Technology Strategy Center

Transition to a Circular Economy- NEDO’s activities as an Innovation Accelerator

Hideyuki Dohi

New Energy and Industrial Technology Development Organization

(NEDO)

Technology Strategy Center

Concurrent Sessions

Circular Economy ImplementationSeptember 28, 2020

Technology Strategy Center

What’s NEDO

2

Technology strategy proposal

Missions are- Addressing energy and global environmental problems- Enhancing industrial technology

Message from the ChairmanNEDO serves as an innovation accelerator to address rising levels of carbon dioxide

Technology Strategy Center

40Gt reduction of GHG 40Gt reduction of GHG

Gap between the target and the current (Abatement Cost )

3

0

200

400

600

800

1000

1200

01020304050

Mar

gin

al a

bat

emen

t co

st, $

/tC

O2

GHG Emissions, GtCO2eq/yr.

IEA

RITE

IPCC

0

2

4

6

8

10

12

01020304050

An

nu

al c

ost

, tri

llio

n $

/yr.

GHG Emissions, GtCO2eq/yr.

MAC(Marginal abatement cost) estimationonly with proven technologies

Annual cost estimation only with proven technologies

Reducing 40 GtCO2 of GHG emissions only with proven technologies, MAC would become around $1,000/tCO2. It means total additional cost exceeds 10 trillion dollars each year globally.

Source：Compiled by NEDO Technology Strategy Center

ipcc, Mitigation Pathways, Glob. Warm. 1.5C. (2018), S.Akimoto(RITE), J. Japan Soc. Energy Resour. 38 -1 (2016), iea, World Energy Outlook 2018

Technology Strategy Center

Technology development target for implementation

4

2020 2030 2040 2050

MAC(M

arg

inal abate

ment

cost

),

$/t

CO

2MAC curve

with proven technologies

R&D will decrease CO2 abatement cost. From the cross point, the tech will be adopted. Total Additional cost will be reduced consequently.

Total additional cost reduction

Abatement cost of a certain tech with

Innovation

Target for Implementation

Technology Strategy Center

3 Essential Social Systems for Sustainable Society

5

BIOCIRCULAR

ENERGY

Technology Strategy Center

Current State of Materials in Japan

6Source：NEDO, TSC Foresight Vol.35, 2018

Copper

Alminium

Iron&Steel

Plastic

Glass

Paper

Critical Materials(Pt,Pd,Li,

Co & others)

Cement

0.1

1

10

100

1000

0 0.1 0.2 0.3 0.4 0.5 0.6

CO

2Em

issi

on

in J

apan

, MtC

O2/

yr

Security risk (Weighted Herfindahl Hirschman Index)

Reduction

intensity

ΔtCO2/t-

recycle

Sales

Alminium 11.0 8749

Plastic 5.0 26082

Iron&Steel 1.9 94882

Copper 1.5 10322

Technology Strategy Center

Project to Research and Develop Recycling Technologies for

Establishing a High Efficiency Resource Circulation System

7

Project period: FY2017 to FY2022, FY2019 budget: JPY 550 million

The goal is to promote the effective utilization of ‘Japan's urban mining concept’ and develop innovative technology and systems that help a stable supply of resources/energy and promote resource/energyconservation.

(1) Automatic waste-product and part sorting

(2) High-efficiency smelting technology for high-mix and small amount scraps

(3) Information technologies for system integrating the manufacturing and recycling industries

https://www.nedo.go.jp/english/activities/activities_ZZJP_100129.html

Technology Strategy Center

Technology Strategy Center

Project to Research and Develop Innovative Recycling

Process for Plastics

8

Project period: FY2020 to FY2024, FY2020 budget: JPY 700 million

Developing basic technologies to realize a highly efficient plastic resource recycling system in order to dramatically increase the resource value.

(1) Advanced sorting technology for using complex sensing and AI

(2) Advanced mechanical recycling technology

(3) Advanced chemical recycling technology

(4) Highly efficient energy recovery

The aim is to achieve both an advanced resource recycling system and a reduction in environmental impact by constructing an optimal treatment system for waste plastics according to their quality.

https://www.nedo.go.jp/activities/ZZJP_100179.html

Crude oil

RefineryPolymer

productionPlastic

conversionPlastic

products

IncinerationReclaimingExport

Use

Collection

Advanced sorting

Advanced

mechanicalrecycleAdvanced

chemical recycleAdvanced

energy recovery

Technology Strategy Center

Technology Strategy Center

Demonstration Project for Introducing an Energy-Saving

Resource Circulation System in Asia

9

Project period: FY2016 to FY2020, FY2019 budget: JPY 300 million

The aim of this project is to achieve an energy-saving resource circulation system in Asia that stably supplies resources /energy and reduces greenhouse gases through recycling.

The project involves building suitable resource circulation systems in partner countries by providing know-how (e.g., policy tools, technology, systems).

https://www.nedo.go.jp/english/activities/activities_ZZJP_100117.html

Technology Strategy Center

Technology Strategy Center

Summary

10

Reducing 80% of GHG emissions with proven technologies, MAC would become around $1,000/tCO2, and total additional cost exceeds 10 trillion dollars each year globally.

The role of innovation is to bring these costs down to a level that is acceptable to society.

Innovation should be evaluated across the industrial sectors and the technology fields from the perspective of reduction potential and MAC based on LCA.

The transition to a circular economy is expected to be a promising CO2

reduction strategy in many industries.

NEDO will continue to contribute to climate issues by promoting the development of CE technologies.

Technology Strategy Center

11

Thank you for your attention!NEDO address global warming issues as an innovation accelerator co-operating with organizations around the world.

http://www.nedo.go.jp/english/index.html