July July 20092009

Energy prices rose drastically worldwideand peaked out.

By By 20202020, 15, 15%% reduction from the 2005 levelreduction from the 2005 level

The target of reducing greenhouse gas emissions of the Liberal Democratic Party of Japan:

Japan’s Energy Policies:Shift from lower dependence on petroleum to

Lower dependence on fossil fuels

4



Sept.Sept.20092009 Takeover of the government by the Democratic Party of Japan

““Manifesto 2009Manifesto 2009”” of the Democratic Party of Japanof the Democratic Party of Japan

June June 20102010

The Recent Trend of Japan’s Energy and Environment Policies

By 2020, 25% reduction from the 1990 level

The target of reducing greenhouse gas emissions:

Japan’s energy policies toward 2030:


““The Strategic Energy Plan of JapanThe Strategic Energy Plan of Japan””

1. The target of reducing greenhouse gas emissions

2. Emissions trading scheme

3. Feed-in Tariff for renewable energy

4. Environmental taxation etc.

March March 20120111 The Great East Japan The Great East Japan EarthquakeEarthquake

5



･Doubling the energy self-sufficiency ratio (18% at present) andthe self-developed fossil fuel supply ratio (26% at present)･Raising the zero-emission power source ratio, nuclear and renewable energy

sources to around 70% (34% at present) ･Maintaining and enhancing energy efficiency in the industrial

sector at the highest level in the world

“The Strategic Energy Plan of Japan”Simultaneous Achievement 「３Ｅ」－ Energy Security , Environment , Economic Efficiency －


Ambitious targets toward 2030Ambitious targets toward 2030

･ Fossil fuels will continue to be used for energy supply because of their advantages of supply potential, convenience, economy, etc.

･ Natural gas -is the least CO2-intensive of fossil fuels.-is available from relatively diverse locations around the world as well as unconventional sources such as shale gas.

Shift to natural gasShift to natural gas

The direction of Japan’s city gas industry policies towards 2030

““Shift to Natural GasShift to Natural Gas””is clearly stated as a national policy

6




“The Strategic Energy Plan of Japan”The direction of Japan’s energy policies towards 2030

(1) Enhancing gas supply infrastructure(2) Expanding the utilization of renewable energy(3) Building of hydrogen supply infrastructure

(1) Industrial sectorFuel conversion to natural gas and use of CHP

(2) Residential and commercial sector (i.e. households and offices)Greater use of highly efficient water heaters and fuel cell systems

(3) Transportation sectorIncreased use of next-generation vehicles

(4) Multi-sector effortsEnergy utilization in cities and urban districts through the use of renewable and unused energy sources

2. Demand side2. Demand side

1. Supply side1. Supply side

7



20%-Contribution to the CO2 Reduction Target under the Kyoto ProtocolSince 1990, Japan’s city gas industry has encouraged a shift to natural gas and use of cogeneration systems in industry, which have reduced CO2 emissions by 14.7 million tons.

0

50

100

150

200

250

300

350

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Residential sector

Commercial sectorCommercial sector

Industrial sectorIndustrial sector

Billion m3

35

30

25

20

15

10

5

2. Shift to Natural Gas and Its Advanced Use

By the shift to natural gasBy the shift to natural gasReduction of Reduction of 6.16.1 million million ｔｔonsons‐‐COCO22

By the use of cogeneration By the use of cogeneration ssystemsystemsReduction of Reduction of 8.68.6 million million ｔｔonsons‐‐COCO22

Total reduction of Total reduction of 14.714.7 million million ｔｔonsons‐‐COCO22

Million tons-CO2

-2

-4

-6

-8

-10

-12

-14

-16

･Growth of city gas demand ･ CO2 emissions reduction by the shift to natural gasand the use of cogeneration systems in industry

Expanding Use of Natural Gas and the Current Situation of CO2 Reduction

8



Advanced Use of Natural Gas

(1) Shift to natural gas for meeting heat demand(2) Development of cogeneration systems including fuel cell systems(3) Combining natural gas with renewable and unused energy sources(4) Advanced use of natural gas in transport and agriculture

(1) Shift to natural gas for meeting heat demand(2) Development of cogeneration systems including fuel cell systems(3) Combining natural gas with renewable and unused energy sources(4) Advanced use of natural gas in transport and agriculture

Advanced use of natural gas toward creating a low-carbon society

Rate of fossil fuel and electric powerRate of heat demand and electric power

Electricpower

Heatdemand

54%54% 46%46% 47%47% 53%53%

77%77%

23%23%Residential

sectorCommercial

sectorIndustrialsector

Electricpower

Heatdemand

Electricpower

Fossil fuel

Final energy demand by sector in Japan


9



A global CO2 emissions reduction scenario (IEA)

（1990） 80％（2010） 95％

0

2

4

6

8

10

12

14

'85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09

million RT

Examples of installation sites:

Office buildings, shopping centers,public facilities, etc

13.09 million RT Absorption type GHP (Gas Heat Pump) type


4848%% Energy conservationEnergy conservation

24% Renewable energy sources

27% Nuclear power/CCS

Source ： IEA World Energy Outlook 2010

homehome--installed water heatersinstalled water heaters

GHP type

Absorption type

Installed capacity of gas air conditioners

Examples of installation sites:

Small retail stores, schools

hospitals, etc

Energy Conservation in the Heat Demand

Energy conservation through widespread use of highly efficient gas equipment

Expanded use of gas air conditioning systems

10



Shift to and the Advanced Use of Natural Gas in Industrial Sector

Shift to natural gas and use of highly efficient gas systems will reduce CO2 emissions from the use of heat energy in industry by about half.

Heavy oil +

Conventional burners

100COCO22 emissionsemissions

Shift to natural gas

Use of highly efficient burner75

45

1. Highly efficient heat exchangesystem

2. Oxygen burning technology3. CCS

Breakthrough in technologiesreducing CO2 emissions

Shift to lowShift to low--carbon fuelcarbon fuel

Coal100

Oil80

Natural gas60

Advanced use of energyAdvanced use of energyMaximum use of heat energy in industry by using highly efficient gas systems

Regenerative burner Walking beam type reheating furnace

Technological development


11



86,786oil-equivalent

kilotons

Renewableenergy

3%

Electricpoewr30%

27%

Coal32%

Naturalgas 9%

44%

32%39% 36% 35%

29% 31% 28% 24%

13%4% 3%

9%

5%

6%

10%

4% 8% 13%11%

8%

20%29%

59%

32%

8%

18%

12%20%

21% 17%6% 19%

10%15%

19%

8%

27%1% 1%

11%6% 1% 10%

6%

6%

0%

4%0%

0% 3%

30% 35%

27% 34% 33%30%

38%

36%

25%

41%48%

25%30%

11% 9%2% 0% 3% 0%

6%0%

32%

7%0%

5%0%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Neth

erla

nds

Itally

US

Spain

UK

Austra

lia

Germ

any

Fra

nce

Russ

ia

Kore

a

Taiw

an

Chin

a

Jap

an

Gas Coal Petroleum products and crude oil Renewable energy Electric Power Heat supply


Share of Natural Gas in Industry and CO2 Reduction Potential

■ Shares of energy sources in industry*

* Excludes demand for use as raw material for chemical products.Source: IEA Energy Balance 2008

Potential demand fordecarbonization

12



200

400

600

800

1200

1400

1600

1000

100 1,000 10,000 100,000Capacity (kW)

Furnace temperature

Annealing kiln

Rolling furnace

Casting furnace

Zinc-plating furnace

Non-ferrous metalsmelting

Boiler

Pipe boiler

Metalworking･machine industries

Glassworks industry

Chemicalindustry

Hardening

On-site energy measurement and analysis

Planning to reduce energy consumption and CO2 emissions

Step2Step2

Technological development and combustion testing

Step3Step3

Switching to natural gas and engineering support for the advanced use

Step4Step4

Energy management and regular maintenance

Step5Step5

Step1Step1

Five low-carbon steps in industry

CastCast--iron smelting furnaceiron smelting furnace

Aluminum smelting furnace

Boiler recoveringheat from power generation

Once throughboiler

Glass kiln

Good engineering skills are essential for the decarbonization of industrial heat demand.

Shift to and Advanced Use of Natural Gas in Industrial Sector


13



（２）産業用需要集積エリアの分布とガスパイプライン整備状況

■ Korea

■ Taiwan

■ＥＵ

Source ： The Japan Gas Association

Industrial areasGas pipeline

Challenges to Gas Infrastructure

It is important for Japan’s gas industry to construct gas pipelines to industrial areas for shifting to natural gas and CO2 reduction in industrial sector.


14



Utilization of Fuel Cell and CHP for Heat and Electricity Conservation

CHP saves energy through improving the supply efficiency of both heat and electricity.

Industry useIndustry use

CommerceCommerce･･Retail shop useRetail shop use

Home useHome useCommerceCommerce･･industry useindustry use

CHP can transform 80% of the primary energyinto thermal and electrical output.

1. Essential value of CHP1. Essential value of CHP

2. Another value of CHP2. Another value of CHP

low･small

Small size CHP

Office building

Metalworking･machine industries

restaurantRetail shops

Middle･big size CHP

Hotel

hospital

Chemical industryPaper industry

（電気需要が多）

大

電気４０

廃熱利用４０

利用困難な廃熱２０

１００一次エネルギー（天然ガス）

ガスエンジンガスタービン燃料電池等LNG tank

City gas

Primary energy(natural gas)

･Gas engine ･Gas turbine･Fuel cell

Electric power 40

Using waste heat 40

unusable heat 20

CHP plays a role as the least costly way of compensating the fluctuating thermal and electrical outputs from renewable energy.

High heat demandHeat/electricity

Low(High electricity demand)

Capacityhigh･big

Gas engine for home use

Micro CHP

Solid Oxide Fuel Cell (SOFC)<<development stagedevelopment stage>>Polymer Electrolyte

Fuel Cell (PEFC)

Gas engine


15



Accelerating for CHP introduction

Accelerating Use and Technological Innovation of CHP

CHP introducing targets in the Strategic Energy Plan Japan,

2020 : 8,000MW , 2030 : 11,000MW ( 4,390MW at present)

0

2,000

4,000

6,000

8,000

10,000

12,000MW

Commercial sectorIndustrial sector

At presentAt present (2009)(2009)

4390MW4390MW

20208,000MW

203011,000MW

2009 2020 2030

Big size and high capacity CHP (8MW gas engine)

CHP (gas engine) ElectricityCity gas

Sludge / Food waste

processHot water/Steam

digesteror

Ferment tank Bio gas

･ Overall efficiency 80.9%･ Power generation efficiency 48.8%

( combined cycle 50.2% )

Mixed combustion (with biogas) CHP


16



Expanding the Use of Residential Fuel Cell Systems

Home Energy Management

System

Fuel cell

Smartmeter

Rechargeable battery

EV monitor Cooking

Hot water

Air conditioning

Photovoltaic generation

“Smart House” The Energy System for the Next Generation

Solid oxide fuel cell (SOFC) system

Overall efficiency: 80%*Power generation efficiency:

40 to 50%*Waste heat recovery ratio:

25% *HHV

Overall efficiency: 80%*

Power generation efficiency: 33 to 36%*

Waste heat recovery ratio: 44% *HHV

Developed for residential customers who use much electricity. The availability of larger systems (100 to 1,000kW class) will boost the use of fuel cells in the commercial and industrial sectors.

(*1) Source: Fuel Cell Association (FCA), "Number of Fuel Cell Units Covered by Applications for Grant-in-Aid for the Deployment of Fuel Cells for Residential Use (Fiscal 2009)"

Polymer electrolyte fuel cell (PEFC) system

Gas engine for home use (ECO WILL)

Overall efficiency: 85.5%*Power generation efficiency:

22.5%* *LHV

Smart house will optimize the energy supply and demand and minimize CO2 emissions for entire house by allowing harmonious interconnection with renewable and unused energy.


17



The Japanese gas industry will contribute to the decarbonization of transport sector by cargo vehicles (next-generation hybrid trucks powered by efficient natural gas engine) , greater use of fuel cell vehicles and LNG for powering ships (ferryboats) , the decarbonization of agricultural sector by tri-generation systems.

Hydrogen station

2. Greater use of fuel cell vehicles2. Greater use of fuel cell vehicles

3. Use of 3. Use of LNGLNG for a ferryboatfor a ferryboat

4. Tri4. Tri--generation systemgeneration system

1. 1. Use of natural gas for a cargo truckUse of natural gas for a cargo truck

The GHG Protocol Scope 3 and Carbon footprint


18



Using solar energy systems in harmony with natural gas utilization technologies

1. Dual mode generation system1. Dual mode generation system

Photovoltaic + Fuel cellPhotovoltaic + Gas engine cogeneration

2. Combining solar heat with gas appliance systems2. Combining solar heat with gas appliance systems

Utilization of Renewable and Unused Energy on the Demand Side

Highly efficient gas water heating+

Solar heatpanel

Residential sectorResidential sector


Electricpower

Commercial sectorCommercial sector

Grid powerGrid power

City gas

heat

HeatingHeatingWaterWaterheatingheating

City gas

Gas-powered fuel cell

Solar heat + Highly efficient gas water heating

Solar heat + Gas air conditioning

Solar heat panel

AirAir--conditioningconditioning


Gas air-conditioning(Absorption type)

19



The combination of renewable energy and unused energy such as waste heat with natural gas utilization technologies supports the decarbonization of Japan.

3. Using urban waste heat3. Using urban waste heat 4. Using biogas from sewage and waste 4. Using biogas from sewage and waste treatment planttreatment plant

Using biogas as fuel for cogeneration, boiler, air conditioning systems

Waste heat from the combustion of natural gas for power generation

Energy required

at factory

<Heat><Electric power>

Waste treatment plant

Warm bath facilities

Waste heat recovery boiler

Kyoto bio-cycle project

Using biogas (mixing with city gas) for NGV fuel

Using industrial waste heat for heating

Utilization of Renewable and Unused Energy on the Demand Side


20



“Smart energy Network” The Energy System for the Next Generation

Smart energy networks combining gas cogeneration systems with renewable energy, solar energy etc, or unused energy, waste heat from waste incineration plant and factory, optimize the energy supply and demand (heat and electric power) and minimize CO2 emissions.

Heat

Energy control center

BBeforeefore

Renewable and unused energy

Supply and demand control

Heat ＋ Electric power Supply and

demand control

power grid networkspower grid networks

Smart energy networksSmart energy networks

Heat

Renewable and unused energy

Electric power

4. Development of New Energy Network Systems

Gas cogeneration Gas cogeneration

Energy control center

21



“Smart Energy Network” in Urban Area

Smart energy network in urban area by connecting consumers with various sources of heat and electric power, including local sources of renewable and unused energy, will optimize the heat and electric power allowing harmonious interconnection with existing power grid networks, and minimize CO2 emissions for entire area.

Wind turbine

Sewage treatment plants

biomass

Solar heat


Smart meter

Unused energyUnused energy

Renewable energyRenewable energy

Waste treatment plants

Gas cogeneration

Gas cogeneration

Optimizing the energy supply and demand by using smart meters and energy management systems

Power grid Power grid networknetwork

Unused energyUnused energy

Fuel cell

Energy control centerEnergy control center

Heat Heat networknetwork


22



Creation of hydrogen Society

FCVFCV

FC

FC

FCLNG terminalLNG terminal

Technology for producing hydrogen

Technology for producing hydrogen

FC

FC

FC

Local hydrogen supply networksLocal hydrogen supply networks

Local hydrogen supply networkLocal hydrogen supply network

1. Supply of hydrogen by1. Supply of hydrogen by

using natural gas networksusing natural gas networks

2. the creation of new network for2. the creation of new network forsupplying hydrogen to local userssupplying hydrogen to local users

3. Use of hydrogen produced 3. Use of hydrogen produced

from renewable energyfrom renewable energy

hydrogen produced from renewable energy

hydrogen produced from renewable energy

Hydrogen pipeline

Hydrogen pipeline

Gas pipelineGas pipelineFC

FC

Natural gas networkNatural gas network

Hydrogen distribution station

Hydrogen distribution station

FC

Factories, etc.Factories, etc.

Polymer Electrolyte Fuel Cell (PEFC)

Solid Oxide Fuel Cell (SOFC)

hydrogen distribution station


23



Creating a Low-Carbon Society

““Gas distribution industryGas distribution industry””

Evolution into industry that providesEvolution into industry that provides ““Energy SolutionsEnergy Solutions””(Japanese gas industry will help customer address various energy(Japanese gas industry will help customer address various energy and environmental challenges)and environmental challenges)

(1) IT-based gas equipment maintenance services

(2) IT-based excellent management services(customers’ buildings, factories)

(3) Carbon management services

2. Energy management

(1) Engineering skills to save energy andreduce CO2 emissions

(2) Energy services to meet customers’demands for heat and electric power

1. Energy solutions

5. Creating a Low-Carbon Society



Thank you for your kind attention.

경청해주셔서감사합니다

感謝聆聽

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Initiatives of Japan sCity Gas in the Context of New National … · 2019. 12. 11. · ©2011 The Japan Gas Association A global CO2 emissions reduction scenario (IEA) （1990）80％