October 4, 2023

Renewable Energy Use and Challenges
Promoting Offshore Wind Power Generation to Achieve Carbon Neutrality by 2050

Imai Masanori

Chairperson and Representative Director, Toda Corporation
Co-chair, Japan Climate Leaders’ Partnership (JCLP)
Vice President, National General Contractors Association of Japan

Profile Engaged in the construction industry for more than 40 years sincejoining今井雅則

Imai Masanori

Chairperson and Representative Director,
Toda Corporation- Career 1952 Born in Sakai, Osaka
1978 Completed the master's program inarchitecture, Graduate School ofEngineering, Osaka University
1978 Joined Toda Corporation2013 President & Representative Director
2021 Chairperson & Representative
Director

 Currently belongs to the following organizations and focuses on thedevelopment of the construction industry and the realization of acarbon-neutral society.
• Co-Chair, Japan Climate Leaders' Partnership (JCLP)• Vice-Chair, Eco-First Promotion Council• Chairperson, Japan Construction Occupational Safety and Health Association• Vice President, National General Contractors Association of Japan• Chairperson, the Associated General Contractors of Tokyo
 Engaged in floating offshore wind power generation business in 2007
and started commercial operation in 2015
→ Japan's first floating offshore wind power generation project started off
the coast of the Goto Islands in Nagasaki Prefecture Currently working towards the industrialization of floating offshore
wind power2

Challenges for the Sustainable
Development of Japan Economies①Government Debt

General Government Debt: GDP ratio

（％）
500

Baseline(Model calculation)% of GDP

400

300▍GDP ratio

It is important to know the total amount of debt
in relation to the size of the country’s economy(GDP), which is the source of tax revenue.
Japan's debt is more than twice GDP(Highest level among major developed countries)• When public debt exceeds 90% of GDP,economic growth declines by 1%• How to achieve 100% of GDP by 2060

Japan
200

100

0
2010

or
USA
UK

Consumption
tax rate
30% increase

In FY2060
Achieving 100% of GDP

China
2020

2030

2040

2050

Improvement in income
and expenditure of 14% of
GDP:70 trillion yen

2060 (year)

Utilization of natural energy
can be one of the tools to improve government debt and economic growth
CHART：prepared from WORLD ECONOMIC OUTLOOK（https://www.imf.org/external/datamapper/GGXWDG_NGDP@WEO/OEMDC/ADVEC/JPN/GBR?year=2028&yaxis=lin）

3

Challenges for the Sustainable
Development of Japan Economies② Decline in the Working Population andTight Demand for Human Resources▍Demand for Human Resources for GX（mil.)

25

The Demand for Human Resources of Japanto realize GX in 2030（MRI Estimate）(Mil.)
Labor ForceLabor Force Participation Rate
(Right Scale)increase

20
15
10Power Company
Increase of 35,000

Total

Increase demand
for CM due tothe decentralization of
power generation facilities

50(year)(Remarks) Actual for 2016. After 2020, calculated assuming labor force participation rates by sex and by 5-year age categories are same as in2016. (For ages 75 and older, the labor force participation rate for ages 75 and older in 2016 was used as that for ages 75-79; for ages 80 andolder was calculated as zero.).

Production
Transportation
Construction-25

Sales/Service-20

Clerical-15

Specialist-10

Management-5
decrease▍The Trend of Working Population

Automotive
industries
Decrease of 61,000

Decrease demand for
combustion engines
and parts
due to shift to EV

2020
About 64 million

40%
reduction

2065

About 40million▍Countermeasures: Improvement of work style, operational efficiency and productivity（by IT・DX etc.）
 Necessity for high productive industries that contribute to CN Necessity for shifting human resources across industries and companies
Source 1: Mitsubishi Research Institute (MRI) MRI estimates based on the energy supply-demand model and the "2015 Input-Output Table for Analyzing Next-Generation Energy Systems," Waseda University, Smart Society Technology
Integration Research Organization, and Institute for Economic Analysis of Next-Generation Science and Technology
Source 2: Compiled by Mizuho Research Institute from Ministry of Economy, Trade and Industry Annual Report on Labor Force Survey (2016) and National Institute of Population and Social Security Research "Japan's Future Population
Trends" (April 2017 estimate).

4Proposal to Solvethe Problem

Japan Wind Resources and Energy Demand

Japan Primary Energy Status and Wind Power Reserves (2021)

Renewable 1.32 EJ
Hydroelectric 0.73 EJ
Coal

Nuclear 0.55 EJ

Work Rate (GW)

Energy amount (EJ/Year)参考）10べき乗の接頭語(Ref.)
Prefixes of powers of 10

Floating type29.0 EJ： 1018倍E E（エクサ）(Exa) : 1018 times： 1015倍P P（ペタ）(peta) : 1015 times： 1012倍T T（テラ）(Tera) : 1012 times： 109倍
GG（ギガ）(Giga): 109 times

106倍MM（メガ）(mega) : 106 ：times

4.80 EJ
Natural gas

3.73 EJ
Oil

OnshoreLanding 1.82 EJ

Primary Energy
Consumption in Japan 2021

Wind power availability inJapan (capacity utilization: 50%)

17.74 EJ/y33.1 EJ/y

Total

OffshoreWind Resource
29.0 EJ/yJapan's wind resources have a potential of about 1.8 times its energy demand➡ Improve the energy balance and establish energy security!
[References] [1] bp Statistical Review of World Energy 2022 [2] World Energy Transition Statistics Electricity: percentage of electricity in total final energy consumption[3] Percentage of electricity in primary energy (electrification rate), Japan Atomic Energy Relations Organization [4] Compiled by Mitsubishi Research Institute, Inc. based on Ministry of Economy’s Trade and Industry Energy White Paper 2019
and Comprehensive Energy Statistics. [5] Ministry of the Environment. Renewable Energy Potential System [REPOS]. (Online) June 22, 2020. (Cited on March 24, 2022.) [6] IEA. [6] IEA. Offshore Wind Outlook 2019.(Online) IEA, November
2019. (Cited December 21, 2020.)

5

Specific Proposal
Mass Production and Installation of Offshore Wind Powerto Solve the Problem in Japan
NEAR SHORE（～60km）
Shallow water

30 TWh1,141 units(10MW)
Fixed-baseMore than twice
the total power
consumption of Japan

Deep water

84,539 units
Floating 10MW
【Types of Offshore Wind Turbines】

Mono-pile

2,223 TWh

Gravity

Shallow water
Water depth

10 ～ 60 ｍ

EEZ of JapanTOTAL POTENTIAL（～300km）
Shallow water

43 TWhContiguous

1,636 units(10MW)
Fixed-baseMore than 1.8 times
primary energy of Japan(4.9 trillion kWh)

Deep water

9,031 TWh343,645 units
Floating 10MW

Source：IEA 2019
JacketTerritorial

Berge

Semi-subSpar

Extended Shelf

Exclusive Economic Zone

Floating offshore wind turbines
are needed that can be
mass-produced and installed

Deep water
60 ｍ or morePower generation potential (annual)

43TWh

9,031TWh

Equivalent number of 10MW machinesthat can be installed

1,636 pcs.

343,645 pcs.

100 ｍ or more
Floating Complex

Floating offshore wind power can be mass-produced, installed and it can be the main source of primary energy.

Build large-scale industries with high productivity and establish energy security

6Future design
2050

A World of Green Energy to Achieve CN in 2050

Large Scale
Offshore Wind Farm

Industry Scale：18.4 trillion yen/y, 368 trillion / 20 years（1,000GW・7yen/kWh）Wind power
Offshore fix-baseOnshoreSolar
Wind Farm Area

Water

Recover Ocean Plastic

Form Fish Reef

Geothermal

For a total of 1,000 GW,

cover 53.6% of primary energy of Japan：（1,000 GW = 2,628 TWh：capacity utilization rate = 30%）

OthersFloating Complex
7

Many Issues
to be Solved

Challenges for Large Scale Floating Offshore Wind Power Project▶ Acquisition, Development and Production of Wind Power Generators▶ Offshore expansion of Wind Power→Floating complex (Installation of Mega Float)▶ Formulation of Marine Spatial Planning▶ Survey of EEZ▶ Infrastructure Development (Power Grids and Ports)▶ Fisheries Promotion and Biodiversity : Consideration for the Environment

Many Issues to be Solved
toward Achieving CN by 2050
8

Issue 1
Acquisition, Development and Production of Wind Turbines (Countermeasures)
Countermeasure １

Developing, Manufacturing and Maintaining Wind Power Generators all over Japan[List of issues】▶ ① Acquisition, development
and production of wind turbines▶ ② Offshore expansion of wind
power
Floating complex(Installation of mega-floats)▶ ③Formulation of Marine Spatial
Planning Attracting domestic manufacturing bases for large parts such as blades, towers
and nacelle assemblies ―including licensed production
 Restructuring of domestic supply chains (expansion of exportable parts)
 Start design and development of wind power generators focusing on Japan's EEZ
 Several years of development term and tens of billions of yen in development costs
are required for formation building and mass production.
 Fix and declare medium- to long-term equipment introduction plans to increase thewillingness of Japanese companies to participate
 Entering overseas markets with low-cost and high-quality energy by our own
unique advanced technologies

Countermeasure 2

Procure overseas products until developing Japan Products Develop business scenarios that increase the sales motivation of global suppliers
and procure immediate requirements
 Enhance local contents available to global suppliers Develop infrastructure environment for pre-assembly, commissioning, installation,and maintenance during transportation and on floating－reducing supply risk for
global supplies) Replace sequentially domestic wind turbines with high-performance and low cost9Issue 1
Acquisition, Development and Production of Wind Turbines (Larger Wind Turbines)
Production Ended～ 8MW

TOKYO Tower
333 m 350 m

Order Received
8 ～ 11 MW

Enlargement

300 m
250 m

2018-2020 2020-2026

200 m
150 m
100 m

-2022

2022-2024

Underdevelopment
20MW

On orders
12 ～ 15 MW

2030-

2023-2025

2024-

2024-

2025-

2012-2019

50 m
0m

Power
（MW）

2.1

3.6

8.0

8.0

10.0

11.0

12.0 - 12.6

14.0 - 15.0

15.0

20.0

HITACHI

Siemens

VestasSiemens

VestasSiemens

GE

Siemens

Vestas(predicted)

Model

HTW2.1-80

SWT3.6-120

V164-8.0

SG8-167

V174-10.0

SG11-200

Haliade-x

SG15-236

V236-15.0

Rotor
Diameter
（m）

80

120

164

167

174

200

222

222 – 236

236

340

Height
（ｍ）

110

150

194

197

204

230

252

252 – 266

266

370

Hub
Height
（ｍ）

70

90

112

113.5

117

130

141

141 – 148

148

200

Maker

10

Issue 2
Offshore Expansion of Wind Power : Idea of Floating Complex[List of issues】▶ ① Acquisition, development andproduction of wind turbines▶ ② Offshore expansion ofwind power
Floating complex(Installation of Mega-Floats)▶ ③Formulation of Marine Spatial
Planning

Use of Floating Complex
 Manufacturing and Maintenance Base for Floating Offshore Wind Turbines
Set up manufacturing and maintenance base in offshore wind setting area
 Mooring Base
• For fuel cell ships and hydrogen ships etc.
• Power supply station for sailing ships (like a gas station at sea)
 Seawater Purification Base－Environmental Preservation• Use of shellfish such as farmed oysters, scallops, pearl oyster and others（Aproximately 400 liters of seawater is filtered per day by one oyster）
Reference：Ministry of Agriculture（https://www.jfa.maff.go.jp/j/kikaku/tamenteki/kaisetu/gyogyou_katudou/） Hydrogen Production and Storage Plants• Electrolysis of seawater by generated electricity－green hydrogen• Storage of generated hydrogen and oxygen

Floating Complex

 Marine Surveillance and Defense Systems• Restrict on ships of other countries that sailing territorial waters and contiguous
zones
11

Issue3
Formulation of Marine Spatial Planning (MSP)[List of issues】▶ ① Acquisition, development andproduction of wind turbines▶ ② Offshore expansion of wind
power
Floating complex(Installation of mega-floats)▶ ③Formulation of Marine
Spatial Planning (MSP)

How can we proceed with discussions and “agree” on how to use the sea in a way thateveryone can follow in the future? What should we pay attention to in this process?
The "Marine Spatial Plan“ [1] provides a standard path to follow.
 Designate area for Offshore Wind Farms and Floating Complex• For offshore wind power to be established as an industry, predictability in planning is important• Designation of large areas requires prior agreement on how the area will be used.
• Designation of sea areas on a project-by-project basis does not allow for predictability, andthere is a risk of backtracking.
 Creation of MSP• Requires open, all-participating consensus.
• It takes a long time to make MSP with agreement of many stakeholders (in 10-year increments)• We need to start right now and investigation on the current situation is going on.
MDA Situational Indication Linkages (MSIL) https://www.msil.go.jp/msil/Htm/TopWindow.html

 Continuous Review of MSP• It must be continuously reviewed in accordance with changes in social conditions even if a plan
has been created once.
ex) The ban of fishing in wind farm area ➡ prohibit only windmill perimeter Establishment of Special Offshore Wind Zone
• To promote GX, it’s necessary to build large-scale offshore wind farms without waiting for theestablishment of MSP⇒ Need to establish special offshore wind farm zones
in parallel with the preparation of the MSP[Reference] [1]Guidelines for the Consensus Building Process on Ocean Use
https://www.oa.u-tokyo.ac.jp/program/images/cbm.guideline.pdf

Ocean Alliance – University of Tokyo

12

Example in EU ※*Data presented by Isabella at a conference organized by the Renewable Energy Foundation

Source: Excerpts from "Unleashing Japan's Offshore Wind Potential: Focusing on the Use of Offshore Areas and Human
Resource Development," Japan Renewable Energy Foundation （https://www.renewable-ei.org/activities/events/20230620.php）

13

TODA Corporation’s
Approach

2007

2008

1/100 scale
1/20 scale
Two-dimensional tank Deep-sea tank experimentexperiment(Maritime Research(Kyoto University)
Institute of Technology
and Safety)

2014(Demonstration of Floating Offshore Power Generation)

2009

2010

1/10 scale
field experiment(Sasebo City,
Nagasaki Prefecture)

Entrusted
Ministry of the Environment
Demonstration Project(Off the coast ofKabashima, Goto City)

demonstration model
moved to offshore
Sakiyama

Ministry of the Environment
project completed Transferred toGoto City
Start of power generation business

2015

2016

Semi-submersible spud stand (float raiser)

2011

2012

2013

Small-scaletesting equipment
installed(1/2 scale, 100kW)

demonstration model
installed(2000kW)

Semi-submersible spud barge(Float Raiser)
multifunctional ship completed
2017

2018

2019

2020

Designated as
promotion zone wind farmbusiness operator(16.8MW)

Proceeding
construction

2021

2023

multifunction ship14

Toda Corporation's Approach (Proprietary Technology: Hybrid Spar Features)
 Simple Structure

Contributes to standardization, Mass Production and low cost Can be built on quays with low ground bearing capacity
The weight per unit area is reduced by lying on its side

 Stability

Reduces the influence of waves and wind direction

 Low-Cost Design

Using comparatively cheap concrete and steel. Utilize the mechanical properties of each Construction at Local Companies

Steel parts are made by ironworks and shipyards in Nagasaki
Concrete parts are made by company in Goto City by standardizing structure
Q1. What is the scale of wind turbine?
2,000 kW（enough for about 1,800 households)
Q2.What do you do with the generated electricity?
Connected to the power system of Kyushu Electric Power and supply to residents ofFukue Island and Goto City.
Q3. How many tons does one windmill weigh?
About 3,500 ton. (Stable by ballast material(about 1,400 ton) inside the main body
Q4. Will the windmill collapse? What to do for a typhoon?
Like “Roly-Poly Toy”, it is designed to get up and return to its original state whenever.
When a typhoon come and exceed the predetermined wind speed, it parry the wind bystopping the rotation of rotor.
15

Start to Work on to
Solve the Problem

Introduce of Joint Research Chair
for Offshore Wind System Integration

Subject & Solution
R&D

Development and integration of elemental technologies required for theindustrialization and social implementation of offshore wind power
Driving force to create a new offshore wind industry in Japan-------Offshore Wind System Integration▶Wind turbine local factory & Supply chain▶Larger size, mass production, and lower cost of floating structure▶Surveys of wind and sea conditions in the EEZ▶Surveys on possible installation areas and mooring methods in the EEZ▶Development of power grid conversion to fuel, storage and transportation▶Development of floating manufacturing plants and maintenance bases▶Energy management in remote islands▶Measures for biodiversity and environment, utilization of marine space

Workshops andCollaborative research

Work on for industrializing offshore wind power
withvarious
By Kinoshita
design corporation, research institutes and universities

Laboratory (University of Osaka)

16

Joint Research Chair for
Offshore Wind System Integration

The future of Japan pioneered by the sea.
Challenging energy that has not yet been seen.