GX Basic Policy approved in a Cabinet meeting; nuclear power to make a comeback; offshore wind grid, bond issue also in the plan
INPEX posts record profit (~$3.3 bn) on high oil and gas prices; weak yen also contributed to the jump in earnings
Toyota Group emerges as likely Japan’s top renewables player after its trading arm acquires 85% of SoftBank subsidiary
ENERGY TRANSITION & POLICY
METI to rewrite roadmap for gas sector decarbonization; a rethink suggests synthetic methane may be falling from favor
Japan mulls new offset credit system for industrialized nations
Local officials say they want restart of Ohma NPP construction
IHI shares details of world’s first e-methane powered bus project
Wind lobby group calls for more talks on offshore tender process
UK’s BP and Chubu Electric to study CCS project at Nagoya Port
Mitsubishi partners with RWE, Lotte Chemical on fuel ammonia
Roadmap calls for up to 12 million tons of CCS capacity by 2030
ELECTRICITY MARKETS
Power companies burned most coal since 2011 as LNG alternative
Mayor positive about TEPCO restarting nuclear reactor in the fall
Battery maker NGK and Ricoh join forces to develop VVP business
Kyushu Electric avoided hiking power price thanks to nuclear units
Tokyo Gas plans floating wind farm off Fukushima coast
Data scandal worsens: TEPCO accused of accessing METI system
JERA to sell stake in one Taiwanese offshore wind project
Large biomass power plant begins operations in Hokkaido area
OIL, GAS & MINING
Mitsui and Mitsubishi Corp bullish on new LNG investments
Japan sets price caps on imports of Russian refined oil products
Idemitsu sells coal asset in Australia leaving it with one coal mine
Osaka Gas estimates Freeport LNG outage loss at ~¥150 billion
Major domestic LPG suppliers in talks to merge operations
ANALYSIS
METI’S PLAN TO DIVERSIFY LOW-CARBON FUELS, AND THE FUTURE OF BIOFUELS
The Green Transformation (GX) energy transition roadmap was approved last week; it calls for development of three carbon recycling technologies: sustainable aviation fuel (SAF), synthetic fuel and synthetic methane. This raises questions. Japan’s energy policy seems to support two different roadmaps for fuel decarbonization. On the one hand, GX wants development of new low-carbon fuel tech that recycles CO2; on the other, METI backs stronger biofuels utilization. We review how these might fit together.
CUTTING BACK ON CRUDE: JAPAN SHOOTS FOR THE MOON WITH BIODEGRADABLE PLASTICS
By the end of this decade, Japan hopes to have at least three new clean energy solutions for plastics, which has emerged as the fastest growth area for crude oil demand. By 2030, plastics may account for as much one third of the world’s petroleum use. This is why Japan’s Moonshot R&D Program seeks to improve its sustainable impact, with focus on finding a new generation of non-toxic plastics that won’t damage the environment.
New Energy and Industrial Technology Development Organization
kWh
Kilowatt hours (electricity generation volume)
TEPCO
Tokyo Electric Power Company
FIT
Feed-in Tariff
KEPCO
Kansai Electric Power Company
FIP
Feed-in Premium
EPCO
Electric Power Company
SAF
Sustainable Aviation Fuel
JCC
Japan Crude Cocktail
NPP
Nuclear power plant
JKM
Japan Korea Market, the Platt’s LNG benchmark
JOGMEC
Japan Organization for Metals and Energy Security
CCUS
Carbon Capture, Utilization and Storage
OCCTO
Organization for Cross-regional Coordination of Transmission Operators
NRA
Nuclear Regulation Authority
GX
Green Transformation
NEWS: ENERGY TRANSITION & POLICY
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NEWS: POWER MARKETS
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NEWS: OIL, GAS & MINING
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ANALYSIS
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ANALYSIS
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GLOBAL VIEW
BY JOHN VAROLI
Below are some of last week’s most important international energy developments monitored by the Japan NRG team because of their potential to impact energy supply and demand, as well as prices. We see the following as relevant to Japanese and international energy investors.
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2023 EVENTS CALENDAR
A selection of domestic and international events we believe will have an impact on Japanese energy
ASEAN-Japan summit to mark 50 years of cooperation
Last market trading day (December 30)
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NEWS
・GX Basic Policy approved in a Cabinet meeting; nuclear power to make a comeback; offshore wind grid, bond issue also in the plan
・INPEX posts record profit (~$3.3 bn) on high oil and gas prices; weak yen also contributed to the jump in earnings
・Toyota Group emerges as likely Japan’s top renewables player after its trading arm acquires 85% of SoftBank su
