IEEJ: January 2023 © IEEJ2023
IEEJ Energy Journal Special Issue January 2023

Development and Social Implementation ofDecarbonization Technologies to Contribute tothe Realization of Carbon Neutrality ◆Toshiyuki Sakamoto *Introduction
It goes without saying that it is necessary to mobilize various technologies to realize carbon
neutrality. According to IEA, with a view to achieving net-zero emissions by 2050, CO2 emissions
that needs to be reduced by 2030 can mostly be reduced through the technologies that have alreadybeen rolled out in the market. However, about half of the emission reductions required to be achievedby 2050 needs to be reduced further through technologies that are currently in the demonstration orprototyping phases. Our greatest challenge is how we can accelerate the development and social
implementation of decarbonization technologies.
The author of this paper served as the moderator for the First Session of the 7th IEEJ/APERCInternational Energy Symposium, where Japanese and American experts presented their opinions andengaged in a panel discussion on the topic “Development and Social Implementation ofDecarbonization Technologies to Contribute to the Realization of Carbon Neutrality”.I shall reflect
on these discussions in the following sections.

Renewable Energy, Hydrogen
Firstly, Dr. Shigeru Niki (Director General, Sustainable Energy Unit, Technology Strategy
Center (TSC), New Energy and Industrial Technology Development Organization (NEDO), Japan)
explained that if only existing technologies are used, the marginal abatement cost for reducing global
GHG emissions by 80% would be as enormous as approximately US$1,000/ t-CO2. Taking a different
angle from IEA’s analysis, he pointed out that it is possible to reduce the cost of emissions reduction
significantly by introducing more innovative technologies through discontinuous innovation; onother words, he emphasized the importance of technological development.
On top of that, Dr. Niki set out the following points concerning technologies related to renewableenergy: (1) solar power; (2) wind power; (3) geothermal energy; (4) electricity storage technologies;
and, (5) hydrogen.
(1) The cumulative installed capacity for solar power worldwide in 2020 exceeded 700GW, andannual installed capacity reached 112GW. As there is a limited amount of land suitable for theThe author is responsible for compiling this paper and summarizing the discussions of the First Session of the 7thIEEJ/APERC International Energy Symposium.
* Board Member, Director for Climate Change and Energy Efficiency Unit, The Institute of Energy Economics, Japan(IEEJ)◆- 3 -IEEJ: January 2023 © IEEJ2023
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installation of solar power facilities, there are high expectations for the development of newmodules that make it possible to install solar power panels on water, farmland, side-walls, andcars.
(2) The International Renewable Energy Agency (IRENA) predicts onshore and offshore wind
power generation capacities to reach 5,044GW and 1,000GW respectively by 2050. Japan’s
offshore wind power vision plans to realize offshore wind capacity of 10GW by 2030, and aims
to reduce power generation cost to 8-9 yen/kWh by 2030-2035.
(3) The adoption of geothermal energy is advancing at a pace of 400MW per year, but it now trends
to stagnate in Japan. If we could utilize supercritical geothermal energy resources in Japan, wewould be able to generate a projected scale of more than 100MW of electricity per region.
(4) Electricity storage technologies are vital in the adoption of variable renewable energy. Storage
batteries are suitable for short-cycle variations, while pumped storage generation and hydrogenare suitable for long-cycle variations.
(5) Hydrogen is an important technology in decarbonization as it enables the storage andtransportation of a large amount of energy over long distances. However, reducing the cost of
CO2-free hydrogen poses a challenge. To supply hydrogen cheaply, it is essential to lower thecost of mass production to begin with. Hence, one of our options is to produce hydrogen incountries with rich renewable energy resources, and then transport the hydrogen to Japan. Under
the current circumstances, there are various issues from the production of hydrogen to its
transportation and use. Costs need to be reduced in each area, with water electrolysis devices
being a representative example. It is also important to reduce the cost of renewable energy.

Nuclear PowerMr. John Kotek (Senior Vice President, Policy Development & Public Affairs, Nuclear Energy
Institute (NEI), United States of America) presented a report on the nuclear power technology trends
in the U.S. Of the total amount of power generated in the U.S. in 2021, 19% was generated by nuclear
power. Many power companies have established greenhouse gas reduction targets, and in addition toelectricity storage technologies and energy-saving, there is also a need for low-carbon power sourcesthat are cheap and stable. Hence, they are focusing on nuclear power as one of such potential energy
sources.
The Biden administration’s policy is to significantly increase the capacity of nuclear power
generation. Mr. Kotek introduced the Bipartisan Infrastructure Act, which covers a credit programfor nuclear power plants that are in operation as well as financial assistance toward advanced reactor
demonstrations, and the Build Back Better (BBB) Act, under which the government is reviewing tax
deductions for nuclear reactors and clean power generation. The BBB Act was later enacted as theInflation Reduction Act, which incorporates tax deductions for nuclear power generation (commencingin 2024 and ending in 2032, and allocation US$30 billion over a ten-year period). This can be
described as generous support, accounting for approximately 20% (US$160.3 billion over a ten-yearperiod) of the support needed to promote decarbonized power sources.

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Various types of nuclear reactors are now being developed in the U.S., including micro-reactors,
SMR, high-temperature gas reactors, liquid metal cooled reactors, and molten salt reactors, to namea few. Mr. Kotek introduced the following three examples of projects that are ongoing in the U.S.
(1) A sodium-cooled fast reactor is under development, with support from the Bipartisan
Infrastructure Act. Its output is 345MW, and is capable of reaching peak output of 500MW
through the storage of liquid sodium.
(2) The pebble-bed high-temperature gas reactor, which was selected for the Advanced Reactor
Demonstration Program (ARDP), can produce output of 80MW by using tri-structural isotropic(TRISO) particle fuel. It is anticipated to be a potential industrial heat source as it is operated athigh temperatures.
(3) NuScale’s pressurized water reactor is made up of 4 or 6 small modular reactors (SMRs) or 12SMRs, with each module producing an output of 77MW. The total output for 12 SMRs is924MW. It is possible to adjust total output quickly by adjusting the output of each module.
Furthermore, in order to utilize nuclear power and expand its use, including the aforementioned
new types of reactors, it is important to give investors a sense of security. There is also the issue of
how to attract financing, and the question of how to ensure the proper implementation of the final
disposal of nuclear waste cannot be ignored. Mr. Kotek explained that in introducing new types ofreactors, it is essential to develop technologies to make them even safer than existing reactors, andto present thorough explanations so that society can accept such new types of reactors.
Consumers and governments seek low-carbon electricity. Hence, there are growing expectationsof nuclear power generation that can supply clean electricity cheaply, and of nuclear power as asource of hydrogen and heat. In addition, the global market is also focusing on nuclear power fromthe perspective of energy security.
Last but not least, with regard to nuclear power and the need of reducing dependency on Russia
in the face of the Ukraine crisis, the U.S. also depends on Russia in some aspects of nuclear fuelsupply, such as resource production and fuel manufacturing. In this respect, Japan-U.S. cooperation
should be an effective countermeasure. Also, Europe’s nuclear power supply-chain somehow
depends on Russia, and the need to change suppliers is likely to emerge in the future. When that
happens, the Japanese and U.S. nuclear industries will be required to play an even greater role, andit will present a good opportunity for both countries.

Carbon Capture, Utilization and Storage (CCUS)
Mr. Yoshikazu Kobayashi (Senior Economist, Manager, CCUS Group, Fossil Energies &International Cooperation Unit, IEEJ, Japan) presented a report on Japan’s initiatives in the areas ofcarbon capture and utilization (CCU) for using CO2, and carbon capture and storage (CCS) for storing
CO2.

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Mr. Kobayashi explained the following points with regard to CCU.
(1) Among the various CCU methods, Japan is putting effort into carbon recycling, which involves
manufacturing products by chemically changing CO2. Carbon recycling technologies include
converting plastics and chemical fibers into raw materials, manufacturing of synthetic fuels
known as “e-fuels,” and mineralization to enable the absorption of CO2 into concrete or othermaterials.
(2) The government has announced its roadmap for carbon recycling technologies. By 2030, it will
promote the adoption of relatively cheap technologies that do not use hydrogen, such as
mineralization technology. By 2040, it aims to introduce technologies such as synthetic fuels,
which require high costs but are also highly effective in reducing emissions. To introduce thesetechnologies, the government will provide support by utilizing the Green Innovation Fund of 2
trillion yen. Carbon recycling products cost more for the same quality, so creating a market toevaluate their environmental value is an issue.
He explained the following points with regard to CCS.
(1) Japan stored 300,000 t-CO2 at Tomakomai in Hokkaido from 2016 to 2019. By 2024, it plans
to conduct demonstration experiments of transporting the CO2 generated by multiple domestic
coal-fired power generation plants by ship, and storing them.
(2) The government has also formulated a roadmap on CCS. It plans to commence the operation ofCCS by 2030 with a view to storing 120 – 240 million t-CO2 in 2050. To realize the full-scale
adoption of CCS, there is a need to establish laws and regulations concerning CCS. There is anincreasing number of CCS projects by individual corporations in Southeast Asia and Australia,
so there is also the prospect of transporting and storing CO2 overseas in the future.
(3) Concerning the social acceptance of CCS, it is important to encourage acceptance by thoroughly
explaining the importance of CCS. When doing so, it is also necessary to explain the vital needof CCS in order to fill the gap between the climate change targets and what can be achieved inpractical terms by building upon existing technologies. Also, regions where petrochemicalindustries have been the mainstay will lose their economic infrastructure for the future. By
reconsidering CCS as a green industry, however, they can potentially transform their economicbase, changing it to the CCUS industries.
Furthermore, Mr. Kobayashi explained the following points that CCU and CCS have in common.
(1) The Asia CCUS Network was established to share knowledge about CCUS, and it has built aninternational CCUS network comprising 13 national governments and more than 200 corporations.
To deploy CCS/CCUS technologies, we face the challenges of reducing costs, monitoringstorage, introducing measurement and verification systems, and securing storage locations inJapan.
(2) As for the question of where to capture CO2 from, it is important to prioritize and narrow downthe targets for carbon capture. If we were to regard CCUS as a last resort, it seems effective touse it in hard-to-abate industries. It is inefficient to introduce both CO2 capture and ammonia
co-firing in coal-fired thermal power, so it is likely that only one of the two will be adopted.

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Conclusion
While we could not cover all the technologies in this session, I think we were successful inholding in-depth discussions on renewable energy, hydrogen, nuclear power, and CCUS. With regard
to technological development, we can say across the board that there is a need to first explore thepotential of a wide range of technologies from a technology-neutral perspective, without trying invain to decide on the winner. In promoting new technologies, the predictability of investments is an
important point. Under the current circumstances, in order to promote hydrogen despite its high cost,
it is also necessary to put in place measures to reduce the risks to business operators, such as theContract for Difference (CfD) scheme implemented in the UK. In the U.S., in addition to thegovernment’s proactive stance toward nuclear power, the Congress has also demonstrated rare
bipartisan support, which in turn provides nuclear power developers with a sense of security. Even if
the Inflation Reduction Act included support measures for nuclear power generation, if there wereany risks of project cancellations due to changes in the administration, it seems highly unlikely thatany developers will decide to make huge investments in nuclear power. Furthermore, with regard to
new types of reactors and new technologies such as CCS, it is extremely important to ensure social
acceptance for promoting their widespread adoption.

Writer’s ProfileToshiyuki SakamotoMr. Sakamoto worked for policy planning and implementation on energy, climate change and industry competitivenessfor 30 years at the Ministry of Economy, Trade and Industry or METI, the Japanese Government. After leaving theMETI, he engaged in renewable and hydrogen energy businesses at two private companies, and thereafter wasappointed to the current position in June 2020.

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