The 7th FC International MeetingFeb 26, 2019

Hydrogen Energy in Japanese
Energy System and Industry
Akiteru (Aki) MARUTA, Ph.D., MPA
Group Manager, Energy & Hydrogen Group
Technova Inc.
maruta@technova.co.jp

1

Contents
1. Japan’s Target
2. Hydrogen Energy in Transportation Sector
3. Hydrogen Energy in Energy Industries Sector(and Industries Sector)
4. Summary

1. Japan’s Target

3

Japan’s CO2 Reduction Target
Total Emission

Mton-CO2/year

26% reduction
from 2013

1,400
1,200

1,000

OtherWaste
Industrial Processes
Residential
CommercialTransportation
Industries
Energy Industries

80% reduction

800600400200

Mton-CO2/year

Energy Industries

Mton-CO2/year

Industries

2050

2048

2046

2044

2042

Mton-CO2/year

Transportation

600

600

600

2040

2038

2036

2034

2032

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

0

500

How does hydrogen contribute toCO2 reductions of these sectors?
400

400

400

300

200

200

200

100

0

1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050

Commercial

Residential

Mton-CO2/year Industrial Processes

Mton-CO2/year

120

70

70

20

20

20-30-30-30

1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
20462050

120

70
1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050

120

1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050

1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050

Mton-CO2/year

1990
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050

0

0

Source: ”The GHG Emissions Data of Japan (1990-2016) revised version”, National Institute for Environmental Studies, May 29, 2018
http://www-gio.nies.go.jp/aboutghg/data/2018/L5-7gas_2018-gioweb_E1.3.xlsx

Energy industries sector, Industries sector and Transportation sector are key.
4

Japan’s Projected Energy Mix (FY 2030)

Zero Emissions
Power Generation
44%
Source: ”METI “Japan's Energy Plan”,
http://www.enecho.meti.go.jp/en/category/brochures/pdf/energy_plan_2015.pdf

Big jump, but still
7% in energy mix

Japan needs to increase ZE Power Generation ratio to 44.
52. Hydrogen Energy inTransportation Sector

6

Can BEVs and FCEVs Coexist?
ToyotaSource: Toyota Motor Corporation "Mobility Innovation"
http://www.enecho.meti.go.jp/en/committee/
studygroup/ene_situation/pdf/006_009.pdf

Hydrogen Council
Source: Hydrogen Council,“How hydrogen empowers the energy transition”
http://hydrogencouncil.com/wp-content/uploads/
2017/06/Hydrogen-Council-Vision-Document.pdf

Automakers insist “Coexistence” of BEVs and FCEVs – True?
7Market positions of BEV and FCEVs
Price
[USD]

80,000

FCEV
Cost reduction 2025?
Nation-wide HRS network 2030?

60,000BEV
40,000Larger battery
Cost reduction

20,000HEV

2025?
(60 kWh, 100USD/kWh)
00200

400

600

Range[km]BEVs and FCEVs move to HEV segment in 2025-2030.
8

BEVs and FCEVs: CO2 emission per km
CO2 emission (WtW, J08 mode)[g-CO2/km]

FCV, onsite SMR
FCV, offsite SMR

FCEV: What is the potential on
CO2 free (Low CO2) hydrogen in2030?

FCV, onsite electrolysis
ICE, diesel
ICE, gasoline

HEV
PHV, gasoline -fueled
generation mix of 2009
PHV, charging
generation mix of 2009
EV, generation mix of 2009

BEV: What is the CO2emission per kWh in 2030?

EV, generation mix of 2013
EV, PV

Source: METI, “Revised Version of the Strategic Roadmap for Hydrogen and Fuel Cells”(March 22, 2016)
http://www.meti.go.jp/english/press/2016/0322_05.html

What is the CO2 emission from BEVs and FCEVs in 2030?
9

FCEV: What is the potential on CO2 free (Low CO2) H2

Japan goes to CO2 free hydrogen toward 2030?
10BEV: What is the CO2 emission per kWh in 2030?
Nissan Leaf’s range
Model S, X, G: 40 kWh battery model: 400 km  10 km/kWh (best case)2015 CO2 emission from Grid

2030 CO2 emission from Grid

0.53 kg-CO2/kWh→ 53 g-CO2/km

Day time (fast) charring
0.37 kg-CO2/kWh 37 g-CO2/km

Night time charring
0 kg-CO2/kWh 0 g-CO2/kmBEVs: 2030 emission is 37 g-CO2/km (day) and 0 g-CO2/km (night)
11

CO2 reduction potential of BEV and FCEVs
CO2 Emission[g-CO2/km]
100
HEV (95)[offsite, SMR]

80

FCEV (78)60[gen. mix of 2015]

BEV (53)[gen. mixof 2030]

40

BEV (37)

20[CERTIFHY,-60% from SMR]FCEV (31)[onsite, PV]

FCEV (14)[nuclear (night),2030]

0200[Oversea CO2 free H2]

BEV (0)400
Toward this level, efforts bynational gov, local gov, andutilities are needed

FCEV (~0)

600

Range[km]Range[km]Toward this level, efforts byhydrogen industry areneeded

Hydrogen industry’s efforts to reduce CO2 is really needed.
12

3. Hydrogen Energy inEnergy Industries Sector(and Industries Sector)

German case: Integrated Energy Concept 2050
Install, more!

Generate, more!

Use, more! (in other sectors)

Toward green grid, they need to generate (green) electricity more!

German case: Roadmap for Electrolysis

The Grid needs electrolyze
installation of 250-500 MW/year

The Grid needs electrolyze
installation of 1-5 GW/year

Germany tries to scale up electrolyser industry.
15

Why they need to generate more?

Demand2050

Capacity [GW]

Capacity [GW]

Today

Renewables(VRE)

Renewables(VRE)

DemandFossil(flexible)

Renewables(VRE)

Fossil (flexible)
Time

Fossil(flexible)

Unusableelectricity
 hydrogen?
(to protectthe grid)

Fossil (flexible)

Renewables
(VRE)

Time

Source: Tehcnova

Toward green grid, they need to generate (green) electricity more!
16

Japan: How can we decarbonize the Grid?
Transformation of Energy system CO2 reduction by Hydrogen
Renewables
HydroNuclear

Fossil fuels: 18,052 PJ (91%)

1.23 bil ton-CO2/yr
CO2reduction

Electricity
Natural gas

Fossilfuels(fromoverseas)

CO2 free el.

• Decarburization of thermal
power plants by hydrogenfuel thermal generation• Energy storage byhydrogen to support RE

Coal
Transportation
CO2 free fuelElectricity

Heat & otherapplications

Transportation

OilEnergysecurity

Hydrogen applications

HydrogenCO2 free fuelSourceSectorHeat & otherapplications• Decarburization ofpassenger cars (LDVs),
which contribute 85% of
CO2 from the sector• Decarburization ofindustrial processes (e.g.
steel making, refineries)
and hydrogen-for-heatApplication
Source: METI (unofficial translation)

To decarbonize the Grid, hydrogen-fuel thermal generation is the key.
How about PtG?
17

Power-to-Gas: Same name, Different concept
Grid-scale Power-to-Gas

Non-Grid Power-to-Gas

Hydrogen conversion using
excess electricity in the Grid

Hydrogen conversion using
unfed electricity to the GridhydrohydroFossil

Operated byISO / TSO

Wind
PV

Power-to-Gas

Most of renewableelectricity can be fed
into the Grid.
Grid needs balancing technology(storage, conversion) Grid-scale Power-to-Gas(or Large scale Power-to-Gas)

Demands

NuclearDemands

NuclearFossil

WindPVPower-to-Gas

Operated byutility companies

Not all renewable electricity
can be fed into the Grid, due
to the limited capacity.

Unfed electricity (wasteenergy) can be converted intohydrogen.
 Non-Grid Power-to-Gas

US / Europe： Grid-scale Power-to-Gas (Large scale Power-to-Gas)
Japan: Non-Grid Power-to-Gas
18

Japan: all “Non-Grid Power-to-Gas”
Tomamae,
HokaidoNon-GridNamie,
Fukushima
Non-Grid

Yamanashi
Wakkanai,
Hokkaido

Non-Grid

Non-Grid

Yokohama
Non-GridSendai

Non-Grid19

FCH JU: mostly “Grid-scale Power-to-Gas”
DonQuichote

HyBalance
Gridconnected

Non-Grid
1.5MW Wind& 800kW PV

GrInHyGridconnected

H2FUTURE

Gridconnected

Demo4Grid
Gridconnected

REFHYNE

Gridconnected

20Non-grid PtG makes sense (case of Kyushu)
Generation profile on May 3, 2018 at Kyushu area
[mil kW]
1.2

Evening:- stop pumped hydro- Restart thermal power plants

Daytime:- Use pumped hydro- Resume flexible power plants

1.0

pumped hydro

0.8

0.6

0.4

PV: 6.2 mil kW(81% of demand)

ThermalRenewable total (after dark)
1.4 mil kW(16% of demand)

Renewable total
7.1 mil kW(93% of demand)

0.2

0 0 AM

6 AM

Noon6 PM

0 AM

Source: Kyushu Electric “九州本土における再生可能エネルギーの 出力制御について ” (unofficial translation)
http://www.meti.go.jp/shingikai/enecho/shoene_shinene/shin_energy/keito_wg/pdf/017_s01_00.pdf

How to cope with increasing generation from renewables?
21

Non-grid PtG makes sense (case of Kyushu)
Solution 1: Disconnect VRE

Solution 2: Energy storage (battery)

Solution 3: Flow to other area

Solution 4: Non-grid PtG
NuclearDemandshydroFossil

WindSource: Solution 1-3
Kyushu Electric “九州本土における再生可能エネルギーの 出力制御について ” (unofficial translation)
http://www.meti.go.jp/shingikai/enecho/shoene_shinene/shin_energy/keito_wg/pdf/017_s01_00.pdf

Operated byutility companies

PVPower-to-Gas

Non-grid PtG can be a solution for temporal unbalance of the Grid.
22

Japan goes to H2-from-renewables?
Toward a New Era of “Hope-Driven Economy":
Prime Minister's Keynote Speechat the World Economic Forum Annual Meeting(January 23, 2019)We must invite more and still more disruptive innovations before
it's too late. CO2, ladies and gentlemen, could well be the best
and most affordable resource for multiple uses. There is artificial
photosynthesis, for which a key discovery, one for photocatalysis,
was made by Akira Fujishima, a Japanese scientist.
An old technology of methanation is getting attention anew toremove CO2. It's time now to think about CCU, Carbon Capture
AND Utilization. Hydrogen, as both a primary source, and more
importantly, a carrier of energy, must become cheaper and moreeasily affordable. My government is aiming to reduce theproduction cost of hydrogen by at least 90 per cent by the year
2050, to make it cheaper than natural gas.
出所： Speeches and Statements by the Prime Minister
https://japan.kantei.go.jp/98_abe/statement/201901/_00003.html

Maybe large scale H2 import? Electrolysis?
(if electrolysis, it may change the world (Japan))23

Summary24

Summary For the meantime, Japan is focusing on Paris target(-26%).
 The largest emitters are energy industries sector, industries
sector and transportation sector. We need actions.
 For transportation sector, there may be competition
between BEVs and FCEVs. The decarburization ofhydrogen is the key.
 Japanese PtG (Non-Grid PtG) is different from European
PtG (Grid-scale PtG).
Sometimes, non-grid PtG makes sense. But how about thefuture of the Grid?
 PM’s speech may change the world (Japan)?

25

Backup26

Cost of Renewables: Germany and Japan -- PV
Power Generation Cost

CAPEX: Germany and Japan

LCOE

CAPEX
[EUR/kW]

2500-

Construction

2000-

PV
module1500-

Powerdevice

Construction

Connection
feeStandConnection fee
StandPower device

1000-

500-

PV module

Japan

GermanyJapan

BrazilUKTurkey

Germany

China

AustraliaIndia

USFrance

Source: Sumitomo Mitsui Banking Corporation
http://www.smbc.co.jp/hojin/report/investigationlecture/resources/
pdf/3_00_CRSDReport044.pdf

Source: Renewable Energy Institutehttps://www.renewable-ei.org/images/pdf/20160113/JREF_Japan_Germany_solarpower_costcomparison.pdf

Japan’s PV power station construction cost is much higher than Germany,
which pushes up the cost of power generation

Cost of Renewables: Germany and Japan -- Wind
Power Generation Cost

CAPEX: Germany and Japan

LCOE
CAPEX

Other cost(management /insurance / financing)EngineeringConnection fee
Electricalconstruction
Construction
Turbine moduleJapan

FranceBrazil

India

China

UK

Denmark

Spain

Germany

Australia

USGermanyJapan

Source: Renewable Energy Institutehttps://www.renewable-ei.org/activities/reports/img/20170614/20170614_JapanWindPowerCostReport.pdf

Source: Sumitomo Mitsui Banking Corporation
http://www.smbc.co.jp/hojin/report/investigationlecture/resources/pdf/3_00_CRSDReport044.pdf

Japan’s wind turbine construction cost is much higher than Germany,
which pushes up the cost of power generation.