APEC Sectoral Symposia on theHolistic Approach of Decarbonization
for Energy Transition
APEC Energy Working Group
June 2024

APEC Sectoral Symposia on theHolistic Approach of Decarbonization
for Energy Transition
APEC Symposium on Pursuing Decarbonization of Fossil Fuels
11-12 October 2023
Kobe City, Hyogo, JapanAPEC Symposium on Promoting Energy Efficiency andEnergy Management System
23-24 January 2024
Tokyo, JapanAPEC Energy Working Group

June 2024

APEC Project: EWG 03 2022S

Produced by
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Website: www.apec.org© 2024 APEC Secretariat
APEC#224-RE-04.5

Table of Contents
1. Background............................................................................................................... 4
2. Objectives ................................................................................................................. 4
3. Symposium Methodology .......................................................................................... 4
4. Participating Economies and Organizations .............................................................. 5
5. Description ................................................................................................................ 6
6. Summary of Symposium ........................................................................................... 7
6-1. Pursuing Decarbonization of Fossil Fuels (Kobe) ............................................... 7
6-1-1. Session 1: Opening Session ........................................................................ 7a) Opening Remarks .......................................................................................... 7b) Keynote Speech: Necessity of Decarbonization of Fossil Fuels for Carbon
Neutrality ............................................................................................................ 8
6-1-2. Session 2: Hydrogen ................................................................................... 9a) Energy Transition and Green Hydrogen in Chile ............................................ 9b) Gentari’s Venture into Hydrogen Production Projects in Malaysia and Overseas......................................................................................................................... 10c) Development of Global Supply Chain by LOHC-MCH method ..................... 11d) Towards the Realization of International Liquefied Hydrogen Supply Chain . 12e) Analysis of Current and Future Hydrogen Production and Utilization in the
United States.................................................................................................... 12f) Q&A and Discussions.................................................................................... 14
6-1-3. Session 3: Fuel Ammonia .......................................................................... 17a) Fuel Ammonia Production from Fossil Fuels ................................................ 17b) Fuel Ammonia Power Generation and Building Supply Chain ...................... 17c) EMSA Study Potential of Ammonia as Fuel in Shipping ................................ 18d) Q&A and Discussions ................................................................................... 19
6-1-4. Session 4: Carbon Capture, Utilization and Storage (CCUS) ..................... 20a) CCUS in Japan ............................................................................................ 20b) CCUS in Australia ........................................................................................ 21c) Carbon Capture, Utilization and Storage in China ........................................ 22d) CCUS in ASEAN: Recent Developments in Indonesia ................................. 22e) Q&A and Discussions ................................................................................... 23
6-1-5. Session 5: Direct Carbon Capture (DAC)................................................... 26a) Research and Development for DAC in Japan ............................................. 26b) Commercial-scale Direct Air Capture............................................................ 26c) Q&A and Discussions ................................................................................... 271

6-1-6. Session 6: Closing Remarks ...................................................................... 30
6-1-7. Site Visits - Day2 (12 October) .................................................................. 30
6-2. Promoting Energy Efficiency and Energy Management System (Tokyo) ........... 31
6-2-1. Session 1:Opening Session ....................................................................... 31a) Opening Remarks ........................................................................................ 31b) Keynote Speech:The Evolution of Energy Efficiency Policy to Support Clean
Energy Transition in Japan ............................................................................... 32c) Keynote Speech:The Key to an Energy Resilient APEC: Energy Efficiency andEnergy Management ........................................................................................ 32
6-2-2. Session 2:Energy Efficiency in Building ..................................................... 34a) Improving Energy Efficiency in Buildings in Hong Kong, China .................... 34b) Modeling the US buildings energy efficiency ................................................ 35c) Energy Efficiency of Buildings in Australia .................................................... 36d) Japan’s Path for Carbon Neutrality and the Role of Energy Efficiency in
Buildings .......................................................................................................... 38e) Q&A and Discussions ................................................................................... 39
6-2-3. Session 3:Energy Efficiency in Transport ................................................... 42a) Improving Energy Efficiency in Transport Sector of Singapore ..................... 42b) Improving Energy Efficiency in Transport in Malaysia ................................... 43c) Improving Energy Efficiency in Transport in the Philippines .......................... 44d) Achievement and Potential of Multi-Pathway Approach in Road Transport
Sector -Japan's Experience .............................................................................. 46e) Q&A and Discussions ................................................................................... 48
6-2-4. Session 4:Energy Efficiency in Industry ..................................................... 50a) Improving Energy Efficiency in Industry in Chinese Taipei ............................ 50b) Improving Energy Efficiency in Industry in Korea.......................................... 51c) Improving Energy Efficiency in Industry in Thailand ...................................... 52d) Improving Energy Efficiency in Industry in Japan ......................................... 53e) Q&A and Discussions ................................................................................... 55
6-2-5. Session 5:Energy Management System and Smart City ............................ 57a) APEC Low-Carbon Model Town (LCMT) Project .......................................... 57b) Energy Management System and Smart Cities: Current Situation and its Futurein the Philippines .............................................................................................. 58c) Implementation of Energy Management System on Campus Buildings inIndonesia ......................................................................................................... 59d) Q&A and Discussions ................................................................................... 602

6-2-6. Session 6: Closing Remarks ...................................................................... 61
6-2-7. Site Visit - Day2 (24 January) .................................................................... 61
7. Symposium Analysis ............................................................................................... 62
8. Appendix ................................................................................................................. 66
8-1. Agenda ............................................................................................................. 66
8-2. Presentation Materials...................................................................................... 72

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1. BackgroundIn energy transitions, there is no “single best solution” for achieving carbon neutrality or“net-zero”, as each APEC economy has different economic and social structures, andgeographical situations. Asia Pacific Energy Research Centre (APERC) strongly
believes that various, pragmatic and sustainable decarbonization pathways, that reflect
the different circumstances of each economy, are essential to achieving the energy
transitions.
To facilitate these transitions, it is beneficial to share knowledge and experience among
member economies. For that purpose, APERC organized the symposia as an APEC
project under the auspices of Japan’s Ministry of Economy, Trade and Industry (METI).
2. Objectives
Our objective is to provide vital information on decarbonization of fossil fuel use andenergy efficiency and energy management system, and to share experience and insights
on these issues so that voluntary and engaged APEC economies will be better prepared
to realize various, pragmatic, and sustainable energy transitions while pursuingdecarbonization towards carbon neutrality.
3. Symposium Methodology
The two in-person sectoral symposia were held as a follow-up to the APEC Symposiumon Holistic Approaches to Decarbonization Towards Carbon Neutrality in 2021 to further
discuss two issues, which are important elements of that holistic approach. One is thedecarbonization of fossil fuel use including Hydrogen, Ammonia and Carbon Capture,
Usage and Storage (CCUS), and the other is energy efficiency and energy management
system.
Date

Theme

Place

11 and 12 OctoberPursuing Decarbonization of

Kobe City, Hyogo

2023

Fossil Fuels

Prefecture, Japan

23 and 24 January

Promoting Energy Efficiency and Tokyo, Japan

2024

Energy Management System

The symposia invited speakers from a wide range of experts, including government,
private company, academia, and research institutions, to share their knowledge andexperience through the theme presentations and discussions:4

・Evaluation of Current Status and How to Promote Development and Deployment on
Hydrogen, Fuel Ammonia, CCUS, and Direct Carbon Capture (DAC).
・Energy Efficiency in Building, Transport, : Current Situation and Room for further
improvement.
・Energy Efficiency in Industry: Additional Potential for Achieving Carbon Neutrality in
APEC.
・Energy Management System and Smart City: Current Situation and Room for further
improvement.
4. Participating Economies and Organizations
A total of 114 individuals attended the two symposia, including speakers and participantsfrom 17 APEC economies and one non-member economy: Australia; Canada; Chile;
China; Hong Kong, China; Indonesia; Japan; Korea; Malaysia; New Zealand; Papua New
Guinea; the Philippines; Singapore; Chinese Taipei; Thailand; the US; Viet Nam andPortugal.
•

Government officials from energy agencies involved in formulating policies,
programs and measures for various, pragmatic and sustainable energy transitions
and decarbonization: Department of Climate Change, Energy, the Environment andWater (Australia), Ministry of Energy (Chile), National Energy Administration (China),
Electrical and Mechanical Services Department, Government of the Hong Kong,
China, Ministry of Energy and Mineral Resources (Indonesia), Ministry of Economy,
Trade and Industry (Japan), Ministry of Trade, Industry and Energy (Korea), Ministryof Natural Resources, Environment and Climate Change (Malaysia), Ministry ofEnergy Transition and Public Utilities (Malaysia), Energy Commission of Malaysia,
Ministry of Business, Innovation and Employment (New Zealand), National Energy
Authority (Papua New Guinea), Department of Energy (the Philippines), Ministry of
Economic Affairs (Chinese Taipei),

Ministry of Energy (Thailand), Department ofEnergy (the US) , and Ministry of Industry and Trade (Viet Nam).
Symposium on Pursuing Decarbonization of Fossil Fuels in Kobe•

Representatives of clean energy solution company, integrated engineering andcontractor,

engineering

manufacturer,

power

generationcompany,steel

manufacturer implementing decarbonization technologies and measures: Carbon
Engineering (Canada), Chiyoda Corporation (Japan), Kawasaki Heavy Industries,
5Ltd (Japan), JERA Co, Inc (Japan), Kobe Steel, Ltd (Japan) and Gentari Hydrogen
Sdn Bhd (Malaysia).
•

Research institutes and academia, and others involved in R&D activities for CCUS
and DAC technologies, as well as other research activities: CO2CRC Limited(Australia), Chinese Society for Environmental Sciences (China), PetroChina
Planning and Engineering Institute (China), National Research and Innovation
Agency (BRIN) (Indonesia), Institute of Applied Energy (Japan), Research Instituteof Innovative Technology for the Earth (Japan), University of Tokyo (Japan), Instituteof Energy Economics, Japan, Argonne National Laboratory (the US), European
Maritime Safety Agency (Portugal) , and Asia Pacific Energy Research Centre.

•

Representatives of relevant organization with interest in the topic: The Global CCS
Institute (Japan), and Department New Energy and Industrial Technology
Development Organization (Japan).

Symposium on Promoting Energy Efficiency and Energy Management System
in Tokyo•

Representative of EV provider charging infrastructure: Green EV Charge Sdn Bhd(Malaysia)•

Research institutes and academia involved in energy efficiency and energy
management system, as well as other research activities: Commonwealth Scientificand Industrial Research Organisation (Australia), China National Institute ofStandardization (China), Universitas Gadjah Mada (Indonesia), Japan Automobile
Manufacturers Association, Inc (Japan), Energy Conservation Center, Japan,
Institute of Energy Economics, Japan, Korea Energy Economics Institute (Korea),
University of the Philippines, National University of Singapore, Industrial Technology
Research Institute (Chinese Taipei), and Institute of Regional Sustainable
Development (Viet Nam).

5. Description
APEC Symposium on Pursuing Decarbonization of Fossil Fuels was held on 11 and 12
October 2023 in Kobe City, Hyogo, Japan. The two-day symposium consisted of thefollowing four parts:I) Opening Session included opening remarks and keynote speech.
II) Presentations and Panel Discussions on various topics regarding carbon neutrality
from experts and related Q&A.
6III) Closing Remarks
IV) Site Visits: Kawasaki Heavy Industries, Ltd, Kobe Steel, Ltd, and Mitsubishi Heavy
Industries, Ltd Takasago Machinery WorksAPEC Symposium on Promoting Energy Efficiency and Energy Management System
was held on 23 and 24 January 2024 in Shinagawa, Tokyo. The two-day symposium
consisted of the following four parts:I) Opening Session included opening remarks and keynote speech.
II) Presentations on various topics regarding energy efficiency and energy management
system from experts and related Q&A.
III) Closing Remarks
IV) Site Visit (Half a day): Tokyo Denki University
The agenda and presentation materials are included in the Appendices.
6. Summary of Symposium
6-1. Pursuing Decarbonization of Fossil Fuels (Kobe)
6-1-1. Session 1: Opening Sessiona) Opening Remarks
Dr Kazutomo Irie (President, Asia Pacific Energy Research Centre (APERC))
Key points
・Welcomed participants and explained the background & objectives of the symposium.
・Emphasized the importance of the energy transition and decarbonization of fossil fuels
and sharing knowledge and experiences among APEC economies.
Summary
Dr Irie welcomed all participants and explained the background and objectives of thesymposium. This symposium aims to follow up on the APEC Symposium on Holistic
Approach of Decarbonization towards Carbon Neutrality held online in August of 2021
which highlighted the importance of holistic approach to decarbonization in path carbon
neutrality.
In energy transition there is no single best solution for achieving carbon neutrality or net
zero as each APEC economy has different economic and social structure, andgeographically situations.
7

Emphasized that various pragmatic and sustainable decarbonization pathways whichreflect the different the circumstances of each economy essential to achieving successfulenergy transitions to facilitate these transitions it is beneficial to share knowledge,
experience among member economies.
As a holistic approach inevitably covers various issues, a series of sectorial symposium
is necessary to deepen our understanding in each sector.
APERC intend to start the sectorial symposium series last year but extend it because of
the COVID-19 pandemic ring out. As a first topic of the symposium series, picked up
decarbonization fossil fuels.
b) Keynote Speech: Necessity of Decarbonization of Fossil Fuels for Carbon
Neutrality
Ms Reiko Eda (Director for Natural Resources and Energy Research, International
Affairs Division, Agency for Natural Resources and Energy, Ministry of Economy, Tradeand Industry (METI), Japan)
Key points
・ Highlighted the common goals of net zero emissions through various pathways
according to circumstances of each economy and the need to utilize all kind oftechnologies energy sources including energy conservation, renewable energy,hydrogen, ammonia, nuclear power, CCUS, and carbon recycling.
・Described Japan’s aims to invest approximately USD1 trillion in green transformation
over the next 10 years in both public and private sectors, including green
transformation (GX) economic transition bonds.
・Emphasized Japan’s plan to contribute to decarbonization of Asian economies underthe Asia Zero Emissions Community (AZEC) platform.
Summary
Ms Eda explained that facing the un-precedented energy crisis, we are expected tocombat climate change and to promote energy security while also growing our
economies, and it is important to aim common goals of net zero emissions throughvarious pathways according to circumstances each economy. Emphasized thatimportance of utilizing all kind of technologies energy sources including energy
conservation, renewable energy, hydrogen, ammonia, nuclear power, CCUS, and carbon
recycling. Japan introduced GX economic transition bonds, which will provide bold
upfront investment of JPY20 trillion, equivalent to USD140 billion in the innovations
8

needed to decarbonize their economy. Through this, the Japanese government will
promote energy conservation, development of floating offshore wind power, Perovskite
solar cells, and innovative technologies for hydrogen reduction steel making. Japan aims
to invest JPY150 trillion, equivalent to USD1 trillion in the GX sector over the next 10
years in both public and private sectors including the use of economic transition bonds.
Japan is working with other Asian economies to decarbonize Asia under the Asia Zero
Emissions Community (AZEC) platform. The AZEC Public-Private invest forum
announced the 28MOUs in a wide range of decarbonization sectors, including renewableenergy, biomass, hydrogen, ammonia, and LNG. In this way, Japan hopes to take theleading role to contribute decarbonization not only domestically but for the entire APEC
region.
6-1-2. Session 2: Hydrogena) Energy Transition and Green Hydrogen in Chile
Mr Alex Santander Guerra (Head of Division, Energy and Environmental Policy andStudies Division, Ministry of Energy, Chile)
Key points
・With its abundant renewable resources Chile positions itself as future green hydrogen
exporter.
・The Chilean Government is working on the Green Hydrogen Action Plan 2023-2030
which is planned for release in November 2023
Summary
To achieve the CN (Carbon Neutrality) goal by 2050, Chile has released several midterm (2030) policies and has set mid-term goals, such as 80% renewable electricity by
2030, 2GW energy storage by 2030, etc. Given the economy’s abundant renewable
resources, solar in the north and wind in the south, Chile has positioned itself as a major
green hydrogen supplier in the future. Green hydrogen will also play a significant role inlocal energy supply, expected to contribute 24% of Chile’s greenhouse gas emissions
reduction by 2050.
To facilitate the economy’s green hydrogen development, the Chilean government hasdeveloped and published the National Green Hydrogen Strategy in 2020, in which there
are several goals such as 5GW electrolyzer capacity by 2025 and 25GW by 2030, greenhydrogen production cost lower than USD1.5/kg by 2030, etc. The Green Hydrogen
9Strategy has two action plan windows, Action Plan 2020-2023, and Action Plan 20232030. In Chile green hydrogen policies are overseen by an Inter-Ministerial Council,
chaired by the Ministry of Energy and involves several public agencies that related togreen hydrogen project development. The latest green hydrogen policy development inChile is drafting of the Green Hydrogen Action Plan 2023-2030, which also involves
consultation through citizen workshops, interaction with groups from different politicalbackgrounds, as well as getting feedback from private companies. The preliminary
version of the Green Hydrogen Action Plan 2023-2030 is supposed to be released in
November 2023, and after the public consultation process the action plan will be finalized
within the first quarter of 2024.
b) Gentari’s Venture into Hydrogen Production Projects in Malaysia and Overseas
Mr Awadh Asyraf Bin Supri (Head of Marketing & Sales, Far East & Australia
Gentari Hydrogen Sdn Bhd, Malaysia)
Key points
・Gentari, the clean energy solutions arm of PETRONAS, focuses on clean energy witha global target of renewable energy (30-40GW) and Hydrogen (up to 1.2 million tons)
as well as Green Mobility (10% market share in select markets) by 2030.
・The company is developing mainly export-scale clean hydrogen projects (includinghydrogen carriers, such as ammonia) in Canada; India; Malaysia, and is looking togrow its business in Australia; Chile; Europe; the US; and Oman while cooperatingwith various Japanese companies.
Summary
Gentari, though is a subsidiary of Petronas, is an independent entity focuses fully on
clean energy. The company is targeting 30-40GW renewable energy portfolio and up to
1.2 tons per year clean hydrogen production by 2030. The Malaysian Government has
released the Hydrogen Economy and Technology Roadmap in October 2023. Gentari isdeveloping both blue and green hydrogen and ammonia in Malaysia utilizing existing
facilities and infrastructures. The company also has clean hydrogen and ammonia
project development in Canada and India. Gentari sees Australia; Chile; and the US as
promising clean hydrogen suppliers in the future.
Gentari has several cooperation with Japanese companies, for example, joint studies
with IHI Corporation for ammonia co-firing and with ENEOS for MCH in West Malaysia,
blue ammonia project development with Itochu Corporation in Canada, and e-methane10

projects with Tokyo Gas and Osaka Gas separately in East Malaysia. Key learnings fromthe company’s business activities include: importance of government support
mechanisms at the early stage, strategic partnerships over the entire supply chain to
improve economic factors, roadmap with practical deployment plans.
c) Development of Global Supply Chain by LOHC-MCH method
Mr Yuji Chishima (Group Leader of Business Development, Hydrogen Business
Department, Chiyoda Corporation, Japan)
Key points
・The major advantage of using Methylcyclohexane(MCH) as hydrogen carrier is thatexisting infrastructure and logistic facilities can be utilized.
・Chiyoda has started R&D on Liquid Organic Hydrogen Carriers (LOHC)-MCH systemsince 2002 and has a hydrogen supply chain demonstration project of Brunei
Darussalam and Japan and other projects in Rotterdam Port.
Summary
There are several carriers for long distance hydrogen transportation. Each carrier has its
advantages and disadvantages. Chiyoda’s SPERA technology uses LOHC-MCH ashydrogen carrier. Chiyoda has started R&D on LOHC-MCH system since 2002. The
LOHC-MCH system includes hydrogenation process at the production side, which issynthesis of MCH with hydrogen and toluene, and dehydrogenation process at thedemand side, which is taking hydrogen out from MCH. The toluene from thedehydrogenation process can be transported back to the production side and be reused.
Chiyoda’s key proprietary technology is the development of catalyst used in thedehydrogenation process.
MCH’s property is similar to gasoline and can be shipped using existing tankers.
Regulations for the handling of MCH is already in place. Chiyoda is a central member inthe Advanced Hydrogen Energy Chain and Association for Technology Development(AHEAD) and the international hydrogen supply chain demonstration project, shippinghydrogen from Brunei Darussalam to Japan using MCH system. First cargo of the project
has arrived in Japan. Chiyoda is also taking out R&Ds to further reduce the cost andcarbon footprint of the MCH system, including direct MCH synthesis at the production
end, and integration of dehydrogenation with applications that generate heat such as gas
turbine, Direct Reduced Iron (DRI), or Solid Oxide Fuel Cell (SOFC) to utilize the recycled
heat from the application. Besides the AHEAD demonstration project, Chiyoda is also
11

working on hydrogen transportation using MCH system in Singapore and Europe (Portof Rotterdam) etc.
d) Towards the Realization of International Liquefied Hydrogen Supply Chain
Mr Shintaro Onishi (Senior Staff Officer, Section 3, Business Development Department,
Project Group, Hydrogen Strategy Division, Kawasaki Heavy Industries, Ltd, Japan)
Key points
・ Kawasaki Heavy Industries focuses on using liquefied hydrogen as a hydrogentransportation carrier and has a liquefied hydrogen supply chain demonstration project
between Australia and Japan.
・The company plans to start the first commercial liquefied hydrogen supply chain by
2030 and scaling up the supply facilities is the main challenge.
Summary
Kawasaki Heavy Industries (KHI) has developed technologies over the entire hydrogen
supply chain, from hydrogen production, to transportation, storage, and utilization. For
hydrogen transportation and storage, KHI focuses on liquefied hydrogen, utilizing thecompany’s long-time experience on LNG. KHI is a major member of the Australia-Japanliquefied hydrogen transportation pilot project (HySTRA (CO2-free Hydrogen Energy
Supply-chain Technology Research Association)). Under the pilot project, a prototype ofliquefied hydrogen ship has been built and has carried liquefied hydrogen from Australia
to Japan. At the receiving terminal at Kobe in Japan facilities such as liquefied hydrogenloading arms and storage tank have been built.
For the next stage, scaling up the facilities is the main challenge and main task forliquefied hydrogen supply. KHI, together with its partners, is working on building
commercial scale liquefied hydrogen supply chain and has been supported from thegovernment’s Green Innovation Fund for key technology development. The company
plans to start the first commercial liquefied hydrogen supply chain by 2030 and once thefeasibility and economic viability is proved, building more supply chains in the future.
e) Analysis of Current and Future Hydrogen Production and Utilization in the
United States
Dr Amgad Elgowainy (Senior Scientist, Distinguished Fellow, and Group Leader,
Energy Systems and Infrastructure Analysis, Argonne National Laboratory, the US)

12

Key points
・Hydrogen (grey) production in the US is about 10 million tons per year. Most of the
US’s hydrogen production and usage is in the Gulf region.
・ Argonne’s hydrogen carbon footprint assessment model finds out that hydrogenproduced from electrolysis using renewable electricity has the lowest carbon intensityfrom well-to-gate.
・Results from the economic evaluation model suggest that for the hydrogen applications
to be competitive, hydrogen supply cost need to be USD1-2/kg-H2.
Summary
Hydrogen (grey) production in the US nowadays is about 10 million tons per year, mostof which is used for oil refinery and ammonia production. Approximately half of hydrogenproduction is in the Gulf area of the US. Under the Bipartisan Infrastructure Law, several
clean hydrogen hubs are to be selected and government will provide subsidies forhydrogen supply chain development at the hubs. Production of hydrogen in the hubs
including not only renewable hydrogen but also fossil-fuel based hydrogen with CCS andhydrogen from nuclear power. Benchmark for clean hydrogen in the US is less than 4kgCO2/kg-H2. In 2022, the Inflation Reduction Law gives clean hydrogen producers up to
USD3/kg-H2 incentive for hydrogen carbon intensity below 0.45kg-CO2/kg-H2.
Argonne’s the Greenhouse Gases, Regulated Emissions, and Energy Use inTransportation (GREET) model is used to quantify the carbon intensity and therefore thecredit for clean hydrogen production.
With Department of Energy (DOE)’s support, Argonne has developed the Life Cycle
Assessment (LCA) model since 1995. The model covers the whole hydrogen value chain.
On the production side, electrolysis with renewable electricity has the lowest carbon
intensity. For domestic hydrogen delivery, hydrogen tube trailer and liquid hydrogentrucks are considered in the model. Argonne’s technoeconomic models, including
Hydrogen Delivery Scenario Analysis Model (HDSAM), also evaluated cost of hydrogen
supply chain and various end use applications, including fuel cell vehicles, hydrogen
refueling stations, ammonia production, e-methanol synthesis, and other e-fuels fromFischer-Tropsch (FT) process, steel production using DRI technology, etc. The modeling
results suggest that for the hydrogen applications to be competitive, hydrogen supply
cost need to be USD1-2/kg-H2. USD1/kg-H2, which is also consistent with the near-termand long-term price targets set by the DOE’s Hydrogen Shot program.

13f) Q&A and Discussions
Key points
・The idea of a hub is basically to co-locate supply and demand in a single region atscale. At present most hub likely activities will be in ammonia sector.
・Utilization of existing infrastructure is important to bring down hydrogen supply costs.
・Government support at the early stage is necessary to scale up the market.
・Although there is no price index for hydrogen and synthetic fuels, there are someplayers working on price index development.
・Government support to push forward Chile’s green hydrogen projects includes bringing
public land for use and coordinating territorial planning in the northern part of Chile.
・While recognizing the importance of equipment embodied emissions in hydrogen
supply, most of the current assessment methodologies are well-to-gate evaluation.
There are challenges to data availability and consistency of boundaries for all fuels tocover the embodied emissions for the entire global supply chain.
Summary
Q (to all): When I think of a hydrogen hub, I'm thinking that may be a location where wecan start to observe the prices of hydrogen produced from different sources with different
carbon contents behind it. Could you talk a little bit about if we were interested inobserving the price of hydrogen and various other fuels and carriers like MCH, methanol
and ammonia, and what is the best way to do that (transport hydrogen)?
A (Dr. Amgad Elgowainy): The idea of a hub is basically to co-locate supply and demandin the same region at scale. And like you mentioned, we already have a major hydrogen
hub in Texas just by nature because a lot of refining capacities are located there. But as
we develop a new value chain for hydrogen across other regions outside the Gulf areain the US, we need to do several things. We need clean hydrogen supply, we needmarket scaling up, and then we need infrastructure to connect them. That is why we have
incentives for clean hydrogen production. And the market scaling up is a big question.
Where are the off takers for clean hydrogen? We are now at the early stage of market
scaling up and we see a lot of these are going to ammonia. It is natural because wealready have infrastructure for ammonia delivery across longer distance at a bigger scale
and because of potential of export to other regions. We see a lot of interest in the
Sustainable Aviation Fuel (SAF), because this is really an area where there is globalpressure for decarbonization. And then we see the vehicle market, which will take some14

time to develop. But it is coming around. We see some applications in power sector too.
Today there is no market price for hydrogen. We can google and know prices for natural
gas or oil or even ammonia. There is nothing like that for hydrogen. We are looking
forward to a mechanism that can tell hydrogen prices with different carbon intensities.
A (Mr Shintaro Onishi): As for the liquefied hydrogen, currently its cost is considered tobe higher than that of existing fossil fuels such as LNG. However, as in the case of LNG,
in the future, we have the potential to significantly reduce the price by scaling up thedemand. 2030 is still the early stage of market scaling up, but for 2040 or 2050 if
utilization of liquefied hydrogen scales up, we can anticipate cost-effectiveness. To
scaling up the market, it is essential to collaborate with partners from various fields, as
the company’s efforts alone may not be sufficient.
A (Mr Yuji Chishima): Now new infrastructure will be required basically to establish theglobal supply chain of hydrogen. But to bring the cost down, it will be very important toutilize existing infrastructures. In that sense, in the port area especially, there are lots ofexisting infrastructures which can be utilized. How we can utilize such existing
infrastructures is a very important point. It should be the same for ammonia and MCH
and other carriers. Instead of new infrastructure construction, utilization of existing ones
can bring down the cost.
A (Mr Awadh Asyraf Bin Supri): While my colleagues (other panelists) have spoken aboutliquefied hydrogen and MCH, a bit of comment on ammonia. Ammonia is in a bit of adifferent situation as compared to the other hydrogen carriers. Ammonia has an existing
market. The market size is around 200 million tons per year, and of which about 10% or
20 million tons are being traded internationally. But the question is, is this market pricethe right market price for the new landscape (low carbon ammonia)? Probably not,because the current ammonia market primarily serves the fertilizer market, which has its
own supply and demand dynamics. But there are some learnings from the buildup of thismarket price that we can adopt in the future market pricing for low carbon ammonia andhydrogen. And I think on the business and publication side, we've seen some movements,
some learnings that we take from also the LNG industry. In the LNG industry, we have
the Japan Korea Marker, the JKM, which is published by Platts. Similar concepts arebeing proposed and being developed for low carbon ammonia, but we need to take away
the supply-demand dynamics for the fertilizer segment rather to apply it on the new
upcoming segments such as power or the bunkering segments.
15

Q (to Mr Alex Santander Guerra): I'm referring to the many projects that you currently
have in Chile. You've got several projects already under operation in Chile and also avery ambitious target towards 2030. The question that I have is a bit of a reality check interms of how do you see that upscaling and the actual production of hydrogen over the
next seven years?
A (Mr Alex Santander Guerra): We are creating conditions for green hydrogen projects.
As a government, we are creating the conditions in infrastructure, mainly ports, routes,
and other ones, for example, government-owned companies develop and own theinfrastructure, which is open for use by the private companies. In the case of the northof Chile, we are supporting different projects, creating conditions to bring public lands foruse, and coordinating all territorial plannings and aspects related with green hydrogenprojects.
Q (to Dr Amgad Elgowainy): The carbon intensity you have shown for hydrogen produced
from wind or solar was zero. What I'm getting from that figure is that this is not a life cycle
analysis, this is just the carbon intensity for hydrogen production. The debate that wehave in Australia and globally is like, what is the actual carbon intensity if we include thelife cycle analysis or the embedded carbon emissions for the production of the materials.
If you have any figures, that would be nice.
A (Dr Amgad Elgowainy): What I showed was strictly conforming to the definition of wellto-gate in the US. These carbon intensity numbers are for well-to-gate, and they do notinclude embodied emissions. If you look at what is the embodied emission in electrolyzer,
we need to track the supply chain to manufacture the electrolyzer, all of that, and thenspreading it over the lifetime of the electrolyzer. It is around 70g-CO2/kg-H2. It isrelatively small, but the bigger one is solar PV. Most of the solar PV panels come from
China, which are more carbon intensive. So, for solar, it is about 35g-CO2/kWh and if
multiplied by 60-65kWh/kg-H2 for electrolyzers, it will be about 2kg-CO2/kg-H2. For wind,
it is about 0.5kg-CO2/kg-H2. To cover the embodied emissions, there are two difficulties.
First, we need to track the supply chain coming to the US, which is difficult due to lack ofcomprehensive relevant data. And different economies have different numbers becauseof different supply chains. Second, can we cover the entire supply chain and can we be
consistent? For example, if we do that for gas supply chain, we need to cover platforms,
onshore, offshore, and processing plants, pipelines, and so on. What we do in theInternational Partnership for the Hydrogen Economy (IPHE) is that we excluded the16embodied emissions also though we think that something needs to be done about
embodied emissions. And in the ISO LCA , we put a language there that embodied
emissions is key and should be included for information purposes. Lack of data,consistent system boundary, and also regulatory framework sometimes restrict us onwhat we present about embodied emissions.
6-1-3. Session 3: Fuel Ammoniaa) Fuel Ammonia Production from Fossil Fuels
Mr Yoshikazu Kobayashi (Executive Analyst, New Energy System Group, Clean
Energy Unit, The Institute of Energy Economics, Japan)
Key points
・Low carbon ammonia from natural gas is likely to be more cost competitive thanammonia from electrolyzed hydrogen. Lowering carbon intensity on a well-to-gatebasis is the major challenge.
・Most of the planned fuel ammonia projects are at the feasibility study stage and policy
supports for the demand side will be required to realize active hydrogen trade.
Summary
Mr Kobayashi made a presentation on fuel ammonia produced from fossil fuels. He
emphasized that, despite the skepticism against fuel ammonia produced from fossil fuelas less clean, G7 leaders’ communique made this year confirmed that low carbonhydrogen and ammonia produced from fossil fuel as an effective means ofdecarbonization. He explained lowering carbon intensity on well-to-gate basis will be amajor challenge for fuel ammonia based on fossil fuels and introduced several
technological efforts for such intensity improvement. He also noted that most of thecurrently planned fuel ammonia projects are still at feasibility study stage and more policy
supports toward the demand side will be required to realize active hydrogen trade.
b) Fuel Ammonia Power Generation and Building Supply Chain
Mr Najib Rahman Sabory (General Manager, Decarbonization Promotion Section,
Planning Division, JERA Co, Inc, Japan)
Key points
・JERA aims to commence 20% co-firing within FY 2030, and 50% co-firing after 2030.
17

・Plans to apply its expertise of ammonia utilization aboard and partners with foreign
firms in Bangladesh; Indonesia; Malaysia; the Philippines; and Thailand.
Summary
Mr Sabory made a presentation about JERA’s decarbonization strategy and the role offuel ammonia in the strategy. He elaborated the company’s investment projects in theentire value chain of fuel ammonia from production, transportation, and utilization at
power plants both in Japan and abroad. He explained that JERA aims to commence 20%
co-firing within FY 2030, and 50% co-firing after 2030. JERA, according to his
presentation, will adopt zero-emission thermal power generation by utilizinghydrogen/ammonia single firing as of 2050. JERA also plans to apply its expertise ofammonia utilization aboard and partners with foreign firms in Bangladesh; Indonesia;
Malaysia; the Philippines; and Thailand.
c) EMSA Study Potential of Ammonia as Fuel in Shipping
Mr Sergio Alda (Senior Project Officer, Sustainability, European Maritime Safety Agency(EMSA), Portugal)
Key points
・ The International shipping industry would need substantially reducing its GHG
emissions to achieve net zero GHG emission by or around 2050 and green ammonia
has potential as a zero-carbon fuel for maritime.
・However, several challenges need addressing: safety issues, controlling NOx and N2O,
and cost reduction.
Summary
Mr Alda made a presentation on the Agency’s recent study on potential use of ammonia
as a maritime fuel. He noted the international shipping industry will also need to
substantially reduce its GHG emissions to achieve the IMO targets and contribute toachieving carbon neutrality by 2050 in the EU, and green ammonia is being explored as
one of several alternatives to support decarbonizing the industry. Ammonia has several
advantages such as availability of existing infrastructure and absence of CO2 emissions
from its combustion onboard, yet he pointed out several challenges for its commercial
use in marine engines, such as safety issues, need of controlling NOx and N2O, andneed to reduce the cost gap with other alternatives.

18d) Q&A and Discussions
Key points
・Ammonia-co-firing has low technological risks compared to CCS at coal-fired power
plants. Japan will not be able to find sufficient domestic storage capacity and utilizing
storage abroad may be an option, but it may emit additional CO2 in transporting CO2.
Ammonia co-firing, on the other hand, is an established technologies and effectively
reduce the CO2 emission in Japan.
・Potential pricing mechanism of fuel ammonia is uncertain. Ammonia already has aninternational market as a feedstock for fertilizer production, but clean ammonia pricewill reflect carbon intensity, tax benefits for production, certification by third-party
organization, and energy security.
・If a hydrogen carrier is used for fuel cells, it may not be appropriate due to the low
purity of cracked hydrogen from ammonia. For combustion as a fuel for boilers or
turbines, ammonia is currently the most cost competitive.
・Ammonia will be used soon because it is more technologically matured with existing
infrastructure. In the long run, other hydrogen carriers could enjoy the benefits ofeconomies of scale and learning curve effect as their production will grow.
Summary
Q (to Mr Najib Rahman Sabory): Which is more economically attractive option: CCUS
application at a power plant in Japan or utilizing ammonia as a co-firing or single-firing
fuel?
A (Mr Najib Rahman Sabory): Ammonia-co-firing has a low uncertainty compared to CCS
application to coal-fired power plant. In case Japan is not able to find sufficient storage
capacity within Japan, utilizing storage in overseas may be an option, but it may still emit
additional CO2 in transporting CO2 abroad. Moreover, the CCS application in coal power
plants might also require each power plant to be modified and retrofitted with additional
infrastructure, which will result additional operation cost in coal power plants. So, there
are technical and economical disadvantages to capturing and storing CO2 in coal power
plants in Japan. Ammonia co-firing, on the other hand, is an established technologies
and effectively reduce the CO2 emission in Japan. Ammonia co-firing is a more preferred
option.
Q (to Mr Sergio Alda): How will fuel ammonia be priced? What is a likely benchmark for
19

fuel ammonia?
A (Mr Sergio Alda): It is very difficult to tell. Ammonia already has an international market
as a feedstock for fertilizer production, but clean ammonia as decarbonization fuel forshipping will reflect some other factors such as carbon intensity regulations and carbon
market pricing, tax benefits for production, competition with other sectors. Considerationof energy security element may also be reflected. All of these factors will affect the final
price of fuel ammonia, and it is not easy to tell based on what kind of benchmark theprice will be set.
Q (to Mr Yoshikazu Kobayashi): What factors affect the end users’ choice of hydrogen
carrier?
A (Mr Yoshikazu Kobayashi): It depends on the purpose of the use. If it is utilized for fuelcell, the purity of cracked hydrogen from ammonia will be relatively low and will not beappropriate. But if it is just combusted as a fuel for boiler or turbine, ammonia is currently
the most cost competitive.
A (Mr Sergio Alda): It also depends on the time horizon. Ammonia may be used in thenear future because it is more technologically mature and has an existing infrastructure.
In the long run, other hydrogen carriers may have more benefits of economies of scaleand could also become more economically attractive.
6-1-4. Session 4: Carbon Capture, Utilization and Storage (CCUS)a) CCUS in JapanDr Kenta Asahina (Mineral and Natural Resources Division, Natural Resources andFuel Department, Agency for Natural Resources and Energy, Ministry of Economy, Tradeand Industry (METI), Japan)
Key points
・Japan published its annual storage capacity target of 120 to 240 million tons by 2050
and need to start its first commercial CCS operation by 2030 to find enough storage
capacity and scale up the operation.
・Japan has already selected seven CCS projects as potential commercialized projects.
Swift implementation of feasibility study for those projects are needed to start the20

storage operation by 2030.
Summary
Dr Asahina made a presentation about the Japanese government’s policies on CCS. He
introduced the historical development of CCS in Japan from 2000 and explained thecurrent long-term CCUS roadmap that was released in March 2023. To achieve anannual storage capacity of 120 to 240 million tons by 2050, Japan will start the CCS
business by 2030. He explained that the Japanese government has selected sevenadvanced CCS projects to establish various business models with different combinationsof CO2 sources, transportation methods, and CO2 storage areas. He also added that
the Japanese government is also working to demonstrate maritime CO2 transportationby ship next year.
b) CCUS in Australia
Dr Matthias Raab (Chief Executive Officer, Executive, CO2CRC Limited, Australia)
Key points
・Australian upstream operations have reached a crossover point where the cost ofemitting CO2 exceeds the cost of CCS, stimulated by several factors, including 2050
net-zero targets set by most companies. A further income stream for CCS operators
would be the CO2 utilization through enhanced oil recovery for a long time in many
projects.
・There are no real technical barriers to CCS operation in Australia. CCS is an essential
technology and needs to be adopted on an unprecedented scale for Australia to reach
its legislated 2030 and 2050 targets.
Summary
Dr Raab presented the current status of Australian CCS project development. He
suggested that Australian gas reached a crossover point where, for projects onshore andoffshore, the cost of emitting CO2 exceeds the cost of CCS. He noted that several factors
stimulated this crossing over. The first one is that most companies have had their own
2050 net-zero targets. The second one is that CCS can be utilized for enhanced oil
recovery for a long time in many projects. He claimed that there are no real technicalbarriers exist for CCS operations. He emphasized that CCS is an essential technology
and needs to be adopted on an unprecedented scale.

21c) Carbon Capture, Utilization and Storage in China
Prof Jiutian Zhang (Green Development Institute, Beijing Normal University, Secretary
General, China CCUS Association of Chinese Society for Environmental Sciences,
China)
Key points
・CCUS is a very important decarbonization solution for China’s energy transition andachievement of its carbon neutrality goal before 2060 and will play an important rolein keeping the power system at zero emission as well as for the industry sector to
realize carbon dioxide removal.
・More than 100 CCS projects in different stages are developed. Major challenges are
to reduce costs with innovation and develop good business models.
Summary
Professor Zhang made a presentation on the CCUS operations in China. He contended
that CCUS is very important for China’s energy transition and achievement of its carbon
neutrality goal before 2060. To secure a robust power system, he argued, CCUS will play
an important role in keeping the power system at zero emission. CCUS is also very
important in decarbonizing the industry sector and realizing negative emissions
potentials. Without CCUS, he claimed, China cannot reach the goal of carbon neutrality.
In China, a growing number of CCUS demonstration projects are being developed, andthe number has already exceeded 100. CCS will be broadly adopted in various sectors
from the oil and gas, power, steel, chemical, to cement sectors. He suggested that themain task of CCS technology development is to reduce costs, and developing goodbusiness models will bring more CCS potential in the future.
d) CCUS in ASEAN: Recent Developments in Indonesia
Dr Usman Pasarai (Senior Researcher, Research Center for Process and Manufacture
Technology, National Research and Innovation Agency (BRIN), Indonesia)
Key points
・CCUS will play a critical role in achieving carbon neutrality in Southeast Asia (SEA),
CO2 capture in SEA will have to reach 35 million tons in 2030 and exceed 200 million
tons in 2050 to achieve the Paris Agreement.
・Indonesia is an active promoter of CCS in SEA. Most of 15 CCUS initiatives in22

Indonesia at varied development stages will be on stream before 2030. Indonesia has
relevant laws and regulations on greenhouse gas emissions, carbon tax, carbon
trading and upstream oil & gas business activities.
Summary
Dr Pasarai presented the CCUS developments in ASEAN and Indonesia. He referred tothe estimate made by the International Energy Agency (IEA) that, in order to remain inline with the Paris Agreement, CO2 capture in SEA will have to reach 35Mt in 2030 and
exceed 200Mt in 2050. He introduced that, currently, there are 15 CCS/CCUS initiatives
in Indonesia at varied development stages, and most of the projects will be on stream
before 2030. He assesses the CO2 storage potential of saline aquifers in Indonesia ataround 650Gt and assesses the storage capacity of depleted oil and gas fields inIndonesia at 12Gt. He explained that Indonesia has relevant laws and regulations on
greenhouse gas emissions, carbon tax, and carbon trading and performance-based
payment. The Indonesian government recently issued dedicated regulations on
implementing CCUS in the upstream oil and gas business activities.
e) Q&A and Discussions
Key points
・Emissions trading, or any other type of carbon pricing system, may help businessactors conduct CCS operations by reducing their emissions and gaining reduction
credits for sale. The carbon pricing system sometimes becomes very complicated. It
should be designed as simple as possible.
・Technological development is needed to reduce costs further, particularly in the carboncapturing process. Financing will be a major challenge because few CCS projects
have been conducted in Asia. Social acceptance is another challenge. Close dialogue
and transparent information sharing with the local community are necessary. A legal
framework to limit the responsibility of businesses is important to reduce business risks.
・Because the success of CCS largely depends on the government’s support, whether
the government is supportive of CCS or not greatly affects the progress of CCS
projects. Stable policy and regulatory environments are required to smoothly realize
CCS projects, which must operate for many decades to amortize costs.
・It was agreed that CCUS collaboration in APEC is essential, starting from knowledge
sharing among economies. Sharing best practices in safety practices in operation,legal and regulatory framework to incentivize business, and intergovernmental
23

dialogue and agreement for international CCS operations will facilitate CCS projects
in the APEC region.
Summary
Q (to Dr Kenta Asahina): What is the legal basis for CCS operations in Japan?
A (Dr Kenta Asahina): The Japanese government is currently preparing for the legal basis
for CCS in Japan and try to legislate next fiscal year.
Q (to Prof Jiutian Zhang): China has an emissions trading system for the power sector,
but not for the industrial sector. Do you think that emission trading in broad sectors may
become an incentive to promote CCUS?
A (Prof Jiutian Zhang): Emissions from industrial sources such as steel and cement are
not covered in the existing carbon market system in China. China may work to include
CCS to the existing carbon market mechanism.
Q (to Dr Matthias Raab): Australia has a domestic carbon crediting system. What is thestatus of methodological development for CCS in the system?
A (Dr Matthias Raab): The clean energy regulator in Australia has developed a method
for CCS. In the methodology, CCS facilities are eligible to obtain Australian carbon credit
units, the price of which is set at a minimum of AUD26. However, the method is redundant
to the newly introduced safeguard mechanism because, in the safeguard mechanism,
an existing CCS project is no longer eligible for carbon credits.
Q (to Dr Usman Pasarai): Why will the Enhanced Gas Recovery (EGR) project be thefirst CCS project in Indonesia?
A (Dr Usman Pasarai): All of the relevant parties, from the Indonesian government to oiland gas operators, made commitments to the projects. A major reason is that therequired costs for CCS will be covered by the revenues from the enhanced gas
production.
Q (to all): What do you think of CCU projects?

24

A (Dr Matthias Raab): Currently, most CCU projects are enhanced oil recovery in the US.
The conversion of captured carbon into useful products is not at the commercial stage,
and there is an issue with how quickly the scale-up and cost reduction will be realized.
Q (to all): What is the cost of storage today and in the future?
A (Dr Matthias Raab): The pure storage cost in an Australian onshore project were statedby the operator to be below AUD30 per ton of CO2. The cost for other projects varydepending on the availability of existing infrastructure.
A (Prof Jiutian Zhang): The marginal storage cost will be competitive with other emissions
mitigation technologies in the future. Renewable power could be expanded to a verylarge scale, but the resources such as suitable land will be increasingly scarce, and thecost of renewable energy will become higher.
A (Dr Matthias Raab): The share of capturing cost out of the whole value chain, on
average, is 65 to 70%. The cost of capture varies also depending on the purity of CO2
of captured gas.
Q Will carbon-neutral energies potentially become new game changers?
A (Dr Matthias Raab): The key point is, what is the dependency on the world on fossil
fuel going forward? The four material pillars of our society are fertilizer, steel, cement,
and plastics. CCS is mainly looking for electricity generation. However, that is only 27%of the whole energy equation. CCS needs to be adopted to decarbonize such material
sectors.
Q (to Dr Matthias Raab): What is the current situation of the Australian government
regarding willingness to promote CCS?
A (Dr Matthias Raab): The government will not financially support the oil and gas industry
to start their CCS project. The newly introduced safeguard mechanism will require fasteractions within the next five years than the industry can achieve because the CCS projects
take much longer to build.
Q (to Dr Matthias Raab): In Australia, how onshore and offshore regulations for CCS
25

operations are designed and implemented?
A (Dr Matthias Raab): All offshore projects are governed by the Federal Offshore
Greenhouse Gas Act. In addition to the federal law, most states in Australia have onshorelegislation. The Australian government is currently revising its offshore regulations tostreamline the regulatory framework.
6-1-5. Session 5: Direct Carbon Capture (DAC)a) Research and Development for DAC in Japan
Prof Kenji Yamaji, President (Research Institute of Innovative Technology for the Earth,
Japan)
Key points
・ The DAC projects by New Energy and Industrial Technology Development
Organization, Japan are pursued under the government initiative named “Moonshot”
to realize human well-being and various DAC technologies are developed to capture
low-concentration CO2 in the atmosphere.
・Realizing low-cost and high-efficiency DAC system should be given a high priority inthe initiative. Various new technologies are also developed such as synthetic fuel tobring additional values to DAC.
Summary
Professor Yamaji overviewed the DAC technology development projects in Japan. The
projects are being pursued under a larger government initiative named “Moonshot.” Heexplained that there are nine Moonshot goals to realize human well-being and DAC
technology development is included in the Goal No.4, realization of sustainable resource
circulation to recover the global environment by 2050. In this initiative, various DAC
technologies are being developed to capture low-concentration CO2 in the atmosphereto realize low-cost and high-efficiency DAC system. In addition to DAC technologies, hesuggested, various new technologies are being developed to convert captured CO2 into
valuables.
b) Commercial-scale Direct Air Capture
Mr Adam Baylin-Stern (Director, Policy and Engagement, Carbon Engineering,
Canada)26

Key points
・When a large-scale project under construction in West Texas in the US by Carbon
Engineering comes online, the project is designed to capture up to half a megaton of
CO2 per year, which is expected to be the largest DAC project in the world when it
comes online in 2025, and helping to demonstrate DAC commercially and on climaterelevant scale.
・Direct Air Capture, especially combined with underground storage, is ultimately anenvironmental service, and it is necessary for governments to help create the market
for such service and to support accelerators for early projects.
Summary
Mr Baylin-Stern briefed the audience on his company’s DAC projects in this presentation.
He explained that, because CO2 is dilute in the atmosphere, a large quantity of air has
to be mobilized to capture CO2 at commercial scale. The company uses a process basedon technologies that have industrial precedents and which are widely available acrossthe world and couples them with the company’s proprietary configurations. He noted thata large-scale project is now under construction in West Texas in the US, and once it
comes online, the project is designed to capture up to half a megaton of CO2 per year.
He stated that DAC technology enables important decarbonization solutions such ascarbon dioxide removal (CDR) as well as sustainable aviation fuel (SAF) utilizing
captured CO2 combined with hydrogen. He contended that Direct Air Capture, especiallywhen combined with underground storage, is ultimately an environmental service, and itis necessary for governments to help create the market for such service and to provide
accelerators for early projects.
c) Q&A and Discussions
Key points
・Currently DAC projects are only conducted on a small scale. But a project pursued by
1PointFive, using Carbon Engineering DAC technology, may become a game changer
with a mega-ton scale DAC operation. Japan’s R&D project is currently early stage but
they intend to scale up and continue collecting date for life cycle assessment.
・ Life cycle CO2 emissions including capital goods (infrastructure) was discussed,
however, they are found to be a minor part. Energy inputs to DACCS operation areimportant emissions factors in determining net removal from the process, including full27

accounting of lifecycle emissions associated with the use of natural gas and electricity.
・Preferred conditions for DAC operation include availability of high quality geologic
reservoirs, land availability, and low-cost, low-carbon electricity. There was interest in
cryogenic CO2 capture technology as a getting high-pressure carbon dioxide.
・Importance of policy framework, e.g. incentive and credits trading, were also discussed.
Credit obtained from high integrity removal pathways such as Direct Air Capture with
Carbon Storage (DACCS) are increasingly recognized as having a higher climate
value than avoidance/reduction credits.
・Both downstream pathways of utilization and storage were noted as highly important.
In Japan’s project, main focus is DAC proses but including utilization, and it will be
assisted of the utilization carbon recycling or usage of carbon recovered. On the other
hand, the cost of hydrogen is a key influence on the economics to produce synthetic
fuels as a utilization option.
Summary
Q: What is the current number that your existing facility can capture per day?
A (Mr Adam Baylin-Stern): The nameplate design capacity of the Carbon Engineering
Innovation Center in British Columbia, Canada is about 1,000 tons of CO2 per year, or a
few tons per day.
A (Prof. Kenji Yamaji): Japan just started research and development of DAC, so we arein very early stage. The Dr Kodama’s project which RITE is participating is very small
plants, it’s about 5kg per day of carbon dioxide captured from the air. And we arecollecting various data, we are now counting life cycle assessments it a really net
reductions with that scale, it is probably input of energy greenhouse gas is more than theremoval from atmosphere. But by scaling up, we are planning to several hundred kg per
day other vent plant. And in case probably we can get more data, and cost is concerned.
We are not in stage evaluate commercial scale.
Q (to Mr Adam Baylin-Stern): In life cycle analysis, do you have an estimate of carbon
penalty?
A (Mr Adam Baylin-Stern): Penalty in terms of lifecycle analysis exists, and it’s essential
to minimize it, and ensure that it is fully accounted for within net removal of a facility. The
lifetime of the project extends multi-decade, and the material impact is very minor. In
28mitigating the carbon penalty, energy usage in the upstream sector is the key.
Q (to Mr Adam Baylin-Stern): What are the most important economic conditions needed
for Direct Air Capture?
A (Mr Adam Baylin-Stern): There is a set of factors. If DAC is combined with undergroundstorage, quality and availability of geologic reservoirs are an important factor. Solidregulatory environments and the availability of low-carbon energy inputs, particularly lowcarbon and affordable electricity, are another key factor.
Q: DAC uses a large land per unit of CO2 captured. Do you see in the future that land
footprint to be more optimized?
A (Mr Adam Baylin-Stern): Because DAC can be used as an option for negativeemissions, it is a relatively land-efficient carbon removal technology. It is nonethelesstrue that DAC needs large facilities. The best way to achieve cost-effective deployment
is to prioritize development in places with large sites available.
Q (to Prof Kenji Yamaji): I would like to know details of cryogenic CO2 capture.
A (Prof Kenji Yamaji): Cryogenic CO2 capture is a technology that uses cold energy fromliquefied natural gas. Although the technology can get very high-pressure carbon dioxide,
there are several problems. Controlling water vapor is technologically challenging, andlocation of the facility is limited to near liquefied natural gas facility.
Q (to Prof Kenji Yamaji): Presentation material seems to imply the DAC cost can be
reduced to around USD60 per ton of CO2. Is this a realistic estimate?
A (Prof Kenji Yamaji): The number in the slide is illustrative. The assessment is cited fromthe analysis made by the report of Innovation for Cool Earth Forum (ICEF). If it currently
USD800 per ton, they can be reducing USD100 per ton. Reduce the cost realized carbon
neutrality. In that sense, I call it backstop technology.
Q: It seems there are two DAC options: one with underground storage and another withuse of captured carbon. Which should we choose?
A (Prof Kenji Yamaji): Moonshot goal No 4 is realization sustainable resource circulation29

to recover global environment by 2050. Resource circulation is mentioned in Moonshot
goal No 4 of objective and we add utilization parts to the DAC project. But main focus is
the DAC process. There are many developments business challenge or utilization
recovered carbon dioxide not only recovered from the atmosphere but recovered before
emitted to the atmosphere. In addition to that, some parts of DAC project of Moonshot
goal No 4, part of the utilization, may be assist of the utilization carbon recycling or usageof carbon recovered.
A (Mr Baylin-Stern): Ultimately, achieving carbon neutrality will require both options. The
choice to pursue any given pathway will ultimately be influenced by the setting of policy
priorities and by the emergence of strong business cases based on DAC.
6-1-6. Session 6: Closing Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre (APERC)
Dr Irie was very appreciative to all the speakers, moderators, and active participants. He
concluded this symposium was rich and multifaceted contents, and informative andencouraging for those who are persuading decarbonization ultimately toward carbon
neutrality. Dr Irie stated that APERC will continue move forward with the APEC sectoral
symposium and APERC was planning to organize the second symposium on energy
efficiency in January 2024 in Tokyo.
6-1-7. Site Visits - Day2 (12 October)Participants were divided into three groups and visited one of the facilities on the list:
Total 51 individuals attended the site visit programs.
Kawasaki Heavy Industries 9:20-12:00
Kawasaki Heavy Industries promotes the development of its original technologies in thefour-phase process of hydrogen: production, transportation, storage, and utilization.
Kobe LH2 Terminal (Hy touch Kobe) is the world's first liquefied hydrogen receiving
terminal. It accommodates a 2,500m3 volume spherical liquefied hydrogen storage tankas well as other equipment including a loading arm system specially designed fortransferring liquefied hydrogen between land land-based facilities and ships. Co generation system (CGS) with one MW class hydrogen gas turbine has been installed incity area (Kobe Port Island). Demonstrating power and heat derived from hydrogen tocommunity. Achieved the world's first heat and power supply in city area using gas
turbine CGS fueled 100% hydrogen.
30

Kobe Steel, Ltd (KOBELCO）10:00-12:30
Kobe Steel, Ltd is expanding the utilization of hydrogen at various industries including
their Group companies to contribute to the transition to decarbonization. During thetransition period until a large amount of economical green hydrogen becomes available,
they think it is important to promote the use of liquid hydrogen in combination with thehydrogen produced by water electrolysis using small-scale renewable energy power
generation. They believe that KOBELCO's hybrid-type hydrogen gas supply system will
be a key to successful decarbonization.
Mitsubishi Heavy Industries (MHI) -Takasago Machinery Works 10:00-12:30
Mitsubishi Heavy industries has launched the world’s first integrated validation facility
from hydrogen production to power generation (Takasago Hydrogen Park) in September
2023. Takasago Hydrogen Park is divided into sections according to three hydrogenrelated functions: hydrogen production, storage, and utilization.
MHI Group is pursuing the energy transitions as an engine for corporate growth basedon its declaration of “MISSION NET ZERO”, targeting carbon neutrality by 2040.
6-2. Promoting Energy Efficiency and Energy Management System (Tokyo)
6-2-1. Session 1: Opening Sessiona) Opening Remarks
Dr Kazutomo Irie (President, Asia Pacific Energy Research Centre (APERC))
Key points
・ Welcomed participants and explained the background and objectives of the
Symposium.
・Emphasized the importance of the energy transition, energy efficiency, and sharing
knowledge and experiences among APEC economies.
Summary
Dr Irie welcomed all invited speakers and active participants. Dr Irie explained theobjective of the symposium was follow up the APEC symposium on Holistic approach of
Decarbonization towards Carbon Neutrality held online in August 2021. As a second
follow up symposium, picked up energy efficiency and energy management system.
Dr Irie emphasized that in energy transition there was no single best solution for31

achieving carbon neutrality or net zero as each APEC economy has different economic
and social structure, and geographical situations. Various pragmatic and sustainabledecarbonization pathways that reflect the different the circumstances of each economy
are essential to achieving successful energy transitions. Sharing knowledge andexperiences among member economies is beneficial, and a sectoral symposium isnecessary to enhance our understanding of each sector. This symposium topic included
energy efficiency in building, energy efficiency in transport, energy efficiency in industry
and energy management systems and smart city.
b) Keynote Speech: The Evolution of Energy Efficiency Policy to Support Clean
Energy Transition in JapanMr Hideyuki Umeda (Director for International Policy on Carbon Neutrality,
Agency for Natural Resources and Energy (ANRE), Ministry of Economy, Trade andIndustry (METI), Japan)
Key points
・Emphasized that Japan needs to reduce 62 million kL in final energy consumption in
FY 2030, which will be achieved by improvement of energy efficiency and expansionof non-fossil energy.
・Concluded Japan’s demand-side policies support clean energy transition. Japan willkeep contributing to energy efficiency and decarbonization in APEC region by sharing
its experience and policies.
Summary
Mr Umeda described Japan’s performance in energy efficiency during the past decades
and the need to reduce 62 million kL in final energy consumption in FY 2030, which will
be achieved by improvement of energy efficiency and expansion of non-fossil energy.
He then gave an overview of Japan’s demand-side policies, including regulations which
are stated in the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy, andincentives in which energy conservation subsidies package is provided. Finally, Mr.
Umeda concluded that Japan’s demand-side policies have moved toward supporting
clean energy transition, and Japan will keep contributing to the energy efficiency anddecarbonization in the APEC region through its knowledge, experience, and policies inthis regard.
c) Keynote Speech: The Key to an Energy Resilient APEC: Energy Efficiency and32Energy Management
Dr Meng Liu (Chair, APEC Expert Group on Energy Efficiency and Conservation(EGEEC) and, Deputy Chief, Division of Resources and Environment, China National
Institute of Standardization, China)
Key points
・Recommended an increased focus on evaluating the cost-effectiveness of energy
efficiency policies.
・Emphasized the importance of collecting and reporting energy efficiency data.
Summary
Dr Meng Liu appreciated joining the symposium as a member of the APEC Expert Groupon Energy Efficiency and Conservation (EGEEC). He remarked that energy efficiency
has been widely accepted as a critical solution to achieve sustainable development.
Global focus on energy efficiency remains steady fast. The estimated 2023 rate ofprogress in energy intensity was set to fall back to below longer-term trends, to 1.3%
from a stronger 2% last year. The global trend of energy efficiency will continuously
increase.
APEC economies represent over 38% of the global population and 56% of global
economic activity. The role APEC plays in the global energy market is indispensable. It
accounts for 56% of world energy demand, 58% of world energy supply, and 68% ofworld electricity generation. APEC accounts for 60% of global CO2 emissions.
The energy goal of APEC is to improve energy intensity by at least 45% by 2035
compared to 2005 levels. As of 2020, APEC-wide final energy intensity has improved
26% leaving an additional 19% improvement needed to meet the goal.
There are four important key sectors and areas regarding energy efficiency: industry,transport, building, and regulations and standards.
Regarding industry, it is important to deploy high efficient equipment. This also requires
accelerated energy system integration and optimization. Moreover, expanding
engagement in energy management activities such as PDCA is needed. As we are facing
the technological age, integrating industry with emerging technology such as IoT, AI, etc
is significant to improve energy efficiency.
On the transport sector, green, decarbonization, and smart transport are the main
keywords.
On building, global experience shows the improvement in the green building codes.
Multiple energy supply and demand are required to develop an integrated district energy
33system. It could be cost-effective and efficient as well.
Regulations and standards are important to continue the eco-system.
Standards can be divided as four categories: Minimum energy performance standards(MEPS), Energy management system standards (EnMS), Supporting energy
conservation standards for MEPS and EnMS, and Standards for energy efficiency andconservation market mechanism.
The ISO 50001 (EnMS) system is based on a process of monitoring, targeting, andimplementing energy saving measures in a cycle of continuous improvement. As of 2023,
23 ISO standards were released. In 2022, the number of ISO 50001 certificates issued
worldwide grew by almost 30% to 28,000.
The key to success in achieving energy efficiency, leadership commitment, energy
efficiency target, policy framework, and coordination of stakeholders are needed.
There are complicated correlations between energy efficient improvement and emission
reduction. Therefore, coordinated improvement between these two indicators.
Furthermore, integration among different technologies, energy, and systems, especiallysmart technologies is important. He also suggested the importance of cost-effective
evaluation of policies and continuous improvement of the policy portfolio (regulations andstandards). Last but not least, capacity building for collecting quantitative/qualitative dataand international collaboration to share a good practice/experience can contribute tomore sustainable economies.
6-2-2. Session 2: Energy Efficiency in Buildinga) Improving Energy Efficiency in Buildings in Hong Kong, China
Mr Wallace Leung (Chief Engineer, Energy Efficiency B, Electrical and Mechanical
Services Department, Government of Hong Kong, China)
Key points
・ Buildings account for about 90% of electricity consumption and 60% of carbon
emissions in Hong Kong, China. The reduction targets of 30-40% and 20-30% wereset for electricity consumption in commercial and residential buildings, respectively, by
2050, using the operational conditions of 2015 as the comparison basis. Hong Kong,
China’s energy intensity has decreased by 33.3% from 2005 to 2021.
・The major regulatory approach is implemented by 1) Ordinance on energy efficiency
and energy audit of buildings, 2) Mandatory Energy Labelling for appliances covering
80% of residential consumption, and 3) Building Regulation for energy efficiency of34

building envelope of commercial buildings and hotels.
Summary
There are around 46,000 buildings in Hong Kong, China, which account for about 90%
of total electricity consumption and for around 60% of carbon emissions. Hong Kong,
China set the targets of 30-40% and 20-30% reduction of electricity consumption incommercial and residential buildings, respectively, by 2050, compared to operational
conditions of 2015. The major regulatory approach of energy efficiency policies in Hong
Kong, China is implemented through 1) Buildings Energy Efficiency Ordinance which
stipulates minimum energy efficiency and energy audit for building services installationof buildings, 2) Mandatory Energy Efficiency Labelling for appliances which covers
around 80% of energy consumption in residential buildings, and 3) Building (Energy
Efficiency) Regulation which governs the energy efficiency of building envelope ofcommercial buildings and hotels. The governmental buildings have taken the lead tocarry out energy saving retrofit and retro-commissioning and share the experience withthe private sector.
Hong Kong, China also implemented Energy Saving Initiatives such as helping energy
saving in schools and NGO venues, and smart meters are expected to be installed forall electricity utilities’ customers by the end of 2025. Besides, finance subsidies areprovided through the Scheme of Control Agreement signed between the government andthe two power companies, the Integrated Building Rehabilitation Assistance Scheme by
Urban Renewal Authority, and accelerated deduction under profit tax, facilitating theimprovement of energy efficiency in buildings.
Hong Kong, China has improved its performance in energy intensity by 33.3% from 2005
to 2021. Hong Kong, China’s energy efficiency in buildings is on the right track and willcontinue to do so.
b) Modeling the US buildings energy efficiency
Ms Courtney Sourmehi (Industry Economist, Energy Information Administration, U.S.
Department of Energy, the US)
Key points
・ The National Energy Modeling System (NEMS) Annual Energy Outlook 2023
Reference case projects that electricity will be the fastest growing energy source inbuildings in the US through 2050. The drivers of this growth include stable anddeclining electricity prices, the relative efficiency of electric appliances and continued
35

population shifts to warmer regions.
・ In the residential and commercial sectors, higher equipment efficiencies andcompliance with building codes extend ongoing declines in energy intensity.
・Despite growth in heat pump adoption, natural gas continues to be the leading source
for space heating for single-family homes.
Summary
The National Energy Modeling System (NEMS) is used to project energy markets out to2050. Residential and commercial energy consumption projections by fuel through 2050
show electricity is the fastest growing energy source in buildings in the US. Thanks inpart to energy efficiency, floorspace and housing stocks expand at a faster rate thanenergy consumption over the next 30 years. Natural gas remains the dominant sourceof space heating in the US.
In the residential and commercial sectors, higher equipment efficiencies and compliancewith building codes extend ongoing declines in energy intensity. Changes in the buildings
fuel mix reduce energy-related CO2 emissions, which decline faster in buildings than any
other end-use sector. The drivers of building electrification in the US include the relative
efficiency of electric appliances, a continued population shift to warmer regions, which is
projected to increase demand for air-conditioning.
The Inflation Reduction Act of 2022 extended and expanded investment tax credits forresidential and commercial distributed generation and combined heat and power
cogeneration.
Regarding residential equipment shares, despite historical growth in heat pump adoption
in single-family new-construction, we project natural gas will continue to be the biggest
source for space heating in the US in the context of stable gas prices, given current laws
and regulations. The average stock efficiency of natural gas-fired equipment increases
over time and continues to compete with electric equipment.
c) Energy Efficiency of Buildings in Australia
Dr Subbu Sethuvenkatraman (Research Group Leader, Commonwealth Scientific andIndustrial Research Organisation (CSIRO), Australia)
Key points
・Sixty percent of building energy use is through electricity and buildings account for
18% of total emissions in Australia.
・Digitalization of buildings involves connecting the buildings and getting access to all36data in a cost-effective way, and then delivering benefits through analytics.
・The pathway for decarbonization is achieved by a combination of energy efficiency
measures supported by policies and technology changes with digitalization, and highuptake of renewable energy resources.
Summary
Buildings make up of about 18% total emissions in Australia, and nearly 60% of building
energy use is through electricity. Australia has high uptake of Distributed Energy
Resources (DER), where one in every three households is likely to have rooftop solar by
2050.
Australia’s energy efficiency policies for buildings have been implemented throughNational Energy Performance Strategy, Trajectory for low emission buildings, Sector
wide decarbonization plans, National Construction Code (NCC), and Greenhouse andEnergy Minimum Standards (GEMS) for appliances. As the data presents, the policies
successfully improved the emission intensity in office buildings.
Regarding decarbonization of Australian built environment sector, there are ongoingpolicy improvements. For the residential buildings, from 2023, requirements for thermal
performance for new homes has been increased from six to seven stars; and forcommercial buildings, usage-based rating system (NABERS) successfully improved
efficiency.
There are emerging opportunities that drive changes in Australia. Switching from gas
heating to heat pumps, gas/electric boiler to heat pumps, and self-consuming facilitate
electrification and decarbonization. Some of the trends regarding digitalization are
moves such as installing smart meters and the sensors for monitoring and control.
Access to data is valuable for consumers to participate in the market.
Take an example of Australian buildings which are undergoing a digitalization journey.
First, we need to connect the buildings (“digital ready”) and get access to all data in a
cost-effective way. Second, we need to deliver benefits through analytics (bothoperational and energy cost). We connect different sources, such as Building
Management System (BMS) and IoT sensors, to a data platform for analytics.
For decarbonization of the Australian building sector, the modeling shows we should be
able to reduce emissions from buildings to reach at least 2% of 2020 level emissions by
2050. The pathway is going to be supported by a combination of energy efficiency
measures supported by policies and technology changes that enable digitalization andhigh uptake of renewable energy resources which are going to be available to thebuilding sector.
37d) Japan’s Path for Carbon Neutrality and the Role of Energy Efficiency in
Buildings
Dr Naoko Doi (Senior Research Director, Assistant Director, Climate Change andEnergy Efficiency Unit, The Institute of Energy Economics, Japan (IEEJ) )Key points
・Promoting the introduction of zero energy buildings, energy efficiency renovation ofstock buildings, and efforts in operational energy efficiency improvement are the keys
in the building sector.
・In the second supplementary budget for households in FY2023, a total of JPY421.5
billion are being provided for the energy efficiency of residential sector.
・Japan’s evolving energy efficiency policies include promoting carbon neutrality of water
heaters, demand response ready appliances, and consumers’ engagement which
would requires the electric/gas retailers to set energy saving targets.
SummaryJapan amended its energy conservation law. It was made to include “non-fossil fuels” on
top of fossil fuels for energy efficiency improvement in April 2022. Demand response isalso included as the energy efficiency concept. Promoting the introduction of zero energy
buildings, energy efficiency renovation of stock buildings, and efforts in operationalenergy efficiency improvement are the keys in the building sector.
The Japanese government set a comprehensive approach to mobilizing JPY150 trillionof public-private investment for green transformation (GX). In the second supplementarybudget for FY2023, for households, a total of JPY421.5 billion are being provided for theenergy efficiency of residential sector.
According to the estimation, if all the newly built residential houses are ZEH from 2021,
its share will reach 28.7% by 2050, while around 70% are existing stock buildings. Hence,
the results show the needs for additional measures such as (1) operational energy
efficiency improvement, (2) strengthening of energy efficiency renovation for existing
stocks, and (3) promotion of ZEH in apartment buildings.
Japan’s evolving energy efficiency policies areas includes promoting carbon neutrality ofwater heaters, demand response ready appliances, and consumers’ engagement which
would requires the electric/gas retailers to set energy saving targets.
Tokyo Metropolitan Government set the goal of reducing CO2 emissions by half,
compared to 2000 emission level, by 2030. Among the measures to achieve this goal,38

the Top-level Business Entity Certification System, which has been implemented foryears, is utilized to facilitate the energy efficiency of building sector.
e) Q&A and Discussions
Key points
・In the US, EIA is looking to create an even more accessible open-source version of
the National Energy Modeling System. From a building’s perspective, they will take a
deep look into how they can more robustly represent nuances in policy development.
・The government of Hong Kong, China takes the lead by showing the commitment to
the private sector through implementing energy saving targets, energy audit, retrocommissioning, etc in government facilities. The government merits achievements ofprivate buildings to the society, provides technical advice to SMEs and encourages
them to apply the finance subsidy for energy saving retrofit.
・Data is the primary basis for continuous commissioning or tuning in Australia. Startingwith basic instrumentation or monitoring is going to be important.
Data driven Measurement and Verification (M&V) provided will be a major motivatorfor people to participate in energy efficiency schemes and benefit from them.
・The Energy Conversion Law in Japan has been amended to include non-fossil energy.
All energy sources, including all fossil fuels and renewables need to be regulated. The
regulated industry and commercial sectors must report the annual fuels consumption
aside from the fossil fuels.
Summary
Q (to Ms Courtney Sourmehi): What are you most excited about modeling in buildings
as EIA updates NEMS this year, and why?
A (Ms Courtney Sourmehi): We are actually looking to create an open-source version of
the National Energy Modeling System. Now our model is currently open and available tothe public, but it can be expensive to run because you have to procure certain
subscriptions that we cannot provide based on our subscription agreements with third
party vendors. But we are looking to build a version of NEMS that is even moreaccessible. The general public could access NEMS via GitHub, to use and to do theirown modeling to test our assumptions. We have also undertaken project Blue Sky, an
initiative to develop the next generation energy systems model.
From a building’s perspective, I am interested in looking at how we can add an income

39dimension to better model income-targeted programs that save energy. One important
facet of building energy efficiency modeling is weatherization upgrades. There are newfunds from the Inflation Reduction Act that are intended to support weatherization
programs. Some programs specifically target low-income homes as well as tribal areasin the US. Income-targeted programs are difficult to model, at our current level ofgeographic granularity. It is really difficult to estimate those kinds of impacts. We aregoing to take a really deep look into how we can more robustly represent these latest
policy developments.
Q (to Mr Wallace Leung): How do government buildings take the lead to encourage theprivate sector to improve energy efficiency? Are there any subsidies or incentives given
and how do you measure the achievements?
A (Mr Wallace Leung): First, the government takes the lead by showing the commitmentof government facilities to the private. Government buildings have a duty to saveminimum 5% of energy in every five years since 2003. The current target is up to 6%.
The central government allocates funding to drive the Energy Savings Initiative toachieve this target, through energy audit, retro-commissioning, energy saving retrofit,
and install renewable energy system.
To promote the movement to the private buildings, the government, for example, willrecognize the buildings which have done a good job, showing their achievement to thesociety through third parties’ building certification schemes.
For other building stocks, largely owned by small and medium enterprise, thegovernment would encourage them especially in retro-commissioning, because normallythey do not have enough resources. We provide technical advice with them or encouragethem to apply for the finance subsidy for energy audit, retro-commissioning and energy
saving retrofit. That’s what we do to encourage building energy efficiency.
Q (to Mr Wallace Leung): Retro-commissioning is important for the existing building
stocks. Could you please explain more regarding this?
A (Mr Wallace Leung): The government normally did not allocate funding directly to thebuilding owners to carry out energy saving works, but we have incentives and financesubsidy schemes to drive energy efficiency improvement works.
In Hong Kong, China, the power companies have set up funding schemes to subsidize
the Energy Savings Initiative. Now, they provide free energy audit service, retro40

commissioning service as well as to subsidized part of the funding of the capital costinvestment for some energy saving retrofitting works. We use these financial subsidies
to drive the energy saving works.
But for some specific groups of buildings, for example, schools and some NGOs, we set
up special schemes to help them save energy. For example, we help them to replace the
LED lighting and variable speed air conditioners in their venues as part of the community
programs. We put this as a showcase for the society.
Q (to Dr Subbu Sethuvenkatraman): How to improve energy efficiency by adopting retrocommissioning with digitalization technology in your introduced case?
A (Dr Subbu Sethuvenkatraman): Digitalization underpins the energy efficiency upgradesthat you might want to do with very low cost. Data is the primary basis for continuous
commissioning or tuning.
Based on our digitalization experience with commercial buildings, the primary data
sources building tests start with installation of smart meters. The uptake of smart meters
in building varies very widely. Perhaps at the higher end of the spectrum, premiumbuildings or buildings in major cities would probably have some form of digital
infrastructure. The biggest challenge is medium and small sized buildings which do nothave access to expensive upgrades and people who do not even have building
management systems. How do they monitor and improve efficiency? That’s why webelieve the data platform that we have created, and we are trying to make it as open data
platform for the public good where people can actually provide all the data and the data
can be used by contractors or service providers to implement energy efficiency upgrades
scheme. Starting with basic instrumentation or monitoring is going to be really important.
The other aspect is having reliable tools like measurement and verification. The
fundamental challenge with all policy implementation is that you do not have a baseline.
If you do not have a baseline, how do you make sure the improvement that has
happened? It is important if you’re gathering data on a continuous basis. If you’re able
to provide data driven M&V services, that is going to be a major motivator for people toactually participate in energy efficiency schemes and benefit from them.
Q (to Dr Naoko Doi): How to promote electrification and non-fossil fuels in Japan?
A (Dr Naoko Doi): The Energy Conversion Law has been amended to include non-fossil
energy, so all energies including all fossil fuels, renewables and other non-fossil fuels,
41

need to be regulated. The industry sector and commercial sector regulated by this law
have to report the annual consumption of fuels aside from the fossil fuels. Non-fossil
fuels need to be utilized efficiently, including variable renewable energies.
6-2-3. Session 3: Energy Efficiency in Transporta) Improving Energy Efficiency in Transport Sector of Singapore
Professor Qiang Meng (Department of Civil and Environmental Engineering (CEE),
National University of Singapore)
Key points
・On the land transportation, the Singapore government is committed to reduce peakland transport emissions from the 2016 peak by 80% by or around 2050 mid-century
through a holistic vehicle electrification plan.
・On the maritime industry, each container ship requires tugboats. Therefore, electrictugboats and optimal tugboat scheduling are needed to save energy.
・On the aviation industry, Changi Airport is upgrading its lighting and chilling systems
to enhance energy efficiency of airport operations. The airport will step up its solar
deployment on terminal buildings.
Summary
Singapore is a small city with a high population density. Although the airport is the secondbusiest in Asia and PSA Corporation is ranked number two in terms of container
throughput worldwide, it is livable and sustainable city.
Singapore has an extra-developed road network which takes up 12% of the total landarea. More than 60% (around one million vehicles) are private and rental cars. The carownership rate is kept around 11% due to implementing Certificate of Entitlement (COE)management. On the other hand, two-thirds of daily individual travel trips are overtaken
by buses and MRTs. About 1,000 vessels in Singapore water areas and one vessel
leaves or enters every two-three minutes. 298,000 aircraft movements were recorded
from January to November 2023.
Singapore works towards reducing its greenhouse gas emissions by using less carbonintensive fuels, and by improving energy efficiency. A whole-of-government approach has
been adopted to implement measures to improve energy efficiency and reduce theenergy use of various sectors. Government agencies actively promote energy efficiency
in five sectors through legislation, incentives, public education, etc.
42Approximately 2.5 million tons of oil equivalent of primary energy were consumed in 2020
bythetransport

sectorinSingapore(https://www.statista.com/statistics/973029/singapore-transport-related-energyconsumption/). Electricity consumption of transport was 2,899.7GWh in 2022 ranked in
the third place (www.ema.gov.sg).
The Singapore government passed the Energy Conservation Act in 2012. Under this Act,
regulation for Energy Management Practices for Transport Facility Operators was
enforced in 2013.
The Singapore government is committed to reduce peak land transport emissions fromthe 2016 peak by 80% by or around 2050 mid-century through a holistic vehicle
electrification plan.
Although the Singapore government proposes several incentive schemes to purchaseEVs, the price is high than that in other economies.
The Land Transport Master Plan 2040 envisions a land transportation system that isconvenient, well-connected, and fast.
SBS Transit Ltd has already adopted strategies to reduce energy consumption. Also,
SMRT Corporation Ltd is also taking the initiative that will reduce Heating, Ventilation
and Air-Conditioning (HVAC) energy consumption through predictive AI to adjust
setpoints, while maintaining commuter comfort.
On the maritime industry, each container ship requires tugboats. Therefore, electrictugboats and optimal tugboat scheduling in order to save energy are needed.
On aviation Changi Airport is upgrading its lighting and chilling systems to enhanceenergy efficiency of airport operations. Moreover, the airport will be stepping up its solar
deployment on terminal buildings.
b) Improving Energy Efficiency in Transport in Malaysia
Mr Huzaimi Nor Bin Omar (Chief Operating Officer, ChargeEV, Green EV Charge Sdn
Bhd, Malaysia)
Key points
・National Energy Transition Roadmap (NETR) 2023-2050 was launched, focusing oncarbon emission reduction towards realizing the Net Carbon Emission 2050.
・Manufacturing incentives and voluntary energy efficient vehicle labeling schemes are
implemented. Electric vehicles take center stage as the primary focus that EV
penetration is expected to be 15% by 2030, 38% by 2040, and 80% by 2050.
・National EV Taskforce (NEVTF) and National EV Steering Committee (NEVSC) look43

at the progress of EVs.
Summary
Regarding policy push for energy efficiency transport in Malaysia, Low Carbon Mobility
Blueprint (LCMB) 2021-2030 is the first holistic policy document on land transport. The
transportation sector is the highest contributor to emissions (20-29%) and final energy
consumption (27%). As of last year, 33 million vehicles, 46% of which belong topassenger vehicles and motorcycles. Also, vehicle sales reached the highest (719,000s
vehicles) last year. Moreover, the National Energy Transition Roadmap (NETR) 20232050 has been launched recently. NETR focused on carbon emission reduction towards
realizing the Net Carbon Emission 2050.
Various initiatives are taken. First, manufacturing incentives and voluntary energy
efficient vehicle labeling schemes are implemented. Second, launched in 2022, electricvehicles take center stage as the primary focus that EV penetration is expected to be
15% by 2030, 38% by 2040, and 80% by 2050. Finally, the National EV Taskforce(NEVTF) and the National EV Steering Committee (NEVSC) look at the progress of EVs.
Due to these initiatives, EV market is growing in Malaysia. However, only 1.8% EV
penetration rate in 2023.
He introduced YINSON Greentech which is aiming to accelerate the transition towards a
net zero world.
c) Improving Energy Efficiency in Transport in the Philippines
Dr Noriel Christopher Tiglao (National College of Public Administration and
Governance (NCPAG), University of the Philippines)
Key points
・In 2015, the transport sector contributed to 34% of the total Philippines greenhousegas emissions, with road transport accounting for 80% of those emissions.
・Based on the transportation modeling, expansion of mass transit network is the single
policy scenario that contributed to a higher overall reduction in petroleum andalternative fuel consumption levels.
・The Comprehensive Roadmap for the Electric Vehicle Industry has four components:
EVs and charging stations, manufacturing component, research and development,
and human resource development.

44

Summary
Dr Noriel Christopher Tiglao made a presentation on Energy Efficiency in Transport in
the Philippines.
In the Philippines, the total final energy consumption (TFEC) increased from 18.61Mtoein 1990 to 32.224Mtoe in 2016, increasing annually by 2.8%. The TFEC of thetransportation sector had increased by an average of 5.5% per year. In the 1990s, theresidential sector had the largest share of TFEC whereas the transportation sector
ranked second. From 2000 to 2016, the transportation sector occupied the largest shareof total final energy consumption, with an average share of 34.2%. The roadtransportation mode consistently had the largest share, followed by the watertransportation and air transportation mode. The rail transportation mode has little
demand for energy, but this would change in the future. Diesel consistently had thelargest share, followed by gasoline. The transportation sector is highly dependent on
fossil fuels and it will remain as the highest energy consuming sector.
In the Philippines, the transportation sector is the largest source of air pollution andenergy-related GHG emissions. In 2015, transport GHG emissions contributed to 34%
of the total Philippines GHG emissions, with road transport accounting for 80% of thoseemissions. Similarly, 74% of air pollutants come from transport sources. Here. thetransport sector in the Philippines is energy-intensive and contributed about 35.6MtCO2e
and 27.4MtCO2e of emissions in 2019 and 2020, respectively.
In April 2021, the Philippines submitted its NDC. The Philippines commits to a projected
GHG emissions reduction and avoidance of 75%, of which 2.71% is unconditional. Data
from the Department of Transportation indicates that from a baseline of 24.02MtCO2e in
2010, the GHG contribution from the transport sector is projected to grow to
87.10MtCO2e in 2030 and 166.07MtCO2e in 2040. Based on initial calculations,transport projects can contribute to a GHG reduction of 10.03MtCO2e in 2030 and
14.23MtCO2e in 2040. Notably, rail has the largest contribution to GHG reduction at
6.79%.
Based on the transportation modeling, the expansion of the mass transit network is the
single policy scenario that contributed to a higher overall reduction in petroleum andalternative fuel consumption levels. This is followed by the vehicle restraint (TDM) policy.
The motor vehicle inspection system did not contribute to a significant reduction in fuelconsumption.
The Electric Vehicle Industry Development Act (EVIDA) ensures the Philippines’s energy
security and independence by reducing reliance on imported fuel for the transport sector
and provides an enabling environment for the development and adoption of EVs and EV
45charging stations.
The Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) refers to a
National Development Plan for the EV industry which has four components: EVs andcharging stations, manufacturing component, research and development, and humanresource development.
National Energy Efficiency and Conservation Plan (NEECP) is a comprehensive
framework and plan that institutionalizes energy efficiency and conservation in thedomestic across key sectors. It forecasted that the Philippines’s energy mix in 2040 willappear like the energy mix to date, with a strong emphasis on oil products. This is due,in part, to the predicted continued demand for diesel and petrol from the transportation
sector. While there have been programs to test electric vehicles and the use of natural
gas in public transport, these have been limited.
The Philippine Energy Labelling Programs (PELP) is the development and rollout ofenergy performance requirements. Eco-driving has the potential to reduce fuelconsumption. The observed engine fuel rate for eco-driving reduces by 41% comparedto aggressive driving.
Two strategies come out: Transport Vehicles Fuel Economy Labeling Program (VFELP)
needs cooperation between the private sector as well as the government agency. At thesame time, research and development require co-create programs for incentivizing fuelefficiency and emission reduction. Public transport is key to keeping management andcompetition standards.
d) Achievement and Potential of Multi-Pathway Approach in Road Transport Sector-Japan's Experience
Mr Takao Aiba (Vice Chairperson of Environmental Policy Subcommittee, andChairperson of International Climate Change Policy Expert Group, Japan Automobile
Manufacturers Association, Inc, (JAMA) )Key points
・Japan has reduced 23% of CO2 emissions from the road transport sector, comparing
with 9% in the US and 3 % in Germany and the Netherlands.
・ An integrated approach is essential. There are four pillars: 1) automobile
manufacturers should provide more fuel-efficient vehicles, 2) fuel suppliers should
provide diversified fuel supply, 3) users/customers should select environmentallyfriendly cars, and 4) governments should enforce traffic flow improvement.
・Study findings of the JAMA's scenario-based analysis show that there is potential not46

only for 100% BEVs, but also for a wide variety of electrified vehicles including HEVs
and PHEVs and the use of Carbon-Neutral Fuel (CNF) for global CO2 emissions
reduction in road transport to be in line with the IPCC's 2050 1.5-degree climate
scenarios.
Summary
Mr Takao Aiba made a presentation on achievement and potential of multi-pathway
approach in road transport sector.
Japan Automobile Manufacturers Association, Inc (JAMA) is a non-profit industry
association comprising Japan's 14 manufacturers of passenger cars, trucks, buses, andmotorcycles. JAMA member companies are making efforts towards carbon neutrality by
2050 by developing technologies to further reduce automotive CO2 emissions.
Technology-neutral stance is important, which means a diversity of options is crucial toachieving carbon neutrality. Many pathways exist toward carbon neutrality.
Japan has reduced 23% of CO2 emissions from the road transport sector. This isindispensable when it comes to 9% increase in the US, 3% increase in Germany, and
3% increase in the Netherlands. It could be said that Japan is the leader in emission
reduction in the transportation sector.
An integrated approach is essential. There are four pillars: automobile manufacturers
should provide more fuel-efficient vehicles, fuel suppliers should provide diversified fuelsupply, users/customers should select environmentally friendly cars, and governments
should enforce traffic flow improvement. By implementing an integrated approach Japanis steadily reducing CO2 emissions from 2000.
Study findings of the JAMA’s scenario-based analysis show that the supply of CarbonNeutral Fuel (CNF), which comprises of biofuel and synthetic fuel, could take a crucialrole. These pathways are recognized in the G7 communique and the Global Stocktake
at COP28.
To sum up, Japan has been a leader in CO2 emission reduction in the road transportation
sector among G7 members through the Integrated Approach. Particularly expanding line
up of electrified vehicles suitable for regional circumstances, which is in line with therange of pathways’ concept, has improved energy efficiency. Based on the quantitative
scenario analysis, JAMA believes that there is potential not only for 100% BEVs, but also
for a wide variety of electrified vehicles including HEVs and PHEVs and the use of CNF
for global CO2 emissions reduction in road transport to be in line with the IPCC's 2050
1.5-degree climate scenarios.

47e) Q&A and Discussions
Key points
・In Singapore, the government is also concerned about the impact of EV charging
demand on the capacity of grid. A smart charging strategy is also important. The
highest EV charging demand at HDB could be after 6pm.
・Malaysia tries to understand the demand for generation and distribution on the grid.
Currently initiatives on EVs are integrated. Malaysia understands there is huge
potential for energy storage.
・In the Philippines monitoring enforcement and evaluation are key things. Moreover,there is a need to work with the private sector for reporting. Co-production and cocreation approaches are needed for stronger stakeholder cooperation and improving
collaborative governance.
・In Japan the fuel economy standards using the top-runner approach set a very hightarget to reduce CO2 emissions. Backed by government incentives, the share of HEVs
grew dramatically, which contributed to improving fuel economy in Japan.
Summary
Q: What is the impact on the electricity grid? How do different economies deal with theelectricity grid?
A (Mr Huzaimi Nor Bin Omar): Currently initiatives on EVs are integrated. As mentioned,
all stakeholders are involved in task forces. During the EV projection, Malaysia tries tounderstand the demand for generation and distribution on the grid. The number of EVs
is primitive now but he forecasted that regulation would come soon. Technologies suchas energy storage systems are taken into carefully. Malaysia understands there is huge
potential for energy storage as well.
A (Prof Qiang Meng): The majority of people in Singapore are living in the government
house. When the government designed the building, they already had electricity.
However, in the future, demand will grow. Therefore, the government is concerned about
the impact of EV charging demand on the capacity of the grid. A smart charging strategy
is also important. The highest charging demand is after six pm. The government mightneed a sub-system of the grid.
A (Dr Noriel Christopher Tiglao): In the Philippines the issues are not only grid supply,
but island matters. In order to ensure better energy for an island, the government tries to48

set strict targets on shares of renewable energy.
A (Mr Takao Aiba): Depending on the charging situation, people want to reduce charging
time. If people use quick charging systems, charging time will be reduced, but the impact
on the grid increases. The city is fine with this situation, but in the rural area is not soeasy.
Q (To Dr Noriel Christopher Tiglao): The Energy Conservation Law was amended so that
50,000KWh of power should be reported back to the government. How will thegovernment implement this reporting system?
A (Dr Noriel Christopher Tiglao): Monitoring enforcement and evaluation are key things.
He believes that there is a need to work with the private sector for reporting. Coproduction and co-creation approaches should be widely explored for improving
collaborative governance.
Q (To Mr Takao Aiba): What are the main factors according to the CO2 reduction in theJapanese case?
A (Mr Takao Aiba): The fuel economy standard using the top-runner approach, setting avery high target, has been effective. Backed up by the government’s economic incentive
support, from the end of 2000s the share of HEV grew dramatically, which contributed to
improving the fuel economy in Japan. Moreover, small cars/kei-cars account for 30-40%
in Japan which features the Japanese market.
Q (To Professor Qiang Meng): On slide 10 why is tax on EVs higher than conventionalcars? Why does the government treat EVs negatively?
A: I got the information from the website. Will double-check. But I assume that road tax
will be decided by the power of cars.
Q (To Mr Takao Aiba): Do you consider the production costs of fuels?
A (Mr Takao Aiba): The production costs of synthetic fuel are important. 60% or two-thirdsof its costs are green hydrogen. If green hydrogen costs are reduced, so is synthetic fuel.
Brazil has a capacity for biofuel. The production costs depend on the environmental
49

factors of production.
6-2-4. Session 4: Energy Efficiency in Industrya) Improving Energy Efficiency in Industry in Chinese Taipei
Dr Tze-Chin Pan (Deputy Division Director, Energy Policy and Planning Division, Green
Energy and Environment Research Laboratories, Industrial Technology
Research Institute, Chinese Taipei)
Key points
・Considering that the growth rate of electricity consumption in the industrial sector
dramatically exceeds that of energy demand, Chinese Taipei focuses on improving
efficiency in electricity usage.
・Designated factories in Chinese Taipei are faced with a mandatory target of saving
electricity by 1%, which means that the total energy saved from 2015 to 2024 should
exceed the total electricity consumption by 1%.
・This target is currently under discussion regarding the potential strengthening of futuretargets to also encompass reductions in fossil fuel usage or setting more ambitious
targets.
Summary
Chinese Taipei's energy and economic trends in recent decades were observed thatwhile the GDP growth significantly outpaced the total energy demand from 2010-2022,
the contribution of the industrial sector to the GDP rose markedly during this period,
accounting for 40% of the total output of our economy. Despite this, the energy
consumption in the industry remained relatively constant.
The rapid expansion of Chinese Taipei's electronics manufacturing industry, including
semiconductors manufacturing industry, is believed to have caused this phenomenon.
The energy intensity of the electronics manufacturing industry is significantly lower thanthat of heavy industries. For example, in Chinese Taipei, the energy intensity of the paperindustry is about 16 times that of electronics manufacturing industry. Considering thatthe growth rate of electricity consumption in the industrial sector dramatically exceedsthat of energy demand, the policy focus in Chinese Taipei is centered on improving
efficiency in power usage.
A pivotal element of Chinese Taipei's policy framework is the designation of large energy
users who are subject to regulatory requirements aimed at driving continuous

50

performance improvements. The designation thresholds consider factors such as fossil
fuel consumption volumes or electricity contract capacity. Factories that are designatedare required to appoint energy management officers who must obtain certification fromgovernment to oversee compliance.
These factories are also mandated to undergo energy audits conducted by energy
management officers and report comprehensive consumption data to authorities
annually. This reporting system enables authorities to monitor trends, identify priority
sectors and technologies, and inform the development of new policies based on insights
gleaned from aggregated industry data.
Designated factories in Chinese Taipei are faced with a mandatory target of electricity
saving by 1%, which means that the total energy saved from 2015 to 2024 should exceed
the total electricity consumption by 1%. However, discussions are currently underway
regarding the potential strengthening of future targets to also encompass reductions infossil fuel usage or setting more ambitious goals for the largest energy consumers.
Subsidy programs serve to complement regulatory measures by incentivizing the
replacement of outdated equipment with more efficient models. Additional performancebased incentives are available for projects that can exceed energy savings thresholds of
10% or more.
Looking ahead, Chinese Taipei's new energy-saving strategy will focus on deploying
emerging efficiency-boosting technologies and transitioning demonstration projects towider adoption.
b) Improving Energy Efficiency in Industry in Korea
Mr Minkyu Kim (Associate Research Fellow, Department of Energy Demand andPolicy Analysis, Korea Energy Economics Institute (KEEI), Korea)
Key points
・ Under the Korea's voluntary energy efficiency targets program, the government
collaborates with about 30 significant energy-intensive corporations, which account forover 60% of industrial energy usage.
・Those corporations pledge to annual improvement targets for their energy intensitywith a partnership agreement with the authorities.
・The Korean LEEN initiative (Learning Energy Efficiency Networks) fosters innovationand facilitates knowledge-sharing among small and medium-sized companies,
through workshops, diagnostic services, and other collaborative activities.

51

Summary
The manufacturing industry in Korea, which constitutes over 27% of the Gross Domestic
Product (GDP), serves as the economic backbone of the economy. This sector is also
responsible for over 50% of the economy’s energy consumption.
Given the industry's critical role in both the economic and environmental spheres,enhancing efficiency is prioritized to bolster decarbonization targets and fortify energy
security. The energy intensity of Korea, a metric that gauges the energy efficiency of its
economy, surpasses that of numerous major economies and is improving at a relatively
slower pace on average.
Under the aegis of Korea's voluntary energy efficiency targets program (KEEP 30 ; Korea
Energy Efficiency Partnership 30), the government collaborates closely with about 30
significant energy-intensive corporations, which collectively account for over 60% of
industrial energy usage. Firms participating in this program pledge to annual
improvement targets for their energy intensity, facilitated through a partnershipagreement with the authorities.
Incentives such as support for technology development or tax benefits are subsequently
provided, contingent on regular performance evaluations. The Korean LEEN initiative(Learning Energy Efficiency Networks) augments this approach by instituting regional
networks designed to foster innovation and facilitate knowledge-sharing among small
and medium-sized enterprises, through mechanisms such as workshops, diagnostic
services, and other collaborative activities.
c) Improving Energy Efficiency in Industry in Thailand
Mr Wisaruth Maethasith (Engineer, Professional Level, Energy Regulation andConservation Division, Department of Alternative Energy Development and Efficiency,
Ministry of Energy, Thailand)
Key points
・The key policy measures targeted at the industrial sector encompass mandatory
energy management standards for designated high energy usage factories andbuildings.
・ The designated facilities are obligated to appoint energy managers, implement
management systems, and submit annual compliance reports to be verified byindependent auditors.
・Thailand provides financial incentives such as equipment subsidies, which cover upper
30% of project costs for energy efficiency upgrades that meet the stipulated

52

payback criteria.
Summary
Thailand’s National Energy Efficiency Plan, which aspires to achieve a 36% reduction inenergy intensity by the year 2037, relative to the levels recorded in 2010. Given that the
manufacturing sector has emerged as the predominant energy consumer at theeconomy’s level, enhancements in industrial energy efficiency are

deemedindispensable for the realization of this ambitious, economy-wide objective.
Under Thailand's plan, the key policy measures targeted at the industrial sector
encompass mandatory energy management standards for designated high energy
usage factories and buildings. The designation thresholds consider factors such as
annual electricity consumption volumes. Facilities that have been designated are
obligated to appoint energy managers, implement management systems, and submit
annual compliance reports, which are to be verified by independent auditors.
In addition to the regulatory requirements, Thailand provides financial incentives such as
equipment subsidies, which cover upper 30% of project costs for energy efficiency
upgrades that meet the stipulated payback criteria. Tax incentives are also in place toencourage investments in energy efficiency.
Furthermore, Thailand is at the forefront of pioneering approaches to harness greater
private sector investment in energy efficiency. This is achieved by bundling standardized
factory project opportunities into investable financial products, which are certified basedon projected savings and returns. The aim of this initiative is to amplify the impacts ofenergy efficiency by private sector.
d) Improving Energy Efficiency in Industry in JapanMr Akira Ishihara (Special Adviser, International Cooperation Division, the Energy
Conservation Center, Japan (ECCJ))
Key points
・Considering the revisions to Japan's Energy Conservation Act, new strategies havebeen devised with the objective of promoting a transition in energy usage away fromfossil fuels.
・Benchmark targets, which were previously applicable only to the most energy-intensive
industries, have been expanded to additional sub-sectors within both the industry andcommercial buildings.
・Overall, Japan's experience emphasizes the importance of integrated policy packages

53

that combine clear economy-wide objectives with tailored support measures, suited to
the varying circumstances of industries and company sizes.
Summary
Despite an overall decrease in the industry's energy consumption in Japan, achieving
further reductions would necessitate multilateral approaches, given the diverse
circumstances across sectors.
The substantial gains of the past were largely attributed to the implementation of the best
available technologies, such as combined heat and power systems and heat recovery.
These technologies have now been widely adopted, indicating that the scope forincremental improvements solely through individual technologies might be limited.
Considering the revisions to Japan's Energy Conservation Act, new strategies have beendevised with the objective of promoting a transition in energy usage away from fossil
fuels. Benchmark targets, which were previously applicable only to the most energyintensive industries, have been expanded to encompass additional sub-sectors withinboth the industry and commercial buildings.
Companies bear the responsibility of establishing internal efficiency and decarbonization
targets and plans, adhering to the guidelines set forth by the government. Moreover, thegovernment also delineates actual economy-wide reduction objectives that companies
strive to collectively achieve.
Energy audits persist in playing a crucial role in driving performance improvements. Local
platforms have been instituted to bolster information sharing and provide support forsmall and medium-sized enterprises that might lack in-house expertise. These audits
consider optimization opportunities across various stages, ranging from minor retrofits tolarge-scale investments.
Looking towards the future, several technologies have high potential to improve theindustries energy intensities. Heat pumps, for instance, are witnessing broader
application in the industry owing to technical advancements, offering not only efficiency
benefits but also a pathway for transitioning to lower-carbon electricity. The coordinationof multiple efficient systems is demonstrating growing implementation, as evidenced by
the integrated energy hub for an industrial park.
Digitalization also paves the way for new opportunities to visualize and optimize entire
production processes. Overall, Japan's experience accentuates the importance ofintegrated policy packages that amalgamate clear economy-wide objectives with tailoredsupport measures, suited to the varying circumstances of industries and company sizes.

54e) Q&A and Discussions
Key points
・The existence of a target is necessary for the progress of energy conservation. The
existence of a target allows more efficient use of economic subsidies, leading toefficient energy conservation.
・Improving awareness of the effects of energy conservation is important for promoting
energy conservation. A lack of accurate information on the economy and effects ofenergy conservation leads to a lack of awareness, hindering energy conservation.
Therefore, government intervention is necessary.
・Differences in judgment criteria between management and operational workers can bea factor hindering energy conservation. Even if the workers feel energy efficiency
deterioration of the equipment, the management may hesitate to make newinvestments for equipment. Third-party perspectives are needed.
・There is a need to address cases where energy conservation investments are notmade due to lack of knowledge of energy conservation for investment decision-makers.
Workers should provide information to decision-makers.
Summary
Q (to Dr Tze-Chin Pan): Dr. Pan mentioned that Chinese Taipei has a policy of reducing
electricity consumption by 1% every year, and currently, a review of this policy is being
considered. In the discussions for the review, will renewable energy be included as atarget in addition to fossil fuels?
A (Dr Tze-Chin Pan): Including renewable energy as a target could be one option. On
the other hand, it could also be considered to raise the original target of reducing
electricity consumption by 1% itself. Either way, the direction is still under discussion atpresent.
Q (to Mr Minkyu Kim): What kind of incentives are given in the voluntary energy efficiency
improvement program in the industrial sector of Korea?
A (Mr Minkyu Kim): The government evaluates the progress of energy conservation, anddepending on the level of evaluation, incentives including economic ones such as tax
benefits are given.

55Q (to Mr Wisaruth Maethasith): In the system of reporting energy consumption in
Thailand, is it mandatory for companies to set energy conservation targets?
A (Mr Wisaruth Maethasith): In Thailand, companies are required to set energy
conservation targets, but there is no specification of numerical targets or the types ofenergy to be targeted.
Q (to Mr Akira Ishihara): Since the goal of companies is to maximize profits, especiallyin small and medium-sized enterprises, it is likely that they would prioritize investment
towards business expansion over energy-saving investment. How should this beaddressed?
A (Mr Akira Ishihara): In small and medium-sized enterprises, there is a lack ofknowledge and key persons regarding energy conservation. Therefore, in small andmedium-sized enterprises, energy audits and analysis of energy-saving potential are
important, and government support for these is necessary.
Q (to all presenter): Energy conservation brings benefits to companies and is expected
to progress based on market principles. In this context, is there a significance for thegovernment to implement energy conservation policies?
A (Dr Tze-Chin Pan): There could be cases where energy conservation investments are
not made because those who make investment decisions or workers who should provide
information to decision-makers do not have knowledge of energy conservation. Also,
there could be cases where energy conservation is not performed due to financial
constraints. Energy conservation policies are necessary to address such cases.
A (Mr Wisaruth Maethasith): Differences in judgment criteria between management andthe field can also be a factor hindering energy conservation. Even if the field feels thedeterioration of energy efficiency of the equipment, the management may hesitate to
make new investments for equipment that is financially operational. To address suchproblems, the opinion of a third party would be necessary.
A (Mr Akira Ishihara): The existence of a target is also necessary for the progress ofenergy conservation. There are targets for the government and companies, and theexistence of each target allows for more efficient use of economic subsidies and efficient56

energy conservation. This is the same for not only energy conservation but also climatechange.
A (Mr Minkyu Kim): Improving awareness of the effects of energy conservation is also
important for promoting energy conservation. In Korea, the awareness of the importanceof energy conservation is high, but there are cases where support for energy
conservation is small compared to government support for renewable energy. This is due
to a lack of accurate information on the economy and effects of energy conservation,
leading to a lack of awareness. From this perspective, the importance of energy
conservation should be appealed to society.
6-2-5. Session 5:Energy Management System and Smart Citya) APEC Low-Carbon Model Town (LCMT) Project
Mr Minh Tran (Deputy Head, Environment and Regional Sustainability Department,
Institute of Regional Sustainable Development, Viet Nam)
Key points
・“Da Lat” was selected as the case studies to prevent emissions caused by incinerationof solid waste and to contribute to generation of electricity for local consumption.
・Introduction of EVs leads to reduction of dependence on fossil fuel run vehicles and
GHG emission. Modal shift leads to reduce road congestion and provide added
attraction to tourists. Energy management systems can help reduce energy by up to
20% when installed.
Summary
The aim of the APEC Low-Carbon Model Town (LCMT) project is to conduct feasibility
studies on low-carbon development and develop low-carbon visions for cities based oninternational best practices.
Low carbon intervention is conducted in pre-selected assessment areas, town structuresand buildings, transportation, untapped energy, multi-energy and area energy system,
renewable and energy management system, overall city. There are three sources offunding for interventions, multi-lateral funding agencies, government funding, private
sector entrepreneurs and post-workshop consultation to be undertaken to gather data tofacilitate assessment in feasibility study.
Case studies of regions “Da Lat” resembling operating scenario had been selected and57

they provide some learnings. Potential to prevent emissions caused by incineration of>160MT of solid waste and contribute to generation of electricity for local consumption.
Introduction of EVs leads reduction of dependence on fossil fuel run vehicles and reduce
GHG emission. Modal shift also leads reduce road congestion and provide added
attraction to tourists. Implementation of Green Building Standards increase energy
requirement in buildings and reduce GHG emissions. Introduction of ride sharing options
and improving public transport system reduce requirement of fossil fuel vehicles andprovide business opportunities for locals. Energy consumption in buildings expected toincrease by 10% CAGR (Compound Average Growth Rate) between 2010 & 2030 under
existing conditions. Energy Management System can help reduce energy by up to 20%
when installed.
b) Energy Management System and Smart Cities: Current Situation and its Futurein the Philippines
Mr Felix William Fuentebella (Undersecretary, Office of Undersecretary, Department ofEnergy, the Philippines)
Key points
・The Philippines energy plan 2023-2050 shows Renewable Energy (RE) share in power
generation to be 35% by 2030 and 50% by 2050. The plan implements an energy
management system among designated establishments, an energy management
program by government, and efficiency guidelines for buildings design.
・The Smart and Green Grid Plan (SGGP) forms part of the Philippines Energy Transition
Program. The aggressive RE targets require the timely expansion of the transmission
system to integrate and manage the additional RE capacity to come online from 2024
to 2040.
Summary
The future energy scenario in the Philippines include five points, energy saving, power
generation mix, emerging technologies, ICT, energy resiliency. And there are threeenergy strategic framework as access to affordable energy, reliability and resiliency andclean and sustainable energy.
In the Philippines energy plan 2023-2050, reference is 35% Renewable Energy (RE)share in power generation mix by 2030 and 50% RE by 2030-2050. There are someplans for energy efficiency and conservation act such as Implementation of Energy
management

systemamong

designated58

establishments,

government

energymanagement program and guidelines on energy conserving design of buildings. And
fiscal incentives and energy efficiency excellence awards is valid.
The smart grid visions of smart power generation, smart utility and smart home and cities
are conducted to ensure the seamless integration of additional renewable energy
capacity to the grid in the coming years. The Smart and Green Grid Plan would serve as
the basis for the transmission development plan.
The Smart and Green Grid Plan (SGGP) forms part of the Philippines Energy Transition
Program and will complement the Philippines energy plan 2023-2050. The aggressive
RE targets require the timely development of smart and green transmission system tointegrate and manage the additional RE capacity expected to come online from 2024 to2040.
c) Implementation of Energy Management System on Campus Buildings inIndonesia
Dr Sentagi Sesotya Utami (Associate Professor, Engineering Physics, Faculty ofEngineering, Universitas Gadjah Mada (UGM), Indonesia)
Key points
・In Indonesia, the Integrated Smart and Green Building (INSGREEB) in campus building
is installed.
・INSGREEB started in 2012, focusing on integrating building physics and acoustics
using smart instrumentation and systems, and adapted to COVID-19 conditions. The
innovation continues with a new paradigm “Healthy, but still energy efficient” from 2020.
Summary
In Indonesia the Integrated Smart and Green Building (INSGREEB) in campus building
is installed. INSGREEB starts in 2012 and focus on integrating building physics andacoustics using smart instrumentation and systems and adapted to COVID-19 conditions,the innovation continues with a new paradigm “Healthy, but still energy efficient” from2020.
Carbon emission in Indonesia, distribution of CO2 emissions by Building increase from
29% in 2011 to 36% in 2021. So, to set Green Building Goal is important. Green Building
Goals have four aspects. Human development and mastery of science and technology,
sustainable economic development, equitable development, strengthening Indonesia’s
resilience and governance are valid and they are pillars of Indonesian development for
2045.
59

Smart building system includes nine principles, Automatization, Connected andIntegrated, Energy Management Implemented, Cyber Security Applied, Use of Artificial
Intelligence, User Satisfaction, Flexible, Ongoing Monitoring, Inclusive. About
Automatization, Lighting automation, Thermal and Indoor Air Quality (IAQ), Control
Algorithm is applied. About User Satisfaction, the platform adapts and prioritizes thebuilding occupant’s needs in terms of safety, health, comfort, accessibility, security while
improving life quality and increasing productivity is the key to achieve occupantsatisfaction.
d) Q&A and Discussions
Key points
・Energy management systems can be implemented effectively at the institution, city,and economy-wide level.
・Artificial intelligence (AI) software has great potential but is far from being realized.
Future efforts should focus on using AI to meet human needs for energy services more
efficiently, which requires better measurement systems.
Summary
Q: If technology such as AI makes growing energy consumption much faster than otheruses of energy? And also, technology makes agriculture, which is currently small,become much more important in terms of energy use?
A (Mr Minh Tran): As far as data centers are concerned, we seem on for example, in our
office, if we digitalize our entire system, we save on space. So basically, it's a behavior
shift of the entire world. So, no problem with that.
On the agricultural side, if we come up with a better design for energy, transit session
markets, it can be captured because what we are measuring there are emissions. Theenergy transition market is still being developed globally.
A (Dr Sentagi Sesotya Utami): I believe that the technology of computers and data
centers is very advanced now. We had to send off apple11 with the size of computerroom. Now we can say that just one touch screen, something like that to send out ourlauncher or Apollo11. It still exists now. This is just an example that you know technology
can adapt with the use of energy itself.

60

A (Mr Felix William Fuentebella): The smart city or smart technology enables the solution.
Q: Is there any thinking around managing energy use from air conditioning due toreducing humidity?
A: (Dr. Sentagi Sesotya Utami): In order to move out the humidity the most effective way
is actually through air exchange. If we have an air exchange, we have the potential of
having natural ventilation that would be very green. That is what we want to have in ourgreen buildings to avoid using a lot of mechanical systems.
6-2-6. Session 6: Closing Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre (APERC)
Dr Irie was very appreciative to all the speakers, moderators, and active participants. He
concluded this symposium was rich and multi-faceted contents, and informative andencouraging for those who are persuading decarbonization ultimately toward carbon
neutrality. Dr Irie stated that APERC will continue move forward with the APEC sectoral
symposium and APERC was planning to organise the third symposium on bioenergy inapproximately October 2024 in Thailand in cooperation with the Thai ministry of energy.
And he introduced the sixth 2024 ESCI Energy Smart Communities initiative bestpractices Awards Program hosted by Chinese Taipei.
6-2-7. Site Visit - Day2 (24 January)Tokyo Denki University 10:00-12:00
Fifty-one individuals attended Tokyo Denki University site visit.
Tokyo Denki University (TDU) is an integrated science and engineering university
founded in 1907 (formerly Denki School). TDU Senju Campus is engaged in a variety of
CO2 reduction initiatives. They adopt vertical installed huge Thermal Capsule, Air-flow
window with Retro-reflective film, Breeze air conditioning system, and energy-saving
operation coordination with monitoring system for calculate the number of people in theroom. They also provide real-time monitoring of electricity consumption, CO2 emissions,and water usage. These initiatives are unique and have had a significant effect on
reducing electricity consumption and CO2 emissions.

61

7. Symposium Analysis
APEC Symposium on Pursuing Decarbonization of Fossil Fuels on 11 and 12 October 2023 in Kobe City, Hyogo, Japan.
In the symposium, including speakers, participants, and organizers, more than 60 individuals participated. 26 attendees completed theevaluation survey.

Figure 1. APEC Project Evaluation Survey on Fossil Fuels
62

According to the survey results shown in Figure 1, most respondent thought that the objectives in the symposium were clearly definedand easily understood.
In general, the survey results support the notion that it achieved the intended objectives. Some respondent thought that the presentations
were a bit compressed in time and needed more time to get more details. Some request more sessions focus on decarbonization of fossil
fuels other than renewable energies.

63

APEC Symposium on Promoting Energy Efficiency and Energy Management System on 23 and 24 January, 2024 in Shinagawa,Tokyo.
In the symposium, including speakers, participants, and organizers, more than 60 individuals participated. 25 attendees completed theevaluation survey.

Figure 2. APEC Project Evaluation Survey on Fossil Fuels
64

According to the survey results shown in Figure 2, most respondent thought that the agenda items and topics covered were relevant andthe content was well organized and easy to follow. The symposium included diverse viewpoints across economies and professions. The
symposium was a good foundation for future international cooperation and discussion among APEC economies. Some respondent
thought that this type of symposium should be a two-day event to allow more time for the Q&A. For reasons unknown, one person showsa negative reaction for applying the project’s content and knowledge gained at his/her workplace.
The participation rate of female speakers should be increased.

65

8. Appendix
8-1. Agenda
APEC Symposium on Pursuing Decarbonization of Fossil Fuels
11-12 October 2023 in Kobe City, Hyogo, Japan
Venue: Banquet hall “Kairaku” on the B1 Floor, Kobe Portopia Hotel(JST)

Wednesday, 11 October
MC: Prof Mayumi Matsumoto, Visiting Associate Professor, Special
Division of Environmental and Energy Sciences, Komaba Organization for
Educational Excellence (KOMEX), the University of Tokyo, Japan

08:30-09:00

Registration

09:00-09:20

1. Opening Session

11:00-11:20

1-1 Opening Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre(APERC)
1-2 Keynote Speech:
Necessity of Decarbonization of Fossil Fuels for Carbon Neutrality
Ms Reiko Eda, Director for Natural Resources and Energy Research,
International Affairs Division, Agency for Natural Resources and Energy,
Ministry of Economy, Trade and Industry (METI), Japan
2. Hydrogen:Evaluation of Current Status and How to Promote Development and
Deployment
Moderator: Ms Sichao Kan, Senior Researcher, New Energy System
Group, Clean Energy Unit, Institute of Energy Economics, Japan (IEEJ)
2-1 Production of Hydrogen I
Mr Alex Santander Guerra, Head of Division, Energy and Environmental
Policy and Studies Division, Ministry of Energy, Chile
2-2 Production of Hydrogen II
Mr Awadh Asyraf Bin Supri, Head of Marketing & Sales, Far East &Australia
Gentari Hydrogen Sdn. Bhd., Malaysia
2-3 Transportation of Hydrogen
Mr Yuji Chishima, Group Leader of Business Development, Hydrogen
Business Department, Chiyoda Corporation, Japan
2-4 Transportation of Hydrogen (Liquefied Hydrogen)
Mr Shintaro Onishi, Senior Staff Officer, Section 3, Business
Development Department, Project Group, Hydrogen Strategy Division,
Kawasaki Heavy Industries, Ltd., Japan
2-5 Hydrogen Utilization
Dr Amgad Elgowainy, Senior Scientist, Distinguished Fellow, and Group
Leader, Energy Systems and Infrastructure Analysis, Argonne National
Laboratory, the United States
Q&A for all presenters and discussion

11:20-11:35

Coffee Break

09:00-09:05
09:05-09:20

09:20-11:20

09:20-09:40
09:40-10:00

10:00-10:20
10:20-10:40

10:40-11:00

66

11:35-12:55

11:35-11:55
11:55-12:15
12:15-12:35
12:35-12:55
12:55-14:10

14:10-16:00

14:10-14:30

14:30-14:50
14:50-15:10

15:10-15:30
15:30-16:00
16:00-16:15

16:15-16:55

16:15-16:35
16:35-16:55
16:55-17:15

3. Fuel Ammonia:
Evaluation of Current Status and How to Promote Development and
Deployment
Moderator: Mr Mathew Charles Horne, Senior Researcher, Asia Pacific
Energy Research Centre (APERC)
3-1 Production of Fuel Ammonia from Fossil Fuels
Mr Yoshikazu Kobayashi, Executive Analyst, New Energy System Group,
Clean Energy Unit, The Institute of Energy Economics, Japan
3-2 Fuel Ammonia for Power Generation
Mr Najib Rahman Sabory, General Manager, Decarbonization Promotion
Section, Planning Division, JERA Co., Inc., Japan
3-3 Ammonia as Fuel in Shipping
Mr Sergio Alda, Senior Project Officer, Sustainability, European Maritime
Safety Agency (EMSA), Portugal
Q&A for all presenters and discussion
Lunch Break Banquet hall “Kairaku” on the B1 Floor
4. Carbon Capture, Utilization and Storage (CCUS):
Evaluation of Current Status and How to Promote Development and
Deployment
Moderator: Dr Atsushi Kurosawa, Director, Global Environment Program,Research and Development Division, Institute of Applied Energy (IAE),Japan
4-1 CCUS in JapanDr Kenta Asahina, Mineral and Natural Resources Division, Natural
Resources and Fuel Department, Agency for Natural Resources andEnergy, Ministry of Economy, Trade and Industry (METI) , Japan
4-2 CCUS in Australia
Dr Matthias Raab, Chief Executive Officer, Executive, CO2CRC Limited,
Australia
4-3 CCUS in China
Prof Jiutian Zhang, Green Development Institute, Beijing Normal
University, Secretary General, China CCUS Association of Chinese
Society for Environmental Sciences, China
4-4 CCUS in ASEAN
Dr Usman Pasarai, Senior Researcher, Research Center for Process andManufacture Technology, National Research and Innovation Agency(BRIN), Indonesia
Q&A for all presenters and discussion
Coffee Break
5. Direct Carbon Capture (DAC):
Evaluation of Current Status and How to Promote Development and
Deployment
Moderator: Mr Glen E. Sweetnam, Senior Vice President, Asia Pacific
Energy Research Centre (APERC)
5-1 R&D for DAC in Japan
Prof Kenji Yamaji, President, Research Institute of Innovative Technology
for the Earth, Japan
5-2 R&D/commercialization for DAC in North America
Mr Adam Baylin-Stern, Director, Policy and Engagement, Carbon
Engineering, Canada
Q&A for all presenters and discussion67

18:00-6. Closing Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre(APERC)
Reception Banquet hall “Kairaku” on the B1 Floor(JST)

Thursday, 12 October

17:15-17:20

Site Visit

68

APEC Symposium on
Promoting Energy Efficiency and Energy Management System
23-24 January 2024 in Tokyo, Japan
Venue: Banquet room “RUBY 34” on the 34th Floor, Shinagawa Prince Hotel
Tuesday, 23 January 2024
MC: Professor Mayumi Matsumoto, Visiting Associate Professor, Special(JST)
Division of Environmental and Energy Sciences, Komaba Organization
for Educational Excellence (KOMEX), the University of Tokyo, Japan
08:30-09:00 Registration
09:00-09:35
09:00-09:05
09:05-09:20

09:20-09:35
09:35-09:45
09:45-11:05
09:45-10:00
10:00-10:15
10:15-10:30

10:30-10:45

10:45-11:05
11:05-11:20
11:20-12:40

1. Opening Session
1-1 Opening Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre(APERC)
1-2 Keynote Speech:
Mr Hideyuki Umeda, Director for International Policy on Carbon
Neutrality,
Agency for Natural Resources and Energy (ANRE), Ministry of Economy,
Trade and Industry (METI), Japan
1-3 Keynote Speech:
Dr Meng Liu, Chair, APEC Expert Group on Energy Efficiency andConservation (EGEEC) and, Deputy Chief, Division of Resources andEnvironment, China National Institute of Standardization, China
Group Photo
2. Energy Efficiency in Building: Current Situation and Room forfurther improvement
Moderator: Mr Ting-Jui Sun, Senior Researcher, APERC
2-1 Improving Energy Efficiency in Buildings in Hong Kong, China
Mr Wallace Leung, Chief Engineer, Energy Efficiency B, Electrical andMechanical Services Department, Government of Hong Kong, China
2-2 Modeling US buildings energy efficiency
Ms Courtney Sourmehi, Industry Economist, Energy Information
Administration, U.S. Department of Energy, the US
2-3 Energy Efficiency of Buildings in Australia
Dr Subbu Sethuvenkatraman, Research Group Leader,
Commonwealth Scientific and Industrial Research Organisation (CSIRO),
Australia
2-4 Japan’s Path for Carbon Neutrality and the Role of Energy
Efficiency in Buildings
Dr Naoko Doi, Senior Research Director, Assistant Director, Climate
Change and Energy Efficiency Unit, The Institute of Energy Economics,
Japan (IEEJ)
Q&A for all presenters and discussion
Coffee Break
3. Energy Efficiency in Transport: Current Situation and Room forfurther improvement
Moderator: Mr Finbar Maunsell, Assistant Researcher, APERC

69

11:20-11:35
11:35-11:50
11:50-12:05
12:05-12:20

12:20-12:40
12:40-13:55

3-1 Improving Energy Efficiency in Transport Sector of Singapore
Professor Qiang Meng, Department of Civil and Environmental
Engineering (CEE), National University of Singapore
3-2 Improving Energy Efficiency in Transport in Malaysia
Mr Huzaimi Nor Bin Omar, Chief Operating Officer, ChargeEV, Green EV
Charge Sdn Bhd, Malaysia
3-3 Improving Energy Efficiency in Transport in the Philippines
Dr Noriel Christopher Tiglao, National College of Public Administration
and Governance (NCPAG) , University of the Philippines
3-4 Achievement and Potential of Multi-Pathway Approach in Road
Transport Sector -Japan's Experience
Mr Takao Aiba, Vice chairperson of Environmental Policy Subcommittee,
and Chairperson of International Climate Change Policy Expert Group,Japan Automobile Manufacturers Association, Inc., (JAMA), Japan
Q&A for all presenters and discussion

14:55-15:15

Lunch Break
4.Energy Efficiency in Industry: Additional Potential for Achieving
Carbon Neutrality in APEC
Moderator: Mr Mathew Horne, Senior Researcher, APERC
4-1 Improving Energy Efficiency in Industry in Chinese Taipei
Dr Tze-Chin Pan, Deputy Division Director, Energy Policy and Planning
Division, Green Energy and Environment Research Laboratories,
Industrial Technology Research Institute, Chinese Taipei
4-2 Improving Energy Efficiency in Industry in Korea
Mr Minkyu Kim, Associate Research Fellow, Department of Energy
Demand and Policy Analysis, Korea Energy Economics Institute (KEEI),
Korea
4-3 Improving Energy Efficiency in Industry in Thailand
Mr Wisaruth Maethasith, Engineer, Professional Level, Energy Regulation
and Conservation Division, Department of Alternative Energy
Development and Efficiency, Ministry of Energy, Thailand
4-4 Improving Energy Efficiency in Industry in JapanMr Akira Ishihara, Special Adviser, International Cooperation Division, theEnergy Conservation Center, Japan (ECCJ)
Q&A for all presenters and discussion

15:15-15:30

Coffee Break

13:55-15:15
13:55-14:10

14:10-14:25

14:25-14:40

14:40-14:55

15:30-16:35
15:30-15:45
15:45-16:00

16:00-16:15

16:15-16:35

5. Energy Management System and Smart City: Current Situation
and Room for further improvement
Moderator: Mr Glen Sweetnam, Senior Vice President, APERC
5-1 APEC Low-Carbon Model Town (LCMT) Project
Mr Minh Tran, Deputy Head, Environment and Regional Sustainability
Department, Institute of Regional Sustainable Development, Viet Nam
5-2 Energy Management System and Smart Cities: Current Situationand its Future in the Philippines
Mr Felix William Fuentebella, Undersecretary, Office of Undersecretary,
Department of Energy, the Philippines
5-3 Implementation of Energy Management System onCampus Buildings in Indonesia
Dr Sentagi Sesotya Utami, Associate Professor, Engineering Physics,
Faculty of Engineering, Universitas Gadjah Mada (UGM), Indonesia
Q&A for all presenters and discussion70

16:35-16:40(JST)

6. Closing
6-1 Closing Remarks
Dr Kazutomo Irie, President, Asia Pacific Energy Research Centre(APERC)
Reception:
Banquet room “AQUAMARINE 32” on the 32nd Floor
Wednesday, 24 January 2024

10:00-12:00

Site Visit (half a day)：Tokyo Denki University

16:35-16:40
17:30-

71

8-2. Presentation Materials
1. APEC Symposium on Pursuing Decarbonization of Fossil Fuels
1-1. Keynote Speech: Necessity of Decarbonization of Fossil Fuels for Carbon
Neutrality
1-2. Energy Transition and Green Hydrogen in Chile
1-3. Development of Global Supply Chain by LOHC-MCH method
1-4. Towards the Realization of International Liquefied Hydrogen Supply Chain
1-5. Analysis of Current and Future Hydrogen Production and Utilization in the UnitedStates
1-6. Fuel Ammonia Production from Fossil Fuels
1-7. Fuel Ammonia Power Generation and Building Supply Chain
1-8. EMSA study Potential of Ammonia as Fuel in Shipping
1-9. CCUS in Japan
1-10. CCUS in Australia
1-11. CCUS in ASEAN: Recent Developments in Indonesia
1-12. Research and Development for DAC in Japan
1-13. Commercial-scale Direct Air Capture
2. APEC Symposium on Promoting Energy Efficiency and Energy Management
System2-1. Keynote Speech: The Evolution of Energy Efficiency Policy to Support Clean Energy
Transition in Japan

72

2-2. Keynote Speech: The Key to an Energy Resilient APEC: Energy Efficiency and Energy
Management
2-3. Improving Energy Efficiency in Buildings in Hong Kong, China
2-4. Modeling the US buildings energy efficiency
2-5. Energy Efficiency of Buildings in Australia
2-6. Japan’s Path for Carbon Neutrality and the Role of Energy Efficiency in Buildings
2-7. Improving Energy Efficiency in Transport in Malaysia
2-8. Improving Energy Efficiency in Transport in the Philippines
2-9. Achievement and potential of multi-pathway approach in road transport sector Japan's experience
2-10. Improving Energy Efficiency in Industry in Chinese Taipei
2-11. Improving Energy Efficiency in Industry in Thailand
2-12. Improving Energy Efficiency in Industry in Japan
2-13. Energy Management System and Smart Cities: Current Situation and its Future in thePhilippines
2-14. Implementation of Energy Management System on Campus Buildings in Indonesia

73

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Economies

Programs/Policies

Goal

UnitedStatesTheInflationReductionAct,whichis
intendedtopromotealternativefuels

•
•
•
•

CanadaFederalandprovincialregulationsto
reducemethaneemissions(fugitives,
ventingandflaring)intheoilandgas
sectorAchievemethanereductiontargets:40to45%below2012levels
by2025and 75%below2012levelsby2030.

CanadaCarbonpricerisingto130USDpertonne Affectbusinessdecisionsandconsumerbehaviortoinvestmentin
by2030,upfrom50USDnow
CCUS,biofuels,renewablesandlowͲcarbonenergycarriers.

CanadaCleanfuelstandard(liquidfuels)

Reducecarbonintensityofgasoline,dieselby15%below2016
levelsby2030.

CanadaFundCCUSresearch;CCUSinvestmenttaxcreditsforeligibleequipment

Encouragedecarbonizationresearchandinvestment.

CanadaHydrogenStrategy

SetoutshortͲ,midͲ andlongͲtermgoalsfordevelopingahydrogenindustryinCanada.Nospecificpolicysupportthusfar.

CanadaProvincialrenewablenaturalgas(RNG)
blendingmandates(e.g.,landfillmethane)

B.C.mandatinga15%RNGblendby2030.
Quebecmandatinga5%blendby2025and10%by2030.

ExtensionofTaxCreditsforBiodieselandRenewableDiesel
ExtensionofTaxCreditforAlternativeFuels
ExtensionofSecondͲGenerationBiofuelIncentives
Clean Fuel Production Credit(in alphabetical order)

Australia, Brunei Darussalam, Cambodia, Indonesia, Japan, Laos Malaysia,
the Philippines, Singapore Thailand, Viet Nam
Participating international organizations (in alphabetical order)

Economic Research Institute for ASEAN and East Asia (ERIA)
International Energy Agency (IEA)

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Economies

Programs/Policies

Goal

Economies

Programs/Policies

Goal

ThailandSingapore

NationalHydrogenStrategy

Establishesfiveactivitiestofosterthedevelopmentofhydrogentechnologiesandtheglobalhydrogensupply
chain.

TheThailandBoardofInvestment’s
InvestmentPromotionPackages(notificationno.Sor.7/2564)(Nov2021)

NaturalgasseparationplantsandpetrochemicalproductionfacilitiesimplementingCCUSwillbegranted8Ͳyear
corporateincometaxexemption.

ThailandSingaporeFundresearchintoemerginglowͲcarbon Fundstudiesanddemonstrationprojectstoresearchand
alternatives
fosterthedevelopmentoflowͲcarbonhydrogenCCUS
projects.

Biofuelblendingmandate(introducedin
2007)

•
•

Singapore

Carbonpricerisingfrom4USDper
tonnenowto35to60USDpertonnein
2030

Affectbusinessdecisionsandconsumerbehaviorto
investmentinCCUS,biofuels,renewablesandlowͲcarbon
energycarriers.

EcoͲfriendlyBiofuelDevelopment
Measures(Oct2022)

Expanddomesticbiofuelsbyadoptingmarinebiofuelby2025,
sustainableaviationfuelby2026andraisingits2030biofuels
blendingmandateinthedieselpool.

Australia

Australia’sNationalHydrogenStrategy

DesignedtoestablishAustralia'shydrogenindustryasamajorglobalplayerby2030.

Australia

EmissionsReductionFund(ERF)

Korea

Japan
2050CarbonNeutraland2030Climate
Goal•

Thegovernmentwillpurchaselowestcostabatement(in
theformofAustraliancarboncreditunits(ACCUs)).

•

Japan
China

ActionPlanforCarbonDioxidePeakingBefore2030

•
•

•
•

PromoteadvancedbioͲliquidfuels,sustainableaviation
fuels,andotheralternatives.
ImprovetheenergyefficiencyofendͲusefuelproducts.

BasicPolicyforRealizationofGX(Green
Transformation)

•
•



E20astheprimarygasoholby2037.
Biodieselblendrateisadjustedbasedondomestic
suppliesandenergyprices.

ReducegreenhousegasemissionstonetͲzeroby2050.
ReduceitsGHGemissionsby46percentinFY2030from
itsFY2013levels.
NationalHydrogenPolicy"GXEconomicTransitionBonds”(20trillionyenoverthenext10years)
IntroductionofcarbonpricingtogiveincentivesforGX
investment
StrengthenfinancialsupportthroughpublicͲprivate
partnership

75

1-2. Energy Transition and Green Hydrogen in Chile

Mid-term consensus
building is required

Energy Transiitionn anddn Hydrogenn inn Chile
Green

2050

2030

Building strong public policies in the energy sector

2023

Alex Santander G.

We know where we’re headed…
…we’re building how to get there

Director of Policies and Studies
Ministry of Energy Chile
October 11, 2023

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Reducing GHG emissions

Building State policies

A legal mandate to be a carbon neutral economy

The relevance of a long-term sectoral vision
Some updated goals

1st Energy
Policy1st Update ofEnergy Policy

Published in 2015

Published in 2022

Initial Agenda for
a Second Stage of
the Energy
Transition

2

100%

70%

Zero emission energy
in the electrical sector
by 2050

Zero emission fuels in
non-electric energy
end-uses by 2050

Energy Transition bill

National GH2 Strategy
and GH2 Action Plan

INDUSTRY
Mining, paper industry, others.

1%

26%

FUGITIVE EMISSIONSTRANSPORT

CO2 EMISSIONSIN CHILE
6% WASTE
6% INDUSTRIAL PROCESSES
10% AGRICULTURE

+80%

+2
2 GW

Renewables energies
in the electrical sector
by 2030

On storage projects
by 2030

Renewables promotion bill

Energy Transition bill andassociated regulation

Published in April 2023

14%

7%
BUILDING
Residential, others.

Land, aviation, maritime, others

77%
ENERGY

30%
ELECTRICITY SECTOR
Coal/LNG and others.

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |3

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Carbon Neutrality Plan

4

Renewable energies
One of the best potentials in the world
130

120

MM tonCO2e

Energy efficiency

Reference scenario

35%
Technical potential

Renewable energies

22%x80 times the current installed capacity in Chile

Electromobility

18%

80

Green Hydrogen

65

24%
Additional forest capture

40
Forest capture

Carbon neutral scenario0

A sustainable development
requires territorial harmony

Carbon neutrality
2015

2025

2035

2045
ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |5

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |76

6

An economy with clear policies
and regulation for GH2

National GH2 Strategy
Mission-oriented
policyyNationall Energy
Policy,, 2022

Greenn Hydrogenn Actionnn 2023-2030
Plan

Nationall Greenn HydrogennStrategy,, 2020

3 main goals:

Our pillars

2025

Climate action protagonists
Energy for a better quality of life
New productive activity for Chile“Green hydrogen and its derivatives represent ahistoric opportunity to transform Chile into one of
the main exporters of clean energy globally. This will
enable the creation of jobs and encourage newinvestments that will contribute to local development
and decentralization”

5 BUSDTop destination for green hydrogen
investment in Latin America

5 GW

Electrolysis capacity operating
and under development

200

Production in at least 2hydrogen valleys in Chile

kton/year

2030
2030
Chile is an energy exporter in theform of green hydrogen, electric
power or other energy sources

2,5 BUSD/year

Leaders in export of greenhydrogen and derivatives

25 GW

Leaders in production of greenhydrogen via electrolysis<1,5 USD/kg

The cheapest hydrogen on
the planet

2050
70%

Zero-emission fuels in nonelectric energy end-uses

Efficient route to azero-emission economy

These pillars, born fromthe participation ofmultiple public and private
actors, establish a coherent
framework under which
efforts to develop greenhydrogen in Chile will be
deployed.

Balanced use offdresources andyterritory
Interministerial roundtables
Advisor Council
Citizen Workshops
Strategic Committee

New clean exporttyeconomyENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Green Hydrogen as
an engine for local
development

International
openness

7

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |National GH2 Strategy
and GH2 Action Plan

8

A clear governance for H2
Green Hydrogen Industry Development Committee(Resolution Number 60, June 22, 2022)

Ministry of Energy
develops Strategies
and Action Plans

Interministerial Council
Chair: Minister of Energy
Co-chair: VP of Corfo
Executive Director appointed by the VP of Corfo

2020

2025

2030

2035+
Hydrogen andHydrogen Fuels Plans,
Policies and Standards

Action Plan
2020-2023

The frequent updating of theStrategy and its Action Plan will
make it possible to adapt public
policy to the evolution ofmarkets, technologies andchallenges.

Action Plan
2023-2030

Current
National GH2
Strategy

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Executive Order 2224, as
amended by the Energy
Efficiency Act of 2021

Inputs and topics
for discussion

Chair: Ministry of Energy
Co-chair: Corfo

Advising the Technical Board,Interministerial Council andExecutive Director

Interministerial Roundtables

9

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Inputs and topics
for discussion

Investmentss anddInstitutionall
Framework

30%

Strategic
guidelines

39%
Elaboration of the
Plan

Interministerial Roundtables
GH2 Interministerial Committee

Results

Inputs and topics
for discussion

10

Interministerial roundtables

Strategic Committee

GH2 Interministerial Committee
Results of the
discussion

AdvisorCouncilLevels of Participation:
Citizenship, regional governments, ministries, organized civil society, academia,
private and public sector, international organizations and a Strategic Committee

GH2 Action Plan 2023-2030
Advisor Council

Technical
Board

PublicConsultation

31%

Citizen Workshops
Participatory process
ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE | 5 – 6 meetings held by
each group
 Raised close to 200
sectoral initiativesy anddSustainability
Locall Value Identified 51 criticalissuesInfrastructureed Territoriall
andOrganization

 Currently working
bilaterally withcounterparts

Activities by action line
11

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |77

12

GH2 Plan Structure

GH2 Plan Structure
PublicAudiences

Identification of
Critical Issues(133)

Initiatives / Inputs
associated with GH2

Technical
Roundtables

51
1

(145)

CRITICALISSUES

Relevant or essential issues tobe considered in the GH2 Action
Plan for the achievement of theStrategy’s goals, arising from theconcern, challenges andopportunities identified.

Registrationof citizen
participation(71)
ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |13

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |GH2 Plan Structure

14

Citizen workshops
 + 2.300 registered
Participation by regions / online

GI.01.1

GI.01

51
criticalissuesGeneral
Initiatives
and Actions

GI.01.2

25

72

preliminary
General
Initiatives250

 Workshops in 5 regions:
Antofagasta, Valparaíso, Santiago,
Biobío and Magallanes200

 5 public audiences + 15 workshops

150

 A total of approximately

300

1.150 people participated100

preliminary
scopes

50

O
nl
in
e

la
ne
s
M
ag
al

Bi
ob
ío

go
Sa
nt
ia

A

GI.25.4

Va
l

nt
of
ag
as

GI.25.3

pa
r

ta

aí
so

0
GI.25

 34% private sector
28% public sector
20% civil society
18% academia.

3
34%

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |A GH2 Action Plan
with a State Vision

16

Strategic Committee
progress

STRATEGIC COMMITTEE
Sustainability
Dimension

Strategic Committee aims to provide strategic andpolicy orientations, with broad consensus among
participants, to constitute a high-level framework for
the Green Hydrogen Action Plan and build a political
discourse that communicates, domestically andglobally, the hydrogen guidelines.

 Industry is developing in a uniquewindow of opportunity
 Pillar for domestic economic growth High international environmental
standards
 Contribution to local development andquality of life improvement for local
communities

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |17

International
Dimension

3 other dimensions
are being worked on

 International openness

1. Economic

 Diversification of players

2. Human capital Compliance with international trade rules

3. Communities

 Promotion of innovation and technology
transfer Green corridors
 Certification with sustainability standards

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |78

18

Time windows foraction this decade

The option Chile is taking
Our economy is signed several instruments that
seek promoting cooperation for the developmentof the hydrogen industry.

Chile must maintain its openness
and investment diversification
policy to avoid the vulnerability ofconcentration of actors.

To position ourselves internationally, we require
investment in critical internal infrastructure, suchas transmission lines, ports, roads, pipelines,
connectivity, etc.

33
9
7
2

Leverage international
collaboration for the economy’s
interests: attract investments,
promote innovation andtechnology transfer, training, etc.

FTA-network of trade
agreements
Joint statements andcooperation agreement

2020

National GH2
Strategy2023

Investment signals,
standards, ammonia
and off-takers

2026

2026 - 2030

Investment signals,
standards, ammonia
and off-takers

Productive
chaining anddecarbonization

First movers and shared risks

Towards green markets andindustry consolidation

MoU
MoC

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Time windows foraction this decade2023 - 2026

19

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |1st time window

20

Investment signals, standards,
ammonia and off-takers

GH2 Action Plan
2023-2030

Productive chaining
and decarbonization

2030+

Consolidation

Territorial planning
Energy cost
National GH2 Strategy
Updating norms
Institutional strengthening
Updating considering
Law requirements
Permitting
Industrial Policy
Certification
Tax and financial incentives
Electrical conversion and use in
Public environmental baselines
isolated areas
Enabling infrastructure (desalination plants,
ports, eletrolyzers, CCS and DAC, electrical
Public information and participationlines)
Human capital
Regulations path (i.e. ammonia as fuel)Green markets
Standards
Performance indicators
International positioning(environmental, life quality, etc)
Promotion to local demand
Voluntary agreements
Demand aggregation
Governance
ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE | 21

Key actions

2nd time window

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |22

Enabler and sharedinfrastructure

Productive chaining anddecarbonization

Oil Company
Chile

Ministry ofEnergyhttps://www.anfport.cl/(ENAP)
Ministry ofTransport

Port
Companies

https://www.enap.cl/

Ministry of
Public Works

https://www.epaustral.cl/

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Supporting infrastructure:
Ports, roads, transmission lines, pipelines, etc.

23

79

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |24

Regulation to develop

Regulation to develop

1. H2 Facilities

2. H2 Transport

3. H2 Transversals

Production and Storage

Land and Maritime

Variousa) Land: Trucks – Trains

MEN 2 - Reg.
Seguridad
inst. H2 liq. yotras modifc.

Reg. Seguridad
instalaciones
H2

MIN 1 Reglamento
de Seguridad
MineraMTT 1 –
Transp. decargaspeligrosas por
vía pública

SAL 1 Almacenamiento de sustancias
peligrosasb) Land: Gas Pipelines
MEN 3 –
Seguridad,transporte y
dist. de gas(H2+GN) de red

MEN 4 Norma de
Calidad gas
H2+GN

MEN 5 –
Seguridad,transporte y
dist. de gas (H2)de red4.. H22 Applicationn Uses
4.1 Transport

MEN 7 Aspectos decomercializaci
ón de H2 (DS132)

MEN 8 Instaladoresde gasIncorporación
H2 comocombustibles

SAL 2 – Cond.
sanitarias yambientales
en lugares detrabajoPronunciación
sobre
competencias
en NH3

MTT 2 - Req.
para
manipulación yalmto. en
puertos

Min. Transport

Min. Housing

MTT 3 - Req.
Seguridad
manipulación
explosivos enpuertos

Min. HealthMin. Mining

Modification to existing regulation

Development of new regulation

1

NH3 for export

Quintero Bay H2 Hub

9

NH3 for export

3HyEx
NH3 for local use and export

MTT 6 Revisión
técnica devehículos

MMA 1 –
Emisiones devehículos

Min. Energy

Highly Innovative Fuels (HIF)

NH3 for export

Austria Energy, Okowind, CIP
1,800 MW (wind)

AME, Enel, ENAP, Porsche y
Siemens Energy
Pilot: 131 m3 e-gasoline/year

RWE
550 MW (Ez)

Hypro Aconcagua

1011Power-to-Gas
Linde

H2 for Forklifts in retailPower-to-mobility

21

Engie, Walmart

20 MW RE

1 MW (RE)NH3 for export

TEG, Haura Energy

Total EREN
10,000MW(wind)> 1,000 MW(wind)Minig

MIN 1 Reglamento
de Seguridad
MineraMEN 12 Instal. int. y
medidores degas (H2+GN)

Min. Housing

MIN 1 Reglamento
de Seguridad
MineraReg. Seguridad
instalaciones
H2

Min. HealthMin. Mining

Reg.
Seguridad
instalaciones
H2

Electrical Systemc) Residential-Commercial

October 2023
First version of GH2 Action Plan
2023-2030

16 H2 Magallanes

Gente Grande
NH3 for export

Reg.
Seguridad
instalaciones
H2b) Minero

MEN 10 Estaciones dedispensado
de H2Min. Transport

Industrial

Reg. Seguridad
instalaciones
H2

MEN 12.2 Instal. int. y
medidores degas (H2)

MEN 13 Reg.a LGSE

Modification to existing regulation

MEN 14 Reg. Mod. DS
125

MEN 15 Reg.Mod
DS42

Development of new regulation

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |Magellanic Winds

20

NH3 for export

Paracelsus
Power-to-Mobility

19 Haru Oni

HNH Energy

GNL Quintero, Enagas, Acciona

Humboldt H2V, Mejillones Port
Pilot: 550 H2 ton/year

Engie, Enaex
850 MW (RE)15Power-to-X

3,000 MW (hybrid)

800 MW RE

MTT 5 –
Retrofit deceldas decombustible

4.3 Electric Power Generationa) Industrial

Next steps

10 MW (RE)Maisntream, Aker Clean Hydrogen

AES + international partner

2

ACH – MRP Project

MTT 4 – Reg.
certificado
homol. veh.
nuevos y
retrofit.

25

Projects under development
7

MEN 11 Estaciones dedispensado
Multicombusti
bles

MIN 1 Reglamento
de Seguridad
MineraENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |AES “Green Ammonia”

MEN 10 Estaciones dedispensado deH2b) Off Road: Industrial, mining, ports, airportsc) Maritime

Min. Energy

4.2 Thermal Power Generationa) Public RoadMEN 6 Normas técn.,calidad ycontrol de
combustibles(for internal reviewing)

26

December 2023
Public Consultancy Period ofPreliminary version of GH2
Action Plan 2023-2030
Closing Audiences of GH2
Action Plan 2023-2030

45Pre-fid3681Development

12

6

9

16

20

19

15

Valparaiso 11
10

November 2023

18

H2
Valley72

Antofagasta

Operation

Metropolitana

Preliminary Version of GH2
Action Plan 2023-2030

21

BioBíoHydra

17

Magallaness
Aysén

R+D project to design a H2 powertrain

500 km13(for Public Consultancy)

Engie, CSIRO, Mining3, Corfo
Pilot: 1 mining truck

4

H2 Solar ProjectPower-to-Mobility

5

13

H2 for DRI

Air Liquide, Atamostec, CEA Liten
Pilot: 1-3 FC buses

Pauna Greener Future

CAP Acero, Paul Wurth
Confidential

NH3 for export
Statkraft
671 MW (PV)8

AMER project
E-Methanol
Air Liquide
80 MW RE

Note:
Project’s location only referential Developers highlighted in turquoise

Green Steel project

12

Las Tortolas projectPower-to-mobility
Anglo American
186 kW

14

HDF ProjectPower to Power
Hydrogene de France
36 MW (wind)

17

Faro del Sur
Hydrogen
ENEL Green Power240 MW (wind)18

1st Quarter 2024
Final Version of GH2 and start ofcontinuous follow-up process of
GH2 Action Plan 2023-2030

https://www.planhidrogenoverde.cl/

LlaquedonaNH3 for export
Sociedad de Inversiones Albatros, Alfanar,
ENAP
1,159 MW (wind)

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |27

ENERGY TRANSITION AND GREEN HYDROGEN IN CHILE |8028

1-3. Development of Global Supply Chain by LOHC-MCH method

APEC Symposium on Pursuing Decarbonization of Fossil Fuels

Development of Global Supply Chain by
LOHC-MCH methodI.

Who are Chiyoda ?

II.

Hydrogen Carriers

Yuji Chishima
Group Leader, Business Development
Hydrogen Business Dept.
Chiyoda Corporation© Chiyoda Corporation 2023, All Rights Reserved.
© Chiyoda Corporation 2023, All Rights Reserved.

Chiyoda’s Philosophy
Chiyoda has provided pioneering engineering solutions for each generation since 1948, and under the current
philosophy ‘Energy and Environment in Harmony’, continues our vision of ‘serving society through technology’.
ŚŝǇŽĚĂ഻ƐsŝƐŝŽŶ
for the Future

From Coal to Oil, Oil to Gas, Gas to Renewables and New Energy
1948–1970

1971–1990

1991–2000

Refinery

LNG

2001–20102011–2020

Engineering that shapes
the future of energy andthe global environment

Battery Power Storage
2018
World’s largest battery power storage systemproject in Hokkaido, Japan

1960

2004

Mitsubishi Oil Co., Ltd.
Mizushima grassroots refinery

LNG plants for Qatargas Operating
Company Limited

Hydrogen2015-2020
World’s first global hydrogen supply chain
demonstration project3© Chiyoda Corporation 2023, All Rights Reserved.

© Chiyoda Corporation 2023, All Rights Reserved.

Landscape of Hydrogen Carriers

Landscape of Hydrogen Carriers (Key Characteristics)

For large scale global H2 supply chain, methylcyclohexane (MCH) as H2 carrier and direct use of ammonia (NH3)
are proven, realistic solution now, while LH2 and NH3 with dehydrogenation would co-exist after 2030s.

LNG

SMR /
Pyrolysis

Gray/
Blue

Power Ship
Industry Mobility

Turquoise

CCS/EORBlue NH3
Green NH3Blue

岧Note岨
DHG : dehydrogenation
VAP : vaporizer

Electro
lyzer

Blue

MCH

DHG
Green





/LTXLG3KDVH #$PELHQW$PELHQW ٦ ٦)LUH

0RGHUDWH/RZ

0RGHUDWH

+LJK

7R[LF

0RGHUDWH+LJK $TXDWLF/RZ *HQHUDO

+LJK

/RZ
 ,QIUDVWUXFWXUH
7UDQVSRUW‫ك‬Power Ship
Industry Mobility,QIUDVWUXFWXUH
6WRUDJH
Blue

LH2

/+



sW
Green

5HDG\

5HDG\

/DUJHVFDOH

6PDOOVFDOH

5HDG\ 'LUHFWXVH
  &UDFNLQJ([LVWLQJ&KHPLFDO
7DQNHU7\SH

([LVWLQJ&KHPLFDO
7DQNHU7\SH

([LVWLQJ&KHPLFDO
7DQNHU7\SH*3*/LTXHILHG3UHVVXUL]HG

1HZ'HGLFDWHG
6KLS &U\RJHQLF([LVWLQJ
([LVWLQJSHWUROHXPLQIUD SHWUROHXPLQIUD/LPLWHGH[LVWLQJ/3*1+LQIUD

1HZGHGLFDWHG
/+LQIUD7HFKQRORJ\
5HDGLQHVVPower Ship
Industry Mobility

DHG
Green

Renewable
Energy1+/HDNDJH
5LVN(Power) Ship
Industry

NH3

SMR

/2+&
+%7%7+&RPSDFWLRQCCSNaturalGas/2+&0&+72/

Power Ship
Industry Mobility/DUJHVL]H$EXQGDQW+3XULW\!

)&9JUDGH DIWHU36$

6PDOOVL]H/LPLWHG!

)&9JUDGH DIWHU36$

+

1
)&9JUDGH DIWHU36$/DUJHVFDOH

)&9JUDGH

+\LHOGFRQVLGHUHG© Chiyoda Corporation 2023, All Rights Reserved.

5© Chiyoda Corporation 2023, All Rights Reserved.

81

6

>ĂŶĚƐĐĂƉĞŽĨ,ǇĚƌŽŐĞŶĂƌƌŝĞƌƐ;^ĂĨĞƚǇƐƐĞƐƐŵĞŶƚͿ
E&W

E&W

E&W

DOT (Hazard Label)

Diamond(Health)(Flammability)

IMDG Class

2
Can cause temporary
incapacitation orresidual injury

3
Can be ignited at ambientconditions

DOT: Flammable Liquid
IMDG: Class 3 Flammable
Liquids

1
Can cause significant
irritation

3
Can be ignited at ambientconditions

TOL

Landscape of Hydrogen Carriers (Economic Comparison)'^DW;ƋƵĂƚŝĐdŽǆŝĐŝƚǇͬ
Biodegradability)
Acute Toxicity: 3(Moderately toxic)
Chronic Toxicity: 0 (Negligible)

MCH

Biodegradability: Readily
Acute Toxicity: 3(Moderately toxic)

DOT: Flammable Liquid
IMDG: Class 3
Flammable Liquids

Chronic Toxicity: 1
(Low)

NH3

LH2

Biodegradability: Not readily
4
DOT: Flammable Gas
Burns readily. Rapidly orcompletely vaporizes at IMDG: Class 2 Refrig. Liquified
Gas
ambient pressure &temperature

No aquatic impact

3
Can cause serious orpermanent injury

1
Must be preheated
before ignition can occur

Acute Toxicity: 3(Moderately toxic)

DOT: Non-Flammable Gas
Inhalation Hazard
Poison Gas
Corrosive
IMDG: Class 2
Refrig. Liq. Gas, Toxic Gas(Ship)IMO Ship Type-3(least danger)
Ambient liquid
No boil-off
IMO Ship Type-2(less danger)
Ambient liquid
No boil-off
IMO Ship Type-2G(less danger)-253 CHigh boil-off

Chronic Toxicity: 2 (Moderate)
Biodegradability: Readily

IMO Ship Type-1G(more danger)-33 C
Moderate boil-offŧŲŷŃŝŃŸŶŃŧƈƓƄƕƗƐƈƑƗŃƒƉŃŷƕƄƑƖƓƒƕƗŏŃŃŃŬŰŧŪŝŃŬƑƗƈƕƑƄƗƌƒƑƄƏŃŰƄƕƌƗƌƐƈŃŧƄƑƊƈƕƒƘƖŃŪƒƒƇƖ
ŪŨŶŤŰųŝŃŭƒƌƑƗŃŪƕƒƘƓŃƒƉŃŨƛƓƈƕƗƖŃƒƑŃƗƋƈŃŶƆƌƈƑƗƌƉƌƆŃŤƖƓƈƆƗƖŃƒƉŃŰƄƕƌƑƈŃŨƑƙƌƕƒƑƐƈƑƗƄƏŃųƕƒƗƈƆƗƌƒƑ

(Source) Keynote speech Allard Castelein, CEO Port of Rotterdam Authority, at the 2nd World Hydrogen Summit [2021]

7© Chiyoda Corporation 2023, All Rights Reserved.

3
Can cause serious orpermanent injury

IMO Safety

8© Chiyoda Corporation 2023, All Rights Reserved.

D,dĞĐŚŶŽůŽŐǇ;^WZ,ǇĚƌŽŐĞŶTM) at a Glance
Chiyoda’s SPERA Hydrogen technology uses MCH as the hydrogen carrier in a LOHC (*) system, enabling the safe,
efficient and commercially viable storage and transportation of hydrogen on a global scale.
Key Features

LOHC‫>؟‬ŝƋƵŝĚKƌŐĂŶŝĐ,ǇĚƌŽŐĞŶĂƌƌŝĞƌ

H2 Supply

H2 Demand

III. tŚĂƚŝƐƚŚĞ^WZHydrogenTM Technology

Chiyoda’s
proprietary
technology
Heat - In

Heat - Out
MCH

MCH

਷ಞ
H2

H2

Storage

Storage
Tolueneϰ͘ŝƌĐƵůĂƌ^ǇƐƚĞŵ͗ H2 is cycled from/to water, andToluene as H2 carrier (LOHC) are recycled, andheat can be effectively cycled with value added,
to develop efficient /sustainable H2 system.

Dehydrogenation*MCH: Methylcyclohexane LOHC: Liquid Organic Hydrogen Carrier

10© Chiyoda Corporation 2023, All Rights Reserved.

© Chiyoda Corporation 2023, All Rights Reserved.

History of Technology Development

1st Global Hydrogen Supply Chain Demonstration

Chiyoda commenced R&D of the MCH system in 2002 and developed its proprietary dehydrogenation catalyst
on a laboratory scale in 2010 – a significant step forward towards a hydrogen economy and a low carbon society.

In December 2020, AHEAD successfully completed the worlds first ‘Global Hydrogen Supply Chain
Demonstration Project’, an important milestone for the construction of an international hydrogen supply chain.
'HVFULSWLRQ

Hydrodesulfurization
catalysts for diesel oil

6FDOH

CO2 Reforming catalysts
2020
Global hydrogen supply
chain demonstration

R&D Center (1954)

Flue gas
desulfurization'XUDWLRQ%UXQHL'DUXVVDODP+\GURJHQSURGXFWLRQ

2010
Catalyst develop
in labo. scale+\GURJHQ'HPDQG.DZDVDNL&LW\-DSDQ)XHOIRUJDVWXUELQHSRZHU SODQW

Dehydrogenation
Catalysts

7UDQVSRUWDWLRQ,62WDQNFRQWDLQHUV&RQWDLQHU VKLSWUXFN%XVLQHVV 6FKHPH(VWDEOLVKHG E\$+($')XQGHGSURMHFWE\1('2Start of R&D
LOHC-MCH (2002)

Hydrodesulfurization

Founded in 1948
1950s

© Chiyoda Corporation 2023, All Rights Reserved.

1970s

1990s

2000s

WRQV\HDUDW IDFLOLW\VFDOH
0D[LPXP+\GURJHQ 6XSSO\

2013-14
Technology demo
in pilot scale

Wet-type flue gas
desulfurizationϮ͘ǆŝƐƚŝŶŐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ͗ Possible to repurpose,
utilize existing petroleum transportation andstorage facility (tanks, tanker, pipeline, tanklorry, etc.), standard and regulation, to minimize
investment for H2 infrastructure.
ϯ͘^ĂĨĞǁŝƚŚ>ŽǁĞƌƌŝƐŬ͗ Safe transportation andstorage that is equivalent level to petroleum
products, that has already been managed in thesociety for long term.

TolueneHydrogenation

1. Easy to Handle: SPERA Hydrogen, a stable liquid
at ambient temperature and pressure, is as easy
to handle as petroleum, and suitable for longterm storage and long distance transportation.

Current R&D Center

2010s



2020s

11

$GYDQFHG+\GURJHQ(QHUJ\&KDLQ$VVRFLDWLRQIRU7HFKQRORJ\'HYHORSPHQW &KL\RGD0LWVXELVKL&RUSRUDWLRQ0LWVXL &R1LSSRQ<XVHQ.DEXVKLNL.DLVKD 
1HZ(QHUJ\DQG,QGXVWULDO7HFKQRORJ\'HYHORSPHQW2UJDQL]DWLRQ1DWLRQDOUHVHDUFKDQGGHYHORSPHQWDJHQF\WKDWFUHDWHVLQQRYDWLRQE\SURPRWLQJWHFKQRORJLFDOGHYHORSPHQWQHFHVVDU\IRUUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\© Chiyoda Corporation 2023, All Rights Reserved.

82(Reference) https://www.chiyodacorp.com/media/210202_e.pdf

12

1st Global Hydrogen Supply Chain Demonstration (Photos)
Hydrogenation

2nd Global Hydrogen Supply Chain Demonstration (Tanker Transportation)
AHEAD has achieved a world’s first milestone of transporting hydrogen, in the form of MCH, and thisachievement demonstrates the viable long-term storage and transportation of hydrogen in the form of
MCH by tanker on a global scale.

MCH Transport (Marine)

MCH Transport (Inland)

OCEAN NETWORK EXPRESS (JAPAN) LTD.

¾ AHEAD manufactured MCH in Brunei
Darussalam, for transportation to an
ENEOS petroleum refinery in Japan.

Container Vessel¾ For supplying MCH to the ENEOS refinery,
this ENEOS’s demonstration project
supported by CROS*1 has been conducting.

,ϮŵŝǆĞĚWŽǁĞƌ'ĞŶĞƌĂƚŝŽŶ

Dehydrogenation

Courtesy of TOA Oil Co., Ltd.

¾ The first chemical tanker arrived at therefineries receiving facility on 4 February2022, and the MCH was fed into therefinery.

Deh
Dehydrogenation
SectionChiyoda’s
proprietarycatalyst

Utilize hydrogen for GT fuel fromdehydrogenation as Japan’s first&526&RQVRUWLXPIRU5HVLOLHQW2LO6XSSO\6\VWHP

13© Chiyoda Corporation 2023, All Rights Reserved.

(Reference) https://www.chiyodacorp.com/media/20220208_E_R1.pdf© Chiyoda Corporation 2023, All Rights Reserved.

Further MCH Technology Development&ƵƌƚŚĞƌD,dĞĐŚŶŽůŽŐǇĞǀĞůŽƉŵĞŶƚ͗ŝƌĞĐƚD,® Synthesis

Chiyoda is further developing technologies and system integration from upstream to downstream to optimize
and reduce total H2 value chain cost.

Direct MCH® Synthesis technology has been developed at laboratory scale in 2019, successfully fill the greenhydrogen by Direct MCH to FCEV in 2021, and is under scaling up stage toward commercialization around 2030.
¾ ǆŝƐƚŝŶŐdĞĐŚŶŽůŽŐǇ;ůĞĐƚƌŽůǇƐŝƐнD,Ϳ

'+*
0&+

Direct MCH® synthesis
GT Heat Integration'+*• Hydrogen is produced by water electrolyzer,
and hydrogen is converted to MCH byhydrogenation process (MCH Reactor).

SOFC Heat Integration• Hydrogen gas tanks and MCH reactor are
required for this technology.

water¾ New Technology (Direct MCH® synthesis)

Compact system• MCH is directly produced from renewableelectricity, water and toluene, not throughhydrogen production.

RE - MCH Storage
MCH

14

'+*

DRI Integration

15

16© Chiyoda Corporation 2023, All Rights Reserved.

&ƵƌƚŚĞƌD,dĞĐŚŶŽůŽŐǇĞǀĞůŽƉŵĞŶƚ͗^WZ,ǇĚƌŽŐĞŶZĞĨƵĞůŝŶŐ^ƚĂƚŝŽŶ

&ƵƌƚŚĞƌD,dĞĐŚŶŽůŽŐǇĞǀĞůŽƉŵĞŶƚ͗D,ŝƌĞĐƚ&ƵĞůĞůů

Smaller size dehydrogenation package for H2 distributed demand, such as refueling station, has been
demonstrated in 2018, and is under optimization stage to realize downsizing and automation.

“ New Fuel Cell System (MCH Direct Fuel Cell) ” that use MCH as a fuel is under R&D phase.
• Develop new medium-temperature fuel cell that is operated under temperature range for dehydrogenation(below 400 deg-C)• Realize high efficiency energy conversion system with excellent heat balance and cost balance.

H2 Supply(Nm3/h)H2 volume(kg/truck)

Number of Trucks‫ق‬truck/hour‫ك‬

Number of dispenser
(set)

2,000

100

2

1

For FC truck

Conventional Fuel Cell System

water• Hydrogen gas tanks and MCH reactor are
NOT required for this technology.

Methanation Integration© Chiyoda Corporation 2023, All Rights Reserved.

Nov, 2021

New Fuel Cell System• +GHOLYHU\

1PKŋŠŃŖőŖŃŰźŃƉƒƕŃũŦŃƓƒƚƈƕŃƊƈƑƈƕƄƗƌƒƑŌ

63(5$ +
5HIXHOLQJ6WDWLRQ• /DQGUHTXLUHPHQW P)&7UXFNŋƌƑƆƏő ƘƗƌƏƌƗƜŏŃƆƒƐƓƕƈƖƖƒƕŏŃƖƗƒƕƄƊƈŃƉƒƕŃ
ƕƈƉƘƈƏƌƑƊőŌ

0&+7ROXHQH 7DQNV
8QGHUJURXQG

ųƕƈƓƄƕƈƇŃƅƜŃŦƋƌƜƒƇƄNEDO Pilot Project (2016 – 18)© Chiyoda Corporation 2023, All Rights Reserved.

17© Chiyoda Corporation 2023, All Rights Reserved.

83

18

D,,ǇĚƌŽŐĞŶsĂůƵĞŚĂŝŶŽůůĂďŽƌĂƚŝŽŶ
Chiyoda and Axens has concluded Joint Commercial Cooperation Agreement on Nov. 2022, that bring strong
synergies allowing fast track approach for MCH supply chain implementation with single point of contract.
AXAX
X-C
CYD
YD License
YD
Lice
L
ice
icense
ice
cense
nse
se Commercial
Comm
Com
Comm
ommerci
mmerc
m
erci
e
rc a
rci
rc
all Packa
P
Package
acka
acka
ack
ck
c
kag
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e

/s͘KŶŐŽŝŶŐ^WZ,ǇĚƌŽŐĞŶTM Project• Hydrogenation (HGN)• Licensor’s expertise

Client• Dehydrogenation (DHG)• Engineering expertise

Supply Chain Operator
Refineries
Hydrogen TraderSupply-Demand Aggregator
Transportation Service

19© Chiyoda Corporation 2023, All Rights Reserved.

© Chiyoda Corporation 2023, All Rights Reserved.

^WZ,ǇĚƌŽŐĞŶhƐĞĂƐĞ

1. Global H2 Supply Chain Projects ͗^ŝŶŐĂƉŽƌĞ,ǇĚƌŽŐĞŶWƌŽũĞĐƚThe Singapore government announced its Long-Term Low-Emissions Development Strategy (LEDS) in 2020, aiming
to halve peak emissions by 2050. Chiyoda and Mitsubishi signed an MOU with 5 Singaporean companies on
March 2020 to conduct feasibility studies for a H2 import value chain using SPERA Hydrogen in cooperation withthe government.

There are 3 major use cases (Global Supply Chain / H2 Port & Delivery Hub / Large Scale Storage) by using MCH
Technology, to seamlessly link between global hydrogen supply chain, storage and domestic distribution.
'HPDQG&HQWHUVHJ-DSDQ6LQJDSRUH

6XSSO\&HQWHUVHJ&KLOH$XVWUDOLD

*OREDO6XSSO\&KDLQ
/DUJH6FDOH6WRUDJH+XE

+3RUW 'HOLYHU\+XE© Chiyoda Corporation 2023, All Rights Reserved.

22© Chiyoda Corporation 2023, All Rights Reserved.

21

1. Global H2 Supply Chain Projects ͗^ŝŶŐĂƉŽƌĞ,ǇĚƌŽŐĞŶWƌŽũĞĐƚ

1. Global H2 Supply Chain Projects ͗ƵƌŽƉĞĂŶ,ǇĚƌŽŐĞŶWƌŽũĞĐƚ;ZŽƚƚĞƌĚĂŵͿTo achieve net zero in Singapore by 2050, Singapore and Japanese companies strongly collaborate withgovernment support, to develop global H2 supply chain by MCH, toward the operation start in 2026.

The Port of Rotterdam (POR) released its Hydrogen Master Plan in May 2020, aiming to become the H2 importhub of NW-EU by importing 20 MTPA of H2 by 2050. PoR, Koole Terminals, Mitsubishi and Chiyoda signed an
MOU in July 2021 to jointly study importing H2 on an international scale using SPERA Hydrogen

100 - 200 kTPA by 2026
300 - 400 kTPA by 2030

© Chiyoda Corporation 2023, All Rights Reserved.

23© Chiyoda Corporation 2023, All Rights Reserved.

84(Reference) https://www.portofrotterdam.com/sites/default/files/2021-06/hydrogen-economy-in-rotterdam-handout.pdf
https://www.chiyodacorp.com/media/20210730_E.pdf

24

1. Global H2 Supply Chain Projects ͗ƵƌŽƉĞĂŶ,ǇĚƌŽŐĞŶWƌŽũĞĐƚ;LHyTS Project)
The LHyTS project (10 organizations) seeks to demonstrate that LOHC in the form of MCH can be successfullytransported at scale, providing an export route to the Port of Rotterdam and other European destinations.

Thank you !

© Chiyoda Corporation 2023, All Rights Reserved.

2585

1-4. Towards the Realization of International Liquefied Hydrogen Supply Chain

KHI Group Hydrogen Products
Kawasaki Heavy Industries contributes to decarbonization as the only company in the world that has the technology
for the entire hydrogen supply chain to produce, transport, store, and utilize hydrogen.

For APEC Symposium on Pursuing Decarbonization of Fossil Fuels

Towards
Tow
ow
wardss ththehee R
Realization
on ofInternational
al Liquefied
d Hydrogenn Supplyy Chain
October. 11, 2023

© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Concept of a CO2-Free Liquefied Hydrogen Supply Chain
Hydrogen Producing Economy

Process Uses
Semiconductor and photovoltaic cellmanufacture
Oil refinement, desulfurization, etc.

Affordable Renewable
EnergyLiquefied Hydrogen
Containers

Fossil fuel:Natural gas
coal

Hydrogen Carriers and their Characteristics

Hydrogen Utilizing Economy

Production of hydrogen at low costs
from unused resources and/or abundant
renewable energy

Liquefaction/ loading

2

Liquefied Hydrogen
Carrier

CO2-Free Hydrogen

Transport Equipment
Hydrogen stations
Fuel cell vehicles etc.

Distributed Power Plants
Hydrogen gas turbines
Hydrogen gas engines
Fuel cells etc.
C JAXA

Liquefied Hydrogen
Storage Tanks……

Electrical Power Plants
Combined Cycle power
generators etc.

CCS
(CO2 capture/storage)

Production

Transport / Storage
T

Utilization© Kawasaki Heavy Industries, Ltd. All Rights Reserved© Kawasaki Heavy Industries, Ltd. All Rights Reserved

3

4World-first Hydrogen Energy Supply Chain*1

Hydrogen Carriers Energy Efficiency

Japan-Australia Pilot Project (HESC Project)

 Promoted with Japanese and Australian government, Kobe city, and private sector partners
 Aiming to establish a stable and large-scale hydrogen supply chain system around 2030,
the pilot project demonstrated technology by building a 1/100 scale of commercial supply chain*2

GRZQ

*2

‫پ‬
‫پ‬


GRZQ

‫پ‬
‫پ‬


GRZQ&UHGLW+\675$&UHGLW+\675$
HGL
\6
67 $

&UHGLW+\675&UHGLW+\675$&U&
U GLWGLLW
LWLW+\675$
W+
+\6
+\67
+\
+
+\675$
\675$
\
675$
675
75$
$

GRZQ6XSSRUWHGE\$XVWUDOLDDQG
9LFWRULDJRYHUQPHQW

6XSSRUWHGE\WKH0LQLVWU\RI(FRQRP\
7UDGHDQG,QGXVWU\ 0(7, DQG 1('2GRZQْ &2ĉIUHH+\GURJHQ(QHUJ\6XSSO\FKDLQ7HFKQRORJ\5HVHDUFK$VVRFLDWLRQْٓ+\GURJHQ(QJLQHHULQJ$XVWUDOLDٓ,ZDWDQL&RUSRUDWLRQ.DZDVDNL+HDY\,QGXVWULHV6KHOO-DSDQ-3RZHU0DUXEHQL
(1(26./,1($VRI0DUFK.DZDVDNL+HDY\,QGXVWULHV-3RZHU-3RZHU*URXS,ZDWDQL&RUSRUDWLRQ
0DUXEHQL6XPLWRPR&RUSRUDWLRQ$*/ $XVWUDOLDQ(QHUJ\&RPSDQ\$VRI0DUFK
*1: HESC(=Hydrogen Energy Supply Chain) Project

Resource: IEA Grobal Hydrogen Review 2022
© Kawasaki Heavy Industries, Ltd. All Rights Reserved*2: FY 2015 to FY 22: NEDO issue-setting industrial technology development expense subsidy program "Demonstration Project for Building a Large-Scale Maritime Transport Supply Chain for Hydrogen Derived from Unutilized Brown Coal"© Kawasaki Heavy Industries, Ltd. All Rights Reserved

5

86

6

World’s First International Shipping of Liquefied Hydrogen

Status of the Pilot (HESC) ProjectHydrogen Production (Australia)pq()
Land Transportationand Liquefaction(Australia)

 World's first demonstration of hydrogen transport and cargo handling by liquefied hydrogen
carrier

Hastings, Victoria

First voyage from Japan to Australia (Dec. 24, 2021)"Suiso Frontier" Australia arrival ceremony (Jan. 21, 2022)

Hydrogen Liquefier

LH2 Container
Setting Space

Maritime Transportation&UHGLW+\675$

Unloading and Storage (Japan)

Japan-Australia Pilot Project Completed (Apr. 9, 2022)

Liquefied Hydrogen Carrier
Length

116m

Width

19m

Crew

25person

Speed

13knotCargo

At the ceremony to complete the demonstration of the Japan-Australiahydrogen supply chain

1,250m3

Propulsion

Diesel Electric

Provided by HySTRA Prime Minister Kishida attended the meeting.

© HySTRA© Kawasaki Heavy Industries, Ltd. All Rights Reserved© Kawasaki Heavy Industries, Ltd. All Rights Reserved

7

Commercialization Demonstration Project8

Development of Scaling Up on LH2 Technology‫ٹ‬Adopted as a Green Innovation Fund project for commercial supply chain construction in 2030.
‫ٹ‬Began a commercialization demonstration project which implements technology for enlargement.

Commercial Ship Tank: 40,000m3

Pilot Ship Tank: 1,250m3(4 tanks, 160,000m3 in total)

Commercialization Demonstration Overview and Scale Image

X 32

Commercial Terminal Tank: 50,000m3

Pilot Terminal Tank: 2,500m3
Demonstration
LocationD

X 20
Hastings, Victoria

Kawasaki Coastal Area,
Kawasaki, Kanagawa

HySTRA(Interface equipment, such as Loading arm and Compressor, are also under development)© Kawasaki Heavy Industries, Ltd. All Rights Reserved© Kawasaki Heavy Industries, Ltd. All Rights Reserved

9

Summary

Progress and scale of commercial demonstration of Liquefied Hydrogen Supply Chain‫ ٹ‬Reduce hydrogen costs by increasing the size of equipment
Demonstrated feasibility of hydrogen production from brown
coal and long-distance maritime transportation(About 1/100 of the commercial level)

2021
Pilot Demonstration

HySTRA

1,250m3

Proven for 40 years

Spherical tank: 2,500m3¼128

160,000m3

 Kawasaki aim to realize commercial scale of liquefied hydrogen carriers and various
equipment through commercial demonstration planning in the mid-2020.

CIF JPY 170/Nm3*Equivalent to about 5,000 households' power consumption

 Kawasaki does not limit hydrogen sources to 'fossil fuels,' to support the hydrogen
introduction described in the "Green Growth Strategy through Achieving Carbon
Neutrality in 2050" decided by Japanese government.

¼20

2030
~2030
Commercialization
Demonstration

Cylindrical tank: 50,000m3

Determine the feasibility of commercialization, including
economic efficiency, by setting the size of equipment tocommercial scale(One step away from commercialization)

From 2031

CIF JPY 30/Nm3

 In establishing an international supply chain for liquefied hydrogen, Kawasaki willcontribute to the realization of hydrogen costs and installed volumes that are competitive
with fossil fuels in 2050 by cooperating with the demand side of hydrogen power
generation, which is expected to generate large-scale demand.

Profitable business which economicallyindependent from installation to operation

Commercialization*Equivalent to approx. 400,000 households' power consumption

160,000m3 x 2 carriers Cylindrical tank: 50,000m3 x 4 (plan)

Around 2050
© Kawasaki Heavy Industries, Ltd. All Rights Reserved



10



...

CIF JPY 20/Nm3*CIF cost© Kawasaki Heavy Industries, Ltd. All Rights Reserved

11

87

12

1-5. Analysis of Current and Future Hydrogen Production and Utilization in the United States

Today, more than 10M metric tons of hydrogen are produced in the
U.S. annually, mainly from steam methane reforming of natural gas

OCTOBER 11, 2023
PRESENTATION AT APEC SYMPOSIUM
KOBE, JAPANAnalysis of Current and Future Hydrogen
Production and Utilization in the United States
Amgad Elgowainy, PhD
Senior Scientist, Distinguished Fellow, and Group Leader
Systems Assessment Center
Energy Systems and Infrastructure Analysis Division
Argonne National Laboratory

H2@Scale: a DOE initiative for a hydrogen economy
Well-to-H2 production gate (WTG)

Current status and trends of hydrogen deployment in theUSA

H2 production gate-to-end user

•Bipartisan Infrastructure Law (BIL)
9 November 2021
9 $9.5B for clean H2 production
and deployment
9 Clean Hydrogen Production
Standard (<4 kgCO2e/kgH2)

March 2023: Market Liftoff ofClean Hydrogen

June 2023: Multiagency
strategy and roadmap

June 2023: DOE Production
standard guidance

https://liftoff.energy.gov/clean-hydrogen/https://www.hydrogen.energy.gov/clea
n-hydrogen-strategy-roadmap.html

https://www.energy.gov/eere/fuelcells/articles/
clean-hydrogen-production-standard• Inflation Reduction Act (IRA)
9 August 2022
9 Up to $3/kg credit based on H2
well-to-gate carbon intensity(CI)
9 Argonne GREET model for CI
calculations

GREET sustainability metrics include energy use, criteria
air pollutants, GHG, and water consumption® (Greenhouse
Thee GREETGR
eenho
gases,s, Regulatedd Emissions,n Technologies) modelandd Energy use in It is available for free download and use at greet.es.anl.gov
 >55,000 registered users globally including automotive/energy industries
and government agencies
 Will be used for tax credits evaluation of clean H2 production
GREET 1 model:
Fuel-cycle (or well-to-wheels) modeling of vehicle/fuel systems

Energy use
GREET 2 model:
Vehicle cycle modeling of vehicles

 With DOE support, Argonne has been developing the GREET life-cycle
analysis (LCA) model since 1995 with annual updates and expansions• Total energy: fossil
energy and renewableenergy• Fossil energy:
petroleum, natural gas,and coal• Renewable energy:
biomass, nuclear energy,hydro-power, wind
power, and solar energy

Resource availability
and energy security

Air pollutants

Greenhousegases• VOC, CO, NOx, PM10,
PM2.5, and SOx• CO2, CH4, N2O,
black carbon, andalbedo• Estimated separately
for total and urban (asubset of the total)
emissions

Human health andenvironmental justice
6

5

88

• CO2e of the five(with their global
warming potentials)

Global warming
impacts

Water
consumption• Addressing watersupply and demand(energy-water
nexus)

Regional/seasonal
water stress impacts

Hydrogen production via CH4 reforming, w/ and w/o CCS
Conventional Gas
Drilling & Recovery

Hydrogen production via water electrolysis

NG
Processing
NG Compression

CCS

CO2
Sh l GasG
Shale
Drilling & Recovery

CO2

Coal
miningCoaltransportNG
recoveryNG
processingNGtransmission
Cruderefining

Crude
recovery

Crude
Transport

Biomass
farming/collection

Biomasstransport

Uranium
ore mining

Uraniumenrichment

Residual Oil
transport

combustion reformation

NG
Processing

NG Compression
NG Transportation

H2+ SteamAnerobic
Digestion

RNG
7Electricity

Electrolyzer

Solar/Wind/
Hydro

MSW = municipal solid waste
NG = natural gas
RNG = renewable NG
SMR = steam methane reforming
ATR = auto-thermal reforming

Landfilling

MSW

Power
Generation Unit

Geothermal
recoveryNG SMR or ATR Plant

Avoided GHG emissions
from landfilled MSW

H2O2

Enriched uraniumtransport

EmissionE
i i sources U
Upstreamt
off Electrolyzer
El t l8

Well-to-gate (WTG) GHG emissions of hydrogen production
pathways

Infrastructure options for gaseous hydrogen (GH2) delivery

3% CH4 leakage
0.7% CH4 leakage[kg_CO2e/kg_H2]

SMR= Steam Methane
Reforming;
CCS=Carbon Capture andSequestration;
LTE=Low-Temp Electrolysis;
HTE=High-Temp Electrolysis;
LFG=Landfill Gas

Illustrative- Actual emissions will vary by facility
depending on system design and location

https://greet.es.anl.gov/files/hydrogenreport2022

9

8

H2 fuel cell electric vehicles are attractive zero-emission options
when daily energy use is high: vehicle cost perspective

Centralized Gaseous
H2 Production

Pump

LiquefierOverall cost [$]Infrastructure of liquid hydrogen (LH2) delivery
Pump
Cryogenic
Storage
Loading Bays

Liquid Terminal

Plus:
9 Life of energy storage and fuel cellneeds to be factored in
9 Fueling/charging cost is additional

Slope= $/kWh_battery

Slope adj.
Vaporizer
Compressed
Gas
Dispenser

May shift to right or left
Slope adj.

CryoCompressed
Dispenser

High-Pressure Cryogenic
Cryo-Pump
Storage

Battery

Liquid Truck

Slope= $/kWh_H2

Fuel Cell

Fueling Station
9FC: Fuel Cell
9FE: Fuel Economy
9LDV: Light-Duty Vehicle
9HDV: Medium- andHeavy-Duty Vehicle

989

Low daily fuel use(case of LDVs)

High daily fuel use(case for HDVs)

Storage amount [kWh]12

H2 supply form and onboard storage technology strongly
impact H2 refueling station (HRS) cost

Hydrogen Delivery Scenario Analysis suite of Models (HDSAM)
Argonne’s HDSAM and its derivatives evaluate the economic performance and market acceptance ofhydrogen delivery technologies and fueling infrastructure for FCEVs¾ Publicly available with >5,000 users, including major gas
and energy companies, in more than 25 economies

Fleet Size: 30 buses; Fill Amount: 35 kg @ 350 bar, back-to-back, one dispenser¾ Supported by U.S. Department of Energy’s Hydrogen and
Fuel Cell Technologies Office (HFTO) since 2004

https://hdsam.es.anl.gov/¾ Cost of H2 delivered to the station is additional

Ammonia as fertilizer, fuel and H2 carrier Ammonia production process modeling

e-methanol as chemical, fuel, H2 carrier Techno-economic analysis
1.6

H2
Feedstock Costs
Costs
H2 Feedstock
NG Feedstock Costs
Other Variable Costs
Fixed O&M
Capital Costs
45Q CO2
Tax Credits
Credits
CO2 Tax
Byproduct Credits (O2)(O2)
Maximum spot
pricePrice
NH3 Spot
Average spot
pricePrice
NH3 Spot
Minimum spot
pricePrice
NH3 Spot
LCOA
without
Baseline
LCOATax(no Credits
Tax Credits)

Levelized Costs of Ammonia, LCOAs ($/kg NH3)

CO2
Transport Costs
Costs
CO2 Transport

14•

Methanol can be synthesized by using CO2 and H2
via RWGS and methanol reaction•

CO2 + H2Æ syngasÆ methanol

1.4
1.2
1.055
1

 Conversion process modeling

0.918
0.8
0.6

0.475

0.4
0.229
0.2

0.372a0.289b

0.313a0.250b0.270

H2 price ($1/kg)

0 Techno-economic analysis

LCOA
with
Tax (with
Credits
Baseline
LCOA
Tax Credits)-0.2
NG-basedNH3

 Well-to-gate emissions
2.60

Long-term
target($1/kg H2)

 Well-to-gate GHG emissions

H2, N2 Production Upstream Emissions for Electricity Use
H2, N2 Production Onsite Emissions

1.16

1.0

-1.0

Renewable Nuclear-powered DOE 2020
NH3 usingtargetNH3 using($2/kg H2)
SOA LTESOA HTE($4.83/kg H2)($4.16/kg H2)

H2, N2 Production Upstream Emissions for NG Use

2.0

0.0

C-capturing
NH3 v2NG-based
NH3

-2.0

0.77

C-capturing
NH3 v1
Reformer only
CO2 capture

C-capturing
NH3 v2

HB Loop Upstream Emissions for Electricity Use

<0.01

0.00

Nuclear-powered
NH3 using
SOA HTE

Renewable
NH3 using
SOA LTE

Reformer andcombustion
CO2 capture

Boiler Flue Gas Onsite Emissions
CO2 Capture and Compression Upstream Emissions
for Electricity Use
CO2 Transport Upstream Emissions for Electricity Use
Captured Onsite CO2 Emissions
Net WTG GHG Emissions

https://pubs.acs.org/doi/10.1021/acs.est.0c08237

https://pubs.rsc.org/en/content/articlelanding/2022/gc/d2gc00843b/unauth

SNG Production Cost – w/ and w/o IRA Tax Credits

E-fuels via Fischer-Tropsch (FT) process using H2 + CO2
 Conversion process modeling• Ethanol-CO2
supply• FT fuels can be synthesized by using CO2 and H2
via RWGS and FT reaction• CO2 + H2Æ syngasÆ FT fuels

Levelized Cost of Gas($/MMBtu-HHV)

GHG Emissions(MT CO2e / MT NH3)

3.0

C-capturing
NH3 v160*MSFP=minimum fuel selling pricehttps://www.osti.gov/biblio/1868524

90

$45.6

40

$42.0

$30.9

$27.1

$17.1

20

$4.5

$4.1

Fossil NG(Industrial
use)

Fossil NG(Electric
utility use)

0-20

 Techno-economic analysis

 Well-to-gate emissions• SOEC = solid oxide electrolyzer cell80

SOEC-H΃(w. 45V)

SOEC-H΃(no credit)

SNG(no credit)

SNG(w. 45Q)

SNG(w. 45V)

Capital Cost

Fixed O&M

H΃ Feedstock CostCO΃ Feedstock Cost

CO΃ Transport Cost

Other Variable Cost

45Q CO΃ Tax Credit

45V H΃ Tax Credit

Levelized Cost of SNG

Levelized Cost of H΃

Fossil NG Cost

(Ref: EIA STEO 2022)

TEA Parameter
Nuclear electricity price

Unit
௣/kWh

Low-Cost Value
3

Baseline Value
7

High-Cost Value
11

Reference
DOE 2020 Record

SOEC-H2 price(no credit)$/kg-H2

2.4

4.2

5.7

DOE 2020 Record

SOEC-H2 price(with 45V PTC)$/kg-H2

0.5

2.3

3.9

This work

17.7

25.2

33.4

(weighted average)(maximum)This work and
NETL, 2014

100
No export

500
No export

This work
This work

Ethanol-CO2 price$/MT-CO2(minimum)CO2 transport distance
Byproduct steam

mi
-

50
Export18

Steel production using hydrogen in DRI technology

Acknowledgment

Hydrogen TEA and LCA at Argonne have been supported by
DOE’s Office of Energy Efficiency and Renewable Energy’s
Hydrogen and Fuel Cell Technologies Office (HFTO) forover two decades NG=$3.7/GJ, Elec =$0.07/kWh, H2=$1.3/kg
 The production cost with DRI-NG-EAF issimilar with that of BF-BOF
 DRI-H2 is more costly, and sensitive to H2
price For DRI-H2 steel to reach price parity withmarket price, H2 cost needs to be $1-2/kg H2
 IRA 45V incentivize DRI with H2

19

Cost and Life Cycle Analysis for Deep CO2 Emissions Reduction for Steel Making: Direct Reduced Iron Technologies - Zang - steel research international - Wiley Online LibraryThank You!
aelgowainy@anl.gov
Our models, tutorials and publications
are available at:https://greet.es.anl.gov/
https://hdsam.es.anl.gov/
21911-6. Fuel Ammonia Production from Fossil Fuels
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1-8. EMSA study Potential of Ammonia as Fuel in Shipping

EMSA in a nutshell

EMSA study
Potential of Ammonia as Fuel in Shipping

Sergio Alda
Senior Project Officer Unit 1.1 - Sustainability
APEC Symposium Pursuing Decarbonization of Fossil Fuels
Kobe, 11 October 2023
2

EU ETS extension to maritime
Cap-and-trade’ system: puts
a price on GHG emissions toharness economic forces

FuelEU Maritime - overview

Covering around 2/3 of
CO2 emissions related to
EU maritime transport• Limits the GHG intensity of the energy used on-board• Obligation to use OPS or zero-emission technology from 2030
• Targets established in 5-year intervals from 2025 until 2050

Applicable to large ships(above 5000 gross tonnage)
regardless of the flag they fly

ETS-funded Innovation
Fund for ships and ports

4

EMSA Studies Project Organisation

EMSA Studies on Alternative Fuels and Power Solutions

EMSA’s Studies Project Organization• Part of EMSA’s work in the area of sustainability and insupport of the European Green Deal
• Previous studies conducted on: Biofuels (2012), LNG (2013),
Methanol/ethanol (2016), Fuel Cells (2017), Batteries (2020)• Framework contract signed in 2021 and for a period of 4
years and up to a total of 6 studies• Consortium integrated by:

Key Numbers
6

Alternative Fuels / Power

3

Partners + Industry/Authorities

20

Team members

6+1

Dedicated HAZID workshops

Tasks
Task 1 – State of Play

Progress
2021/2022

Biofuels
Ammonia

2022/2023

Hydrogen

Production pathways, scalability, availability,
sustainability, suitability, cost analysis

Task 2 – Standards/Regulations/Guidelines
IMO, IGF code, SOLAS, IACS, ISO, ISM, RegionalRegs, Guidelines, SIGGTO, SGMF
Regulatory Gap Analysis

2023

Task 3 – Safety Assessment• New studies on Biofuels and Ammonia released in October 2022
• 1st Workshop on Alternative Fuels (biofuels and ammonia) and Power Solutionsfor Shipping and Ports held 18-20 October• Link to the studies:Technical Reports - EMSA - European Maritime Safety Agency (europa.eu)

2

Selected 3/4 Designs
HAZID workshops
Suggestions for improvement

2023/2024

Wind assisted
propulsion
Synthetic Fuels

6

5

99

Availability and Scalability

Studies released

HB is the most mature process

Grey NH3
Production

235
Mtons/year
2019Green NH3
Announced>133
Mtons/year*annouced blue and green
ammonia production

Update on
potential of
Biofuels inshipping

What are the challenges?

Potential ofAmmonia as fuelin shipping

Guidance on
Shore-SideElectricity

•
•
•
•





7

Sustainability
The challenge is green electricity• Certification mechanisms• If connected to the grid, need to ensure
the source of that energy• Transportation, if not decarbonised,
may lead to increased footprint

Many sectors will have demand for green or blue ammonia.
Green electricity will also be in high demand
Demand depends on policy, many of which are not yet confirmed
Green production needs to be efficient, utlized at maximum capacity
and this poses challenges:
Location, pipelines, access to ports
Connection to grid (sustainable?)
Potentially oversized8

Sustainability (2)Engine still under development• NOx & N2O slip uncertain• Pilot fuel usage

Other Environmental Impacts (production)-

Production of hydrogen requires pure, deionized water. The amount of(fresh) water can increase water scarcity. Desalination and rejection ofbrines can be detrimental to ocean biodiversity and marine life;-

Generating green electricity will require land (solar or onshore wind);-

Production of Solar should avoid using land used for crops;-

Inland transportation has been ongoing for many decades. Accidents
happened and handling of ammonia is known;-

Ammonia spills can be harmful for marine life, need for further
evaluation.

Where Solar ?
•
•
•
•
•

Western Australia
Northern Chile
Parts of China and US
Northeast Brazil
Northern Africa

Where Wind ?
••Avoid land used forcrops (Australia, Chile,
etc)
Using offshore may be
an option in Western
Europe and USA

910

Total Cost Ownership (TCO) - Ammonia fuelled vessel

Sustainability (3)Containership 14,500-20,000 TEU – TCO difference to VLSFO vessel
Other Environmental Impacts (bunkering/onboard)- Ammonia spills may cause more sever harm:• Ammonia dissolves partly into water (towards an equilibrium of NH3,
NH4+ and NH3 (g))• At pH of 8, NH3(aq) ranges from 0.8% to 7.4% (higher pH, higher
percentages)• Toxicity depends on bio-sphere, from 17 mg/L to 510 mg/L in toxicity
limit for Ammonia exposure- Ammonia spills may be a threat to the marine life, also quality of the water,
nutrients on the water, stimulate noxious blooms of algae.
- Stricter safety for bunkering or when vessel enter and leave ports (similar
to LNG, but for different reasons)

11

12

100

Suitablility
What is needed ?
1. Tanks, either Type A or Type C
2. Ammonia supply pumps
I. High pressure ~ 80 bar
II. Low pressure~ 5-15 bar
3. Temperature control

Conclusions
Ammonia as a fuel is likely to take place. It presents a series of advantages and is a promisingfuel:- Known and well-estabilished production process- Naturally carbon-free, although attention is to be given to NOx, N2O and Pilot fuel and trully
green production pathways- It is known to shipping as a cargo (IGC covers it), and poses many challenges to be used as afuel
- There are challenges to overcome to handle its corrosivity and toxicity: bunkering, engine,
fuel supply systems.
- However, it has been used for many decades and there is substantial knowledge available

4. Filters
5. Double block and bleed
6. Vent system incl. a collection &treatment system for ammonia vapor
7. Double wall pipe system

High Pressure Gas Injection

Main challenges:- Ensure availability of green energy and competition with other sectors- High costs associated with green ammonia production- Safety and Regulations concerns: need to accelerate awareness and regulatory framework
developments- Need more knowledge on spillage and other environmental aspects- IMO Guidelines to be ready by 2025

Low Pressure Gas Injection

13

14

Thank you for your attention
Follow our activities on social media:
emsa.europa.eu/newsroom/connect101

1-9. CCUS in Japan

Carbon dioxide Capture and Storage (CCS)Power Plant

Cement Plant

Steel Plant

Chemical Plant

Membraneadsorption

Various Emittersof CO2

CCUS in Japan
Kenta Asahina
CCS policy office, METI, Japan

Separation andCapture of CO2
HybridsystemAbsorption

Transportation
Injection andStorage

Pipeline

Ship

Tanker truck

Underground Storage
0RGLILHGFLWDWLRQIURP&&6‫ق‬0(7,‫ك‬Mechanism of CO2 Underground Storage

G7 Climate, Energy and Environment Ministers' Communiqué

Various emittersinjection well
&2

6HDOOD\HU‫ق‬PXGVWRQHHWF‫ك‬
6HDOOD\HUNHHSV&2

Key sentenceReservoir type‫ ؞‬Deep saline aquifer‫ ؞‬Depleted oil & gas
reservoir&2

68. Carbon Management㸸࣭We recognize the need for monitoring and analyzing the potential
for and expanding geologic storage infrastructure and planning for
CO2 transport, including the potential for regional Carbon dioxide
Capture and Storage (CCS) hubs in line with social acceptance.
࣭ We will co-operate to promote development of export/importmechanisms for CO2.

Enlarged view
6HDOOD\HU

࣭ Considering the evolving nature of these technologies, werecognize that CCU/carbon recycling and CCS can be an importantpart of a broad portfolio of decarbonization solutions to achieve netzero emissions by 2050, and Carbon dioxide Capture,
Utilization(CCU)/carbon recycling technologies,࣭࣭࣭Reservoir
Seal layer protects&2 the CO2 in the reservoir fromleaking to the surface. Therefore, CCS requires aformation structure with the seal layer above thereservoir.

Reservoir(sandstone, etc.)

6XLWDEOH OD\HU IRU&2 VWRUDJH

CO2 is stored in the spaces between theparticles in the rock.

History of Japanese CCS Projects
2000

2011

Fundamental Research(Nagaoka CCS PJ)‫؞‬Subsurface monitoring‫؞‬Numerical simulation

Japan’s Long-Term Roadmap

2016

10k t-CO2‫ق‬1.5years‫ك‬

300k t-CO2‫ق‬3 years‫ك‬Societal
implementation

Practical research & developments(Tomokomai Demonstration PJ)‫؞‬Safety management tech. for large-scale CCS‫؞‬Effective injection into large-scale reservoirs‫؞‬Promotion of Public AcceptanceFundamental Tech. Developments(Post –monitoring of Nagaoka CCS PJ)‫؞‬Core sample tests‫؞‬Migration modeling (faults, wells)‫؞‬Numerical simulations‫؞‬Eval. of the env. impact on offshoreareas‫؞‬Fiber-optic monitoring‫؞‬Geological modeling technology


102



The necessity of developing business environment toward the start of
CCS business by 2030

Japan’s Long-Term Roadmap[Basic principles]
To implement CCS systematically and rationally to promote the sound development of CCS business in Japan withminimal social costs, thereby contributing to the development of Japan's economy and industry, securing a stableenergy supply, and the achievement of carbon neutrality.
[Objectives]
A business environment for commencement shall be prepared by 2030, involving cost reduction, public
understanding, overseas CCS promotion, and CCS Business Act legislation, based on the rough estimation of
enabling CO2 storage of about 120 to 240 million tons as of 2050, and full-scale CCS business shall deploy
Annual storage capacity:
after 2030.
120 to 240 million tons
CCS business starts
–2030

–2050

Business model constructionz There are concerns that postponing the introduction of CCS in 2030 will make it difficult to secure theannual storage capacity necessary to achieve 2050 Carbon Neutrality.
Expansion of CCS introduction

10 thousand ton CO2
25,000240 million tons
Expected annual storage capacity(rough estimate)

20,00015,000Full-scale deployment

10,000[Specific actions](1) Government support for CCS business(2) Efforts for reducing CCS costs(3) Promotion of public understanding of CCS business(4) Promotion of overseas CCS business(5) Examination for the development of the CCS Business Act (tentative name)(6) Formulation and review of the CCS Action Plan

Various emittersz Based on IEA trial calculation, estimated annual storage capacity of Japan's CCS can be roughly
estimated at 120 to 240 million tons in 2050 (about 10-20% of current emissions). Supposing CCS is
introduced in 2030, the annual storage capacity needs to increase by 6–12 million tons every year during the
20 years until 2050.

5,000

Prompt businessenvironment
development

120 million tons

CCS businessstarts in 2030

The rates of increase are back-casted from theannual storage capacity in 2050, based on theassumption of linear increase from 2030. In reality,
the initial rates of increase are expected to besmaller in the start-up period of CCS business.

0

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 YYear
FS etc.


Advanced CCS Program

Construction

CCS business starts in 2030


FID in FY2026

Purpose of advanced CCS program

injection wellz To secure annual storage of 120-240 million tons of CO2 by 2050, A business model for CCS that can crosssectoral should be established at an early stage. Thus, Japanese government selected “Advanced CCS
projects” led by operators and will actively support them.

z This supporting program will establish various CCS business models by supporting projects with different
combinations of CO2 source, transportation methods and CO2 storage areas. Furthermore, it aims to secure6-12 million tons of CO2 storage per year by 2030.

CO2
Seal layerz This year, this program will provide support for the analysis of this geologic data and feasibility study.

Possible types of CO2 source, transport methods, and CO2 storage areas
Seal layer

CO2 sources

Transport methods

Thermal power plantReservoir

Steel plant&2

Reservoir

Chemical plant
Cement plant

Enlarged view

Paper plant
Hydrogen plant etc.

Overviews of Selected Advanced CCS Projects

CO2 storage areas
OnshorePipeline
Near shore
Ship

Offshore

Locations of the selected projects and companiesz On June 6, Seven CCS projects was selected as Advanced CCS project (including two oversea export
projects) which was considered CO2 source, transportation methods, storage areas.
z Selected project target a wide range of industries such as electric pawer, oil refineries, steel, chemical,
pulp/paper, and cement, and capture CO2 emitted from various regions in Japan.
z The total estimated annual storage of CO2 in 2030 is about 13 million tons (including 30% exported overseas).
Storage areas
CO2 Sources
Transportation methods
ٛ&RPELQDWLRQVRI&2VRXUFHV7UDQVSRUWDWLRQ PHWKRGV VWRUDJHDUHDVٜ⋇Tomakomai Area CCS
Oil refinery, electric power
Pipeline
plant
JAPEX, Idemitsu Kosan, Hokkaido Electric power

Types of storage site
Onshore depleted gas fields
and/or Near shore⋈Tohoku region west coast CCS
ITOCHU Corp., Nippon Steel, Taiheiyo Cement,
Mitsubishi Heavy Industries, ITOCHU Oil Exploration,
INPEX, Taisei Corp.

Steel plant, Cement plant

Ship, Pipeline

Near shore⋉East Niigata Aria CCS
JAPEX, Tohoku electric power, Mitsubishi Gas
Chemical Company, Hokuetsu Co, Nomura ResearchInstitute.

Chemical plant, Paper
plant, electric power plant

Pipeline

Onshore depleted gas fields ‫ع‬Near Shore⋊Metropolitan Aria CCS
INPEX, Nippon Steel, Kanto Natural Gas Development

Steel plant, others

Pipeline

Near Shore⋋Northern to Western Offshore CCS
ENEOS‫ؚ‬JX Nippon Oil & Gas Exploration‫ؚ‬J-PowerOil refinery, electric power
plant

Ship, Pipeline

Offshore⋌Offshore Malay CCS
Mitsui & Co.

Oil refinery, Chemical plant,
Ship, Pipeline
othersOversea project (Malaysia)⋍Oceania
Mitsubishi Corp., Nippon Steel, ExxonMobil

Steel plant, others

Oversea project‫ق‬Oceania‫ك‬

Ship, Pipeline



103



Lessons from Advanced CCS Program

Liquefied CO2 Shipping Demonstration Projectz T & S companies requires several hundreds million dollars and high technologies to install. The number ofpotential entrants would be limited.

A demonstration project for long-haul transportation from emission
sources to places suitable for storage will be carried out toestablish liquefied CO2 shipping techniques.

z In order to install Carbon Capture process and transportation, “Aggregator” for emitters is necessary to foster
by promoting outsourcing. Some public utilities companies to think to enter.
z In CCS, quantities of CO2 to transport would be more than 100 times. Primary transport would be pipelines
and shipping would fill the regional gap.

CCS System and its challenges
Emitters&RQVROLGDWLRQRIFRQVXPHUVCarbonCapture嵣嵣嵣 In Japan there are around 7,500 factories to consume more than energy
equivalent to 3,000kl annually
嵣Large class facilities ‫ ؟‬couples of 100k – million ton
Commissioned
嵣Middle class facilities‫؟‬couples of 10k – 100k ton
Capture嵣Small class facilities ‫ ع؟‬couples of 10 K ton
嵣嵣嵣 “Aggregation business” to covers Carbon Capture needs- Covering potential users and accept outsourcing of capture

Transport

嵣嵣嵣 Smooth installation of pipelines and liquified shipping
Pipelines are required to cover the general requirement

Storage嵣嵣嵣 Expansion of its capacity and sustainable discovery ofpotentialLiquefied CO2 Shipping Demonstration Project

Building Asian-wide CCUS Network

In the hub and cluster plan for CCS, liquefied CO2 ship transportation is an important technology for transporting
CO2 which is captured at distant emission sources.

Route examples

In June 2021, the Asia CCUS Network (ACN), an international industry-academia-government platform,
was established as part of AETI. It aims to share knowledge and develop a business environment for
CCUS utilization throughout Asia where large-scale CO2 storage potential is expected.

Maizuru Power Station(Coal fired power plant)Stotorageorage
capacities

Tomakomai CCS
demonstration
Osaki CoolGen(IGCC)

Asianann-widen-wwide CCUS
CC
Network

嵣Storage and monitoring嵣Tomakomai CCS/CR hub

嵣Capture嵣Carbon Recycling
R&D base

Demonstration transportation of CO2 will start in 2024

Note) Figures indicate storage capacities.
Unit: Billion tons (Survey by GCCSI)Japan’s contribution toward CCS value chainz -DSDQLVWKHRQO\HFRQRP\WKDWKDVYDULRXVWHFKQRORJ\UHODWHGWRWKH&&6YDOXHFKDLQVXFKDV&2FDSWXUHWUDQVSRUWDQGVWRUDJH>(QJLQHHULQJ@*OREDO1R3URYLGHUIRUH[KDXVWHGJDVHV RI
JOREDOPDUNHW DQG3URYLGHGIRU3HWUD1RYD
3URYLGHGIRU6WHHO0DNHUVDQG
&RDOILUHGSRZHUSODQWV

&2 FDSWXUH'HOLYHUHG3&&IDFLOLW\DV(3&FRQWUDFWRU
1HZWHFKQRORJ\GHYHORSPHQWXQGHU1('2SURMHFW>(QJLQHHULQJ@>6KLSSLQJ&RPSDQ\@,QYHVWHGLQ/DUYLN6KLSSLQJ/RZ7HPSHUDWXUH/RZ3UHVVXUH)LUVWPRYHULQWKHZRUOG>0DQXIDFWXULQJ@>(QJLQHHULQJ@

3URYLGHVIRU1RUWKHUQ/LJKWV

3URYLGHV6HDPOHVV3LSHIRU&2
,QMHFWLRQZHOORI1RUWKHUQ/LJKWV>(QJLQHHULQJ@

6WRUDJH7RWDOHQJLQHHULQJ'HVLJQHGn7RPDNRPDL|'HPRQVWUDWLRQ3-'HOLYHUHG&&6IDFLOLWLHVIRU/1*SODQWVLQ
4DWDU

Developing projects andbusiness environment

2020–

Establishing a CCUS Networkand providing opportunity for
CCUS development

SIGMA POWER Ariake&2SLSHOLQH

2025–

Investment
CO2

嵣Capture嵣Coal fired power plant

Liquefied CO2transport ship

2030–
Toward a decarbonized Asian
economy centered on CCUS



104

AUS, BD, INA, JPN, MAS,
PH, SGP, THA, US, VN,
KHM, LAO, MMR, IND

1-10. CCUS in Australia

Economic relationship between Australia & Japan

CCUS in Australia• Japan is Australia's third-largest trading partner, with 2-way goods and services trade valued at A$66.3 billion.
• Australia's major exports to Japan are natural resources, including gas, coal, iron ore, copper and aluminium

Enabling industrial-scale emission abatement in the Asia Pacific• In 2022, Australia supplied:─ 43 per cent of Japan's LNG and─ 66 per cent per cent of coal

• Australia and Japan have a deeply connected energy relationship and joint responsibility todecarbonise the energy sectors. CCS plays a vital role in this.

Dr Matthias RaabAPEC conference, Kobe, Japan

Chief Executive Officer

11 October 2023
2

Globall collaborationn betweenn industryy andd academia

CO2CRCC iss a world
d leaderr inn appliedd CCUSS researchh
We do research and commerciallyrelevant demonstrations in CCUS
applications.

Trained over
60 PhDs

We build and operate first of a kind plantand equipment.

Published more than
450 peer-reviewed
journal papers

We develop industry led technology
options to accelerate commercial
deployment.

Between 40 – 180
researchers
participating in our
research program at
any one time

We own and operate the Otway
International Test Centre in South-West
Victoria, Australia.

3

Hydrogen Research at CO2CRC

Recognising economic value of CCS
Cost of emitting CO2 vs cost of CCS
Relative costs

CO2CRC H2 R&D
startedPre-feasibility,
feasibility and
FEED for HESC

2010-17

Hydrogen
Storage2018
Carbon Negative
Biorefinery
Circular Economy
becomes part of
CO2CRC portfolio

Investigation ofunderground H2
storage begins

2019

CB Hub

2020

Commercial scaletechno-economicstudy

CB Hub2021

Concept study for
CBHub for carbon
negative hydrogenproduction

HESC
Successful Installed
and commissioned
H2 refining andpurification system

2022
UHS Pilot Prefeasibility
Completes study
with CSIRO for ademonstration of
UHS at OITC

Modified after Rystad
Energy and analysis
5

105

6

G-7-AP (Bonaparte)
Bayu Undan
CCS Project

CCUS Projects
in Australia
2023

Cstore 1

Karratha CCS Project

WA

WA

Capacity: TBA
Owners: Woodside, BP, Chevron, Shell,
MIMI
Status: Feasibility

Capacity: TBA
Owner: DeepCstore
Status: Feasibility

Geovault
GorgonWA

Capacity: 4MT CO2/year
Owner: Chevron, ExxonMobil,
Shell, Osaka Gas, Tokyo Gas, JERA
Status: Operational

ReindeerNT

Capacity: TBA
Owner(s): Inpex, TotalEnergies
and Woodside Energy
Status: Feasibility

NT

Capacity: 10MT CO2/year
Owners: Santos, Timor Leste,
Inpex, Eni, SK E&S and Tokyo
Timor Resources
Status: FEED

G-11-AP (Bonaparte)

NT Low Emissions
CCUS HubNT

Capacity: TBA
Owner(s): Santos, Chevron and SK
Status: Feasibility

WA

CTSCo Project

Carnarvon Basin
Capacity: TBA
Owner: Geovault
Status: Feasibility

WA

Capacity: TBA
Owner: Santos
Status: Feasibility

Carbonn Capturee & Storagee iss Necessary

NT

Capacity: TBA
Owners: NT Gov, CSIRO, Santos, INPEX,
Woodside, Eni, Origin Energy and Xodus
Status: Research phase

9 Carbon capture and storage (CCS) is necessary for the global emissions reduction
targets to be met according to the IPCC, IEA and DOE

QLD

Capacity: 110,000 T CO2/year
Owner: Glencore
Status: FID yet to be taken.
Awaiting environmental approvals

Moonie CCUS Project©CO2CRCCapacity: 500,000T CO2/yr
Owners: Pilot Energy & Triangle Energy
Status: Feasibility

11Final investment
decision taken

17

Projects in feasibility

9 There are no technical barriers that exist to prevent the required rollout of CCS

NSW CO2 SAP

Operational project
Low Carbon Ammonia
Development (LCAD)

9 CCS is safe, reliable and permanent; CCS has been in operation for decades, withmultiple case studies of success

QLD

Capacity: 10MT CO2/year
Owner: Bridgeport Energy
Status: Early development

Midwest Clean Energy WA

NSW

Capacity: TBA
Owner: Coal Innovation NSW
Status: Assess

WA

9 CCS is a key enabler for a future hydrogen economy
9 So… CCS IS necessary, but not everywhere is suitable for CCS

Capacity: TBA
Owners: Mitsui/Wesfarmers & JOGMEC
Status: Feasibility

South West Hub

Moomba CCS
ProjectWA

The CarbonNet
Project

SA

Capacity: 1.7MT CO2/year
Owners: Santos, Beach Energy
Status: FID taken

Capacity: 800,000 T CO2/year
Owner: Western AustralianGovernment
Status: Research phase

CO2CRC Otway
International Test
CentreCapacity: Research facility
Owner: CO2CRC
Status: Research project

Otway CCS Hub
Capacity: 200,000 T CO2/year
Owner: Beach Energy
Status: Feasibility

The SEA CCS Hub

There is no scenario which
involves the increased use of
future energy globally that
does not require CCS

VIC

9 Offshore Australia has vast potential for geological carbon storage, something that
our major trading partners lack (London Protocol)

Capacity: 5MT CO2/yr
Owner: DJPR
Status: Pre-FEEDVIC

Key Findings on CCS1
Carbon capture and storage(including DACCS and
BECCS) is central to IPCC
mitigation pathways

VIC

Capacity: 2MT CO2/yr
Owner: ExxonMobil & Woodside
Status: Feasibility

Even with the most
optimistic uptake ofrenewable energy, annual
storage using CCS will need
to be 3 gigatons, nearly 75
times the current storagelevels (other more realistic
IPCC scenarios require
much more storage)

Geological Basins
1Soure: IPCC’s Working Group III’s (WGIII) Contribution to the Sixth Assessment Report, https://report.ipcc.ch/ar6wg3/

Global Total Primary Energy Supply in the Net Zero (NZE) Scenario
HistoricalEJ

NZE Scenario

500
400
300
200
100
0
2010

2020

How Do We Get to Net Zero and What are the Challenges?
• We need to rollout multiple CCS projects with large-scale storage (multi-Mt/a)around and across Australia

NZE Scenario – sets out a pathway to stabilize global
average temperatures at 1.5°C above pre-industrial
levels. This scenario achieves global net zero energy
sector CO2 emissions by 2050 without relying on
emissions reductions from outside the energy sector(i.e. land clearing).

600

2040

2030

2050

8

• This roll-out needs to be done quickly to meet Net Zero
• However, the current project cycle takes ~9 years due to cumbersome
regulatory processes, which only allows for three full project cycles between
now and 2050

“Carbon capture, utilisation and storage (CCUS) plays
an increasingly important role: CO₂ capture grows fromaround 0.04 Gt in 2021 to 1.2 Gt in 2030 and 6.2 Gt in
2050, with industry and fuel transformation sectors
accounting for more than 40%, direct air capture(DAC) for around 5%, and power and heat generation
for the rest by then.”• How many large (>4Mt/a) CCS projects are in place or being planned?
─ How many are needed to meet Net Zero?

IEA, Energy Technologies Perspectives 2023
Figure modified after IEA Energy Technologies Perspectives 2023

The role of CCS will be significantly larger if the decline of fossil fuels is slower
9

10

Existing and Planned Large Australian CCS Projects/Hubs

Number of Major Projects (>4Mtpa) to get to Net ZeroBAYU-UNDAN• By 2032, if all of the projects below areonline, we could potentially have up to 31 to
35 Mtpa stored in these projects:• The longer the delay, the more complex anddifficult is the Net Zero challenge

Major Projects Required to reach Net
Zero by 2050

G-7-AP(BONAPARTE)

40─ SEA CCS (2 Mt/a)35

─ CarbonNet (6 Mt/a)30

─ Moomba (1.7 Mt/a; soon to store)

25

37

15

─ Bonaparte (G-7-AP) (10Mt/a)

16

Current Project Cycle

10

─ Bayu-Undan (10Mt/a)7

5• This is quite optimistic, and most of theseprojects will not store CO2 before 2030

0

MOOMBA CCS

38

21

20

─ Gorgon (1.7-4 Mt/a; storing now))

38

31

3
0
2020

0
2025

2030

16

8
Highly Accelerated
Roll-Out from ~2030

2035

2040

2045

2050

Full Renewables Rollout

2

Operational/Near Operational Project

7

High Potential Projects• Blue line is most optimistic, red line is realistic• The average required number of projects is
between ~20 and 40 from 2045, with 40 being
more realistic; majority of the projects will be
required from 2032 after existing project cycle• Regulatory delay results directly in emissions
that are higher than otherwise possible – itreally does matter

Full Renewables rollout, with local production of iron and aluminium
Data from Net Zero Australia Report 2023

11

106

12

Summary

The Barossa / Darwin LNG / Bayu-Undan Project• The Barossa Gas Field has high (16-18%)
concentrations of naturally occurring CO2• To get to Net Zero, CCS is essential and will require a major project roll-out, which will
have to accelerate dramatically after the current project cycle ends in ~2032• Gas produced from the Barossa Gas Field will betransported via pipeline to Darwin LNG• To deliver on Net Zero, CCS projects will require a greatly accelerated regulatory
process so that the project cycle can be shortened from the existing 9 years• The Darwin LNG facility will separate the Methane(CH4) from the CO2• CO2CRC leads the CCS Regulatory Affairs Task Force and is working with industry andgovernment to provide the required improvements in government regulation andallow companies to deliver on their Net Zero commitments• The CO2 will be transported via Pipeline from
Darwin LNG to the Bayu-Undan depleted gas
field and injected into the reservoir forpermanent geological storage

13

The Barossa / Darwin LNG / Bayu-Undan Project14

Ichthys Project• Ichthys LNG is expected to produce up to 9.3
million tons of LNG and 1.65 million tons of LPG perannum, and more than 100,000 barrels ofcondensate per day at peak.

• This project will involve repurposing the BayuUndan offshore facilities reservoir (located inTimor Leste waters) into a geological CO2
storage hub (BU CCS) with a maximum
capacity of 10 MTPA+
Ichthys Field• New CO2 transport and import facilities will be
required

Subseapipeline

G-7G-7-7-AP

Ichthyshthys LNG
LN

• The Ichthys Field is estimated to contain more than
12 trillion cubic feet of gas and 500 million barrelsof condensate.
• The Brewster Formation has 8% CO2, and the
Plover Formation has approximately 17%. So it willramp up once the switch to the Plover produces,
but that is a long time from now.

• Because Bayu-Undan is located in TimorLeste, moving CO2 from Australia to TimorLeste will trigger the London Protocol

S willl bee essential to ensure Ichthys meets the• CCS
requirements of the Safeguard Mechanism.

15

16

Collaborationn too acceleratee CCUSS technologyy advancements

In Summary• Australia, Japan and Korea have ambitious 2030 emission reduction targets, CCUS is a key
technology• CCS is a proven suite of technologies• Elements of a robust storage site:• Development of offshore CO2 monitoring techniques• Execution of field trials at CO2CRC’s Otway International Test Centre for improving CO2 injection

─ Trapping, compression, seal and storage formation, no adverse impacts• Progress transboundary CCS projects between Korea, Japan and Australia• CCS is mandatory for future LNG• Development of carbon credit methodology for transboundary CCS• Review of domestic and international legal challenges for transboundary CCS projects

17

107

18

Otway International Test Centre
Key Success Factors
At scale investment - Long term Government
and Industry funding

Breakthroughh technologies

Focused on accelerating Australia’s transition to a
low emissions future
Industry led Research
Well-established collaboration between universities andindustry, domestically and globally

Globally unique test centre to accelerate development andcommercial deployment of technologies

19

A paradigm shift in subsurface monitoring

20

Riskk basedd monitoringg throughh downholee seismicc andd SOV/DAS• The system was configured toprovide a new image of the plume
every 2 days.

In order to see, theindustry needed:• It first detected the gas plume on
the 2nd day of injection with ~300
tonnes.

21

22

Summary• Australia has a golden opportunity for global CCS leadership• The CCS industry can move faster than government can approve projects• Legislated targets are at odds with the industry’s ability to get project approvals• To achieve 43% of emission reduction by 2030, we will need 50% reduction inpermitting time
• Permitting will determine the pace to net-zero• Delays are deadly – a lack of urgency will force the status quo in emissions and deter
investment• Australia can create many win-win situations with Japan.
23

108

24

CO2CRC acknowledges and appreciates the strong relationships it has with industry, community, government,
research organisations, and agencies in Australia and around the world

International Educational Opportunities in CCS• CO2CRC Education: Essentials to detailed technical specialist level; bespoke courses can be tailored toindividual needs• CO2CRC Symposium: Shaping the Next Decade of CCS
─ 20-23rd November─ Learn more about Australian CCS projects, CCS technology and the regulatory and policy landscape locally andglobally• CO2Tech: proposal reviews through to detailed technical evaluations

25© CO2CRC Limited 2023

109

1-11. CCUS in ASEAN: Recent Developments in Indonesia

Outline

CCUS IN ASEAN:
RECENT DEVELOPMENETS IN INDONESIA

Context

3

Role of CCUS in NZE

5Recent CCUS/CCS development in Indonesia

6

DR. USMAN PASARAIOCTOBER 11, 2023

Economic and energy trends

CO2 emissions trends

SEA’s economy grew byaround 4.2% on averageeach year between 2010
and 2019

TWh

Southeast Asia is a major engine of global economic growth and energy demandSoutheast Asia is still a long way off the pathway consistent
with its clean energy ambitions

SEA’s energy demand haveexhibited a fast-growing
region, was second only tothat of China

Historical CO2 emissions by economy, 1960-2021

Cumulative CO2
emissions between
2020 and 2050 isaround 75 Gt in
STEPS, and 45 Gt in
SDS

Cumulative CO2
emissions in SEA to2050 and theremaining global
carbon budget for
1.5oC

BD
Viet Nam

As the economy and population have grown, total energy supply expanded by around 80% between 2000 and 2020.
In 2050, Southeast Asia comprises around 8% of the world’s population and global GDP.

Power generation has almost tripled over the past two decades, driven by a sixfold increase in coal-fired generation, which
accounted for more than 40% of total generation in 2020.

Achieving net zero emissions will rely on support to ensure the deployment of key technologies and infrastructure
for the SDS and NZE Scenarios.

As a result of the fossil-driven energy demand growth, CO2 emissions increased from 0.7 Gt in 2000 to over 1.6 Gt in 2020.
Source: Southeast Asia Energy Outlook, IEA (2022); https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate (2023)

Source: Statista (2023); : Southeast Asia Energy Outlook, IEA (2022)

Role of CCUS in NZE pathways
CCUS technologies will play in putting the world
on a path to NZE, contributing more than 10% of
cumulative emission reduction globally by 2050

CCUS/CCS projects in Indonesia @August 2022

200 Mt15 CCS/CCUS activities in Indonesia are still in the study/
preparation stage, but most are targeted for onstream before 2030

35 Mt

Average annual CO2 reduction from 2020 in the NZE
To remain in line with Paris Agreement. CO2 capture in SEA will haveto reach 35 Mt CO2 in 2030 and to exceed 200 Mt in 2050.
This includes lower-cost opportunities in industry, fuel supply sectors,
and retrofitting of coal power plants.

CCUS contributing r 10%

Indonesia accounts for around 80% of SEA’s projected CCUS
investment in 2030, reflecting the size of its economic and the reativeadvanced state of CCUS development in this economy.

The role for CCUS spans virtually all parts of the global energy
system including heavy industry, low-carbon hydrogenproduction, power generation, carbon removal, and as a sourceof CO2 for synthetic fuels.

Source: Net Zero by 2050, IEA (2021), CCUS Opportunities in SEA, IEA (2021)

Source: DJMIGAS, MEMR (2022)

110

On going CCUS projects

Strategic priorities for CCUS in Indonesia/SEA

in the Indonesia’s upstream oil & gas business

Identify and develop onshore and offshore CO2 storage resources

Source: The Indonesia CCS Center (2023)

Source: IOG 4.0 SKKMIGAS (2023)

CO2 storage potential

Policies and regulations

One of the first steps to evaluate regional CCUS options is to identify
and estimate the storage potential of suitable geological formationsNO

EVALUATOR

YEAR

BASINS

1

LEMIGAS – ADB

2013South Sumatra

2

LEMIGAS – World Bank

2015

South Sumatra

FORMATIONS

Recent government policies will provide a boost to the CCUS development in Indonesia
Law Number 16 of 20016 concerning Ratification of the Paris Agreement to the UNFCCC. Ratification of this agreement

CO2 STORAGE(Giga Tones)

Talang Akar, Lahat

7.4

Batu Raja, Lower Telisa

0.2

Talang Akar

3.7 (P50)

is expected to increase international cooperation to implement climate change mitigation and adaptation actions withthe support of funding, technology, transfer as well as transparency mechanisms and sustainable governance.
Law Number 7 of 2021 concerning Harmonized Taxation. This law regulates carbon tax.

Batu raja

Presidential Regulation Number 98 of 2021 "on Implementation of Carbon Economic Value to Achieve Nationally

Lemat
North West Java

Talang Akar

4.9 (P50)

Determined Contribution Target and Control of Greenhouse Gas Emissions in National Development."

13 – 23

Implementation of Carbon Economic Value. This regulation stipulates the implementation of carbon trading, levies on

5-8

carbon emission, and performance-based payment for reducing carbon emission.

Batu raja
3

Yunyue Elita Li et al.
(Exxon Mobil, Univ. ofSingapore, Australia)

2022

South Sumatra

4

Ryoko Setoguchi(JOCMEC)

2023

North West Java

North Sumatra
Kutai
East Java
North Sumatra
Central Sumatra

32 - 67
Parigi, Massive/Main, Batu Raja,
Talanng Akar

69 (Best Case)

Upper Benio, Sihapas, Telisa,
Batu Raja, Pematang

56 (Best Case

30 Formations, 1071 oil & gas
fields> 650 Gt in Saline
Aquifers;> 12 Gt in O&G
fields

Minister of Environment and Forestry Regulation Number 21 of 2022 on the Guidelines of carbon Economic Value
Implementation.
Minister of Energy and Mineral Resources Regulation Number 2 of 2023 on the Implementation of Carbon Capture andStorage, as well as Carbon Capture, Utilization and Storage in Upstream Oil and Gas Business Activities.

South Sumatra
5

ERIA - BRIN - MEMR

On
going
study

Includes 20 Production
BasinsFinancial Services Authority (OJK) Regulation no. 4 of 2023 concerning Carbon Trading through the Carbon Exchange.

Source: BRIN – MEMR - ERIA (2023)

Policies and regulations
Regulations have been establishedThank you

Source: IOG 4.0 SKKMIGAS (2023)

111

1-12. Research and Development for DAC in Japan

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.2%(32573,$+27(/#.REH&LW\+\RJR-DSDQ㻝Image of Primary Energy in Japan
for Net Zero Emissions (by Keigo Akimoto, RITE)㻞,PSOLFDWLRQVRI5,7(&16FHQDULR$QDO\VLV5HVXOWV
Various measures such as Energy Conservation, Renewables, Nuclear, CCUS,
Hydrogen/Ammonia, NETs(Negative Emission Technologies) are mobilized to realize
Carbon Neutrality. Nuclear is used to the level of the upper constraint in the optimal solution.
Electrification and decarbonization of electricity are commonly required in all scenarios for
Carbon Neutrality while costs of electricity increase. Electricity of 100% renewables further
increases the cost, thus suppress the electrification of final demands in the optimal solution.
Hydrogen and zero-emission synfuels are used in non-electric demand sectors. NETs areused to offset the emissions from the hard-to-abate sectors for realizing Carbon Neutrality.
DAC (Direct Capture of CO2 in Air) is commonly used in all scenarios to realize Carbon
Neutrality. Scale of the utilization of recovered CO2 is limited. CO2 storage capacities
abroad are used as well as the domestic storage capacities for Carbon Neutrality in Japan.
Super smart society (Society 5.0) promotes circular/sharing economies leading substantial
energy/material reductions, thus to explore a new perspective to realize a huge energy
conservation with low costs.
㻟

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Goals

㻠

To realize “Human Well-being”,
9 Moonshot goals were decided in
the area of society, environment,
and economics.

Clean Earth

Cool Earth

Goal ‫؟ڰ‬Realization of sustainable
resource circulation to recover
the global environment by 2050.

1LWURJHQ

Global :DUPLQJ

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Planetary
Boundaries

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Moonshot Goal 4 Realization of sustainable resource circulation to recover the global environment by 2050

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5HDOL]DWLRQRIVXVWDLQDEOHUHVRXUFH
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JOREDOO\ About:
To develop radical solutions fordifficult societal challenge, theGovernment of Japan set 9
inspiring and ambitious goals(Moonshot Goals) for challenging
R&D. NEDO is pursuing ambitious
R&D activities to achieve Moonshot
Goal 4. This program began in2020 and will last up to 10 years.

2XWSXWWDUJHW  &RRO(DUWK'HYHORSPHQWRIFLUFXODWLRQWHFKQRORJ\RQDSLORWVFDOHIRU
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F\FOHDVVHVVPHQW /&$  Program Director:
Dr. YAMAJI Kenji
President, Director-General of the ResearchInstitute of Innovative Technology for the Earth(RITE)

㻣

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0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\0RRQVKRW*RDO5HVHDUFKDQG'HYHORSPHQW&RQFHSW 

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5HFRYHU&2 DQG&RQYHUW7KHPLQWR9DOXDEOH0DWHULDOV

&RRO
(DUWK

Development of technologies to recover greenhouse gases (“GHGs”)
and convert them into valuable materials
R&D Projects

Project Managers

Development of highly efficient direct air capture

Dr. KODAMA Akio,
Kanazawa University

 C4S Research and Development Project

Integrated Electrochemical Systems for Scalable
CO2 Conversion to Chemical Feedstocks

Dr. SUGIYAMA Masakazu,
The University of Tokyo for direct air capture with available cold energy (DAC) and carbon recycling technologies
,QWKLVSURJUDPYDULRXVWHFKQRORJLHVWRUHDOL]HGLUHFWDLUFDSWXUH '$& DUH
EHLQJGHYHORSHGWRFDSWXUHORZ
FRQFHQWUDWLRQ DURXQG &2 WKDWGLIIXVHVLQWRWKHDWPRVSKHUHZLWKWKH
DLPRIFRPPHUFLDOL]LQJORZFRVWKLJKHIILFLHQF\'$&WHFKQRORJLHV

Research and development toward saving energy

carbon budget
Development of Global CO2 Recycling Technology Dr. FUJIKAWA Shigenori,
Kyushu University

 towards “Beyond-Zero” Emission

Redesign of Macroalgae for Highly Efficient CO2

 Fixation by Functional Modifications and Their

Dr. UEDA Mitsuyoshi,
Kyoto University

 Technology Actively Combined With Site

Dr. NAKAGAKI Takao,
Waseda University

Product Generation
Advanced Enhanced Rock Weathering (A-ERW)
Characteristics

Development of Next-generation CO2 -fixing Plant
Microbial Symbiosis

Technology (AIST)
Dr. MORIMOTO Shinichirou,
Feasibility Study of Enhanced Mineralization Based National Institute of Advanced
Industrial Science andTechnology (AIST)
Dr. YANO Masahiro,
Agrobiotechnological Direct Air Capture Towards
National Agriculture and Food Carbon Circulation Society
Research Organization(NARO)

 on LCA/TEA Platform㻝㻜

30

Research and development
toward saving energy for
Direct Air Capture withavailable cold energy

Professor, Nagoya University

Development of innovative amine-loaded CO2
solid sorbent
CO2 capture and enrichment process using lessenergy than conventional technologies

Implementing
organizations:Kanazawa University, Research Institute of
Innovative Technology for the Earth (RITE)

Creation of a system fore CO2 enrichment andreduction to chemical feedstocks by electrochemical process using renewable electricity
Flexible system that allows for small-scale
Distributed deployment

Implementing
organizations:

The University of Tokyo, Osaka University, RIKEN,Ube Industries, Ltd., Shimizu Corporation, Chiyoda
Corporation, Furukawa Electric Co., Ltd.

32,17

Dr. NORINAGA Koyo

Professor, The University of Tokyo

32,17

Dr. SUGIYAMA Masakazu

Professor, Kanazawa University

32,17

Dr. KODAMA Akio

Professor, Tohoku University

Direct capture of atmospheric CO2 by employing
Unused cold energy from liquefied natural gas(LNG)
Pressure swing recovery of CO2 by the CO2
sublimation while operating both absorber anddesorber at room temperature

Implementing
organizations:

Development of Combined
Carbon Capture and Conversion(quad-C) modules targeting low
carbon dioxide concentration
gases for balancing the global
carbon budget
Dr. FUKUSHIMA Yasuhiro

30

Nagoya University, Toho Gas Co., Ltd., Tokyo
University of Science
㻝㻝

32,17

Integrated Electrochemical
Systems for Scalable CO2
Conversion to ChemicalFeedstocks

2XWOLQHRI'$&8SURMHFWV &KHPLFDOHQJLQHHULQJ

Creation of streamlined reaction system, termed“quad-C”, by directly linking CO2 fixation andconversion
Takes energy-efficient conversion routes without
Carbon reduction

Implementing
organizations:113

Tohoku University,
Osaka Metropolitan University,
Renaissance Energy Research Corporation

30

Development of Global CO2
Recycling Technology
towards “Beyond-Zero”
Emission

Dr. FUJIKAWA Shigenori
Professor, Kyushu University

32,17

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30

Dr. MITSUDA Nobutaka,
National Institute of Advanced

 Through the Gene Optimization, Distant Hybrid, and Industrial Science and㻥Development of highly
efficient Direct Air Capture(DAC) and carbon
recycling technologies

Dr. NORINAGA Koyo,
Nagoya University

Development of Combined Carbon Capture andConversion (quad-C) modules targeting low carbon Dr. FUKUSHIMA Yasuhiro,

 dioxide concentration gases for balancing the global Tohoku University,QDGGLWLRQWR'$&WHFKQRORJLHVYDULRXVQHZWHFKQRORJLHVDUHEHLQJGHYHORSHG
WRFRQYHUWFDSWXUHG&2 LQWRYDOXDEOH

30

Dr. NOGUCHI Takafumi,
The University of Tokyo

Development of CO2 capture using innovative
separation nano-membranes with unparalleled
CO2 permeability
Scalable system for use in small-sized homes andmedium-sized buildings

Implementing
organizations:

Kyushu University, Kumamoto University, Hokkaido
University

㻝㻞2XWOLQHRI'$&8SURMHFWV 0LQHUDOL]DWLRQ30

C4S Research andDevelopment Project

30

2XWOLQHRI'$&8SURMHFWV %LRPDVV

30
Advanced enhanced rockweathering (A-ERW)
technology actively combinedwith site characteristics

C4S: Calcium Carbonate Circulation
System for Construction

Feasibility Study ofEnhanced Mineralization
Based on LCA/TEA Platform

30

Development of nextgeneration CO2 -fixing plant
through the gene optimization,
distant hybrid, and microbial
symbiosis

Redesign of macroalgae for 30
highly efficient CO2 fixation
by functional modifications
and their product generation30

New hybrid plant creation
by super-distant cross

Dr. MORIMOTO Shinichirou

Dr. UEDA Mitsuyoshi

Dr. MITSUDA Nobutaka

Dr. YANO Masahiro

Professor, Waseda University

Environmental and Social Impact Assessment Team
Leader, National Institute of Advanced Industrial
Science and Technology (AIST)

Special Appointed Professor, Kyoto University

Deputy director of BPRI and the group leader,
National Institute of Advanced Industrial Science andTechnology (AIST)

Senior Executive Researcher,
National Agriculture and Food Research Organization(NARO)

Implementing
organizations:

The University of Tokyo, Hokkaido University

Site-specific weathering, CO2 mineralization, andco-benefits

Implementing
organizations:

Waseda University, Hokkaido University,
Kyoto Prefectural University,
Mitsubishi Heavy Industries, Ltd.

Accurate accounting of CO2 reductions
Clarify the optimal soil application method of mafic
rocks for plant growth

Implementing
organizations:

AIST, RIKEN

㻝㻟

Selection and breeding of macroalgae withhigher CO2 fixing capacity than land plants
Genome editing of CO2 fixation enzyme gene
system and production of edited strains foraccelerating CO2 fixation capacity

Implementing
organizations:

Kyoto University, Kyoto Institute of Technology,
Mie University, Green Earth Institute Co., Kansai
Chemical Engineering Co.

Gene optimization
productionforreinforced

biomass

New hybrid plant creation by super-distant cross

Implementing
organizations:

AIST, Tokyo Metropolitan
Forestry Co., Ltd.

University,

Sumitomo

32,17geological

32,17

the

32,17

Contributing to sustainable circulation of calcium
resources as well as CO2 with low energy

Various mafic rocks utilizing
characteristics of Japan

32,17

Capturing atmospheric CO2 efficiently with repeateddry & wet cycles of crushed concrete waste

32,17

Dr. NAKAGAKI Takao

Professor, The University of Tokyo

32,17

Dr. NOGUCHI Takafumi

Development of Super-DAC crops (rice, maize,and sorghum)
Elucidation of soil carbon dynamics derived fromcrop residues

Implementing
organizations:

NARO, Tokyo University ofTechnology, Nagoya University

Agriculture

and

㻝㻠

&RVWIRU&25HPRYDO(DAC as a Backstop Technology)ắฌᎮẝụầểạắằẟộẲẺ
Thanks for your attentionπႩᝠ‫ׇ‬ඥʴ ‫ྶע‬࿢‫ؾ‬ငಅ২ᘐᄂᆮೞನᵆᵰᵧᵲᵣᵇ
㻝㻡

114ᵰᶃᶑᶃᵿᶐᶁᶆᴾᵧᶌᶑᶒᶇᶒᶓᶒᶃ ᶍᶄ ᵧᶌᶌᶍᶔᵿᶒᶇᶔᶃᴾᵲᶃᶁᶆᶌᶍᶊᶍᶅᶗᴾᶄᶍᶐᴾᶒᶆᶃᴾᵣᵿᶐᶒᶆ㻝㻢1-13. Commercial-scale Direct Air Capture

COPYRIGHT © 2023

2 DEGREES

Remainingcarbon budget

450 ppm
2 DEGREES

450 ppm+ Adding ~2 ppm/yr

We have fewer than 7 years left on
the carbon clock before an expected
average of 1.5 degrees of warming

1.5 DEGREES

1.5 DEGREES

430 ppm

Remove ~1 Trillion
tonnes to return tosafe levels.

430 ppm

TODAY

HISTORICAL EMISSIONS~419 ppm

CO2 Emissions (TONNES/SEC)
1,337
SAFE LEVEL

350 ppm

Time left until CO2
budget depleted:
6

PRE-INDUSTRIAL

Commercial-scale Direct Air CaptureTechnology, projects and policy to support cost-effective net zero………………………………………………………………………………………………………………

280 ppm

10
0

8

3

29
9 2

CO2 Budget left (TONNES)
PRESENTED BY:

313,693,168,289

Source:Adam Baylin-Stern………………………………………………………………………………………………………………………………………………………………………………………………………

COMPANY:

2

CarbonEngineering Ltd.
………………………………………………………………………………………………………………………………………………………………………………………………………

COPYRIGHT ©

ATMOSPHERIC
CO2CONCENTRATION- CARBON ENGINEERING

1.5-degree scenario
Data from 2022-09-14

DATE & EVENT:

11 October 2023 – APEC Symposium (Kobe, Japan)

THE CARBON CLOCK IS TICKING; THE CLIMATE PROBLEM IS URGENT………………………………………………………………………………………………………………………………………………………………………………………………………

Permanent carbon removal & avoided carbon offsets

44

3

Our Vision

CCOAPRYBROI N
G HE TN G©I N2 E0 E2 R
1IN
- G
C A| RCBOOPNY REN
I GGHI N
T E©E R2I 0N2G3

CARBON ENGINEERING | COPYRIGHT © 2023

Our vision is to lead theworld in the large-scale
removal of carbon dioxidefrom the air and advanceour shift to a sustainable,
net zero society.

A GLOBAL SOLUTION FOR CLIMATE CHANGE

CO 2 REMOVAL DIFFERS FROM OFFSETS THAT PROVIDE A CREDIT FOR AVOIDED EMISSIONS

5

CARBON DIOXIDEREMOVAL

LOW CARBON INTENSITYFUELS & PRODUCTS

ATMOSPHERE

CARBON ENGINEERING | COPYRIGHT © 2023

CE DAC enables complementary solutions for carbon dioxide
reduction and removal from the atmosphere

CLOSED-LOOP
EXISTING EQUIPMENT
i*B¯tkk*΅¢a*
DEPLOYABLE GLOBALLŸ̍΅¯*k¯¢΅ͦ΅̊̇΅*k$NkB΅

CO2ATMOSPHERE
CO2

LOW CARBON
INTENSITY FUELS& PRODUCTS

DAC

DAC

CO2
CO2

(ATMOSPHERIC +CO-CAPTURED CO2FROM ANY NATURALGAS USE)WATER
RENEWABLE
ELECTRICITY

CO2(~0.06%)CO2(~45%)PRODUCTSYNTHESISCO2PERMANENT GEOLOGIC
STORAGE(~2%)

Percentages represent CO2 weight concentration

115

CARBON ENGINEERING | COPYRIGHT © 2023

WATER
RENEWABLE
ELECTRICITY
NATURAL GAS(>99%)
6

AIR

AIR

Atmospheric andco-captured CO2
from natural gas use

AIR100 Mt by 2035

commercial testing of

Expected to be largest in
the world.

equipment (run-replace-run),

BUILT 2021
R&D platform for technologicaladvancements to incorporate
into commercial plants.

Map forstoragepotential?

7~1,000 t/y capacity

CARBON ENGINEERING | COPYRIGHT © 2023

Piloted elements of CE’s
DAC technology.

CARBON ENGINEERING | COPYRIGHT © 2023

 Validation plant for pre-Enables potential for 30
MTPA DAC7BUILT 2015

 Built 2021

ENGINEERINGUNDERWAY

CONSTRUCTION
UNDERWAY

PILOT PLANT

 Squamish, BC, Canada

Advancing feasibility
studies and plant designs
in other locations acrossthe globe

SOUTH TEXASDAC HUBSTRATOSPERMIAN SITEINNOVATIONCENTRECE Innovation Centre

1POINTFIVE DEV.
SCENARIO

8

Large Scale Deployment
Underway Extensive facilities for lab andbench scale testingLab, bench, and fully-integrated demonstration testing

CARBON ENGINEERING | COPYRIGHT © 2023

DACS can offer an economic solution to c. 10+ Gt of

STRATOS~8 Gt/yr

hard to abate emissions~13 GtEmissions with abatement cost>$450/tonne~8 Gt

 Permian Basin, Texas, US~13 Gt/yr

 Expected to capture 500kt/year once fully complete

Emissions with abatement cost>$225/tonne

 Site prep and early construction started Q4 2022
 Operations targeting mid-2025
First plantt costs

2025-2035
2025-203
35 costs2035+ costs>20 Gt/yr
Emissions with abatement cost>$125/tonne

9

CARBON ENGINEERING | COPYRIGHT © 2023

Sources:
Carbon abatement costs based on currently available solutions; data from Goldman Sachs, Carbonomics, November 2022
DAC + geologic sequestration cost range from Occidental Petroleum 2022 and 2023 reports

STRATOS, THE FIRST COMMERCIAL SCALE DAC PLANT TO USE CE TECH, IS UNDER CONSTRUCTION BY 1POINTFIVE

A solution for hard to abate transportation sectors

2

Sustainable Aviation
Fuel (SAF)
CARBON ENGINEERING | COPYRIGHT © 2023

1 1

Produced through CE’s AIR TO
FUELSTM process.

1 2

Durable Carbon
Dioxide Removal (CDR)

CARBON ENGINEERING | COPYRIGHT © 2023

IATA 2050 Net Zero Roadmap (Published June 4, 2023)

DAC enables complementary solutions for reduction and removal

1

1 0

CARBON ENGINEERING | COPYRIGHT © 2023

The International Air Transport
Association (IATA) is the tradeassociation for the world’s
airlines, representing
some 300 airlines or 83% of
total air traffic. We support
many areas of aviation activity
and help formulate industry
policy on critical aviation
NXXZJX“IATA’s targeted scenario is shown in the colored bars, while the black lines illustrate the potential range of outcomes, depending notablyon the extent and pacing of financing and policy support. In all the scenarios modeled, even that where SAF fully replaces traditional jet fuel,there will be residual emissions which will need to be removed using carbon capture.”

CE’s fuel (right) compared
to conventional diesel (left)

BOTH options are considered equal in existing and emerging high-integrity transportation decarbonization
compliance markets like the pioneering California LCFS (and WA/BC LCFS policies)

Source: https://www.iata.org/contentassets/8d19e716636a47c184e7221c77563c93/executive-summary---net-zero-roadmaps.pdf

116Over the last 18 months, aviation partners have joined CE/1P5 to accelerate DAC
2

3

November 2022
Carbon Engineering
announced significant
R&D investments by
Airbus and Air Canada

4

August 2023
All Nippon Airways
announced the prepurchase of 30,000
tonnes of CDR from
1PointFive, becoming
the first airline todirectly purchase
CDR.

Rhodium Group researchshows promising job
creation and business
opportunities
accompanying DAC

Business Opportunities Across Sectors

Direct Job Creation

 Based on a net zero by 2050
scenario, DAC-related sectors realize
at minimum 11% market growth,with potential for 40% to 189%

 Potential to create significant job
growth across a variety of sectors
with wide-scale deployment
Jobs from Plant Investment:
10

Cement Manufacturing

Major sectors receive an
economic boost, including:

$259

$300

721

Construction

1,543

Equipment manufacturing

$250

0

$200

500

1,000

1,500

1,000

1,500

Jobs from Operation:

$150
$100
$53
$4

$1
$4

Cement

$17

$12

$67

$26

Chemicals Electricity Nat. Gas

8

Chemical manufacturing

$84

$50
$-

657

Engineering$350

 Industrial Equipment
Manufacturing Construction
 Engineering Steel Manufacturing Cement Manufacturing
 Electricity Generation
 Natural Gas
 Chemical Manufacturing

139

Steel Manufacturing

Sector market growth (in $B) from DAC – by 2050

Industrial
Equipment

Natural gas

25Electricity generation

48
278

Operations & Maintenance

0

STRONG ECONOMIC BENEFITS ACCOMPANY DAC

500

Data via Rhodium Group

Government support is necessary to build at scale through market
creation and facilitation, plus accelerators for early projects
Supportive policies for DAC are needed to: Create jobs and transition opportunities

Examples include: Market creation policies (e.g. low carbon fuel standards; direct procurement; CORSIA) Financial support policies (e.g. output-based subsidies; tax credits; project-based support)

CARBON ENGINEERING | COPYRIGHT © 2023

 Create climate investment and viable long-term markets

1 5

 Value the measurable, immediate, and long duration carbon removal that DAC provides

 Market facilitation policies (e.g. CO2 storage protocols; capacity objectives, market linkage)

MORE INFORMATION CAN BE FOUND AT:

Jurisdictions with supportive policy environments are catalyzing project investment

www.carbonengineering.com

business@carbonengineering.com@CarbonEngineer@carbonengineeringltd

Carbon Engineering Ltd.

CarbonEngineering

COPYRIGHT © 2023 Carbon Engineering Ltd. All Rights Reserved.

117

CARBON ENGINEERING | CONFIDENTIAL

July 2022
Airbus announced a
CDR collaboration
with seven otherairlines (and airline
groups) at the
Farnborough airshow

1 4March 2022
Airbus prepurchased 400,000
tonnes of CDR from
1PointFive

Sector Growth in Billion $1

Economic Benefits of DAC Deployment

2. APEC Symposium on Promoting Energy Efficiency and Energy Management System
2-1. Keynote Speech: The Evolution of Energy Efficiency Policy to Support Clean Energy Transition in Japan

Trends in final energy consumption
Î Real GDP is up 2.6 times since the oil crisis in 1970s, while final energy consumption is up 1.2 times.
(Million kl crudeoil equivalent)(JPY trillion, 2011
prices)Real GDP
1973 Æ 2018

Final energy consumption

Total

2.6 times

The Evolution of Energy Efficiency Policy
to Support Clean Energy Transition in Japan

Transport sector

Household sector

Transport

Household1973 Æ 2018

1.2 times

1973 Æ 2018

1.7 times

1973 Æ 2018

1.9 times

Office sector
OfficeIndustrial sector

January 2024
Ministry of Economy, Trade and Industry (METI), Japan

Industry

1973 Æ 2018

2.1 times

1973 Æ 2018

0.8 times

1

The policy target of energy conservation

The Evolution of Energy Efficiency Policy to Support Clean Energy Transition

FY2013

FY2019FY2030363 million kl嵣oe

334 million kl嵣oe(350-62) million kl嵣oeHousehold
52 million kl
Transport
84 million kl

Office65 million kl

Household
47 million kl
Transport
78 million kl⋇Improving
Energy Efficiency

62 million kl嵣oeEnergy Conservation
Householdapprox. 30 million kl

Remaining
CO2

Fossil Energy

Transport

Office55 million kl

ٛImproving Energy Efficiencyٜ
[Industry]嵣Expansion and revision of Industrial and Business Benchmarking
嵣Support for development, practical application, and introduction ofenergy efficiency technologies[Building]嵣Expanding ZEB/ZEH, reviewing building energy efficiency standards
嵣Reviewing and strengthening the Top Runner Program for equipment
and building materials[Transport]
嵣Reviewing system, improving logistics Efficiency

Energy Consumption

approx. 60 million kl

Officeapprox. 50 million kl

Industry
160 million kl

Industry
155 million kl

Necessary technologies in the future:
CCS, DACCS, BECCS, etc.

⋈Expansion of
Non-Fossil Energy
Industry
approx. 140 million kl

Now

2030

2050

<Expansion of Non-Fossil Energy>
嵣Expand introduction of non-fossil energy such as renewable energy
for self-consumption and hydrogen etc. (i.e., upgrading of demand)嵣Optimization of demand according to electricity supply and demandconditions, including use of surplus renewable energy
嵣Utilization of on-site power generation and equipment control tostabilize the grid, etc.

Time lines

2

The Overview of Demand-side Policies: Regulation and Incentives

Energy Conservation Act: (1) Reporting obligation for large-scale enterprises
Enterprises

Energy Conservation Act(the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy)

Regulation

3

Submission of periodic reports

METI¾ Reporting obligation for large-scale enterprises¾ Requirement to achieve energy efficiency criteria for manufacturers(called “Top Runner Program”)

Evaluation of the reports

Guidance
In case an Enterprise’s efforts
are utterly insufficient

Energy Conservation Subsidies Package (2022/2023)
Incentives

Minister’s order to submit
improvement plan

¾ Replacing inefficient facilities¾ Experts’ advice for SMEs

In case the enterprise
does not follow the order¾ Insulation retrofitting and residential water heater (heat pumps)

Announcement andadditional orderwith penalty
4118‫ٳ‬The amount of fossil energy consumption‫ٳ‬The amount of non-fossil energy consumption‫ٳ‬The plan of energy conservation and shift to non-fossil energy

Evaluation‫ٳ‬Non-binding target
嵣Reduction of specific energy consumption by 1% or more on anannual average basis, etc.
‫ٳ‬Benchmark index/Target levels(only for applicable sectors*)
Target level: Level met by the best operators in each industry* Manufacture of steel, power supply, manufacture of cement, manufactureof paper, petroleum refinery, and manufacture of chemicals‫ٳ‬As the result,• Achievers are evaluated as excellent (S-class) businesses.
• For large companies, the acquisition of S-Class is required
for subsidies.
5Energy Conservation Act: (1) Reporting obligation for large-scale enterprises

Energy Conservation Act: (2) Requirement for Manufacturers
How Top Runner Program WorksThe Outcome Example: Air-conditioners

Efficiency

1979.
The Act on Rationalizing Energy Use

Period consumption ofelectric power ‫ق‬kWh‫ك‬



Product A’
Product B’Product C’

Product B

Product D

2022.
The Act on Rationalizing Energy Use and Shifting to Non-fossil Energy‫ق‬Top Runner Criteria‫ك‬
The efficiency level ofthe best product in the
category will be thestandard for target year.







Product E’


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improvement 
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Manufacturers and importers are
required that the weighted averageenergy consumption efficiency ofshipped products exceed the Top

Runner criteria by the target year

Setting up ĺ (3-10 years) ĺ
Top Runner Criteria

Target yearTimez Trends in simple averages for air-conditioners(Cooling capacity 2.8kW (14.6 - 21.9m2))
z The period consumption of electric power is based on JIS
C 9612:2005
Source: Energy efficiency performance catalogs of each FY(summer, winter)

6

Incentives: Energy Conservation Subsidies Package

Incentives: (1) Replacing inefficient facilities

Dec. 2022

Replacing inefficient facilities

7

Dec. 2023

500 billion JPY= 3.4 billion USD

700 billion JPY= 4.8 billion USD(the amount of next 3 years)(the amount of next 3 years)

2 billion JPY= 14 million USD

2.1 billion JPY= 14 million USD

Type 1: Energy efficiency improvement throughout the plant or building

Improvement Rate: 10%

Businesses

New
Experts’ advice for SMEs

or

Reduction of Energy Consumption 700kloe

Type 2: Select facilities from the list
*Specialized for Electrification and Fuel Switching
Electric Furnace

Coal Furnace*Facilities example

Insulation Retrofitting

Type 3: Select facilities from the list

280 billion JPY= 1.9 billion USD

Households

420 billion JPY= 2.9 billion USD

Heat Pumps

Air Conditioner

MotorsResidential Water Heater*Facilities example‫ٮ‬Amount assuming JPY145.0 per USD

8

Incentives: (2) Residential Water Heater
Household Energy Consumption
Others26%

Space Heating
16%
Space Cooling7%
5% Ventilation
13%
Light

9

Incentives: (2) Residential Water Heater¾ While central-heating system (with water heater) is themain system of space heating in Europe,
individual-heating system (with air conditioner) is the main
system of space heating in Japan.
¾ Japan people habitually take a bath, so water heateroccupies 33% of the household energy consumption.

Space Heating Equipment

Water Heater

33%

Subsidy for Owners (2022)

Subsidy for Owners (2023)⋇ Heat Pump Water Heater

50,000 Yen/unit

100,000 Yen/unit⋈ Hybrid Water Heater

50,000 Yen/unit

130,000 Yen/unit⋉ Residential Fuel Cell

150,000 Yen/unit

200,000 Yen/unit⋇ Heat Pump Water Heater

Water Heater

Source: Panasonic*each graph shows warmer climate case

10

119

⋈ Hybrid Water Heater

Source: Rinnai⋉ Residential Fuel Cell

Source: Aisin Corp.

*Subsidy amount depends on the additional function (e.g. DR-Ready). Described is the main example of amount.

11G7 Communiqué: “Energy Efficiency First” and Developing demand side policies
G7 Hiroshima Leaders’ Communiqué

Energy - 25.
“Through our experience in coping with past and current energy crises, we highlight theimportance of enhanced energy efficiency and savings as the “first fuel”, and ofdeveloping demand side energy policies.”

End of Document

G7 Climate, Energy and Environment Ministers’ Communiqué

63. Energy efficiency.
嵣嵣嵣We underline the need for ‘energy efficiency first’ to be recognized as a driving
principle for our actions to ensure that energy efficiency and energy savings are duly taken
into consideration in policy, planning and investment decisions. We also note that energy
efficiency regulations, such as vehicle fuel efficiency regulations, building codes,
minimum energy performance standards, energy performance certificates, and energy
reporting systems for large scale consumers continue to gain momentum. These
measures will leverage further efforts to decarbonize energy demand, with strategic
approaches including electrification, fuel switching, grid flexibility, digitalization of energy
demand information and disclosure of energy and climate related information. 嵣嵣嵣
12120

2-2. Keynote Speech: The Key to an Energy Resilient APEC: Energy Efficiency and Energy Management

The APEC Symposium on Promoting Energy Efficiency and Energy Management System

Multiple benefits of energy efficiency

The Key to an Energy Resilient APEC:
Energy Efficiency and Energy Management

Dr. LIU Meng
Chair, APEC EGEEC
China National Institute of Standardization
23 January 2024, Tokyo Japan
Source: International Energy Agency
th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)

Global overview

Importance of energy cooperation in APEC region• Steadyfast: Global focus on energy
efficiency remains steadyfast.
• Slowdown:The estimated 2023 rate ofprogress in energy intensity is set to fallback to below longer-term trends, to 1.3%
from a 2% in 2022. which largely reflects anincrease in energy demand of 1.7% in
2023, compared with 1.3% in 2022.
• Trend: the global trend of continously
increasing in EE will not be changed.

• APEC economies represent over 38 percent of the global population and 56

˄Note: Energy intensity is defined as the amount of(Source: APEC Energy Demand and Supply Outlook (8th Edition), by APERC)

primary energy used to produce a given amount of
economic output or GDP˅

percent of global economic activity, with strong economic trade ties throughout
the world.
• The role APEC plays in the global energy market is indispensable. It accounts
for 56 percent of world energy demand, 58 percent of world energy supply, and68 percent of world electricity generation. APEC accounts for 60 percent of
global CO2 emissions.

(Source: International Energy Agency)
th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)

Importance of energy cooperation in APEC region

EE(energy efficiency) in key sectors and areas• APEC energy goals,¾ to improve energy intensity by at least
45 percent by 2035 compared to 2005
levels;¾ to double the share of modern
renewables in the energy mix by 2030,
relative to the numbers from 2010.
• As of 2020,APEC-wide final energy
intensity has improved 26% leaving an
additional 19% improvement needed tomeet the goal.

• Industry• Transport• Buildings• Regulations and standards•…

APEC total final energy consumption intensity index,2000-2020(Source: APEC EGADA)th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)121

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)EE activities in key sectors and areas

EE activities in key sectors and areas¾ Industry¾ Transport• Green transportation system• Using high efficient equipment.

9 Vehicles – Deploying more green vehicles and developing electrified railways.

9 Widely deployment+efficient operation

9 Infrastructure – Building up the charging and swap battery networks, hydrogen• Accelerating system integration and optimization

refilling stations.

9 1+1>2• Decarbonization and efficiency of the existing transport system• Expanding engagement in energy management activities.

9 Improving the EE standards for fossil-fuel vehicle

9 PDCA• Smart transportation system• Integrating with the emerging tech such as IoT, AI, etc

9 Integrating with the emerging tech such as IoT, AI, etc

9 Data and information empower the efficiency
th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)EE activities in key sectors and areasth MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)EE activities in key sectors and areas¾ Regulations and standards¾ Buildings• Laws and supporting policies.

• Improving the green building codes.

9 Laws for EE&C

• Optimize the energy supply in building.

9 Supporting policies for EE&C related finance, tax and pricing

9 Distributed energy resources (Renewable energy such as solar energy,

 Standards.

biomass, heat pump, geothermal energy,etc. )9 Minimum energy performance standards (MEPS)

9 Integrated District Energy System, IDES (power, heating and cooling,etc.)

9 Energy management system standards (EnMS)• Accelerating construction of low energy consumption buildings.

9 Supporting energy conservation standards for MEPS and EnMS

• Promoting energy-saving retrofitting for the existing buildings.

9 Standards for EE&C market mechanismth MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)International standards for EnMS and energy savingsth MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)International standards for EnMS and energy savings¾ ISO/TC301 (Energy management and energy savings)¾ ISO/TC301 (Energy management and energy savings)

Source: www.iso.org

Intention
Standard title
GeneralISO 50001:2018 Energy management systems — Requirements with guidance for use
requirements
ISO 50002:2014 Energy audits — Requirements with guidance for use
EnergyauditsEnergyISO 50003:2021 Energy management systems — Requirements for bodies providing audit and certification of energy
management systems
audits
Implementati ISO 50004:2020 Energy management systems — Guidance for the implementation, maintenance and improvement of anon of EnMS ISO 50001 energy management system
Implementati ISO 50005:2021 Energy management systems — Guidelines for a phased implementation
on of EnMS
Implementati ISO 50009:2021 Energy management systems — Guidance for implementing a common energy management system inon of EnMS multiple organizations
Implementati ISO/PAS 50010:2023 Energy management and energy savings — Guidance for net zero energy in operations using an ISO
on of EnMS 50001 energy management system
Performance ISO 50006:2023 Energy management systems — Evaluating energy performance using energy performance indicators andenergy baselines
of EnMS
Performance ISO/TS 50011:2023 (QHUJ\PDQDJHPHQWV\VWHPVʊ$VVHVVLQJHQHUJ\PDQDJHPHQWXVLQJ,62of EnMS• The ISO 50001 (EnMS) system is based on a process of monitoring, targetingand implementing energy saving measures in a cycle of continuous
improvement.
• As of 2023, 23 ISO standards released, 6 ISO standards under development.
• In 2022, the number of ISO 50001 certificates issued worldwide grew byalmost 30% to 28000.
(Sources: ISO Survey 2022 of certifications, www.iso.org)

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)122

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)International standards for EnMS and energy savings¾ ISO/TC301 (Energy management and energy savings)
Intention

Key to success

Source: www.iso.org

Standard title

Terms

ISO/IEC 13273-1:2015 Energy efficiency and renewable energy sources — Common international terminology — Part 1: Energy efficiency

Terms

ISO/IEC 13273-2:2015 Energy efficiency and renewable energy sources — Common international terminology — Part 2: Renewable energy sources

General methods

ISO 17743:2016 Energy savings — Definition of a methodological framework applicable to calculation and reporting on energy savings

General methods
Region level

ISO 50046:2019 General methods for predicting energy savings
ISO 17742:2015 Energy efficiency and savings calculation for countries, regions and cities

Region level

ISO 50049:2020 Calculation methods for energy efficiency and energy consumption variations at country, region and city levels

Organization level

ISO 50047:2016 Energy savings — Determination of energy savings in organizations

Commitment ofleadership
Energy efficiency target
Comprehensive policy
framework

Project level
ISO 17741:2016 General technical rules for measurement, calculation and verification of energy savings of projects
Energy performance ISO/TS 50008:2018 Energy management and energy savings — Building energy data management for energy performance — Guidance for asystemic data exchange approach
Energy performance ISO 50015:2014 Energy management systems — Measurement and verification of energy performance of organizations — General principles andguidance
Energy performance ISO 50021:2019 Energy management and energy savings — General guidelines for selecting energy savings evaluators

Coordination of
stakeholders

Energy performance ISO 50045:2019 Technical guidelines for the evaluation of energy savings of thermal power plants
Financialperformance
Energy Services

ISO/TS 50044:2019 Energy saving projects (EnSPs) — Guidelines for economic and financial evaluation
ISO 50007:2017 Energy services — Guidelines for the assessment and improvement of the energy service to users

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)

Suggestions

Suggestions¾ Efficiency¾ Policy• Energy efficiency Æ coordinated improvement in EE and emission reduction• Cost-effective evaluation of policies• Individual equipment efficiency Æ System efficiency improvement• Continuous improvement of the policy portfolio (regulations and standards)• Rated/designed efficiency ÆOperational efficiency improvement¾ Capacity building¾ Integration• Basic data and database• Technology integration: energy technologies, energy tech + non energy tech

• International collaboration• Energy integration: clean and renewables energy mix• System integration: energy systems, energy sys + non energy sys

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)THANK YOU
Dr. LIU Meng
liumeng@cnis.ac.cn

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)123

th MeetingThe
the APEC
ExpertEfficiency
Group on &
The56
APEC
ExpertofGroupon Energy
EnergyEfficiency& Conservation (EGEEC 56)
Conservation(EGEEC)

2-3. Improving Energy Efficiency in Buildings in Hong Kong, China

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Improving Energy Efficiency in Buildingsin Hong Kong, China

Electricity consumption(compared with 2015)

E\

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Policy:PUSH

Mr. Wallace Leung
Chief Engineer/Energy Efficiency, Electrical and Mechanical Services Department
Hong Kong, China

PULL

LEAD

23 January 2024
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2-4. Modeling the US buildings energy efficiency

About EIAThe U.S. Energy Information Administration (EIA) is the statistical andanalytical agency within the U.S. Department of Energy. EIA collects, analyzes,
and disseminates independent and impartial energy information to promotesound policymaking, efficient markets, and public understanding of energy andits interaction with the economy and the environment.

Modeling the US buildings energy efficiency

Energy efficiency

How technological change affects the US energy use through 2050

– Energy services provided per unit of energy consumption (e.g., COP), improvement driven
by technological change– In the National Energy Modeling System (NEMS): Measured at the end-use

APERC Energy Efficiency Workshop
Courtney Sourmehi, Industry Economist
January 23, 2024 | Tokyo, Japantechnology level, enabling projections of economy-wide changes through 2050

EIA.gov: Buildings energy data and modeling resources

U.S. Energy Information Administration

Independent Statistics & Analysis

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

www.eia.gov

National Energy Modeling System (NEMS) structure

2

Energy consumption does not keep pace with increases in housing andfloorspace due to the role of energy efficiency

NEMS Buildings Modules

Residential delivered energy consumption by fuelCommercial delivered energy consumption by fuelAEO2023 Reference case, quadrillion British thermal units

AEO2023 Reference case, quadrillion British thermal units

2022
history
projections

14

14

12

12

10

10

8

8

6

2

SupplyDemandConversion

Data source: U.S. Energy Information Administration, The National Energy Modeling System: An Overview (2023)

2000
1500
1000
transportation sector
industrial sector
buildings sector
2020

2025

2030

2035

2040

2045

2050

2050

0
2000

2010

2020

2030

2040

2050

4

Buildings electricity intensity by end use and sector
in 2050, relative to 2022 levels
AEO2023 Reference case, kilowatthours (kWh) indexed to 2022
Residential buildings, indexed thousand kWh per household

space heating
TVs and PCs
lighting
water heatingother uses
space cooling
Commercial buildings, indexed kWh per square footspace heating
computers/office equipment
lighting
water heatingother uses
space cooling0

Data source: U.S. Energy Information Administration, Annual Energy Outlook 2023 Reference case (AEO2023)
Note: Figure includes emissions associated with electric power generation. Electric power sector emissions are distributed to each end-use
sector according to their share of electricity consumption.
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

2040

• Relative efficiency of electric
appliances• Declining cost of onsite electricity
generation (for example, solar
photovoltaics)• Utility energy efficiency rebates• Stable to declining electricity prices• Continued population shifts towarmer regions

AEO2023 Reference case, million metric tons CO2
2022
2500
history
projections

0
2015

2030

Drivers of building electrification in the United States

Energy-related carbon dioxide (CO2) emissions by sector

500

2020

2

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

3

Energy-related CO2 emissions fall across all AEO2023 cases because
of increased electrification and higher equipment efficiencies• Changes in the buildings fuel mix
reduce energy-related CO2
emissions, which decline faster inbuildings than any other end-use
sector2010

electricity
natural gas
petroleumand otherliquidsother

4

Data source: U.S. Energy Information Administration, Annual Energy Outlook 2023 Reference case (AEO2023)

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

• In the residential and commercial
sectors, higher equipment
efficiencies and compliance withbuilding codes extend ongoing
declines in energy intensity

2022
projections

6
electricity
natural gas
petroleumand otherliquids
other

4

0
2000

history

Note: Intensities reflect both purchased electricity and electricity produced onsite for own use.
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

5

126

0.5
less intensive inthe future1

1.5
more intensivein the future

6

Legislation and policy assumptions: Inflation Reduction Act

Inflation Reduction Act: Ongoing work

Extend andmodify energy
credit(IRS 48)
renewables andcombined heatand power
investment tax
credits (ITC)

Extend, modify
new energy
efficient homecredit(IRS 45L)

Extend, modify
non-businessenergy property
credit(IRS 25C)

Extend Modified
Accelerated
Cost Recovery
System(IRS 167)

Home Owner
Managing
Energy Savings(HOMES)
rebates

High-Efficiency
Electric Home
RebateProgramAssistance forLatest and Zero
Building Energy
Code Adoption

Energy efficientcommercial
buildings
deduction(IRS 179D)

newly
constructed, highefficiency
residential
housing packages
tax credits

residential energy
efficiency tax
creditscommercial
qualified facilities,
qualified property,
grid improvement
property cost
recoveryinvestigate wholehome retrofit
savings
potential

investigate
qualification
criteria andestimate share ofeligible homes
and equipment

investigate
potential forincreases inregional building
energy code
adoption

investigate
potential impact
on building code
compliance in
new construction,
heating andcooling use

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

7

Buildings technological improvement in NEMS

Residential single-family new-construction equipment shares

1. Building technology reports represent the
average cost and performance of installed
efficiency
capcstequipment in buildings

Share of equipment in new single-family homes by fuel type
U.S. Census Bureau Survey of Construction, percentage
100%• Despite historical growth in heatpump adoption, we project natural 90%
80%
gas-fired heating equipment,
including furnaces and boilers, will 70%
60%
account for the largest share of50%
energy consumption for space40%
heating through 2050
30%

• The average stock efficiency ofnatural gas-fired equipment
increases over time

20%
10%
0%
2000

2005

2010

2015

8

2020

natural gas
otherpetroleumand otherliquids
electric otherthan heatpumps
electric airor groundsource heatpumps

maintcst

subcstlife

yintroylast

techname

3.20

380.21

3.13

0.00

14.40

2013

2062

comm_GSHP-heat 2017 current standard

3.70

396.88

3.13

0.00

14.40

2033

2062

comm_GSHP-heat 2017 typical

3.70

396.883.13

194.90

14.40

2020

2022

comm_GSHP-heat 2020 typ 26% ITC

2. Model uses technology menus to select optimal
equipment based on energy service requirements,
consumer behavior rules, cost and performance
considerations
3.80

408.33

3.13

284.51

14.40

2020

2022

comm_GSHP-heat 2020 mid 26% ITC

4.00

420.833.13

292.33

14.40

2020

2022

comm_GSHP-heat 2020 high 26% ITC

3.70

396.883.13

210.70

14.40

2023

2032

comm_GSHP-heat 2023 typ 30% ITC

3.80

408.333.13

300.81

14.40

2023

2032

comm_GSHP-heat 2023 mid 30% ITC

4.00

420.833.13

309.23

14.40

2023

2032

comm_GSHP-heat 2023 high 30% ITC

Average stock efficiency of electric equipmentcase, British thermal units out/in
3. Technologies compete to meet service demand in AEO2023 Reference
2022
5
history
projections
each US census division and building type
4

4. NEMS projects average stock and purchased
stock efficiency, by end use and region, over time

Data source: U.S. Census Bureau Survey of Construction (SOC), 2000 – 2022 SOC microdata files
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

cooling3
2
1
heating0
2015 2020 2025 2030 2035 2040 2045 2050

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

9

10

The US distributed generation capacity in commercial andresidential buildings
Buildings distributed solar photovoltaic
capacity

Buildings non-solar distributed generation
capacity

AEO2023 Reference case, gigawatts direct current

AEO2023 Reference case, gigawatts direct current

3

250
200

Additional data

commercial
buildings

150

microturbines
natural gas-fired
enginesfuel cells
natural gas-fired
turbines
municipal solid
waste/otherwind2

residentialbuildings

100

1

50
0

2020

2030

2040

2050

0

2020

2030

2040

2050

Note: Excludes utility-scale electricity generation.
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

11

127

Courtney Sourmehi, Tokyo, Japan
January 23, 2024

12

Example from technology report

View our data online• Interactive graphs available as partof our online data table browser
www.eia.gov/outlooks/aeo/data/browser• Excel spreadsheets for Reference
and side caseswww.eia.gov/outlooks/aeo/tables_ref.php
www.eia.gov/outlooks/aeo/tables_side_xls.
php

Data source: U.S. Energy Information Administration https://www.eia.gov/analysis/studies/buildings/equipcosts/pdf/full.pdf
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

13

For more information
U.S. Energy Information Administration homepage | www.eia.gov
Buildings Working Group materials | www.eia.gov/outlooks/aeo/workinggroup/buildings
Today in Energy | www.eia.gov/todayinenergy
Annual Energy Outlook | www.eia.gov/aeo
Short-Term Energy Outlook | www.eia.gov/steoState Energy Data System | www.eia.gov/state/seds
Monthly Energy Review | www.eia.gov/mer
Residential Energy Consumption Survey | www.eia.gov/recs
Commercial Building Energy Consumption Survey | www.eia.gov/cbecs
International Energy Portal | www.eia.gov/international
Courtney Sourmehi, Tokyo, Japan
January 23, 2024

15

128

Courtney Sourmehi, Tokyo, Japan
January 23, 202414

2-5. Energy Efficiency of Buildings in Australia

Energy use in buildings : Australia• 86% Australian population live in cities• Buildings make up of about 18% total emissions• Nearly 60% of building energy use is through electricity

Energy Efficiency of Buildings in Australia• High uptake of Distributed Energy Resources (DER). One in every
three households likely to have rooftop solar by 2050

Dr. Subbu Sethuvenkatraman
Jan 24Australia’s National Science Agency

Decarbonisation of Australian built environment sector

Energy use in buildings : Australia
Average emission intensity of NABERS buildings : Office (MJ/m2)• National Energy Performance
Strategy (2015, 2024)

650

600

500

• Trajectory for low emissionbuildings (2019,2024)

450• National Construction Code (NCC),
Greenhouse and Energy minimumStandards (GEMS) for appliances¾ Commercial buildings :• From 2023 : Increased requirements
for thermal performance (6 to 7)• Usage based rating system (NABERS) :highly successful in improving
efficiency• Commercial Building Disclosure (CBD)
program requires energy efficiency
information to be provided during
sale or lease• Energy efficiency in government
operations : Government buildings tolead by example

400

350

• Sector wide decarbonisation plans(2023)¾ Residential buildings :

550

300
FY11

F12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

Policies with successful implementation
history

FY22• Whole of home rating to incorporate
efficiency of appliances• Household energy upgrade fund

Drivers for energy efficiency¾ As a consumer• Reduce energy bills• Climate resilient• Health and comfort¾ Technology/policy• Net zero
• Electrification• Distributed generation + storage• Consumers becoming prosumers

Emerging Opportunities¾Electrification & Decarbonisation• Switch from gas heating to heat pumps• Gas /electric boiler to heat pumps• Self consume : use onsite generation and storage¾Digitalisation• Smart meters, sensors for monitoring and control• Optimal control, management, preventive maintenance• Participate in the electricity market

129Digitalisation journey: Australian experience

Product
definitions andpurchasing
guides for
simplifying‘digital ready’status• Delivering benefits throughanalytics (both operational andenergy cost)

Demonstrateproperty
industry
benefits andRoI100+ buildings : office buildings, mixed use, schools, hospitals

Pathway for decarbonisation of building sector
Building sector emission projections (Mt CO2)120

~2%2020 level~20%
2020 level

80

60

Thank you

40

Dr. Subbu Sethuvenkatraman,
Subbu.sethuvenkatraman@csiro.au+61 416 528 314

20

0
2020

2025

2030

2035
Residential

2040

2045

Semantic Data
Models

M&V

Third
party
data

Source : RACE CRC B2 Industry 4.0 Opportunity Assessment

100

On Platform
Apps
Visualisation

Power
MetersDER
systems

Data
Federation

Data driven analytics (Applications)IoT
sensors

Direct Drivers / APIs

• Connecting
thebuildings(“digital ready”) and getting
access to all data in a costeffective way

Data Cleaning
Outbound APIsBMS

DCH UI

Two step process :MQTT client / broker

Digitalisation journey: Australian experience

2050

Commercial

Australia’s National Science Agency
Brinsmead et al (2023) : Pathways to Net Zero Emissions – An Australian Perspective on Rapid Decarbonisation, CSIRO, Australia

130

PV analytics
Smart battery
control
ChillerschedulingMonthly data
qualityreporting2-6. Japan’s Path for Carbon Neutrality and the Role of Energy Efficiency in Buildings

Japan’s Progress of Policy Formulation at the Demand Side:
Toward Carbon Neutrality,((-ফ ర૮૵ૡൗ•-DSDQbV3DWKIRU&DUERQ1HXWUDOLW\DQGWKH5ROHRI(QHUJ\(IILFLHQF\LQ%XLOGLQJV,Q-DSDQDQQRXQFHGWKHWDUJHWWRDFKLHYHFDUERQQHXWUDOLW\E\

• $SULODPHQGPHQWRIHQHUJ\FRQFHUYDWLRQODZZDVPDGHWRLQFOXGHnQRQIRVVLOIXHOV|RQWRSRIIRVVLOIXHOVIRUHQHUJ\HIILFLHQF\LPSURYHPHQW'HPDQG5HVSRQVHLV
DOVRLQFOXGHGDVWKHHQHUJ\HIILFLHQF\FRQFHSW
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1DRNR '2,

Roadmap for Japan’s Green Transformation
2023
Economic
Incentives
Regulation

2024

2025

2026

2027

2028

•

2029

2030

Provision of incentives for green transformation
6XSSRUWIRUH[LVWLQJWHFKQRORJLHV

6XSSRUWIRUFRPPHUFLDOL]DWLRQStrengthening regulation for decarbonization and new industry innovation(QHUJ\FRQVHUYDWLRQODZEXLOGLQJHQHUJ\FRQVHUYDWLRQODZ/DZRQHQHUJ\VXSSO\VWUXFWXUH

GX
Transition
Bond

Issuance of Green Transition Bond

GX
ETSTrial (2023-)Companies responsiblefor 40% of Japan’s CO2 emissions are
joining the trial.

Image of Achieving CN by 2050

Strengthening
energy efficiency
and demand side
actionFossil fuels&XUUHQWIEEJ © 2024

IEEJ © 2024

2

Energy savings in each sector - to be accumulated to save energy consumption by 62 million kL in 2030

• Renovation of existing house

0.9 mil kL, 8%

Residential• Efficient water heaters

2.6 mil kL, 22%• LED lights and OLE displays

12 Mil kL

1.9 mil kL, 16%• EE Improvement through Top-runner
1.7 mil kL, 14%Standard

3

Target• Diffusing next-generation vehicles,
improving fuel efficiency

Transport
23.0 Mil kL

9.9 mil kL, 43%

э One of every two vehicles would be anext-generation vehicle• Renovation of existing building

1.4 mil kL, 10%• Efficient boiler

0.5 mil kL, 4%• Efficient lighting

2.0 mil kL, 14%• Management of refrigerant
technology• Top-runner standard• Building energy management
system• Promoting economy-wide
campaign

Source: Ministry of Economy, Trade and Industry

Regulation

4.0 mil kL, 29%

0.6 mil kL, 0%
3.4 mil kL, 25%
2.4 mil kL, 17%0.023 mil kL,
0.2%

Industry
19.4 Mil kL• Major industries (steel,chemicals, cement, paper-pulp,
oil processing, food)• Promoting plant energy
management• Cross-industry introduction ofhighly efficient equipment

э Low-carbon industrial furnaces,
high-performance boilers, etc.

((OHYHO

Compliance on EE
standard

Increase standard for
ZEB/ZEH level

4.9 mil kL, 25%

Increase top runner standard forbuilding/insulation material

0.74 mil kL, 4%

Support for Asian Economies for their introduction of ZEB

International
Strategy Increase sales of efficient product building on ISO standard

13.8 mil kL, 71%

4

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EXLOGLQJ
1HZ
([SDQGHQHUJ\HIILFLHQF\EXLOGLQJ
EXLOGLQJUHIRUPWRDFKLHYH
6WUHQJWKHQLQJ((VWDQGDUGIRU
=(%=(+LQVXODWLRQPDWHULDO

GXInvestment for ZEB/ZEH, energy efficiency renovation
Investment Wood based commercial building• Promoting economy-wide campaign 0.2 mil kL, 1%• New Energy-saving building

2030

131

2050

2040

Deepening the residential/commercial energy efficiency improvement([SDQGZRRGEXLOGLQJVэ Fuel cell vehicles: More than 100,000 units
in maximum annual sales
13.2 mil kL, 57%• Other Measures(Rail, Air, Marine and Urban Transport)• Home energy management system 2.2 mil kL, 18%

Expansion of non-fossil fuels
Encourage self-consumption : renewable energy and hydrogen
Industry/commercial/ transpor sector’s increased use of non-fossil fuels
Residential/commercial use of carbon neutral water heaters
Optimal use of energy with the Demand Response
Introduction of DR ready appliances

Source: Ministry of Economy, Trade and Industry

2023 2024 2025

Estimated Energy Savings by Technology

2.5 mil kL, 21%

•
•
•
•
•
•

Roadmap for Japan’s Green Transformation‫؟‬Buildings
Comprehensive Approach to Strengthen Energy Efficiency

Directions for Further Deepening Japan’s Energy Efficiency by 2030

IEEJ © 2024

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

Cooperation on green innovation• New Energy-saving house&&6'$&&6%(&&6([SDQGLQJQRQIRVVLOIXHOVSupport for Asian Economies for their “realistic” energy transition through AZEC (Asia Zero Emission Community)

Estimated Energy Savings by Technology(unit: Million kL, and % in total)

Efficiency Pledge and Review
Transport: Promotion of clean vehicles, fuel economy standard, rational useof energy by freight trucks, energy efficiency improvement in freight supply
chain

5HPDLQLQJ&2

Expanding nonfossil fuels

Finance innovative industrial GX activities

5XOHPDNLQJ ,62RQJUHHQSURGXFWVHYDOXDWLRQFRUSRUDWH*+*HPLVVLRQVUHGXFWLRQDVVHVVPHQW

13.8 Mil kL•

Carbon surcharge (2028-) tofossil fuel importers

Plan for sustainable finance, transition financeInternational
Strategy

6WUHQJWKHQLQJ(QHUJ\(IILFLHQF\DQG'HPDQG6LGH$FWLRQV• Industry: Annual reporting system, benchmark system, technology
innovation and financial support• Residential/Commercial• Top-runner standard, ZEB‫ط‬ZEH, Review for buildings standard• CN of water heaters, DR ready, and Electric/Gas Retailers’ Energy(QHUJ\
FRQVXPSWLRQ

Plan for blended finance Implementation of blended finance

Finance

1Energy efficiency and demand-side actions are the key forJapan to achieve carbon neutrality by 2050.

Comprehensive
approach tomobilize 150
trillion Yen of
public-private
investment for
GX

Gradual auctioning
Introduction to
power generators(2033-)Start operation of emissions trading

CarbonSurcharge• 3URPRWLRQRILQWURGXFLQJ]HURHQHUJ\EXLOGLQJVVWRFNEXLOGLQJVHQHUJ\HIILFLHQF\UHQRYDWLRQDQGLQFHVVDQWHIIRUWVLQRSHUDWLRQDOHQHUJ\HIILFLHQF\LPSURYHPHQWDUHWKH
NH\LQWKHEXLOGLQJVHFWRU

6WRFN
DYHUDJH
WRDFKLHYH
=(%=(+((OHYHORealize 14 trillion yen ofinvestment by 2032

Subsidy provision for thebuilding sector (Supplementary
Budget FY2023 (provided from
April 2024))• Renovation for residential building(e.g., double glazing window): 135
billion yen• Heat pump water heater, hybrid
water heater, and residential fuelcell: 58 billion yen• Condensing boiler for rented
apartment: 18.5 billion yen• Energy efficiency renovation, energy
efficient residential facilities(including bath): 210 billion yen
5Estimated Distribution of Stock: Residential Buildings in Japan

Government Support and the Private Sector Business Expansion'LVWULEXWLRQRI5HVLGHQWLDO%XLOGLQJ6WRFNE\(QHUJ\(IILFLHQF\6WDQGDUGIn the second supplementary budget for FY2023, for households, a total of 421.5 billion yen arebeing provided for the energy efficiency of residential sector.

• An estimation is being made toconsider the potential share of
Zero Energy House in 2050.

Overseas HP Production and Investment
for Plant Expansion
Subsidy for Owners• <HQXQLW+\EULG:DWHU
+HDWHU• <HQXQLW

5HVLGHQWLDO)XHO&HOO• <HQXQLWIEEJ © 2024

Heat Pump Water
Heater

Source: PanasonicHybridWater Heater

Source: Rinnai

Residential FuelCell

'DLNLQ
&RUS

• European market entry from 2006, and from2019 maintain the top share in pump-type
heating (air conditioners).
• Invest more than 40 billion yen in 2022, anddecided to establish a new plant for pumptype heaters in Poland

3DQDVRQLF

• Started production of Residential heat pumps
for Europe in the Czech Republic from 2018
• The company announced plans to more thantriple its production capacity, Invest 45
billion yen by 2023 to 2025

0LWVXELVKL(OHFWULF

• In 2016, as a production base for Europe andTurkey, Established a factory in West Turkey.
• Announcement of Total investment of 15
billion yen in 2021 and 2022 (including newfactory construction)

Source: Aisin Corp.

ZEHʁ28.7ˍ

1999 Standard

1992 Standard

6

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Japan’s evolving energy efficiency policies areas

6RXUFH$XWKRUbV(VWLPDWLRQ

7

Example of Top Level Certified Buildings• Cement, paper and pulp, petrochemical, iron and steel, and automobile manufactures, andtransport business entities are required to meet non-fossil fuel target by 2030.
• In addition to the five industries, each business subject to periodic reporting has set a“target for transition to non-fossil energy”.

Sky tree

Demand Response Implementation by Large-scale Energy Users
Demand Response• Those entities required to report annual energy consumption to the Ministry are encouraged
to report the number of frequency that they implement DR (both turn up demand and turndown demand.
• Along with the boilers’ energy efficiency improvement, it is being planned to require
manufactures to change the product configuration by increasing the share of water heatersthat can contribute to carbon neutrality (heat pump, hybrid heat pump, and hydrogen
combustion water heater).

Tokyo midtown

Demand Response Ready Appliances

Appliances

Consumers’
Engagement• It is being planned to introduce the DR ready requirements for appliances. Carefulconsiderations are being made to determine the appliances for DR ready, consider costtransfer mechanisms, and estimate the benefits and costs. Creation of market environment
induces implementation of demand response is also under consideration.

6RXUFH0LQLVWU\RI(FRQRP\7UDGHDQG,QGXVWU\  n(QHUJ\(IILFLHQF\6XEFRPPLWWHH ,QWHULP5HSRUW|KWWSVZZZPHWLJRMSVKLQJLNDLHQHFKRVKRHQHBVKLQHQHVKRBHQHUJ\SGIBSGI

8

Tokyo Cap-and-Trade Program : Buildings’ Energy Savings Score CardIEEJ © 2024

Score card – current status

Documentation to follow detailed checklist for energy savings/CO2 emissions
reduction

The Top-level Business Entity
Certification System:• Mechanism that reduces the
reduction obligation rate of abusiness entity with excellent
specified global warming
countermeasure business
entityThe emissions reduction
obligation rate:• Large-scale businesses in Tokyo
is imposed GHG emissions
reduction rate of 27% or 25%(fiscal years 2020-2024) .

Electric/Gas Retailers’ Energy Efficiency Pledge and Review• To increase consumers’ engagement on energy efficiency, electric/gas retailers would be
required to set energy savings target at the demand side, which will be reviewed bygovernment.

IEEJ © 2024(QHUJ\(IILFLHQF\
6XEFRPPLWWHH'LVFXVVLRQ3ROLF\$UHDVIEEJ © 2024

Carbon Neutrality of Water Heaters

Residential
Water Heaters• This results show the needs for
additional measures such as (1)operational energy efficiency
improvement, (2) strengtheningof energy efficiency renovationfor existing stocks, and (3)promotion of ZEH in apartmentbuildings.

Tokyo Cap-and-Trade Program : Top Level Certification System

Non-fossil Fuel Target for Industry Sub-Sectors and Transport

Expanding Use ofNon-fossil fuels• If all the newly built residential
houses are ZEH from 2021, its
share will reach 28.7% by 2050.

Score card – trends

Score card – check list

10

132

9

2-7. Improving Energy Efficiency in Transport in Malaysia

POLICY PUSH FOR ENERGY EFFICIENCY (TRANSPORT) IN MALAYSIA
LCMB
2021-30SESSION 3-2 “IMPROVING ENERGY EFFICIENCY IN TRANSPORT IN MALAYSIA”
BY HUZAIMI NOR OMAR

NETR
2023-50

1.

Low Carbon Mobility Blueprint 2021-30 is the 1st holistic

1.

2.

policy document on Land Transport of Malaysia.
Focus is on energy savings which also resulting oncarbon emission reduction and cost savings.

2.

Malaysia

STOCK TAKE – VARIOUS INITIATIVES (GOVERNMENT)

National Energy Transition Roadmap latest policy
document launched
NETR focus is on carbon emission reduction
towards realizing the Net Carbon Emission 2050
targetSTOCK TAKE – VARIOUS INITIATIVES (GOVERNMENT)
9 Electric Vehicles taking center stage as the primary incentives focus
9 Continuous and evolving target for EV penetration

Manufacturing
incentives

LCMB 2030

National Energy Policy
2022-2040

National Energy Transition Roadmap 2050
*80% xEV penetration at 2050

38% of EV
penetration at 2040

Voluntary Energy
Efficient Vehicle (EEV)
Labelling Scheme

Implementation of Energy Efficient
VehiclesHydrogen (FCEV) are on trial, mostly in
Sarawak

EV MARKET ARE GROWING IN MALAYSIASTOCK TAKE – VARIOUS INITIATIVES ON EV (GOVERNMENT)

300

1,000,000
900,000

National EV Taskforce (NEVTF) andNational EV Steering Committee(NEVSC)

Incentives on EV

Both chaired by Ministry of Investment & Trade. To
accelerate EV charging infrastructure and EV
adoption in Malaysia

Full exemption of import duty, excise duty
and sales tax on locally assembled EV or
CKD until 2027

250

800,000

Regulatory reinforcement

700,000

200

600,000

Ministries,
Government
Agencies,
Association andCorporate

400,000

200,000

NEVSC

50

100,000

100% Road tax exemption until 2025

NEVTF

100

300,000

Full exemption of import duty and excise dutyon CBU EV until 2025

Individual income tax relief for EV Charging
from 2024 to 2027-

Requirement of EVCS
Distribution License by
Energy Commission
started April 2023

Requirement to comply to
Planning Guideline of EV
Charging Bay inclusive of fire
hazard guidelines in enforcementfrom October 2023

RM2,400 cash rebates for e-motorcycle

NETA VBYD Dolphin Standard Range
BYD Dolphin Extended Range
BYD Atto 3 Standard Range
Hyundai Kona e-Lite
BYD Atto 3 Extended Range
Hyundai Kona e-Plus
BYD Seal Dynamic Standard
Tesla Model 3 Highland
Smart #1 Pro
Tesla Model Y
Hyundai Ioniq 5 Lite
Smart #1 Premium
Hyundai Ioniq 6 LiteBYD Seal Premium Long Range
Hyundai Ioniq 5 Plus
Smart #1 Brabus
Hyundai Ioniq 6 Plus
Kia Niro
Volvo XC40
MAXUS MIFA9Hyundai Ioniq 5 Max
BMW iX1 xDrive30
Mercedes-Benz EQA250
Tesla Model Y Extended range
Volvo C40
Kia EV6
BMW iX3
Hyundai Ioniq 6 Max
BMW iX xDrive40
BMW i4 eDrive40
Mercedes-Benz EQC400 4Matic
BMW i5 eDrive40
Mercedes-Benz EQE350
BMW i4 M50
Porsche Taycan
Audi e-tron GT
Mercedes-Benz EQE53
Mercedes-Benz EQS 580 4Matic
BMW i7 xDrive60
Porsche Taycan Top SpecKey
ministries
only

150

500,000

DC (kW)

OBC (kW)

Price MYR

Automated Rapid Transit (ART) on trial at
Kuching since 2023

Premier of Sarawak
driving Toyota Mirai as
part of trial

11kW
AC
-

3 Free H2 bus and 3 Hyundai Nexo as corporate fleet in operationin Kuching since 2020

Battery capacity (kWh)Sarawak to produce larger scale green hydrogen in 2027.

Company tax deduction up to RM300k for
non-commercial EV leasing (2023 – 2027)

9 Various models are available, and more are being introduced
9 No EV below RM100k. Below this threshold require local assembly EV.
9 1.8% EV penetration rate for 2023. Expecting growing rate.

133

STOCK TAKE – VARIOUS INITIATIVES (PRIVATE)STOCK TAKE – VARIOUS INITIATIVES (PRIVATE)
Yinson Greentech leading private EV initiatives in Malaysia

Thank you
Huzaimi Nor Omar
+6011 1662 2392
huzaimi.omar@yinson.com

134

2-8. Improving Energy Efficiency in Transport in the Philippines

APEC Symposium on Promoting Energy Efficiency and Energy Management System, 23-24 January 2024, Tokyo, Japan
Hosted by the Asia Pacific Energy Research Centre (APERC)

Total Energy Consumption• According to the Philippines Department ofEnergy’s Compendium of Philippine Energy
Statistics and Information

Improving Energy Efficiency inTransport in The Philippines• The total final energy consumption (TFEC)
increased from 18.619 Mtoe in 1990 to 32.224
Mtoe in 2016 increasing annually by 2.8%
• The TFEC of the transportation sector had
increased by an average of 5.5% per year
• In the 1990s, the residential sector had thelargest share of TFEC where the transportation
sector ranked second. From 2000 to 2016, thetransportation sector occupied the largest shareof total final energy consumption, with anaverage share of 34.2%• The TFEC of the transportation sector increased
from 4.685 Mtoe in 1990 to 11.425 Mtoe in 2016

Noriel Christopher C. Tiglao, Dr. Eng
Professor, University of the Philippines National College of Public Administration and Governancenctiglao@up.edu.phTotal Final Energy Consumption by Sectoral Share (2018-2040)

Session 3 “Improving Energy Efficiency in Transport - The use, challenges and future of urban transportation

Sources: Department of Energy (2018). Compendium of Philippine Energy Statistics and Information. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/energy_statistics/doe_compendium_energy_statistics.pdf
National Energy Efficiency and Conservation Plan and Roadmap 2023-2050. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc2023-05-0018-NEECP-and-Roadmap-2023-2050.pdf

Transport Sector Energy Consumption

Air Quality and Climate Impacts• The road transportation mode consistently had the largest
share ranging from 77.0% to 88.2%, followed by the watertransportation mode (~7.2% to 19.7%), followed by thedomestic air transportation mode (~1.9% to 5.9%), and thelastly followed by the rail transportation mode (~0.03% to0.23%)• In the Philippines, the transportation sector is the largest
source of air pollution and energy-related greenhouse gas(GHG) emissions.
• In 2015, transport GHG emissions contributed to 34% of thetotal Philippines GHG emissions, with road transport
accounting for 80% of those emissions• Diesel consistently had the largest share ranging from 53.0%
to 60.8% followed by gasoline (~29.6% to 36.3%), followed
by fuel oil (~1.7% to 11.2%), followed by aviation fuel (~1.9%
to 5.9%, followed by bioethanol with an average share of
1.4%, and the bottom three with less than 1% share,
biodiesel (0.7%), Auto-LPG (0.4%) and electricity (0.08%)• The DENR reports that 74% of air pollutants come fromtransport sources (e.g., cars, motorcycles, trucks, andbuses). Transport sources account for 83.09% of NOx (0.40
Mt) and 37.73% of PM (0.29 Mt) of pollutants in Metro Manila

Sept 2023 smog in Metro Manila due tovehicular traffic• The transport sector in the Philippines is energy-intensive and contributed about
35.6 metric tons of carbon dioxide equivalent (MtCO2e) and 27.4 MtCO2e ofemissions in 2019 and 2020, respectively. Moreover, the price volatility of oil
products and fears of fuel shortages, in addition to continued fuel dependence,pose a burden on our energy security, the economy, and the public• The transportation sector is highly dependent on fossil fuels
and it will remain as the highest energy consuming sector
with a 35.6% average share across the entire planninghorizon, and accounting for the bulk of the increase (38.1%)
in total final energy consumption levels between 2015 and2030
Department of Energy (2016). Philippine Energy Plan 2016-2030. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/pep/2016-2030_pep.pdf

23

Source: TRANSfer Philippines. (2015, September 14). Philippines: Jeepney + NAMA (Nationally Appropriate Mitigation Actions). http://www.transferproject.org/projects/transfer-partnercountries/philippines/

Low Carbon Transport Development

4

The Philippines NDC Projects• In April 2021, the Philippines submitted its Nationally Determined Contribution (NDC) in accordance
to the Paris Agreement• The Philippines “commits to a projected GHG emissions reduction and avoidance of 75%, ofwhich 2.71% is unconditional and 72.29% is conditional, representing the country’s ambition for
GHG mitigation for the period 2020 to 2030 for the sectors of agriculture, wastes, industry,transport, and energy”• This commitment is referenced against a projected business as usual (BAU) cumulative
economy-wide emission of 3,340.3 MtCO2e for the same period• Data from the Department of Transportation indicates that from a baseline of 24.02 MtCO2e in
2010, the GHG contribution from the transport sector (combined road, rail, air, water) is projected to
grow to 87.10 MtCO2e (in 2030) and 166.07 MtCO2e (in 2040) under the BAU scenario• Based on initial calculations, transport projects can contribute to a GHG reduction of 10.03
MtCO2e in 2030 and 14.34 MtCO2e in 2040, which are equivalent, respectively, to 11.51% and8.63% GHG reduction from the BAU.
• Disaggregating the total by projects, rail has the largest contribution to GHG reduction at 6.79%(2030) and 4.23% (2040), followed by Public Utility Vehicle (PUV) Modernization Program at
2.91% (2030) and 2.75% (2040)
Source: UNFCC (2021). “Nationally Determined Contribution Communicated to the UNFCCC on 15 April 2021 – Republic of the Philippines.” https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Philippines%20First/Philippines%20%20NDC.pdf

5

Source: Sunio, V., & Mendejar, J. (2022). Financing low-carbon transport transition in the Philippines: Mapping financing sources, gaps and directionality of innovation. Transportation Research Interdisciplinary Perspectives, 14, 100590.
https://doi.org/10.1016/j.trip.2022.100590

135

6

Comprehensive Roadmap for the Electric Vehicle
Industry (CREVI)Assessing Sustainable Transport Measures• Vergel & Tiglao (2013) estimated fuel consumption and air pollutant emissions for baseline andtransportation policy scenarios in 2010 and 2015 using fuel consumption factors from local studies•

The Electric Vehicle Industry Development Act (EVIDA) became law on April 15, 2022,
as Republic Act 11697, which mandates the creation of CREVI• The expansion of the mass transit network is the single policy scenario that contributed to higher overall
reduction in petroleum and alternative fuel consumption levels. This is followed by the vehicle restraint (TDM)
policy. The implementation of all-CNG bus policy contributed to the significant reduction of diesel fuelconsumption. The public utility buses consumed the largest share (28%) of diesel fuel consumed in Metro
Manila in 2010. The MVIS policy did not contribute to significant reduction in fuel consumption.
Change in Fossil Fuel and Alternative Fuel
Consumption of Each Scenario Compared to Baseline• A Law that "ensures the country’s energy security and independence by reducing reliance on
imported fuel for the transport sector" and provides an enabling environment for thedevelopment and adoption of EVs and EV charging stations• Includes fiscal and non-fiscal incentives•

Fuel Economy"The CREVI refers to a national development plan for the EV industry with an annual
work plan to accelerate the development, commercialization, and utilization of EVs in the
country comprised of the following four (4) components":• EVs and charging stations component;• Manufacturing component that gives emphasis on EV for public transport in addition to EV for
individual use;
• Research and development (R&D) component that generates Science and Technology (S&T)
based policies and local technologies for commercialization; and• Human resource development component which includes skills and capacity building ofneeded personnel to support the development of the EV industry

Source: Vergel, K.B.N., Tiglao, N.C.C. (2013). Estimation of emissions and fuel consumption of sustainable transport measures in Metro Manila. Philippine Engineering Journal. Volume XXXIV, Number 1, pp. 31–46. Retrieved fromhttp://journals.upd.edu.ph/ index.php/pej/article/view/3797

7

National Energy Efficiency and Conservation Plan
(NEECP)

Improving Fuel Efficiency in Transport•• "A comprehensive framework and plan that institutionalizes energy efficiency and conservation in the country
across key sectors of the economy in accordance with the EEC Act"• "Section 4(z) of the EEC Act stipulates that the NEECP shall set out the governance structure, andprograms for energy efficiency and conservation with defined national targets, feasible strategies, andregular monitoring and evaluation. The plan is also required to be regularly reviewed and revised by DOE"
• "The DOE has forecasted that the country’s energy mix in 2040 will appear like the energy mix to date,with a strong emphasis on oil products (50%). This is due, in part, to the predicted continued demand fordiesel and petrol from the transportation sector. While there have been programs to test electric vehicles
and the use of natural gas in public transport, these have been limited. The limited infrastructure andregulatory barriers in place mean that it may be several years before the use of electric vehicles can beeffectively scaled up"• Under the Clean Energy Scenario (CES) of the Philippine Energy Plan 2018-2040 , there will be a 10%
penetration rate for EVs for road transport by 2040"

Sources: Philippines Republic Act No. 11285 - An Act Institutionalizing Energy Efficiency and Conservation, Enhancing The Efficient Use Of Energy, And Granting Incentives To Energy Efficiency And Conservation Projects
National Energy Efficiency and Conservation Plan and Roadmap 2023-2050. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc2023-05-0018-NEECP-and-Roadmap-2023-2050.pdf

The Philippine Energy Labelling Programs (PELP) is a large program that has
been undergoing phase-by-phase implementation since 2020

• The development and rollout of energy performance requirements beyond the appliances
sector remains a high priority for the DOE. These include technologies and industrial devices
such as motors, and possibly transformers, which is widespread in use and energy consuming• Minimum fuel efficiency ratings and labelling for vehicles also fall under the PELP• The updated Roadmap highlights the necessary actions to expand the PELP
product/technology coverage, through the conduct of market assessment studies, establishingand harmonizing standards in collaboration with experts and ASEAN economies respectively.
• Supporting measures to the PELP include a robust online registration system, a Monitoring,
Verification and Evaluation (MV&E) framework•

Telematics IoT device and
SafeTravelPH crowdsourcing
app

Incentivizing Eco-Driving on Busway operations• Literature points out that through the practice of eco-driving, fuel consumption can be reduced
by 25%. Eco-driving can be measured by determining that the vehicle would operate at
optimal fuel efficiency, or within the green area, through the estimation of parameters
including speed, speed variation, acceleration/deceleration, and the continuous improvement
through the use of real time data.
• Based on on-road observation of bus operations on the EDSA Busway, the observed Engine
Fuel Rate for Aggressive Driving is 22.03 Liter/Hr while Eco-Driving is 13.03 Liter/Hr, a 41%
reduction• Eco-drivers when in motion and maintaining a cruising speed for an hour with at least 1,000
RPM can save up to 8.217 liters of fuel, compared to driving more aggressively.

EDSA Busway

Source: National Energy Efficiency and Conservation Plan and Roadmap 2023-2050. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc2023-05-0018-NEECP-and-Roadmap-2023-2050.pdf
Tiglao, N. C., Ng, A. C., Tacderas, M. A., & Tolentino, N. J. (2023). Crowdsourcing, digital Co-production and collaborative governance for modernizing local public transport services: The exemplar of general Santos City, Philippines.
Research in Transportation Economics, 100, 101328. https://doi.org/10.1016/j.retrec.2023.101328

9

Philippine Transport Vehicles Fuel Economy Labeling
Program (VFELP)

10

Key Strategies• Transport Vehicles Fuel Economy Labeling Program (VFELP)• With the expansion and amendment of the PELP coverage as indicated in DC2022-11-0035 and therequirement for fuel economy performance labelling under Section 17 of the EEC Act, thegovernment’s initiative on energy efficiency and conservation policies for the Transport Sector
entails the development of the Philippine Transport Vehicles Fuel Economy Labeling Program• The Short-Term (2023-2024) strategic action includes the development of a Monitoring, Verification and
Enforcement (MVE) framework• The Medium-Term (2025-2028) actions will establish financial incentives for fuel efficiency and the establishmentof Electric Vehicles Charging Stations (EVCS) policy framework• The program covers the fuel economy performance rating for the transport sector which will initially coverroad transport vehicles• Requires that transport vehicle manufacturers, importers, distributors, dealers, and rebuilders shall comply
with the vehicle fuel economy labeling requirements set by the DOE with the assistance of the DOTr,
DENR, and other concerned agencies (EEC under Section 17, Section 2 of DC2020-10-0023, Sections 58
and 60 of DC2019-11-0014)• DOE will develop the necessary technical requirements, including but not limited to, implementing
guidelines, vehicle fuel economy performance testing guidelines, and minimum energy performance fortransport vehicles• "The emerging EV technology presents opportunities for improving energy efficiency in the transportation sector in supportof the government’s energy independence agenda." "There is a need to consolidate and harmonize all existing issuances toensure the safe, efficient operations and system reliability and to accelerate investments in EVCs in the country"• In terms of vehicle testing, dedicated testing facilities will be established that are aligned with ASEAN standards• The Long-Term (2029-2050) actions will include energy efficiency programs beyond road transport (passenger
and cargo ships, aviation fuels), congestion taxes, and continued institutionalization of the Energy Efficiency
Index (EEI) across the sector• Research and Development••••

Source: National Energy Efficiency and Conservation Plan and Roadmap 2023-2050. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc2023-05-0018-NEECP-and-Roadmap-2023-2050.pdf

8Source: EVIDA and its Implementing Rules and Regulations (IRR), https://lawphil.net/statutes/repacts/ra2022/ra_11697_2022.html
https://www.doe.gov.ph/laws-and-issuances/implementing-rules-and-regulations-republic-act-ra-no-11697

11

Co-create programs for incentivizing fuel efficiency and emission reduction
Public transport monitoring and evaluation tools for government uses
Professionalizing fleet management through training programs and development of tools for asset management
Upgrade Competency Standards to include eco-driving as a core competency, and improve knowledge of drivers
and operators on transport sector’s environmental footprint

Source: National Energy Efficiency and Conservation Plan and Roadmap 2023-2050. Retrieved from https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc2023-05-0018-NEECP-and-Roadmap-2023-2050.pdf

136

12

Maraming Salamat Po!

13

137

2-9. Achievement and potential of multi-pathway approach in road transport sector - Japan's experience

Who We Are?

$3(&6\PSRVLXPRQ3URPRWLQJ(QHUJ\(IILFLHQF\DQG(QHUJ\0DQDJHPHQW6\VWHP

JAMA (Japan Automobile Manufacturers Association, Inc.) is a nonprofit industry association comprising Japan’s 14 manufacturers ofpassenger cars, trucks, buses and motorcycles.

$FKLHYHPHQWDQGSRWHQWLDORIPXOWL
HYHPHQWDQGSRWHQWLDORIPXOWWWLLLSDWKZD\SDWKDSSURDFKLQURDGWUDQVSRUWVHFWRU
RDF
DFKLQURDGWUDQVSRUWV
UWV
VH -DSDQ VH[SHULHQFH
HHEstablished

April 3, 1967

Our
Objective• To promote the sound development of the automobile industry and contribute to social andeconomic welfare.

• Conducts studies and surveys related to automobile production, distribution, trade and use.
Our
Activities

23rd January, 2024
Takao Aiba
Japan Automobile Manufacturers Association (JAMA)
Chair, the International Climate Change Policy Expert Group• Assists in the rationalization of automobile production, and helps establish policy for thedevelopment, improvement and promotion of production technology.
• Establishes and promotes policies related to automobile trade and worldwide exchange.
• Carries out other activities involved in meeting its organizational objectives.

MemberCompanies&RS\ULJKW-DSDQ$XWRPRELOH0DQXIDFWXUHUV$VVRFLDWLRQ,QF

1

Who We Are?

&RS\ULJKW-DSDQ$XWRPRELOH0DQXIDFWXUHUV$VVRFLDWLRQ,QF

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Who We Are?

Member companies produce and export motor vehicles worldwide.

Member companies produce and export motorcycles worldwide.

Motor Vehicle Exports By Destination In 2022

Motorcycle Exports By Destination In 2022

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Who We Are?

As of May 1, 2023

JAMA StanceRussiaHungary

Czech Republic

FranceMoroccoChina

Bangladesh

Egypt

Algeria

Nigeria

The Philippines

Malaysia The goal is carbon neutrality (CN).
Approaches to achieving CN should be technology-neutral.

Venezuela

Chinese Taipei
MexicoColombia╒ A diversity of options is crucial to achieving our goals.

BrazilPeru

 There are optimal pathways to CN for individual economies.

Argentina

Kenya
South Africa

for consumers in economies/regions worldwide.

Viet Nam
Cambodia

Laos
ThailandSaudi Arabia
Indonesia

Ghana

efforts towards carbon neutrality by 2050 by developing technologies tofurther reduce automotive CO2 emissions so that they can provide optimal choices

The USA

Myanmar

Pakistan
India

Spain
Portugal

JAMA member companies, together with their global stakeholders, are making maximum

CanadaTurkeyUK

4

JAMA member companies are making maximum efforts
towards Carbon Neutrality by 2050.

Geographical Distribution of JAMA Members` Overseas Production Bases

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JAMA stance on Carbon Neutrality

Member companies produce and export vehicles worldwide.

PolandIn vehicle units

Australia&RS\ULJKW-DSDQ$XWRPRELOH0DQXIDFWXUHUV$VVRFLDWLRQ,QF

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CO2 emissions from road transport sector in Japan

Concept of an “Integrated Approach”

Japanese auto makers has been contributing in reducing CO2
emissions from road transport sector mainly through its effort toimprove fuel efficiency by expanding lineup ofelectrified vehicles.

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CO2 emissions reduction by “Integrated Approach”

TransitioningTra
ansitioning
ng tot Carbon Neutrality
Neut
euttraby 2050(A Scenario
oo-Based
Analysisis)Japan is steadily reducing CO2 emissions by implementing an“Integrated Approach”.

1.

Purpose of using scenarios

2.

Data applied

CO2 emissions from the transport sector andthe contribution to increase/decrease by factor(Mt-CO2)

290

280
270
260

↑Freight traffic, passenger car travel mileage,
detoriation of traffic flow

35%

CO2 emissions

30%

Share of xEVs

250

40%

(improvement in fuel efficiency, transport efficiency)(improvement in fuel efficiency, share of xEVs)

240

To understand, based on quantitative assessments, possible pathways to be pursued towards carbon
neutrality in automotive transport by 2050.

(Share of xEVs)↓Energy efficiency in freight↓Energy efficiency in passenger cars

300*

New-vehicle sales data, in-use vehicle fleet data, energy/fuel mix data, vehicle fuel efficiency data,
vehicle kilometers travelled annually, etc.

3.

Scenario parameters

25%

230

20%

220
210

15%

200
190
180
170

1992

1994

1996

1998

2000

2002

2004

*xEVs are electrified vehicle (HEVs, BEVs, PHEVs, FCEVs)

2006

2008

2010

2012

2014

2016

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2018

1 BAU : Business as usual

Sourse: KEIDANREN (Japan Business Federation) carbon neutrality action plan

9

Summary of Study Findings

Worldwide$6($1
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150

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2 IEA: International Energy Agency

3 NZE : Net Zero Emissions by 2050

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10

CO2 Emissions Worldwide 2020-2050, by ScenarioIn all three scenarios, CO2 emissions worldwide are in line with the
IPCC’s 1.5Υ@2050 scenarios.

CO2 Emission Levels in 2050

• Findings show that the study’s three scenarios (excluding the BAU scenario)
demonstrate the potential for global CO2 emissions reduction in automotive transport to
be in line with the IPCC*’s 2050 1.5oC climate scenarios.
*IPCC: Intergovernmental Panel on Climate Change• The IEA’s NZE scenario is premised on one pathway towards carbon neutrality, but the JAMA
study confirms that there are other pathways, comprising a wide variety of electrified
vehicles including HEVs and PHEVs and the use of carbon-neutral fuel (CNF).

ASEAN• In many ASEAN economies, vehicle sales volumes are expected to rise significantly.
• If the amount of CNF in the automotive fuel mix in 2050 can be increased to a level equivalent
to 40% (approx.) of global automotive fuel consumption in 2020, it will be possible for CO2
emissions in ASEAN economies to be in line with the IPCC’s 1.5 climate scenarios for 2050.

Japan• The study’s three scenarios demonstrate the potential in Japan for carbon neutrality in
automotive transport by 2050.
• To that end, however, in addition to decarbonized electricity, the supply of carbon-neutral
fuels for in-use vehicle fleets will be necessary.
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CO2 Emissions ASEAN 2020-2050, by Scenario

CO2 Emissions Japan 2020-2050, by Scenario

1.25 increase in carbon-neutral fuel supply compared to the
CNF scenario will make it possible for CO2 emissions in ASEAN
economies to be in line with the IPCC’s 1.5 scenarios for2050.

In all the scenarios, CO2 emission levels are close to carbon
neutrality.

Note: The CNF+ scenario assumes that CNF supply is 1.25 times greater than in the CNF scenario, has a 40% (approx.) instead of 30% share (approx.) in the fuel mix and that most of the increase will be
supplied to Africa, the Middle East, India, and ASEAN where the supply of decarbonized energy is a major challenge.

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Initiative in G7 members

The Global Stocktake at COP28, Dubai

G7 Leaders recognized the importance of reducing GHG
emissions from the global fleet and “the range of pathways” forkeeping a limit of 1.5ΥΥ within reach.

The first “Global Stocktake” on how economies can accelerateaction to meet the goals of the Paris Agreement was
conducted.
 In the agreement document, the importance of “range ofpathways” was mentioned.

https://unfccc.int/sites/default/files/resource/cma5_auv_4_gst.pdf

Source: “G7 Hiroshima Leaders’ Communiqué”, Ministry of Foreign Affairs of Japan&RS\ULJKW-DSDQ$XWRPRELOH0DQXIDFWXUHUV$VVRFLDWLRQ,QF

15

Summary of our presentation
9 Japan has been a leader of CO2 emission reduction in roadtransport sector among G7 members through– “Integrated Approach” consist of 4 pillars.
– Expanding lineup of electrified vehicles suitable for regional
circumstances, which is in line with “the range of pathways,” key
concept of G7 and COP28 agreement.
9 Based on the quantitative scenario analysis, JAMA believe that there ispotential not only for 100% BEVs, but also for a wide variety ofelectrified vehicles including HEVs and PHEVs and the use ofcarbon-neutral fuel (CNF) for global CO2 emissions reduction in roadtransport to be in line with the IPCC’s 2050 1.5ΥΥ climate scenarios.
&RS\ULJKW-DSDQ$XWRPRELOH0DQXIDFWXUHUV$VVRFLDWLRQ,QF

17

140

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16

2-10. Improving Energy Efficiency in Industry in Chinese Taipei

1. Energy Demand in Chinese Taipei
2. Energy Efficiency Policies for Industrial Sector

Improving Energy Efficiency inIndustry in Chinese Taipei

3. 2050 Net-Zero Strategy: “Strategic Plan of Energy
Saving”
4. Conclusion

Dr. PAN, Tze-Chin
Deputy Division Director, Energy Policy and Planning Division,
Green Energy and Environment Research Laboratories (GEL),
Industrial Technology Research Institute (ITRI).
2024/01/23©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

Copyright ITRI ⷌ㥔㉧堺䟻䩝晉 䈯㫱㈧㛰1-1. Domestic Trend in Economy and Energy

1-2. Industrial Trend in Economy and Energy• Chinese Taipei’s GDP is growing rapidly, leading to increased electricity demand,
while total energy consumption remains stable.

• Industrial GDP growth surpasses electricity and energy use.
• Electronic Industry shows marked increases in GDP contribution, energy consumption, andelectricity usage ratios.

• The industrial sector's share of GDP, energy usage, and electricity consumption has
significantly increased.

*'3

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Industrial Sector

Commercial Sector

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Energy Sector

Transportation Sector

Non-Energy Consumption



Residential Sector©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

3





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Electronic
Industry

ChemicalIndustry

Basic Metal
Industry

TextileIndustryNon-metallic
Mineral Products

Paper
Industry

Other
Industry©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

42-1. Energy Efficiency for Equipment and Appliances• Minimum Energy Performance Standard (MEPS)
Equipment and Appliances

1. Energy Demand in Chinese Taipei

2024/7/1

Energy Efficiency
Improving (%)
7~10

Issued Date

Fan
Rotodynamic pump2023/1/1

5~8

2. Energy Efficiency Policies for Industrial Sector

Air compressor

2021/1/1

5~7

Water chilling packages using the vapor compression cycle

2020/7/1

2

3. 2050 Net-Zero Strategy: “Strategic Plan of Energy
Saving”

Low-voltage three-phase squirrel-cage high-efficiency induction motors

2016/7/1

2~3 (IE3)• Energy Efficiency Ranking Labeling
COP

4. Conclusion

Water Chilling
Packages
WaterCooledӍ 1758kW< 528 kWӍ 528
kW< 1758 kW

Ӎ 1758kW< 528 kWӍ 528
kW< 1758 kW

Displacement

4.45

4.90

5.50

4.80

5.30

5.90

5.15

5.70

6.35

Centrifugal

5.00

5.55

6.10

5.40

5.95

6.60

5.80

6.40

7.10

Proportional loss factor©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

141

1st

Ӎ 528
kW
< 1758 kW

Air Compressors
5

2nd< 528 kW

Air-Cooled
Air Cooled©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

3rd

2.79

3.00

3.20

d = -5 ~ 0

d=0~5Above d = 5

3rd

2nd

Ӎ 1758kW

1st6

2-2. Energy Audit Reporting Scheme

2-3. Electricity Saving by 1%• Large Energy User (LEUs): The energy user whose energy consumption meets thelevel stipulated by the Ministry of Economic Affairs, shall establish its own energy
audit system and set objectives for energy conservation and execution.

• The government mandated a target of 1% electricity saving for LEUs:
Annual average electricity saving (Si) from 2015 to 2024 must exceed 1% of the annual
average total electricity consumption (Ci).

Electricity
Fuel oil
Natural gas
Coal

Basis for energy use

Mandatory Obligation

Contract capacity
͹800kW• Electricity saving from one energy
efficiency measure will be counted
only in one year.

1. Set energy management officer.

ͽ6,000 KL/y3

ͽ10,000,000m /y

2. Report the energy audit and energy
conservation plan annually.

• If the LEUs’ annual average savingrate less than 1% in 2024, the LEUs
will be penalized by the government.

ͽ6,000 Ton/yElectricity Saving (billion kWh)

Energy Formσଶ଴ଶସଶ଴ଵହ ܵ௜
൒ 1%
ଶ଴ଶସ
σଶ଴ଶସ
ଶ଴ଵହ ‫ܥ‬௜ + σଶ଴ଵହ ܵ௜‫= ݁ݐܽݎ ݃݊݅ݒܽݏ ݕݐ݅ܿ݅ݎݐ݈ܿ݁݁ ݁݃ܽݎ݁ݒܽ ݈ܽݑ݊݊ܣ‬

3.5
1.7%

2.5
2.0
1.5

3%

2.2%

3.0

1.0% 1.1%

1.9%

2.0%
1.8%

1.5% 1.5%

1.7%

2%
2%

0.9%

1%

1.0
1%

0.5
0.0

Electricity Saving Rate

• There are 3,500 industrial LEUs, and they consumed about 75% of industrial energy
consumption

0%2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Electricity Saving©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

7©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

2-4. Regulations for Six Energy Intensive Industries
Industry

Start date

Regulation for Energy Efficiency

Cement2015.1.1

Maximum allowed specific energy consumption (SEC)* for different manufacturingsystems

Iron & Steel2015.1.1•

Blast furnace must install a blast furnace gas top pressure recovery turbine•

Maximum temperature and oxygen concentration in the flue outlet

Pulp & Paper

2015.1.1

Maximum allowed specific energy consumption (SEC)* for different paper types

Chemical2015.1.1

Maximum temperature and oxygen concentration in the outlets of the furnace,cracker, and thermal oil boiler.

Electronic
Textile2015.11.1

2016.1.1

Limit of temperature difference between inlet and exit water in chiller;•

Maximum temperature and oxygen concentration in flue outlet of coal stoke

Type

Name

ApplicantEligibility

Subsidy
Item

Grant Amount•

Equipment-BasedMotor-Driven
Equipment Subsidy

Allcompanies

Government provide a list •of high efficiency
equipment, including IE4•
motor, air compressor, fan,•and pump.

IE4 Motor: 700 NT$/kW (Ҹ 22.4 USD/kW)
Air Compressor: 700~5,000 NT$/kW(Ҹ 22.4~160 USD/kW)

Fan: 2,000~2,400 NT$/kW (Ҹ 64~76.8 USD/kW)
Pump: 2,000~4500 NT$/kW(Ҹ 64~144 USD/kW)(dependent on different capacity and model)

Project-Based*Energy Saving
Performance
Subsidy
Waste Heat
Recovery Subsidy

Companies(Contract Capacity
over 100 kW)

Companies(Contract Capacity
over 100 kW)

Energy-saving project with•more than a 10%
improvement in energy•
efficiency
Energy saving project with
waste heat recycle

Subsidy 20% of project total expenditure**
Subsidy ceiling is NT$5 million (160,000 USD).

•

Subsidy 30% of expenditure of waste heatrecycle equipment•

Subsidy ceiling is NT$5 million (160,000 USD).

* The subsidy program has a fixed total budget, and each application competes with others. The review committee determines the priority order of applications.
** If applicant is small-medium enterprises, the subsidy rate is 30%.
*** NT$1 Ҹ 4.55 ¥ Ҹ USD 0.032*Energy consumptions per product©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

8

2.5 Energy Efficiency Subsidies for Industrial Sector

Operation condition for chiller, fan, and desiccant air dryer•

Electricity Saving Rate

9

©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

10

3-1. Phases of Strategic Plan
Chinese Taipei’s “Energy Saving Strategic Plan” consists of two phases:

1. Energy Demand in Chinese Taipei
2. Energy Efficiency Policies for Industrial SectorYZ VNGYK

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4. Conclusion

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3G^OSO`KKTKXM_KLLOIOKTI_

12©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

11©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

142

3-2. Plan Targets and Path (Phase 1)
 Target͵Maximizing Energy Efficiency through the efforts of public and private sectors.
 Path͵“Energy Saving Strategic Plan” covers energy saving programs in industrial, commercial, residential, transportation
sectors, and advanced technology research.
2030

2025
• Gradually replace process equipment• Large energy users (50% of the energy usage) is included in
ISO 50001• 700 new green buildings per year
• HVAC-R equipment to be the 1st energy-efficacy level• Residential buildings efficiency increased by 5%• Retail lamps 100% use LED.
• Include 2.5 tons+ light-duty trucks energy efficiency
management• Implement high efficiency, low emission equipment• 60% of the energy consumption of large energy users is
included in ISO 50001• 800 new green buildings per year
• New public buildings to be efficiency level 1 or ZEB.
• 30% of commercial large energy users adopt efficiency level
1 HVAC-R equipment. 100% lightings in commercial buildings
use LED.
• Residential building envelope efficiency increased by 10%• MEPS of AC and refrigerator reach level 3• Energy efficiency of new cars increased by 30%

6,000,000

Industrial
energysaving• Improving manufacturing processes• Counselling on energy-saving
measures• Raise corporate energy-saving target
and efficiency improvement

Commercial
energysaving• Improve equipment operation efficiency or
behavior• Low-carbon transformation of business• Green buildings

Residential
energysaving• Improve efficiency of new/existing buildings• Improve efficiency of home appliances• Social advocacy and communication

Transportati
on energysaving• Expand the scope of vehicle energy efficiency
management• Change fleet driving behavior• Strengthen the vehicle energy efficiency
classification system

5,000,000

EnergySaving(KLOE)

4,000,000

Transportation Area

3,000,000

Residential Area
Commercial Area

2,000,000

Industrial Area

1,000,000
0
2023

2024

2025

2026

2027

2028

2029

2030

1. Energy Demand in Chinese Taipei
2. Energy Efficiency Policies for Industrial Sector
3. 2050 Net-Zero Strategy: “Strategic Plan of Energy
Saving”
4. Conclusion• Develop innovative manufacturing processes
Advanced• Develop high efficiency equipment
energy saving• Develop and promote energy management
technology
system©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

13©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

14

15©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

16

Conclusion• The industrial sector in Chinese Taipei consumes 33% of the total energy, asignificantly higher share than other sectors.
• To enhance industrial energy efficiency, Chinese Taipei is implementing thefollowing measures:
Equipment•

Large Energy Users

•

MEPS

•

•

Energy Efficiency
Ranking Labeling

Incentives

Energy Audit Reporting Scheme•

Motor-Driven Equipment Subsidy•

Mandatory 1% Electricity Saving Target•

Energy Saving Performance Subsidy•

Regulations for Six Energy Intensive
Industries•

Waste Heat Recovery Subsidy

To achieve the 2050 Net-Zero, Chinese Taipei has devised the “Strategic Planof Energy Saving”.

©ITRI. ⷌ㥔㉧堺䟻䩝晉吾ὃ

143

2-11. Improving Energy Efficiency in Industry in Thailand

Outline

Improving Energy Efficiency in Industry in Thailand• Thailand’s Energy Situation and Industries

Mr.Wisaruth Maethasith• Energy Efficiency Plan (Draft)

Department of Alternative Energy Development
and Efficiency• Key Measures

APEC Sectoral Symposia on the Holistic Approachof Decarbonization for Energy Transition
23 January 2024
1

2
Source: DEDE

Thailand’s Energy Situation

Power Generation* 29.6%
Heat** 63.5%
Biofuels 16.9%

21%
48%

84,178ktoe

11,260
ktoe

7%
4%

9%

11%

Coal
Natural Gas
Petroleum ProductsElectricity (non-RE)
Renewable Energy
Traditional Renewable Energy
3

Source: Thailand’s Energy Situation Report 2022, DEDE
Energy Statistics of Thailand 2023, EPPOElectricity Energy Mix (GWh)0%20%

Final Energy Consumption
2022 by Sector* Inclusive of solar, wind, biomass, MSW,
biogas, geothermal – with off-grid generation** Inclusive of solar, biomass, biogas, MSW

40%

60%

80%

100%

35,00030,000

Final Energy Consumption (ktoe)

Thailand’s Energy Situation
and Industries

Final Energy Consumption 20222 by Fuel25,00020,00015,00010,000

5,000

2018
2019

0

2020
2021

2022
4
Natural Gas

Coal and Lignite

Oil

Hydro

Imported

Renewable Energy

New Energy Efficiency Plan (Draft)
Key Consideration: GDP and Population
Projection Update (GDP2.6) – March 18th, 2022
 Consider Carbon
Neutrality target in energy
sector (95.5 MtCO2eq)
 Electric Vehicle projection
from EPPO Sector-specific measuresand supply-side measures

Energy Efficiency Plan (Draft)

5

WORK IN PROGRESS – SUBJECT TO CHANGE!!!

144

Target energy intensity (EI) reduction of 36%
within 2037 compared to 2010 level6

New Energy Efficiency Plan (Draft) – cont.
Energy efficiency measures target by energy types: 2022 - 2037
Compulsory

Voluntary

3,822
7,058
10,8805,051
19,565
24,617

Electricity
Thermal
Total

Unit: ktoe

Total
8,874
26,62335,497

Energy efficiency measures target by economic sectors: 2022 - 2037
Compulsory
Voluntary
Sector
Total
Elec. Thermal Elec. Thermal
1. Industrial
2. Commercial
3. Residential
4. Agricultural
5. Transportation
Total

1,590
1,700
117
50

3,458
WORK IN PROGRESS – SUBJECT TO CHANGE!!!

4,610
32.
1,650
6,293

2,300
1,328
1,461
147
5,238

3,922
488
196
512
15,53820,657

12,423
3,549
1,774
709
17,03
35,497

%
25
75
100

Key Measures

Unit: ktoe

%
35
10
5
2
48
100
7

8

Key measures – Industrial and Commercial Sector
Compulsory

VoluntaryComplementary• Energy management standards
in designated factories andbuildings• Enforcement of factory andbuilding energy codes• Energy efficiency standards and labellingfor equipment• Financial Incentives- Direct subsidy (Subsidy, 80:20)- Loans (Soft loan, ESCO Fund)- Tax incentive- Credit Guarantee Mechanism• Promoting innovations (IOT, Smart Factory,
Smart Building, Big Data)• Promoting energy efficiency in equipment
utilizing renewable energy (Biomass boiler,
Biomass furnace, Generator, Solar Heat)• Energy efficiency for the supply side

• Human Resource
Development• Public awareness• Research and Developmentof technologies andinnovations

1. Energy Management System
Classification of designated factories/buildings
Criteria

Designated Factories/Buildings

Current status (as of January 1st 2024):
6,473 designated factories
3,324 designated buildings
9,797 in total

Group 1

Group 2

Installed electric meter (total)

Between 1000 – 3000 kW

More than 3000 kW

Installed transformers (total)

Between 1,175 – 3,530 kVA

More than 3,530 kVA

Total annual energy consumption

Between 20 – 60 TJ/yearMore than 60 TJ/year

Legal responsibilities of designatedfactories/buildings
1. Appoint Person Responsible for Energy (PRE)- At least 1 PRE for Group 1 – (C-PRE/S-PRE)- At least 2 PREs for group 2, in which one
must be senior PREs (S-PRE).

15,973 ktoe

2. Conduct energy management system as described inregulation and submit an annual report to DEDE every March.
9

WORK IN PROGRESS – SUBJECT TO CHANGE!!!

2. Financial Incentive - Subsidy Program 20 – 80

2. Financial Incentive – Board of Investment

Measure Overview•
Subsidize equipment and machinery replacement (with approved high-efficiency ones) or innovative energy-efficient equipment•
Subsidize for equipment and installation cost
- 20% for Designated buildings and factories when replacing with efficient equipment and machinery- 30% for Designated buildings and factories when replacing with efficient equipment and machinery with approved innovative technologies- 30% for non-designated buildings and factories, community enterprise, start-ups, or agriculturers•
Supports up to 3 million baht per applicant•
Payback period no longer than 7 years

Smart and Sustainable Industry

Applicable Projects*
 Energy-efficient equipment replacement
 Equipment replacement to utilize renewable energy
 GHG Reduction project (must be certified by TGO**) Environmental impact reduction project

Examples measures
 Installing variable speed motors used with the machine.
 Replacement air compressors, high efficiency

10

C-PRE: Convention PRE, S-PRE: Senior PRE

For further information

Energy Service Companies (ESCO) To improve the power factor.

 Provide turnkey solutions for energy efficiency project Project implemented can be in the form ofguaranteed saving, shared saving, or chauffrage Replacing high-performance electric motor
 Insulation
 The use of heat pumps

Benefits
 Exemption on import duty on machinery 3-year corporate income tax (CIT)
exemption – 50% of the investment cost

Benefits
 Exemption on import duty on machinery 8-year corporate income tax (CIT)
exemption – no CIT exemption cap

https://bit.ly/3bZLmnI

Source: DEDE11

*At least 1M Baht in investment (or 500k Baht for SME)**Thai Greenhouse Gas Organization

145

For further information

12

Leveraging Private Sector Investment via Energy Efficiency Platform

Leveraging Private Sector Investment via Energy Efficiency Platform

Not included in EE Platform

Pilot EE Platform

1. Database
Bottom-up energy-saving results,
Policy decision making, NDC tracking,and reduce Double Counting

Digitalized MRV System
Factory/Building

Smart
Meter
+ Sensors

Cloud Server
Collect and analyze energy-savings

2. Private-sector fundraising

Connect

Innovative capital-raising methods approved
by SEC e.g. ICO (EPC securitization), crowd
funding, Hedge funds, etc)

Blockchain
Validator Node

ESCO

EPC

Smart Contract

trigger

3. EE Reward Programs
Reward programs for further incentivizing
investment in energy efficiency projects

Facilitating Financing : Analyze and synthesize data forinvestment platform

Incentive Ecosystem : Analyze and synthesize data for

4. Promotion of Green Projects

investment platform OR reward programs in energy
efficiency or environment-related program

Trading of Energy Saving Certificates tooffset energy efficiency target or otherrelated environmental target

EE Platform as a Technical Assistant
1. To build confidence for investor and reduce the cost of fundraising
2. To oversee technical aspects of energy efficiency projects and MRV process
3. Other technical matters

Currently being implemented

13

14

Kiloton of crude oil equivalent (ktoe)

3. Promote equipment utilizing RE
10,000Coal & Its Products

Petroleum Products

Natural Gas

3. Promote equipment utilizing RE – cont.

Renewable Energy

Carbon Tax

In 2020, thermal energy of
22,427 ktoe is consumed
CO2 Emission | 52.44 MtCO2

8,000
6,000

 Suitable carbon tax policy must be implemented

Financial Support

4,000

Partial subsidy such as for equipment replacement for manufacturing andutilization of biomass, utilization of equipment for utilization of RDF*Carbon neutrality@2050 requires
emission of CO2 = 44.6 MtCO2

2,000
0

2016
2559

2017
2560

2562
2019

2561
2018

Industry with the highest renewable energy utilization isFood Beverage and Tobacco such as sugar factory andpalm oil factory
Industry with the highest Thermal Energy Consumption is
non-metal industry such as cement industry
Industry with the highest potential to replace thermalenergy consumption with renewable energy is non-metaland paper industry, replacing consumption of coal
Source: Thailand Energy Balancee 2020
20, DEDE

Kiloton of crude oil equivalent (ktoe)

8000
7000

2020
2563

Use of thermal energy in 2020 by Industry

Promote plantation of energy crops

DieselWaste

6000

Promote additional plantation of energy crops as the feedstock for industry
and power plants, which require collaboration between different stakeholders

ULG + deri

5000

Natural Gas

4000

LPG

3000

Promotion of Technologies and Innovation

Kerosene

2000

Fuel Oil

1000

Coal & Its Products0กระดาษ
Paperเคมีภัณฑฯ
Petrochem.

อาหาร
Food&Bev.

อโลหะ
Non-Metal

Biomass
15

Thankk You

For further information, please contact email: wisaruth_m@dede.go.th

17

146

Promote the development and deployment of various innovative technologies
such as CCUS and hydrogen in industries162-12. Improving Energy Efficiency in Industry in JapanAPEC Symposium on Promoting Energy
Efficiency and Energy Management System

Energy efficiency trend
and the situations in industry

Improving Energy Efficiency in Industry in JapanJan 23, 2024
Akira Ishihara
The Energy Conservation Center, Japan
1

2

Situations of industry for energy efficiency and low carbon

Medium period energy efficiency plan (Japan)

Measures in industry, as in other sectors, continue to be important to achieve low carbon. Whileelectrification and the expansion of renewable electricity are important directions for transport,
household and business sectors, industry further needs multilateral approaches such as process
efficiency, efficient use of heat and electricity, and non-fossil energy sources.
Energy consumption trend(Japan, respective fields)

2013

ӺӸӿӼ

Trillion yen (2015 price)

GDP 2.5-fold2019

transportӺӸԂӾbusinesstransportӺӸԀӿhousehold2030

unit 100million-kL(crude oil equiv.)

demand reduction

Householdeconomical growth 1.4%
HouseholdӺӸӾԁtransportӺӸԁԂbusinessӺӸӿӿEnhancementof measuresfor EEC
householdӺӸӽtransportӺӸԀbusinessӺӸӿbusinessindustry

fig: Annual report onenergy 2023 (Gov)industryindustry

ӻӸԀӺ

ӻӸӿӿ

industryӻӸӾSource: 6th Strategicenergy plan3

4

CO2 reduction potential reference (iron and steel)Best available technologies are adopted in a high level in Japan,
implicating low reduction potential. (A view from IEA data in the past.)

Trends of energy efficiency
Trillion yen (2015 price)

PJ/trillion yen (2015 price)
Oil crisis

Technological progress

GHG reduction measures

Net GDP (right axis)

Energy efficiency isimproving in a long
trend. It should beenhanced further.
The horizontal trend
seen is 1990s might beinfluenced by theaddition of equipment
and process forenvironment andquality.

Worldwide Trends in
Energy Use and Efficiency
䠄IEA, 2008) p32
CO2 reduction potential
in iron and steel in 2005
based on best available
䡐echnology.

Energy supply/net GDP GDP (left axis)
fig: Annual report onenergy 2023 (Gov)
5

6

147

Trends of energy efficiency (industry)
100 in1973

The trend in industry issimilar as the whole
field trend, but recent
progress ratio is not solarge, which seem to beunder the influence of
low reduction potential.
Multilateral measures
are needed.

Indices of industrial production
Indices of industrial
consumption

100 in1973

Energy consumption intensity in industry

Methodologies to promoteenergy efficiency in industry

fig: Annual report onenergy 2023 (Gov)78Transition to non
nn-fossil
energy in EC Act

Total EM System as a fundamental methodology

expansion of target of policies in EC Act toward carbon neutrality(amendment in 2022) red letters: newly introduced concept in EC Act

Designation system
to energy-intensive factory and building

System andmotivation

Threshold of the designation
䞉䞉䞉

䞉䞉䞉

Periodical Report System
Energy-intensive factory & building䞉䞉䞉

Factory

Energy Manager System

Items to bereported (Format)
Procedure䞉䞉䞉

Duties
Qualification
system(Submission date,method, etc.)

Building

Follow-up system

Contents
ECCJ

Guidance andinstruction

Checking
items

Standard forfollow-up(definition)
Expansion of kind of energies
regulated in EC Act
to non-fossil fuelnon-fossil electricity
non-fossil heat

Optimization of the demand forelectricity(demand response in both ofincreasing and decreasing )Target andevaluation

Energy Audit & Auditor System

EC Guideline

Transition to non-fossil energy

Rational use of energy(energy efficiency and conservation)

Obligations

11

Follow-up
contents
9

Approaches for higher energy efficiency and low carbon (in industry)
Subsets

Policy and management

Technology and system background

Energyintensive(material)
subsectors

Benchmark on energy efficiency
Non-fossil ratio target
Cooperation between factories

Production technologies

Large scalebusinesses

Carbon target management

Cogeneration technologies

Small andmediumbusinesses

Energy audit and implementation(government support)

Electricity
systemUse of renewable energy
Use of non fossil fuels
Optimization of electricity use
Non-fossil certificate

Subsector approach (benchmark in EC Act)The benchmark system in EC Act has been established for energy intensive
and material subsectors in industry and focused subsectors in buildings and nonindustry business.

Heat process technologies
Heat pumps and efficient thermal utility

subsectors with benchmarks andthe energy consumption weightGHSDUWPHQWVWRUHV DQG
VXSHUPDUNHWV%XVLQHVV RIILFHVDQG EXLOGLQJV+RWHOVDQG LQQV $PXVHPHQW SODFH䠂
6FKRROV

3XOS SDSHU

EMS and production control system

Established energy efficient devices

Iron and steel

Chemicals

䠂



Ceram ics, ts one
and c lay prod ucts
䠂





  

2WKHU EXVLQH
VV
LQ WKH2WKHUEXVLQHVVLQWKHLQGXVWULDO VHFWRU
FRPPHUFLDOVHFWRU䠂䠂Electricity use optimization(demand-side measures to electrification)%ODVWIXUQDFHV DQG
HOHFWULF IXUQDFHV

Non-fossil fuel technologies

On site renewable energy(WK\OHQH VRGDFKHPLFDOV HWF

11&HPHQW:HVWHUQVW\OHSDSHUDQG SDSHUERDUG%XVLQHVVRIILFH OHDVH
1DWLRQDOJRYHUQPHQW EXLOGLQJV,QWURGXFWLRQLQ 148

&RQYHQLHQFH VWRUH

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6KRSSLQJ FHQWHUV+RWHOV

8QLYHVLW\,QWURGXFWLRQLQ 12

advantages and setting of the value
Benchmark value
Frequency
is set as the top 10%20% business
10%-20%operators to satisfy,
which is a kind of top
More
Less
runner.
Efficient Benchmark index Efficient

examples of industry benchmark indices and value

Paperboard manufacturer
Petrochemical basic productmanufacturer
Soda chemical manufacturer

Aimed levelӌ0.531kl/t

Sum of unit consumption (energy consumption per unit quantity of crude steel) of upper processes and unit consumption(energy consumption per unit rolled metal quantity) of lower processes. Modification by out-of-fire refining is applied toupper processes, and modification by kind of product is applied to lower processes.
Sum of energy consumption of the following processes; raw material, calcination, finishing, and also shipping and other,divided by the production amounts or shipping amount of the respective processes.
Energy consumption in paperboard manufacturing processes per paperboard production amount. Modification by
production of specific products is applied.
Energy consumption in the production of ethylene and the like products divided by the production volume of ethylene andethylene related components of the like products.

ӌ0.150kl/t

ӌ4,944MJ/t
ӌ11.9GJ/t

ActionReportrecommendation of actions

Supports for small and medium businesses

Energy Audit by METI project
ECCJ has conducted more than 15,000 freeenergy audits since 1978. Recently, the main
target is small & medium factory/building.

Planning

Indices related to non-fossil energy
adopted by business operators(not mandatory)

ӌ3,739MJ/t

Sum of energy consumption in electrolysis processes divided by the weight of caustic soda derived from electrolytic tanks, ӌ3.22GJ/t
and the steam heat consumption in condensation processes divided by the weight of liquid caustic soda.

Energy audit in Japan

Target setting

Non-fossil energy index
indices separately defined forseveral subsectors
with expected value levels

Source: EC Guideline (METI)

Benchmark indices
Energy consumption per basic unit quantity of crude steel.

Business operators

Non-fossil electricity ratio(non fossil electricity account tototal electricity account)14

site-oriented improvement promotion scheme

ECCJ Web information on site audit
reports
food

parts

Further support by local platforms
wine

fiber

deviceparts

Classified information searchTechnical

Cement manufacturer

Indicesenergy efficiency results

Business operation
Steel manufacturer using blast
furnaces
Ordinary steel manufacturer
using electric furnaceNonnn-fossil
target systemenergy management level
progress of in
improvement
management
and analysis
potential

audit, diagnosis

Stage-3large investment

engineering
human potential

Stage-2
Medium investment

Stage-1
small and high return ration investment

Practical

Advantages of the benchmark
target;䞉 raising motivation to pursue a
realizable target䞉 useful in the evaluation process
as a fair target.

stages16
16

15

A case study

Management in a large businessTechnical trends and development

Corresponding SDGs

Technological Development

The case of iron and steel industry

process innovation (CC, CAPL, PCI, CMC, expansion use of EF)

Basic
Philosophy

Reducing environmental footprint
as a high priority environmental strategy together with
developing sustainable products, andsustainable and responsible procurement

Current
activity(problemsandmeasures)

Promotion of field/site based energy conservation
Measurement and visualization→ To review efficiency of the production method and line
Power consumption prediction system
Input: production plan, actual power consumptions, meteorological data
Output: prediction of power consumption and solar generation→ To establish standard production plan based on the weather conditions
Enhancement of motivation
Reporting on EE actions directly to higher managements
System to allow energy data to any member anytime(results) 10% reduction of energy consumption/CO2 emission
17

process improvement (hot charge, thermal control, …)

efficient use of byproduct gas, combined cycle, …
TRT, CDQ, regenerating burner, …
Use fo waste plastics, …
Energyutilization

Net energy consumption

ferro cokes

COURCE50

Development for future:
innovative reduction
performance

The commitment for a lowcarbon society
Eco Process
Eco Solution
Eco Producs
Energygyy recoveryry
as use of bybyb
y-pr
productproduct gas
exhaust heat recovery
use of waste material

՜ԁӽ

՜ԂӺ

՜ԃӺ

՜ӺӺ

՜ӻӺ

Made using information by Japan Iron and Steel Federation

149

18

Heating facility and heat pump
CHP (cogeneration)
Capacity ofheatingandcooling

Review on Technologies

electricity

BoilerCHP

multiple high efficiency
small once through boiler

multiple
small boiler

refrigerator

steam
st

Cooling(thermalexchange) hot water steam
Heat pump coverage heat pumpheat pumpppheat pump

Heat Pump : COP increases.
8

Electrification ratio

Hot water0

Industry

7100
Temperature‫ق‬Υ‫ك‬

6

COP

5
4
3
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

ECCJ
19

Cogeneration

Industrial furnace

Source: “Energy Conservation” (ECCJ) Mar 2022 and Dec 2022

Accumulated implementation volume of cogenerationin Japan (industry and business)

A case of application(Kiyohara industry area,
Tochigi pref., Japan)

Application of recent technologies for higher
efficiency including regenerative burnersystems

Generation capacity
businesscoefficient of performance (COP)= output energy (heat transfer) / input energy

Regenerative burner

exhaust gas suction

combustion
exhaustIndustryy

airEnergy center

alternative use

Energy management system

Technological study
for future
possibility ofuse of non-fossil
energy resource

Solar power generation
Gas
Gas cogeneration system

year

Multiple once-through boilers
21

22

FEMS and optimization
FEMS: management and visualization

conclusion
Optimization of production energy(1) The energy efficiency of Japan’s Industry has been improved bytechnologies such as heat recovery. Currently, it is also improving but not
rapidly. It is necessary to promote multilateral measures of policy andtechnology.
(2) EC Act (amendment) will promote energy conservation, conversion to
non-fossil energy, and optimal use of electricity.
(3) Measures appropriate to respective fields or businesses, should betaken; such as energy audits for small and medium-sized businesses,
carbon emission reduction targets for large businesses, energy efficiency
benchmark target values for subsectors, etc.
(4) The efficiency of thermal systems should be raised by expanding heatpumps, cogenerations, high-efficiency boilers and combustion systems.
Also, technologies for the use of non-fossil energy is important.
(5) It is expected that FEMS including visualization, effective production
planning, and control for the entire production process, will be useful.

• Measurement andenergy visualization• Flexible fabrication bycompact equipment
and arrangement• Minimum consumption
control according to
production demand• Renkei (cooperative)
control
Source: ”Energy Conservation” (ECCJ) Dec. 2023
Source of figure: Hitachi, Omika Works“EMWG leadership awards document in public”

23

150

24

2-13. Energy Management System and Smart Cities: Current Situation and its Future in the Philippines            

ENERGY MANAGEMENT SYSTEM AND SMART CITIES:Current Situation and its Future in the Philippines
UNDERSECRETARY FELIX WILLIAM B. FUENTEBELLA
Department of Energy, The Philippines

EMERGING

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$0$*(/(05151DOE Information
Campaign Activities

Thank you!
Rizal Drive Corner 34th
Street Bonifacio Global City
Taguig City

(02) 8479-2900

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DOEgovph152

2-14. Implementation of Energy Management System on Campus Buildings in Indonesia

Education(Ph.D.), Architectural Acoustics, University Of Michigan, USA(M.Sc.), Acoustics, Brigham Young University, USA(S.T.), Architectural Engineering, Universitas Gadjah Mada
Area of Research

Ir. Sentagi Sesotya Utami, S.T., M.Sc., Ph.D., IPU.
Email : sentagi@ugm.ac.id

Building Physics and Green Building
Research Topic㻞㻟㻌㻶㼍㼚㼡㼍㼞㼥㻌㻞㻜㻞㻠㻘㻌㻿㼔㼕㼚㼍㼓㼍㼣㼍㻘㻌㼀㼛㼗㼥㼛㻮㼥㼥㻌㻦㻦㻌㻿㼑㼚㼠㼍㼓㼕㼕㻌㻿㼑㼟㼛㼠㼥㼍㼍㻌㼁㼠㼍㼙㼕㻘㻘㻌㻼㼔㻚㻰㻚㼑㻌㻼㼞㼛㼒㼑㼟㼟㼛㼞㼞㻌㼕㼚㼚㻌㻱㼚㼓㼕㼚㼑㼑㼞㼕㼚㼓㼓㻌㻼㼔㼥㼟㼕㼏㼟㼟㻌㼁㻳㻹㻭㼟㼟㼛㼏㼕㼍㼠㼑•

Coordinator of University Reputation Unit

Developing methods to achieve nZEB model in Yogyakarta and Bandung(USAID Shera)• Associate Professor in Building Physics• Coordinator of INSGREEB (Integrated

Implementation of Soft Sensor Technology in Building Management System
for IEQ and Energy Efficiency Performances of Tropical Buildings.

Smart and Green Building) Research Group

Development towards commercialization of Fit To Work Monitoring System
for Workers in High-Risk Industries

http://insgreeb.ft.ugm.ac.id/

Adapted to Covid-19 conditions,the innovation continues with a
new paradigm 'Healthy, but stillenergy efficient'

Focus on integratingbuilding physics andacoustics using smart
instrumentation andsystems

Publication

Integrated Smart andGreen Building
Research Group

Automation
System

UN climate change report on 4 April 2022 :Carbon emissions from 2010-2019 have never been higher in humanhistory, proof that the world is on a “fast track” to disaster.

New
Renewable
CnergyBuilding
physics

It’s ‘now or never’ to limit global warming to 1.5 degrees.
(UN News) https://news.un.org/en/story/2022/04/1115452(World Resources Institute) https://www.wri.org/blog/2018/10/8-things-you-need-know-about-ipcc-15-c-report

InSGreeB

http://insgreeb.ft.ugm.ac.id/㻯㼛㼚㼠㼞㼕㼎㼡㼠㼕㼛㼚㻌㼠㼛㻌㻯㻻㻞㻌㻱㼙㼕㼟㼟㼕㼛㼚㼟㻘㻌㻑㻵㼚㼐㼡㼟㼠㼞㼥

㻮㼡㼕㼘㼐㼕㼚㼓

Pillars ofIndonesian
Development2045

㼀㼞㼍㼚㼟㼜㼛㼞㼠㼍㼠㼕㼛㼚

Human Development
and Mastery of
Science andTechnology

Sustainable
Economic
Development

Accelerating the
education of theIndonesian people evenly

Increased investment andforeign trade

Increasing the role ofculture in development
Increasing thecontribution of scienceand technology todevelopment
Increasing the level ofhealth and quality of lifeof the people㻰㼕㼟㼠㼞㼕㼎㼡㼠㼕㼛㼚㻌㼛㼒㻌㻯㼛㻞㻌㻱㼙㼕㼟㼟㼕㼛㼚㼟㻌㼎㼥㻌㼟㼑㼏㼠㼛㼞㻌㼒㼛㼞㻌㼑㼚㼑㼞㼓㼥㻌㼡㼟㼑㻌㼒㼛㼞㻌㼠㼔㼑㻌㻞㻜㻝㻝㻙㻞㻜㻞㻝㻌㼜㼑㼞㼕㼛㼐㻿㼛㼡㼞㼏㼑㻦㻌㻳㼞㼑㼑㼚㻌㻮㼡㼕㼘㼐㼕㼚㼓㻌㻾㼛㼍㼐㻌㻹㼍㼜㻌㻮㼛㼛㼗㻌㻔㻞㻜㻞㻠㻘㻌㼚㼛㼠㻌㼥㼑㼠㻌㼜㼡㼎㼘㼕㼟㼔㼑㼐㻕

Labor reform
Source: 'Indonesia 2045: Ministry of
National Development
Planning/Bappenas, May 2019153

Equitable
development

Accelerating poverty
alleviation

Acceleration of industry
and tourism
Maritime economic
development

Equal distribution ofbusiness opportunities
and income

Strengthening foodsecurity and improving
farmer welfare

Equal distribution ofregional development

Strengthen energy andwater security
Commitment to theenvironment

Equitable and integrated
infrastructuredevelopment

Strengthening
Indonesia's Resilienceand Governance

Substantive democracy

Institutional andbureaucratic reform
Strengthening Indonesia's
legal system and anticorruption
Free and active foreign
policyStrengthening resilience andsecurity

Minister for National Development Planning
Regulation Number 11 Year 2020 concerning
strategic plans of the Ministry of National
Development Planning/National Development
Planning Agency for 2020-2024

Standard for Smart Building in Indonesia

Parameters• Cybersecurity• Communication protocols
and networks• Data and system
integration• System capabilities

Minister of Public Works and Public
Housing Regulation Number 10 Year2023 concerning Smart Buildings

Smart Building (BGC)
Minister of Public Works and Public
Housing Regulation Number
02/PRT/M/2015 Year 2015
concerning Green Buildings

Capable of continuous
development

Green Building (BGH)㻿㻻㼁㻾㻯㻱㻦㻌㻮㻳㻯㻌㼀㻱㻯㻴㻺㻵㻯㻭㻸㻌㻿㼀㻭㻺㻰㻭㻾㻰㻿㻌㻒㻌㻭㻿㻿㻱㻿㻿㻹㻱㻺㼀㻘㻌㻹㻵㻺㻵㻿㼀㻾㼅㻌㻻㻲㻌㻼㼁㻼㻾

Integrated Building Management System

1. LLC (Law Learning Center)
2. IFFLC (Integrated Forest Farming Learning Center)
3. ASLC (Animal Science Learning Center)
4. AGLC (Agrotropica Learning Center)
5. FRC (Field Research Center)
6. TILC (Teaching Industry Learning Center)
7. DLC (Dental Learning Center)
8. APSLC (Advanced Pharmaceutical Sciences
Learning Center)
9. SGLC (Smart and Green Learning Center)10.ERIC (Engineering Research Innovation Center)

Energy Monitoring System

Sensors and Control System- Building Management
System

HVAC Automation System

Weather Station

154

Others :• Accelerometer• Water meters

Lighting Automation System㻭㼡㼠㼛㼙㼍㼠㼕㼦㼍㼠㼕㼛㼚Lighting automation

Purpose of automatization:

Automatization

User
Satisfaction

To monitor, arrange, and control all the building systems
intended for an optimal and efficient operation that is
responsive to the occupant’s needs

Flexible

Method and Tools for measurement:•

9 Principles of Smart
Building System

Connected andIntegrated

Use of Artificial
Intelligence

EnergyManagement
implemented

Cyber Security
applied••Ongoing
Monitoring

The sensor’s reading must be valid in characterizing thephenomenon of the occupant's activity areas
Efficient, easy in utilization, and does not agitate occupants
Depends on sensor’s selection and placement

Common problem in sensor’s
selection and placement:••

Inclusive㻿㼛㼡㼞㼏㼑㻦㻌㼀㼑㼏㼔㼚㼕㼏㼍㼘㻌㻿㼠㼍㼚㼐㼍㼞㼐㻌㼛㼚㻌㻮㻳㻯㻌㼍㼚㼐㻌㻭㼟㼟㼑㼟㼟㼙㼑㼚㼠㻌㻳㼡㼕㼐㼑㼘㼕㼚㼑㻘㻌㻹㼕㼚㼕㼟㼠㼞㼥㻌㼛㼒㻌㻼㼡㼎㼘㼕㼏㻌㼃㼛㼞㼗㻌㻼㼁㻼㻾㻭㼡㼠㼛㼙㼍㼠㼕㼦㼍㼠㼕㼛㼚

Wael Alsafery, Omer Rana, and Charith Perera. 2023. Sensing within Smart Buildings: A Survey. ACM
Comput. Surv. 55, July 2023.

㻭㼡㼠㼛㼙㼍㼠㼕㼦㼍㼠㼕㼛㼚

Thermal and IAQ

Purpose of automatization:

Purpose of automatization:

To monitor, arrange, and control all the building systems
intended for an optimal and efficient operation that is
responsive to the occupant’s needs

To monitor, arrange, and control all the building systems
intended for an optimal and efficient operation that is
responsive to the occupant’s needs

Control Algorithm requirements :•••Thermal Sensors Placement Requirements :••The use of occupancy sensors todetect movement with PIR. Most are
installed near the ceiling in areas
where movements are difficult to
detect.
Most readings from the light intensity
sensors do not conform withoccupants' visual perception sincemeasurement are at the work planeheights, meanwhile the sensors are on
the ceiling.

HVAC automation system The VRV system are controlled automatically based on a fixedschedule for an entire year.

Complies with the occupants’ thermal
comfort needs.
Includes environmental variables (climate,occupants' behavior, and activity patterns)
to accommodate dynamic response.
The responsive system is only possible if thecontrol algorithm integrates with thesensors.

The sensor’s reading must be valid in characterizing thephenomenon of the occupant's activity areas
The sensor’s readings should comply with occupants’ thermal
comfort perception. Measurements should be around headheights and for sitting position at 1,1 m height.

㻭㼡㼠㼛㼙㼍㼠㼕㼦㼍㼠㼕㼛㼚

Data required for Control Algorithm

Purpose of automatization:
To monitor, arrange, and control all the building systems
intended for an optimal and efficient operation that is
responsive to the occupant’s needs
 Manual POE㻯㼛㼚㼚㼑㼏㼠㼑㼐㻌㼍㼚㼐㻌㻵㼚㼠㼑㼓㼞㼍㼠㼑㼐㻯㼥㼎㼑㼞㻙㼟㼑㼏㼡㼞㼕㼠㼥㻌㻭㼜㼜㼘㼕㼑㼐Key for integration :Key for a secured system :Open Data Structure andInformation (Technology and
Human wise)

Post Occupancy Evaluation (POE)

Regulation, technology, andculture readiness

CFD Simulation for Natural Ventilation Availability

 Smart POE
Gelanggang Inovasi dan Kreativitas UGM㼁㼟㼑㻌㼛㼒㻌㻭㻵㻌Purpose for implementation :To collect, analyze, and utilize the data to create asystem that is well connected and integrated155㼁㼟㼑㼞㼟㻌㻿㼍㼠㼕㼟㼒㼍㼏㼠㼕㼛㼚Key to achieve occupant satisfaction:
The Platform adapts and prioritizes the building
occupant’s needs in terms of safety, health, comfort,
accessibility, security while improving life quality andincreasing productivity

Upper layer : HMI, User monitoring and control

㼀㼔㼍㼚㼗㻌㼥㼛㼡Middle layer : Data processing and Database
Bottom layer : Sensors, controllers, and actuators

Questions :••••How would the ‘business model’ be?
Who would be involved?
What kind of information will be delivered?
What kind of technology should be applied?

Features :ISO 9241-11:2018 : Ergonomics of human-system interaction• A user-friendly HMI (for operators, engineers,building managers).
• System security• Data Logging• Control Algorithm• Remote connectivity

156