Japan: An unlikely new champion for coal?

Gavin Sutcliffe, Head of Conference and Governing Body, Gastech

 

Japan is traditionally respected as one of the world’s most efficient and technologically advanced societies, embracing an inclusive and responsible approach to economy, society and environment.

However, Japan’s latest Basic Energy Plan is undergoing major revision by the Ministry of Economy, Trade and Industry (METI), and is now expected to promote an increased use of coal-fired power generation as public resistance to nuclear power remains as robust as ever since 2011.

As recently as last year, METI was committed to a balanced energy roadmap for Japan, with a fuel mix that included around 20% from nuclear, 26% from coal, 27% from LNG and 22%–24% from renewable energy sources. If nuclear power is to remain offline, other fuels will have to fill the huge shortfall left if the energy-intensive society is to remain functional, and METI’s revised plans are likely to be made public in early 2017.

Ironically, this begrudging acknowledgement by the government that the public will not stomach perceived environmentally “risky” nuclear fuel has paved the way for coal’s resurgence with plans for many new coal-fired power plants to be built. The likely result is that Japan will miss its carbon obligations agreements signed during the COP21 in Paris last year.

Approximately 40 new stations powered by coal are planned to open over the next decade or so, putting Japan’s emissions targets in serious jeopardy. METI plans to make the increased long-term investment in coal and “clean-coal” technology, to fill the large gap left by nuclear.

Japan certainly appears isolated among its G7 peers as being the sole country still building unabated coal-fired power plants.

In May of this year, a report compiled by Oxford University’s Smith School of Enterprise and Management called Japan’s plans to invest billions of dollars in coal-fired generation “flawed,” and the report’s main author, Ben Caldecott, remarked, “Does Japan seriously think that there will still be coal-fired power stations in the system in the 2070s? Because that is what they are committing themselves to with the plans they have laid out.”

The report asserts that the plans to take Japan’s energy policy in the opposite direction of other countries will impact the country negatively over the coming decades. Coal and clean-coal technology industries are powerful, influential businesses in Japan, where lobbying keeps coal at the forefront of government policy, even as capital expenditure costs for renewable energies have fallen between 35% and 45% in the past decade.

With even the cleanest new-generation coal technology producing twice the CO₂ emissions as gas-fired generation, the heat is now on the Japanese government, both internally and externally, to reexamine its commitments to coal and fundamentally review its position as a leading member of the world’s most industrialized nations.

Coal will continue to challenge the position of natural gas—in particular, LNG—as Japan’s most flexible and economical fuel. This is one of many key geo-strategic energy debates that will take place at the world’s largest natural gas and LNG event of 2017, the Gastech Conference and Exhibition, which arrives in Chiba, Tokyo, April 4–7.

The Japanese government will be present, and the event is being hosted by 10 of Japan’s most important energy stakeholders and investors, including: Tokyo Gas, JERA, INPEX, Mitsubishi Corporation, Mitsui & Co., JAPEX, Sumitomo Corporation, JX Nippon and Itochu.

With the Gastech conference now recognized for five decades as the thought-leadership platform for commercial and technical leaders alike, the issues of how gas and LNG as primary fuels of a low-carbon energy mix can continue to stave off challenges from coal and other fossil fuels will be fiercely debated.

Gastech is calling for global professionals working across technical and commercial disciplines to provide outstanding and innovative original submissions to speak at the conference next year, and encourages those interested to connect with the organizing team as soon as possible.

With more than 40 major technical sessions running over four days and three days of strategic-level commercial content, the opportunities for leading gas and LNG professionals to engage with the world’s largest customer community has never been more exciting or accessible.

Gastech’s governing body of 50 leading international professionals will be voting on the best papers soon. Do not miss out on the chance for your organization to make an impression to more than 2,500 executive delegates and many thousands more visitors and exhibitors alike!

Visit www.gastechevent.com/call-for-papers to review themes and make your submission.

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