Special Feature

Merging of Ecology andAchieving Sustainable Growth
Sustainable Growth

in a Low-Carbon Society
Growing calls for a transition to a low-carbon society on a global scale—Tokyo Gas is working to contribute to the transition to a low-carbon society
and to achieve sustained growth. To those ends, we are developing the
integrated energy business, with natural gas at its core.
Outlook for a Low-Carbon Society and the Growth Potential of Tokyo Gas
Social Demand for Realization of Low-Carbon Society
Key Points• Global target—Reduce CO2 emissions by 50% by 2050 from the1990 level• Domestic target—By 2050, reduce CO2 emissions by 80% from the 1990 level• Demand for natural gas—Forecast of 34% growth on global basis in comparison with 2005
Due to economic growth in emerging countries, energy demand is steadily increasing, andinitiatives to mitigate climate change have become a vitally important issue, not just forJapan but on a global scale. There is an ongoing search for energy with low CO2 emissions,such as nuclear power and renewable energy, but there remain a number of significant challenges, including construction leadtime and limit of supply amount

IEA Blue Map Scenario: 50% reduction in CO2 emissions by 2050

issues. In this setting, natural gas is

Billion tons

widely considered to be the source of60

Baseline CO2 emissions in 2050: 62 billion tons
CCS

energy that can make the most realistic and effective contribution to the

Clean energy, etc.

50

measures. Heating accounts for the
majority of energy demand, and thecertain to expand. Moreover, throughcogeneration systems and other tech-

40

30

20

nologies, natural gas will also play amore important role with theadvanced use of energy, including
electricity. Natural gas also has a keyrole in the International Energy
Agency (IEA) scenario calling for CO2
emissions to be reduced by 50%
by 2050.

12Special Feature

100Blue Map Scenario: 14 billion tons
(50% reduction in emissions in 2050)

Energy saving

use of natural gas to provide heat is

CO2 emissions

promotion of global warming counter-Industry and transformation
Power generation
Nuclear power
Renewable energy (solar power,
wind power, biomass fuel, etc.)
Power generation
efficiency & fuel switching
End-use fuel switching
End-use electricity efficiency
End-use fuel efficiency

Necessary reduction: 48 billion tons
Reduction potential of technology
under Blue Map Scenario

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Annually: 32 additional 1,000MW-class nuclear power plants, about 17,000
4MW-class wind power plants, addition of CCS to 35 500MW-classcoal-fired power plants.
Source: IEA Energy Technology Perspective 2008

Clean Energy, Natural Gas
Key Point• Natural gas: Lower lifecycle and combustion CO2 emissions than any other fossil fuelMethane, the primary ingredient of natural gas, has fewer carbon

Comparison of Emissions (Coal = 100)

atoms per molecule than other fossil fuels, such as petroleum or

CO2coal. As a result, the combustion of natural gas generates less
CO2 than the combustion of other fossil fuels. That is one reason80

why natural gas is a clean form of energy. Another is that CO2
which entails the gasification and caloric adjustment of LNG. And

100

Coal

Oil

60

emissions are also low during the city gas production process,

NOX

70

SOX

100

Coal

70

40 OilNatural Gas

0Natural Gas

100

Coal

Oil

Natural Gas

with pipelines connecting terminals and end-use regions, the city
gas supply infrastructure features extremely low energy loss during transmission. As a result,even when considering the entire lifecycle impact, it is clear that natural gas is an extremely
environmentally friendly form of energy.

High-Growth Market
Key Points• Largest economic region in Japan, accounting for about 40% of GDP• Only domestic region expected to enjoy continued population inflow
The service area of Tokyo Gas is centered on the Kanto region.

Breakdown of GDP of Japan by Major Area

This region has the highest concentration of energy demand in(Year ended March 31, 2008)

Japan, and industrial demand is expected to lead to continued

39.2

market growth in the years ahead. The Kanto region, in turn, iscentered on Tokyo, which boasts one of the largest economies ofany city in the world. In fact, the Kanto region alone accounts forabout 40% of Japan’s GDP. Overall, Japan’s population is declining, but Kanto is the only one region in Japan that is expected toenjoy a continued population inflow. Leveraging the geographicaladvantages of a large plain, we are aggressively extending pipe-

10.1

15.6

Total: ¥520.3 trillion

lines to outlying industrial areas. We are also building a new LNG

39.2% Tokyo area: Tokyo, Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, Gunma,
Yamanashi, and Nagano prefectures

terminal, the Hitachi LNG Terminal, in northeast Kanto. In these

15.6% Osaka area: Osaka, Hyogo, Kyoto, Shiga, Nara, and Wakayama prefectures
10.1% Nagoya area: Aichi, Gifu, and Mie prefectures

ways, we are preparing to meet further demand growth.

Source: Cabinet Office, Government of Japan

Aiming for Further Growth
Key Points• Gas sales volume in the fiscal year ending March 31, 2014 up by 18% from the fiscal year ended March 31, 2009
• Target of reducing customer CO2 emissions by 4.5 million tons by 2020
Aiming to increase the value added of natural gas and to support

Outlook for Gas Sales Volume and Number of Customers

growth in its use, Tokyo Gas is implementing a medium-term

Billion m3, 45MJ/m3

management plan with the theme of “evolution and advance-

18

11.5

12

11.0

6

10.5

Millions

ment of integrated energy business.”
To accelerate business development, we will draw on ourstrengths—environmentally friendly natural gas, a high growthbusiness area, and our engineering capabilities. In these endeavors, we will give consideration to expanding the shift from otherfuels to natural gas; taking steps to foster advanced use of natural gas, such as stepping up the introduction of cogeneration
systems; and establishing next-generation energy systems,
such as smart energy networks. In these ways, we will strive tocontribute to society’s transition to a low-carbon society and toachieve sustained growth for the Company.

0

09/3

10/3

11/3

(Results)
Gas sales volume (left)

12/3

13/3

14/3

10.0

(Outlook)
Residential
Industrial

Commercial and others
Wholesale

Number of customers (right)

TOKYO GAS ANNUAL REPORT 201013

Feature 1
Fuel Switching and the Introduction of High-Efficiency Equipment
Energy Savings and CO2 Emission Reductions
from Fuel Switching
Natural gas is widely used in industry for such applications asheating, heat processing, drying, food processing, and air
conditioning. Industrial furnaces and boilers consume large
amounts of fuel, and the switch from heavy oil or kerosene tolow-environmental burden natural gas, combined with the
installation of high-efficiency equipment, is one of the mosteffective means of combating the problem of global warming.
Specifically, Tokyo Gas provides its industrial customers witha wide range of optimal systems, such as gas engines, gas
turbines, steam-turbine cogeneration systems, and boilers.
In particular, the introduction of regenerative burner systems in industrial furnaces facilitates both extremely high fuelRegenerative Burner System
This system efficiently recovers the high-temperature exhaust gas
from industrial furnaces and uses it to preheat the air utilized for
combustion. This system is drawing attention as an effectivemeans to save energy and reduce CO2 emissions.

efficiency and low NOx emissions, and in conjunction with aswitch to natural gas, these systems can make possible reductions of up to 50% in energy consumption and up to 55% in
CO2 emissions. The combination of regenerative burner sys-

CO2 Reduction Effect from Using Natural Gas
for Industrial Furnaces

CO2
Emissions100

tems and a switch to natural gas is drawing attention as ahighly effective environmental countermeasure in this field.

Expanding Gas Usage with Marketing that
Leverages Comprehensive Strengths from theCustomer’s Perspective

Effect of converting to natural gas(Converting from coal, oil, etc., to natural gas)

–25%

Tokyo Gas has high-level engineering skills that it acquired in
the development of its integrated energy business. In addition, the Company has the ability to propose total service

Total
–55%

Heavy oil A + Conventional burner

75

Natural gas + Conventional burner

solutions incorporating facility optimization and maintenance.
In today’s market, customer needs are not only increasing
but also growing more advanced and diverse, and by provid-

Effect of higher efficiency(Introduction of high-efficiency equipment
at the time of fuel conversion)–30%

ing high-value-added solutions that respond to these needs,
Tokyo Gas will strive to meet customer expectations,45

steadily seize growth opportunities, and contribute to the

Natural gas + High-efficiency burner

realization of a low-carbon society.

Provision of Value to Customers in Line with Facility Life Cycle

Understanding of the latest customer
needs / demands

Consultation utilizing technical /engineering capabilities• Proposal of optimal energy usage• Proposals utilizing energy-saving / newenergy-usage technologies• Finance services• Further sophistication in the safety ofgas appliances

14

Special Feature

Facility renewal

Needs / Demands

Proposal

Realizing
solutions tocustomerdemands

System selection
Design /Installation

Deepening
Ties with
Customers

Operation /MaintenanceOperational support / maintenance inline with customer demands• Monitoring of energy-saving diagnoses• Provision of operation / management
services• Risk management• Safety services (strengthening of
periodic gas facility safety checks)

Case Study: Furukawa Sky
Aluminum Corp., Fukaya Plant
LPG to Natural Gas—
The First Step in the Fuel Switch“It wasn’t simple at first.” That was the recollection ofOsamu Kawakami, a key member of the project team. The

From left: Kazuhiko Kobayashi (Tokyo Gas); Hiroyuki Fukui,
Osamu Kawakami, and Wataru Shiobara (Furukawa Sky Aluminum)

switch to natural gas at the Fukaya Plant of Furukawa Sky
replacement of the LPG facilities. At that time, there was no

Heavy Oil to Natural Gas—
Moving Ahead with a Full-Scale Fuel Switch

difference in the price of LPG and natural gas. Even though

In 2004, Furukawa Sky Aluminum began to implement a

there were no substantial cost advantages, however, Furu-

full-scale fuel switch at a melting furnace that had beenkawa Sky Aluminum decided to make the switch because

using heavy oil. Today, the fuel switch process has been

the company was committed to the introduction of clean

completed smoothly at seven melting furnaces. In addition,energy. “We wanted to pave the way for a switch fromregenerative burners have been introduced.

Aluminum, which got underway in 2003, began with theheavy oil in the future. However, there were challenging“We are seeing the effects in reduced energy consump-issues, such as installing pipelines over a considerable dis-tion and in lower CO2 emissions. Of course, the switch

tance and converting facilities to natural gas firing.” Tokyo

from heavy oil, which is subject to dramatic price fluctua-

Gas sent 450 engineers, and with Tokyo Gas and thetions, also has substantial cost advantages,” said general

Fukaya Plant working closely together, the switchover frommanager Hiroyuki Fukui. Osamu Kawakami and Wataru

LPG was completed in only a year, including the pipeline

Shiobara both reported that “the exhaust is cleaner, withinstallation.

decreases in SOx, from the sulfur in the heavy oil, as wellas in particulate emissions. In addition, the natural gas facilities are simpler, making maintenance and management
easier. There has been very little trouble.”
The company reports that cleaner exhaust gas is also
contributing to improved relationships with the local community. Tokyo Gas is proud to have been able to work
together on this with Furukawa Sky Aluminum, its valued
customer.

Principal gas facilities that were introduced•	Aluminum melting furnace•	Soaking furnace, heating
furnace• Heat treatment furnace• Steam boiler

Results
Progress in switch to natural gas:
80% of total fuel consumption
CO2 emission reduction:
30% reduction from previous level
Energy saving:
10% to 30% reduction from previous level
Aluminum Melting Furnace

Furukawa Sky Aluminum, Fukaya Plant
Furukawa Sky Aluminum, Japan’s leading maker of aluminum products, is moving ahead
with environmental initiatives targeting energy saving and CO 2 emission reductions,centered on a switch to natural gas and the introduction of high-efficiency equipment.
The Fukaya Plant is leading the way forward in those endeavors.

TOKYO GAS ANNUAL REPORT 201015

Feature 2
Solutions Services Centered on Natural Gas
The Environmental Friendliness of
Natural Gas Cogeneration Systems
As society pursues measures to reduce energy consump-

Comparison of Total Energy Efficiency
Conventional system*1
Primary energy (coal, petroleum, natural gas, etc.)tion and reduce CO2 emissions, the ideas of dispersed
power generation and waste heat usage through cogeneration systems will play a central role.
Unlike large-scale power generation systems, where theelectricity is transmitted over considerable distances to the

Thermalpower plant
Electricity 40

100

demand district, with cogeneration systems there is notransmission loss because the power is generated where it
is used. Moreover, power generation also creates heat,
which has generally been wasted because it was difficult to56

4

Difficult-to-use
waste heat

Total loss
(on-site use, transmission /distribution loss, etc.)

Natural gas cogeneration system*2
Primary energy (natural gas)use. With cogeneration systems, however, this waste heatcan be used effectively to meet heat demand, such as forheating and cooling as well as for hot water. Consequently,
these systems realize high energy efficiency and make it

LNG tank

City gas
Electricity 40
Heat usage 30

100

30

possible to reduce CO2 emissions by about 40% in compari-

Difficult-to-use
waste heatson with conventional systems. As of the end of March
2010, there were 1,948 cogeneration systems in operationin our service area, with a total power generation capacityof 1,534,000 kW (commercial use: 1,621 systems, 521,000
kW; industrial use: 327 systems, 1,012,000 kW).

More-Advanced Use and Area-Wide /Networked Energy Services
To further advance the use of environmentally friendly natural gas, Tokyo Gas will strive to introduce area-wide / networked energy usage and build optimized energy systems

Gas engine /gas turbine / fuel cell, etc.

*1	L HV standard (LHV = lower heating value: the amount of heat from the
combustion of the fuel, not including the latent heat of water vapor
condensation) The heat efficiency and total loss from thermal power plants
is calculated from the results of 9 electric power companies and electricity
wholesale companies for fiscal 2003 (Energy Efficiency Standards
Subcommittee of the Advisory Committee on Energy and Natural
Resources, September 2005)*2	Efficiency of natural gas cogeneration systems is an example using the
LHV standard.

Diagram of a District Heating and Cooling System
Hospital

Office building
Energy plantat the local community level. One example of these initiatives is district heating and cooling, in which Tokyo Gas has

Commercial
facilities

a history of more than 35 years. These systems contributeto lower energy consumption and reduce CO2 emissions
for an entire district. Currently, the use of these systems iscentered on redevelopment areas, such as Makuhari andHotel

Shinjuku.
Tokyo Gas does much more than just supply facilities
and energy. We are advancing energy service operations
and ESCO (energy service company) operations, which pro-

Economic Benefits of ESCO Operations

vide comprehensive support for reducing energy consump-

Benefits
to customers

tion, such as the necessary technology, human resources,
and financial resources. By increasing convenience andenhancing cost merits for customers, we will work to

ESCO
service charge

Utility bills

Benefits
to customers

promote the spread of natural gas.
Guarantee by
ESCO operators
Prior toimplementation of
ESCO operations

16

Special Feature

Utility bills

Utility bills

Duringimplementation of
ESCO operations

After
conclusion of
ESCO operations

Case Study:
Mitsui Memorial Hospital
Commemorating the Hospital’s 100th
Anniversary, Transitioning to Comfortable,
Economical, Environmentally Friendly Energy
Services on Behalf of Customers
Mitsui Memorial Hospital faced a problem with outdated
power facilities. To further enhance the hospital’s healthcare services by increasing the use of IT in hospital administration and introducing the latest sophisticated medical

Mitsui Memorial Hospital
The Mitsui Memorial Hospital was established in 1906.
This central hospital takes a comprehensive approach toequipment, additional power was needed. This was one
reason the hospital decided to rebuild its facilities. Dr. Toru
Mannen, who was honorary director at the time, said,

the provision of health care services that meet community
needs and are based on the patient’s perspective.

“More than anything else, we felt it was important toimprove the amenities for our patients.” He noted, “ForIn 2008, the first system was installed in the in-patient

example, patients are taken to the operating room wearing

wing. This system will also supply electricity, cold water,

only a single robe, so air conditioning is extremely impor-and steam to the outpatient wing, which is scheduled fortant. To achieve both a stable energy supply and enhanced

completion in 2010. This area-wide usage will further

amenities, we needed to switch to an efficient system that

increase efficiency, and we anticipate substantial reductions

did not waste energy.”

in energy consumption and CO2 emissions.

To meet these needs, Tokyo Gas provided energy services with a good balance across all areas, including cost,environmental friendliness, and comfort. Yutaka Kobayashi,

Effect of Introducing Energy Systemfrom the hospital’s Construction Department, said, “Withhospital administration costs increasing, we wanted toreduce energy costs as much as possible. That’s why we100%
Prior tointroduction

focused on the energy services of Tokyo Gas.” “Gas cogen-100%
Prior tointroduction

92.8%
After
introduction

88.5%
After
introduction

eration systems are the most efficient, and have an extensive track record. What’s more, they are environmentallyfriendly because they use waste heat. That’s why we chosenatural gas.”

Primary energy consumption

CO2 emissions volume

System Overview
City gas

Gas sales

Cold waterGas cogeneration system
Waste heat
hot water

Gas absorption hot and cold waterequipment that uses waste heat

Hot water

Gas absorption hot and cold water unit
Screw refrigeration machine
High-efficiency, small-size,
once-through steam boiler
Commercial
electric power
Fuel company

Electric power
Heavy fuel oil A

Power receiving andtransformer facilities
Oil tank

Emergency electric
power generator

Heat
exchanger
Heat
exchanger
Heat
exchanger

Steam

CoolingHeating

Steam

Hot water supply

High-voltage line

Electric power

Overview of New Energy Services
By combining the latest optimal systems, centered on gas cogeneration systems, high levels of cost savings and environmental
friendliness are achieved. We work to offer the optimal mix, including forms of energy other than gas for use in emergencies.
Now, the hospital can continue to provide health care services even in the event of a disaster.

TOKYO GAS ANNUAL REPORT 201017

Feature 3
Dialogue: Tokyo Gas and the Transition to a Low-Carbon Society
by about 25%. And in most cases, when the fuelis changed, high-efficiency equipment is installedat the same time, so reductions of up to 50%
can be achieved. That’s why we’re seeing a rapid
increase in the number of customers that wantto switch to natural gas, especially large industrial companies.
Nakagami

Does Tokyo Gas have the infrastruc-ture needed to handle that increase?
Maeda

Our pipeline network covers the Tokyo

metropolitan area, so we are basically ready inTokyo. But in the greater Kanto area, there arestill some regions where natural gas isn’t used

“ENE-FARM” residential fuel cellThis is a fuel cell cogeneration system that generates electricity from achemical reaction between hydrogen, which is separated from city gas,
and atmospheric oxygen. The waste heat from that process is used for
hot water and indoor heating.

because of a lack of pipeline infrastructure. We
consider it part of our mission to facilitate theuse of natural gas in those areas.
The first step we are going to take in that

Hidetoshi Nakagami, President of the Jyukankyo ResearchInstitute Inc., which is active in energy and environmental
issues, met with Tadaaki Maeda, Vice Chairman of Tokyo Gas.
They discussed the importance of natural gas in an energy
policy that targets the development of a low-carbon society
and the role that Tokyo Gas will play in the years ahead.

direction is to build the Hitachi LNG Terminal andput in a pipeline to northern Kanto. Now we aremoving ahead with the conversion to natural gas,principally in industrial areas. In outlying areas,
meanwhile, we plan on making full use of trucks
and coastal shipping to support growth in the

The Importance of Natural Gas

use of natural gas.

“Japan needs to consider a comprehensive energy policythat includes a shift to natural gas.”

Increasingly Sophisticated Use of Natural Gas

Nakagami This year, the Japanese government has“Technology can be used to resolve environmental problems without sacrificing comfortable lifestyles, with afocus on technologies that integrate cogeneration andrenewable energy with natural gas.”

revised the Basic Energy Plan, which outlines the overall

Maeda

direction of Japan’s energy policy. As you know, natural gas

opinions about environmental problems from the consum-

plays a key role in global warming countermeasures in

er’s point of view. What are your thoughts about energy

Europe and the United States, but the position of naturalsaving and environmental problems in housing-related areas,

gas in Japan has not been as clear in past years. Recently,

your field of specialty?

Maeda First, I would like to hear your thoughts about therole of natural gas in future energy policy.

For many years, you have analyzed and offeredhowever, there have been comprehensive deliberations on
a wide range of topics, including energy security, and as a

Nakagami

result, there is a renewed appreciation of the importance ofJapan lags far behind in the use of heat in housing. Indoora shift to natural gas.

heating is a good example. Overseas, central heating is a

In comparison with many other countries,

basic housing amenity, but in Japan individual room heating

18

Maeda Nuclear power and renewable energy have been

is still predominant. This is in contrast to hot water heating,drawing a lot of attention as ways to control CO2 emissions,which was centralized at a very early stage in Japan. Before

but a shift to natural gas is still seen as the most realistica move to central heating got underway, the global warm-and effective policy. Even with just a simple shift in fueling problem became a focus of attention. Consequently,

from oil to natural gas, it is possible to cut CO2 emissions

there was a point of view that we should reduce energy

Special Featureusage volume before

gas appliances. With renewable energy, such as solar

making qualitative

power generation and solar heating, output is unstable

improvements in indoor

due to fluctuations in natural conditions, while city gas

heating.

appliances can be counted on to work any time. Examplesof that compatibility include double power generation,

Hidetoshi Nakagami

Maeda

President, Jyukankyo
Research Institute Inc.

improvements in hous-

SOLAMO, where we combine solar-powered water heaters

ing have almostand high-efficiency, latent-heat-recovery water heaters.

Founded Jyukankyo ResearchInstitute in 1973. Is widely active
in such fields as energy and global

Qualitative

become sacrifices,haven’t they?

environmental issues as a leader
in energy-related problems,
especially in the field of housing.

which combines fuel cells and solar power generation, andNakagami

The times are certainly changing, aren’t they?

Consumers want to live environmentally friendly lifestyles,
NakagamiThat’sbut in many cases they don’t really know how to do so. As

Member of a number of advisory

right. If more progresssuch, it is very user friendly of Tokyo Gas to contact cus-councils. Serves as Chairperson,

had been made in cen-

tomers and offer them integrated systems. I believe cus-

Energy Efficiency and Conserva-

tral heating, we could

tomers want the Company to take the initiative in providing

Committee for Natural Resources

have realized healthier,integrated energy services.

and Energy, Ministry of Economy,

more comfortable life-

Trade and Industry. Professor,

styles, especially withMaeda

the aging of society,ing city gas to their customers on a continual basis, andand then discussed

they have close ties to local communities. As a result, thetion Subcommittee, AdvisoryTokyo Institute of Technology.

Gas companies have the responsibility of provid-

environmental problems. Moving forward, to improve envi-

customers in those communities trust the gas companies. I

ronmental friendliness while simultaneously providing

think we need to build on those relationships of trust. In addi-

highly functional housing, we will need to make effectivetion to services, suchuse of the heat that has been wasted at the point of poweras supplying gas, gas

generation. And that role will likely be filled by fuel cells andcompanies also need toother cogeneration systems. The rapid spread of thosefoster the spread oftechnologies should lead to the development of more com-

new systems by meet-fortable lifestyles.

ing customer needs inour role as suppliers of

Maeda Last year, we finally commercialized fuel cells forgas appliances.

the residential market, and their use has begun to spread.
At this point, they are only available for detached housing,but we are now moving ahead with the development of

Smart Energy
Networks

the next-generation model will resolve some of those“These issues extend
beyond electricity;
we need to build integrated networks thatincorporate heat. And
we need an open business model.”issues, right?

Maeda

products for multiple dwelling units (MDUs).
Nakagami There are numerous MDUs in the Tokyo Gas
service area, aren’t there? I understand that the installationof these units in MDUs poses some challenges, such as
space limitations and restrictive installation conditions, but

Tadaaki Maeda
Director, Vice Chairman,
Tokyo Gas
Joined company in 1970. Has
principally been in charge of technological and planning divisions.
Became executive vice president
in 2006, and assumed current
position in April 2010.

In Europe andthe United States, they are currently searching for ways to
Maeda Yes. We are also working on the development

move toward smart energy networks, such as the use ofof high-efficiency fuel cells, such as solid oxide fuel cells,

smart grids. What are your thoughts about this trend?

and on systems incorporating renewable energy. That’s aresult of our growing understanding of the extremely highNakagami I think the key points here are establishinglevel of compatibility between renewable energy and city

information networks that can handle real time demand-side

TOKYO GAS ANNUAL REPORT 201019

Feature 3
Dialogue: Tokyo Gas and the Transition to a Low-Carbon Society
information and working to optimize the demand–supply bal-systems, it will be possible to make further substantial

ance as much as possible. That is true for Japan, too, where

gains toward a low-carbon society. There is a need for poli-

the supply-side systems are extremely precise, but, surpris-cies coordinated with urban planning.

ingly, the systems can’t handle demand-side information.
Generally, the United States has taken the lead in pro-

Nakagami

In the past, with energy supply systems,

moting the idea of smart grids, so these grids are often

bigger meant more efficient. Now, however, when heatassociated with electricity networks, but it is necessary to

is used, overall energy efficiency can be raised by using

think about handling heat as well. In that sense, the term

combinations of smaller dispersed systems.

“smart energy network” is an extremely good way of thinking about this issue, and I hope it catches on. For example,

Maeda

the district heating and cooling system that we have seenties. A good example is Shinjuku, where a district heating

today is really an extremely large heat network. If it is com-and cooling system has been introduced. To make the mostbined with other systems, there will be whole range ofof these areas in the future, I think there is a need for ainteresting possibilities.

framework supporting the optimization of energy usage in

Large redevelopment areas present real opportuni-

that area. At that time, perhaps we will see the emergence
Maeda The majority of energy demand is accounted forof a new business model. For example, something like an

by heat, so the idea of a smart energy network that fosters

energy network operator could handle overall coordination

optimization, including not just electricity but also heat, is an

including electricity and heat, rather than having an electricidea whose time has come. For example, if renewable

power company handle everything on its own. Currently,

energy is introduced on a large scale and output fluctuation

we are working to deepen energy services, but in theadjustments are handled just with conventional, centralized

future I would like the Company to try these new types

power generation, then facilities costs will expand and heat-of businesses.

related optimization won’t be possible. For that reason, weare hearing calls for the “smart” control of heat and electric-

Toward a Hydrogen Society

ity through dispersed power sources, such as cogeneration,“When we move beyond a low-carbon society and onto ahydrogen society, the effectiveness of natural gas will
come into play to an even greater extent.”

even in Europe and the United States.
In some urban areas, there are limited places whererenewable energy is used, but if advances are made in

Maeda

heat networks that effectively utilize unused energy, suchbeyond the low-carbon society, what do you think about theas waste heat from garbage incinerators and cogeneration

possibilities of hydrogen?

From an extremely long-term perspective, looking

Smart Energy Network
Photovoltaic power
generation facilities

Large-scale cogeneration

Solar heatcollection facilities

GE

District heating andcooling facilities, etc.

Photovoltaic power
generation facilitiesGE
GE GEGE

Controlmanagement
system<Wide area>
Electric power interchange, etc.
Solar heatcollection facilities

Heat conduit
Heat use

Photovoltaic power
generation facilities

Information and telecommunications network<Specified area>
Heat interchange, etc.

Smart Energy Network
control management system

Factory

Commercial
building

Heat use

GE
GE
Solar heatcollection facilities

20

Special Feature

Cogeneration
systemElectric power network

Heat use

GE
Heat use

Large-scale redevelopment area

Nakagami Hydrogen is an extremely
clean form of energy, but it also poses
many challenges. Nonetheless, the technical challenges are likely to be overcome atsome point, so I believe that hydrogen has
strong potential over the long term.
The strengths of hydrogen can really beleveraged in fuel cells. It is true that there
are some problems with supply infrastructure, but fuel cell cars are also amazing.
Maeda In the Kanto region, we havemore than 100 filling stations for compressed natural gas (CNG) vehicles. If theuse of fuel cell cars expands to a certain
extent, the conversion of these CNG filling
stations to hydrogen filling stations would
not be all that difficult.
Nakagami You have a long-term road

The Shinjuku District Heating andCooling Center supplies indoor
heating and cooling to the Shinjuku
Shin-Toshin district.
Condensing turbine / turbo chiller
system with the world’s largest
capacity in a single unit.

map, and you’re making steady preparations, is that correct?

value chain, and securing long-term stable supplies of natural gas. In addition, they will lead to many possibilities in the

Maeda Yes. For now, the most efficient way to produce

future.

hydrogen is from natural gas, and we have the technology
to separate and collect CO2 in an efficient manner. In other

Expanding Overseas

words, this is both hydrogen production technology andsimultaneous CO2 separation technology. By collecting and“There is a need to develop superior technologies inemerging countries as well.”storing the CO2, it is possible to achieve zero emissions.

Maeda

Nakagami So this is technology that doesn’t emit CO2?

Nakagami

You should make sure that more people know about this.

introduction of systems like smart energy networks in

Finally, Tokyo Gas would like to ask your advice.
I believe there is a need for frameworks for the

emerging countries. Emerging countries are about to start
Maeda If we reach the point where hydrogen is used on abuilding various networks, and if they use the mostlarge scale in Japan, then hydrogen will be produced fromadvanced technology, they will be able to build amazing net-natural gas at gas fields, and the CO2 that is separated off inworks that are not seen even in developed countries. Tokyo

the production process will be sequestered back into theGas has extremely innovative next-generation technologies,

gas fields. At the same time, the pressure from the seques-so I would like to see you provide know-how and human

tration will further increase the efficiency with which natural

resources in this field.

gas can be extracted, so a virtuous cycle will be created, I
believe.

Maeda

We are receiving requests from overseas for tech-nical cooperation and investment. We would like to makeNakagami That’s quite interesting. If you are thinking

contributions overseas as well in a variety of ways, not only

about doing that, then upstream operations will be impor-in expanding the entire LNG value chain but also in fosteringtant, right?

the spread of smart energy networks.

Maeda That’s right. Upstream operations will be under-

Nakagamitaken with the principal objective of bolstering the LNG

in the future.

I look forward to seeing what you accomplish

TOKYO GAS ANNUAL REPORT 201021