September 2021

Special Feature

Challenge on Clean Energy
JBIC’s initiatives in anticipation of the energy transformation,connecting Japanese companies’ capabilities to the world
Collaboration with Companies with Outstanding Technologies and Networks
JBIC Pursues Global Decarbonization
Production, Transportation, Storage, Utilization
Global Supply Chain Underpinning a Hydrogen-based Society
Contributing toward Global Climate Change Measures by Supporting Environmental Initiatives in Asia,
while Considering Individual Countries’ Circumstances

Our Global Challenges-Oizuru Corporation
Applying Common Management Criteria for Operation of both Head Office in Japan and Local Subsidiary in Thailand
Realizing Self-directed Improvement with the Growth of Local Staff

Project Frontline Our People and Their WorkThe First Waste to Energy Project in Dubai, an Experience Full of Firsts
First Credit Line to Government of Republic of Benin under GREEN Operations

Special Feature

Challenge on Clean Energy

JBIC’s initiatives in anticipation of the energy transformation,connecting Japanese companies’ capabilities to the world
In October 2020, Japanese Prime Minister SUGA Yoshihide declared an aim of “carbon neutrality by
2050.” This ambitious goal of net-zero greenhouse gas emissions by 2050 also represents a government
policy of achieving that goal without undue restraint or limitation on economic activities, throughmeasures that are integrated with growth strategy. What needs to be done to further disseminate andexpand clean energy in a way that will contribute significantly toward decarbonization? JBIC will searchfor clues to game-changing innovations that will answer that question.
Hydrogen-related projects are the key to achieving carbon neutrality by 2050.
This is a field where Japan has been taking on the challenge ahead of the rest of the world.
Japan’s 2050 carbon neutrality declaration
had quite an impact, but Japan is not the only
country with such a goal. Both the EU and theUnited States have set 2050 as their target year
for net zero. China, the world's largest emitterof greenhouse gases, has also declared its own
target of net zero by 2060. As global averagetemperatures continue to climb, attention will
focus even more on investment in clean energy
as a way of balancing the realization of the
global challenge of carbon neutrality withstrategies for long-term growth.
The Green Growth Strategy ThroughAchieving Carbon Neutrality in 2050
formulated by the Ministry of Economy, Tradeand Industry (METI) contains the phrase,”
Gone are the days when countermeasures toglobal warming are considered as a cost or
constraint to the economic growth; the world
has entered a new era to grasp them as agreat opportunity for further prosperity.” As
this suggests, proactive consideration ofcountermeasures will be important.
With decarbonization of the power
sector as a major premise, the Green Growth
Strategy proposes the use and application of“renewable energies” and “hydrogen power
generation,” while describing a policy of
promoting “electrification” in other sectors
and responding to demand for heat with“hydrogenation” and “CO2 capture.” Whatshould we do to hone the technologies needed
for carbon neutrality, implement them insociety, and disseminate them? The answer tothis question may lead to major business
opportunities.
Japan’s strengths lie in hydrogen-related
businesses in particular. Japan is leading theworld in the commercialization of hydrogenand has contributed greatly toward thedevelopment of the market for fuel cellvehicles. Also in terms of policy, METI has
formulated a Basic Hydrogen Strategy and aStrategic Road Map for Hydrogen and Fuel
Cells. As stated in the Green Growth Strategy,“Hydrogen, which can be widely used invarious sectors (power generation, industry,transportation, etc.) is a key technology toachieve carbon neutrality,” the importance ofhydrogen is expected to grow even further.
In anticipation of the global expansion of
innovative corporate initiatives, JBIC has beendeveloping the necessary programs to supporthydrogen-related projects. In addition to thepositioning of hydrogen as “a strategicallyimportant natural resource to Japan” in January
2020, the Enforcement Order of the Japan
Bank for International Cooperation Act wasrevised, making it possible for JBIC to support
a wide range of hydrogen-related projects inGreenhouse gas emissions reduction targets
in major countries and regions around the world
Source: Nikkei Inc.

Japan
United States

2030

2050

–46%

Net-zero-50% to -52%

Prepared based on sourcesfrom the Ministry of
the Environment

China
28.4%

Japan aims to realize carbon neutrality in 2050. What is the roadmap for that?
Based on data from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry, December 202020182030 mix

2050

1.06 billion ton

0.93 billion ton (–25%)

Emission reduction + Removals = net zero (–100%)
Future discussion will not be limited to this reference value

Consumer 0.11 bil ton
Consumer 0.09 bil ton

Nonelectricity

electrification

Industry 0.3 bil ton
Industry 0.33 bil ton
Transport 0.2 bil ton

Hydrogen, methanation, synthesis fuel, biomass

Transport 0.15 bil ton

EU–55% or more

Net-zero

Japan
3.2%

Net-zero

Russia4.7%

30-50% increase ofelectricity demand

Fossil fuelDecarbonized electric sources
electricity

Renewables
NuclearThermal + CCUS/Carbon Recycling
Hydrogen/ammonia

0.45 bil ton
0.36 bil ton

Plantation, DACCS

50-60%
30-40%
10%

Maximum
usage of CCUS

Note) Values are the amounts of CO2 derived from energy

India

6.9%

Hydrogen source

Blue hydrogen
Derived from fossil fuel (steam reformingof natural gas, etc.) + CCUS, etc.

Total emissions
in 2018:
approx.
33.5 billion tons

(2060)

two types of finance —green finance that
focuses on renewable energy and transition
finance that supports existing businesses inthe transition to low-carbon and zero-carbon
operations. Roughly speaking, green
finance, whose target has been expanded todownstream sectors, is mainly provided inEurope, while transition finance, which takes
the energy circumstances of individual
countries into account, is primarily provided
in Asia.
Reducing greenhouse gas emissions is a
global common goal, but the path toachieving carbon neutrality will naturally
vary in individual countries and regions,
given their differing energy circumstances.
Going forward, engagement will be more
important than divestment. JBIC sees its role
as supporting the realization of carbon
neutrality from the financial angle to meetthe respective challenges facing individual
countries, mainly in Asia.

Various kinds of support are needed to develop the hydrogen supply chain

Other
32.6%

Net-zeroNote) The base years for reductions by 2030 are FY2013 in Japan,
2005 in U.S. and China, and 1990 in EU and U.K.

renewable energy is not stable due to its
reliance on natural energy such as windconditions and sunlight, to date, it has been
controlled by the power transmission side.
In other words, the volume of electricity
transmitted has been controlled, which has led
generated power to go to waste. As such, more
recently, the spotlight has been on theresilience of the power grid and mechanisms
for control by the demand side. One example
is a project in the island of Ireland fornext-generation power battery systems for the
adjustment of power supply and demand. In
this project, in which JBIC invested last year,
batteries with the fast response capability andhigh discharge capacity are used to provide
ancillary power from renewable energy.
Renewable energy-related businesses will
expand downstream, from generation totransmission and distribution of power, somany Japanese companies may find business
opportunities there. JBIC mainly provides

Global CO2 emissions from energy

Reverse growth in emissions–65% or more in per-GDP emissions–68% or more(–78% by 2035)

Establishing renewable energy and power
grids is another extremely significant theme.
JBIC has been supporting power
generation projects in Asia, in particularIndonesia, and the Middle East since the1990s. In the beginning, it dealt primarily
with fossil-fuel projects, but there has
been a gradual increase in the number ofrenewable energy projects. In Europe inparticular, where there has been a marked
rise in wind power generation, JBIC has
been involved in offshore wind power
generation projects in the Netherlands and
UK. JBIC has also supported international
renewable energy development projects invarious sectors by Japanese companies,
including onshore wind power generation
projects in Egypt and Morocco andphotovoltaic power generation projects in
Middle Eastern countries such as Jordan,
Qatar, and Saudi Arabia.
However, as power generated from

Carbonremoval

China

United Kingdom

2

Net-zerodeveloped countries. JBIC has also expanded
the sectors that are eligible for support throughrisk-taking under JBIC’s “Special Operations”
to include projects that use cutting-edge
technologies and commercialization projects.
Having established and launched the
Post-COVID-19 Growth Facility in December
2020, JBIC will continue to support theoverseas expansion of high - quality
infrastructure toward a decarbonized society.
JBIC’s goal is to support the developmentof an international hydrogen supply chain thatconnects hydrogen sources, carriers andtransportation, and the use and application ofhydrogen. One example of envisaged support
is the blue hydrogen production project, inwhich hydrogen is produced from natural gas.
Because carbon dioxide is generated duringhydrogen production, it needs to be combinedwith carbon capture, utilization and storage(CCUS) technology. Green hydrogen, which
produces hydrogen from renewable energy, ahydrogen carrier that transports the hydrogenproduced, and a fuel ammonia production
project will also be supported by this facility. In
this way, focusing on hydrogen, we hope tocreate an environment that will lead to the
expansion of business opportunities byleveraging the technological capabilities ofJapanese companies.

JBIC will seek to provide comprehensive support of entire clean strategies,
leveraging its wealth of experience in individual energy sectors
Planning energy projects to suit individual countries and regions

United States
14.7%

EU+
United Kingdom
9.4%Note) Total is not 100 due torounding off of figures.

Production of hydrogen carrier / Transportation

Use and application

Pipelines

Power generation
Direct use

Liquefied hydrogen (LH2)

Green hydrogen

Ammonia (NH3)Electrolysis of water with power derived fromrenewable energy (solar power, wind power, etc.)

Methylcyclohexane (MCH)

CarriervesselTransportation
Heat source

Dehydrogenation

Industrial use

JBIC support3

Challenge on Clean Energy

Collaboration with Companies with Outstanding
Technologies and Networks
JBIC Pursues Global Decarbonization
Accelerating the shared global race toward decarbonization will require collaborating with overseas companies, while also
making use of the strengths of Japanese companies. JBIC interviewed MIZUKAWA Ko from Mitsui & Co., Ltd. and TAKAHASHI
Yusuke from Hitachi Ltd.

Power grid business attracts attention due to acceleration of renewable energy
Synergy from collaboration with global market leader, Hitachi ABB Power Grids

Hydrogen supply infrastructure essential to expand use of fuel cell vehicles
Hydrogen stations being built in California, a state with high environmental awareness

MIZUKAWA Ko

General Manager,
Advanced Composite Materials Department
Functional Materials Division
Performance Materials Business Unit
Mitsui & Co., Ltd.

Mitsui & Co., Ltd. (Mitsui) and the Japan
Bank for International Cooperation (JBIC)
have jointly invested a total of USD48 million
in FirstElement Fuel, Inc. (FEF), a US-based
developer and operator of hydrogen refuelingstations. California, where FEF is developing
its business, has introduced uniqueenvironmental policies. The state’s
Zero-Emission Vehicle (ZEV) Requirements
are a typical example. Under these regulations,
automotive manufacturers that sell
automobiles in California are required to sell
ZEVs, such as electric vehicles (EVs) and fuelcell vehicles (FCVs), as a certain percentage of
their California sales. This move has
contributed toward California’s growth into
one of the world’s largest FCV markets, withapproximately 10,000 FCVs now on California’sroads.
EVs are generally considered to beunsuitable for traveling long distances due totheir short driving ranges. On the other hand,
FCVs, which have long driving ranges andshort charging times, are increasingly being
used in various forms of mobility, includingcommercial vehicles, special vehicles,
maritime, and locomotive, as well as passenger
vehicles. As such, FCVs are being
differentiated from EVs and are growing in
popularity. The use of fuel cells for industrial
purposes, such as emergency power for data
centers, is also expanding, giving them agrowing reputation as a technology that willcontribute toward the realization of ahydrogen-based society.
Establishment of the hydrogen supply
infrastructure is key to getting more FCVs on
the road. As well as the ZEV Requirements,
California has also introduced a carbon credit
scheme aimed at the expansion of thehydrogen station network. Public funds arebeing provided to cover some of theinstallation costs of hydrogen stations, but, in
addition, under the carbon credit scheme,
station operators are given tradable
environment value credits, which quantify thedecarbonization effects of hydrogen sales.
Conversely, producers of CO2 emitting fossil
fuels such as diesel fuel and gasoline, which
are a burden on the environment, are required
to pay penalties for that environmental burden
by purchasing credits. This credit scheme
provides a mechanism that circulates funds
through the purchase of environmental credits
by fossil fuel producers from hydrogen station
operators.
The ZEV Requirements to encourage
automotive
manufacturers
tosell
environmentally friendly vehicles, theintroduction of the credit scheme to promote
the circulation of funds in the market, as wellas the provision of public funds signify
California’s initiatives to support theestablishment of infrastructure.
Mitsui started working with FEF in 2019.
FEF is unique in providing one-stop-shop

Press release about this matter
https://www.jbic.go.jp/en/information/press/press-2020/0617-013499.html
4services, including engineering, design, andconstruction of hydrogen refueling stations, aswell as their operation and maintenance.
In the operation phase, the operating statusof all stations is monitored by remote control
24 hours a day. If a problem arises, thecompany’s maintenance staff will bedispatched to the site immediately to resolve it.
This system allows FEF to maintain highoperating rates at its stations, as well as toaccumulate various findings and data
regarding maintenance. Through the provisionof financial and other support to FEF’s
business in its pursuit of highly specialized andinnovative initiatives, Mitsui hopes to leverage
its knowledge, expertise, and networks in awide variety of industries to accelerate theexpansion of FEF’s business.
There are currently 48 hydrogen refuelingstations in California. FEF owns 28 out of those
48 stations and is planning to increase that
number to 80 by 2025. In California, with theregulation of commercial vehicles such astrucks and buses set to tighten over coming
years, FCVs are likely to attract even more
attention. Mitsui continues to support FEF in
its deployment of hydrogen stations for the
popularization of FCVs through infrastructuredevelopment. Through FEF’s business, we
also hope to contribute toward the realizationof a hydrogen-based society.

Two types of hydrogen fuel, 70MPa for passenger vehicles and
35MPa for heavy vehicles, are available.

TAKAHASHI Yusuke
General Manager,
Business Planning & Management Division,
Energy Business Administration Division
Hitachi, Ltd.

In July 2020, Hitachi, Ltd. (Hitachi)
acquired the power grids business of ABB Ltd.
(ABB) in Switzerland and established Hitachi
ABB Power Grids Ltd.* (Hitachi ABB). Our
hope is that we will be able to further enhance
Hitachi’s energy solutions business byleveraging the strengths of Hitachi ABB, with
its global business base network andstandardized business practices.
Hitachi ABB has four global business units.
The Grid Automation business unit handles
automation products and remote monitoring
control systems, the Grid Integration business
unit handles high voltage direct current(HVDC) systems, the High Voltage Products
businessunit
handleshighvoltageswitchgears/ components and generator
circuit breakers, and the Transformers
business unit handles power transformers andpower distribution transformers. All fourbusiness units boast the top share in theirrespective global markets.
Particularly noteworthy is the HVDC
system, which transmits power by high-voltage
direct current. This is a proprietary technologythat ABB developed more than 65 years ago.
This system provides large-capacity powertransmission over long distances with higher
efficiency and less power loss. It also enables
safe and stable power transmission between

areas with different voltages or frequencies,
such as between eastern and western Japan.
In December 2020, Hitachi ABB launched atrial energization of the NordLink project, thefirst interconnection project linking Germany
and Norway, using one of the world’s largest
Voltage-Sourced Converter HVDC systems
engineered by Hitachi ABB.
Both countries have their respective
strengths, namely, wind and solar power
generation in Germany and hydroelectric
power generation in Norway, but renewableenergies are subject to fluctuations in theamount of power generated. The NordLink
project involves the installation of a 623-km
long HVDC electricity interconnection with acapacity of 1,400 megawatts (MW) and voltage
level of 525 kilovolts (kV), linking Germany
and Norway. This project aims to contributetoward the expansion of renewable energy use
by allowing the two countries to shareelectricity. For example, if wind conditions are
good, Germany will send power to Norway,
and in the event of spikes in Germany’s
electricity demand, Norway will supply
hydropower-generated electricity to Germany.
The installation of Hitachi ABB’s HVDC
system nearly doubles the project’s powertransmission capacity compared with earlier
systems, improving overall reliability andavailability in the grid. As well as increasing
the capacity of cross-border electricity tradingin the future, HVDC will help to accelerate theuse of bulk and distributed renewable energy
sources.
While there are many plans for offshore
wind - power generation aimed at adecarbonized society in Japan, Hitachi ABB’s
stable design and production technologies, thecultivation of which has been underpinned by
the company’s extensive track record
overseas, will allow us to work on those plans
without the need for massive capital
investment.
Enhancing the use of renewable energy will
require grid connections that link theconsumption areas to the limited locations
suited to power generation. For long distancetransmission in particular, HVDC systems willbe essential to minimize the power loss
through transmission. Another challenge willbe the adjustment of the supply and demand ofgenerated power, which fluctuates according

to weather conditions. By combining Hitachi
ABB’s tremendous expertise in grid solutionsin the global market and Hitachi’s digitalsolutions, we can resolve these challenges by
providing new services that respond toever-changing market needs.
Different countries and regions havedifferent power source circumstances andareas of future growth. However, from theperspective of global macro trends, we believethat demand will likely increase in theelectricity market in individual countries andthat Hitachi ABB’s wealth of expertise willallow it to contribute toward this trend. In the
future, Europe will need power grids that canaccommodate the expansion of EVs and EV
Charging stations, as well as the hybridizationof the railways. The Middle East will needinitiatives for renewable energy and smart
infrastructure in urban areas, and India willneed the establishment and digitalization of
National Grid.
Hitachi ABB already has indispensable
expertise with well-established standardized
work practices that are globally applicable. A
year after the establishment of the newcompany, by taking advantage of theirrespective strengths, Hitachi ABB and Hitachi
hope to contribute to achieving decarbonization
with green power around the world.

HVDC system adopted for the interconnection project linking
Germany and Norway

In Europe, environmentally-friendly grids responding toelectrification in mobility are attracting attention.

*Hitachi ABB Power Grids will become Hitachi Energy in October 2021.

5

Challenge on Clean Energy

Production, Transportation, Storage, Utilization
Global Supply Chain Underpinninga Hydrogen-based Society
Kawasaki Heavy Industries (KHI) has been working on hydrogen-related businesses for over 10 years. JBIC interviewed HARADA
Eiichi, Managing Executive Officer of KHI, which is making progress toward the realization of a hydrogen-based society, fromdemonstration projects, including world-first trials, to large-scale demonstration projects and commercialization in 2030.
New development of hydrogen technology using LNG technology
Aiming to realize carbon neutrality without patience or sacrifice

HARADA Eiichi Ph.D.
in Engineering,
Managing Executive Officer,
General Manager, Hydrogen Strategy Division,
Kawasaki Heavy Industries, Ltd.

KHI has been developing hydrogen-related
technologies for quite some time, including the
manufacture of hydrogen gas turbines and thedevelopment of liquefied hydrogen tank for H2
rockets. A major turning point came just before
the Kyoto Protocol’s first commitment periodbegan in 2008. Amid rising expectations forrenewable energies, we decided to take on thehydrogen challenge.
We focused on coal in Australia’s Latrobe
Valley. The abundance of the coal reserves
does satisfy the criterion of availability in large
quantities.
Price is another issue. To decrease theprice, it would need to be used in massive
quantities. At KHI, we decided that thisproblem could be surmounted by building a
global hydrogen supply chain, namely to
produce hydrogen, transport it to Japan, store it
safely, and utilize it as energy. We are now
working on this project with the aim of thecommercialization in 2030.
At the supply chain’s starting point of
production, brown coal is treated at hightemperatures to produce hydrogen gas, whichis then liquefied. The CO2 generated by thatprocess is stored at the brown coal mining siteusing Carbon Capture and Storage (CCS)
6technology. For the transportation and storage
stages, KHI has also developed a carrier totransport the liquefied hydrogen. For theutilization stage, we are consideringvarious ways to utilize hydrogen, such as
developing a co-generation system (CGS)
using hydrogen gas turbines.
Our knowledge in liquefied natural gas(LNG) contributed greatly toward technologicaldevelopment. However, while natural gas
changes to a liquid state at –162°C, hydrogengas needs to be cooled to –253°C. This was amajor departure from conventional technology.
The most challenging part of this project tothat point had been the development of aliquefied hydrogen carrier. As this would be
the first attempt to transport liquefiedhydrogen in the world, there were nointernational standards. So we consulted
Japan’s Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) and asked
them to promote the establishment ofinternational rules. Once approval wasreceived from the International Maritime
Organization (IMO) in 2016, building of thecarrier accelerated, and demonstration trials at
sea started in October 2020.
We have also been involved in setting up
various organizations, such as the Japan
Hydrogen Association (JH2A), to promote theadoption of hydrogen in society, and we joined
the Hydrogen Council, a global initiative of 123
leading companies from around the world. In
2019, the latter organization announced amajor target of growing the globalhydrogen-related market to a scale of USD2.5
trillion in annual sales by 2050. Our hope isthat, as more and more companies become
involved in the Hydrogen Council, there will be
more opportunities for the utilization ofhydrogen, which will make the cost of usinghydrogen more reasonable.
Reducing greenhouse gas emissions is an
important theme. That hydrogen is initiallyexpensive is an obvious fact. However, as manyhydrogen-related technologies have beenoriginated in Japan, the utilization of hydrogen
will turn the cycle of the Japanese economy,
which will, in turn, enrich the country. We areconfident that we will be able to realize ahydrogen-based society that achieves a balance
between economic and environmental
prosperity.

Production

Photo: Kawasaki Heavy Industries

Established the Hydrogen Technology Demonstration Center atthe Harima Works in Hyogo Prefecture. KHI’s technology in thehandling of cryogenic materials and turbine technology are usedin this facility.

Transportation

Photo: HySTRA

Developed a liquefied hydrogen (–253°C) carrier using KHI’s
technology cultivated in the production of –162°C LNG carrier.
In the future, KHI plans to build a larger carrier that will be
powered by hydrogen.

Storage

Photo: Kawasaki Heavy Industries

Cryogenic liquefied hydrogen storage tank that maintains–253°C conditions. With its vacuum-insulated, double-walled
structure, this tank is designed to prevent temperature changes.

Utilization

Photo: Kawasaki Heavy Industries

Hydrogen gas turbine power generation facility. KHI has
developed proprietary combustion technology that uses a
mixture of hydrogen and natural gas, as well as 100% hydrogen.

Contributing toward Global Climate Change
Measures by Supporting Environmental
Initiatives in Asia, while Considering IndividualCountries’ Circumstances
Today, countries around the world have set goals to achievecarbon neutrality between 2050 and 2060. Achieving such an
ambitious goal may be difficult both technically and in terms of
institutions if approached as an extension of the current
situation, so what kind of efforts are these countries making?
JBIC interviewed KOYAMA Ken, Senior Managing Director at theInstitute of Energy Economics, Japan (IEEJ), who is an expert in
the global energy situation.
—For the past 18 months, the world has been at the mercyof the COVID-19 pandemic. Has energy policy also been
impacted?
KOYAMA Definitely. In Europe, carbon neutrality through clean
energy investment has been positioned as a long-term growthstrategy of the Green Deal. With the added perspective of recovery
from COVID-19, a three-pronged policy of climate change, long-term
growth, and economic recovery has been proposed and endorsed bymany countries. The United States now has the new Biden
administration. If not for the COVID-19 pandemic, the US economy
would likely not have suffered to such an extreme extent nor somany lives have been lost, and Donald Trump might have been
re-elected as president. If that had happened, there would be no
carbon neutrality policy in the US administration.
—Western countries and Japan are considering initiatives
to achieve carbon neutrality by 2050, while China has set atarget of 2060. What are your views of the respective
situations in individual countries?
KOYAMAIn the United States, the Congress holds the key.
Implementing large-scale green energy investments requires abudget, which needs to be passed by the Congress. In the current
Congress, the Democrats and Republicans are evenly matched andstruggling for supremacy, which is making consensus-building
difficult. China, meanwhile, will also probably take some longer time
to realize carbon neutrality. In China, it may look like carbon
neutrality will progress under the lead of the state, but that country
in reality relies on coal for the most of its primary energy. China hasachieved economic development with its abundant coal resources,
so a complete shift away from coal will not be an easy task. There isa mountain of challenges for China to overcome to achieve its 2060
target. Japan, meanwhile, is currently in the process of developing
its 6th Strategic Energy Plan. While Japan may be able to draw up a“vision” for targets, such as 46% reduction of greenhouse gas (GHG)
emissions by 2030 and carbon neutrality by 2050, it also faces major
challenges in formulating measures to realize that vision.
—How should companies view this situation? Does it
represent a threat for them or an opportunity?
KOYAMATo realize carbon neutrality, we need innovation.
Countries around the world are competing to have the superior
technology over a long span of 30 or 50 years. Japan is attracting
attention as the leader in CO2 free hydrogen and ammonia and could
potentially come out on top in the domination of technology in thesefields.
As well as exploring new technology, there is also a need to consider
the best use of existing infrastructure and supply chains. Energy
industries such as electricity and gas are deeply involved in GHG
emissions reduction policy, but their infrastructure and supply
chains require large investments and have long service lives. Insteadof immediately replacing these existing assets, we may be able tocurb the increase in costs by making best use of them while

KOYAMA Ken, Ph.D.

Senior Managing Director, Chief Economist, the Institute of Energy
Economics, Japan (IEEJ), and Adjunct Professor, the Institute of Innovative
Research, Tokyo Institute of Technology
Areas of research include analysis of the global oil and energy situation,
analysis of energy markets and policy trends in the Asia-Pacific region, andenergy security issues.

transitioning. The question of how to use CO2-free fuels, such as byburning CO2-free ammonia and hydrogen by themselves or
combining them with other fuels at thermal power plants, will not be
an easy one to answer, but it is a challenge worth taking.
—What kind of innovations do you think will happen?
KOYAMA The first basic prescription in achieving carbon neutrality
is promotion of energy efficiency improvement and energy savings
together with promotion of non-fossil fuels, including renewableenergies and nuclear power. Next prescription is electrification.
Final energy consumption should be supplied by electricity as muchas possible with the achievement of zero emissions in the power
generation sector. These two prescriptions will enable substantial
reductions in GHG emissions. Nevertheless, there are limits to howmuch existing technologies by themselves can achieve in reducing
GHG emissions deeply enough to such extent of net zero emission,and technological innovation will be needed to overcome thoselimitations. Currently, hydrogen technology is attracting attention in
Europe as well because hydrogen is essential to the realization ofcarbon neutrality. If Japan rests on its laurels, it will be difficult tomaintain its current lead. Another technological trend attracting
global attention is negative emissions, that is, technologies that
directly reduce GHG. Specifically, these technologies include“direct air capture (DAC),” a technology that captures CO2 directlyfrom the air and removes it, and “bioenergy with carbon capture andstorage (BECCS),” a process of storing CO2 from biomass-fueled
power generation underground.
—Both transitioning from existing technologies anddeveloping new technologies are going to need tremendous
amounts of investment, aren’t they?
KOYAMA That’s right. Financing will play an extremely importantrole in that regard. In Japan, initiatives based on the 6th Strategic
Energy Plan will be taken, but there are limits to what private-sector
companies can do by themselves, so public support will be needed.
What will be required are measures to suit the circumstances ofeach country and region, so Japan should provide support forclimate change initiatives in Asia, using technologies that have beencultivated to date. Providing financial support for these activities will
be good for Japanese industry, for Japan, for Asia, and for the world,
so I look forward to JBIC’s support.
7

Our Global Challenges

Applying Common Management Criteria for Operation ofboth Head Office in Japan and Local Subsidiary in Thailand
Realizing Self-directed Improvementwith the Growth of Local Staff
Oizuru Corporation
Oizuru Corporation produces and sells buffer packaging materials for a wide variety of products,
including telecommunications equipment, medical devices, and automotive components.
In its operations in Thailand, which began in 2002, the company is working to further expand its
business by strengthening its product offerings in vacuum formed tray packaging materials.

Manufacture and sale of highly functional packaging materials
Resolving logistics challenges starts from the planning and designing stages‘There is a growing number of Japanese companies that areusing the COVID-19 pandemic as an opportunity to review their
supply chains and establish second production bases in Southeast
Asia in addition to those in China. As a company doing business at
our local subsidiary in Thailand, this presents a significant
opportunity for us,’ explains OIZURU Osamu, President and CEOof Oizuru Corporation, a manufacturer and distributor of packaging
materials.
Oizuru Corporation established Oizuru (THAILAND) Co., Ltd.
(OTC) in Thailand in August 2002 and has been pursuing businesswith automotive manufacturers and other customers. Despite
demand plummeting in the first half of 2020 due to the COVID-19
pandemic, it is now recovering at an unexpectedly fast pace. The
company is eager to use the changes in the post-COVID-19
business environment as a springboard for further growth.
Founded in 1958, Oizuru Corporation was started as a rubber
product processing business by Mr. OIZURU’s father. In 1968, thecompany was chosen by Asahi Chemical Industry Co., Ltd. (nowAsahi Kasei Corp.) as a designated processing plant for the buffer
packaging material, “SUNTECH FOAM.” With this material, which
offers excellent shock-absorbance and is suitable for thetransportation of delicate equipment, Oizuru Corporation started
selling to a major electric appliances manufacturer located near its
head office in Nishitama-gun, Tokyo. With the growth in exports oftelecommunications equipment and office automation equipment,
Oizuru Corporation continued to grow. In the 1990s, its operations
expanded to target businesses in other domains, such as medical
devices, analytical instruments, measuring instruments, andautomotive components.
In 2013, it established a second plant in Iruma City, Saitama.
Here, the company ventured into the development of a proprietary
material that used corn starch as its main raw material. After
perfecting this new material, “el-coco foam,” which generates
fewer CO2 emissions and curbs the generation of harmful
substances in incinerating processes, the company began offering
it as a packaging material for food products.
Oizuru Corporation’s strengths include its ability to offer
integrated services from planning and design to mass-production
and delivery and to resolve customers’ logistics-related problems
with a wide variety of buffer packaging materials. The employees
who are qualified packaging professionals with expert knowledge
in material mechanics and structural dynamics develop optimal
packaging specifications to suit its customers’ products andlogistics environments.
Mr. OIZURU cites as an example a solution the company
developed for a business that handles analytical instruments. ‘We
used highly-functional buffer materials, instead of the cheaper
polystyrene foam to minimize packaging volume, to curtailtransportation and storage costs. With design that enabled theshortest buffer distance and minimized the quantity of buffermaterial used, we reduced logistics costs by 20%.’

Expansion into Thailand with an attitude of “Things
will work out once we get there”
Striving to differentiate with packaging materials
that use vacuum formed trays

President and CEO

8

OIZURU Osamu

Oizuru Corporation’s decision to expand into Thailand wasprompted by the Toyota Motor Corporation’s choice of Thailand as
one of its production bases under the Innovative International
Multi-purpose Vehicle (IMV) project. Mr. OIZURU recalls, ‘The

companies we had been dealing with were transferring theirproduction bases to Asia one after another. As well as thesemoves coinciding with the stagnation of our sales, we were hoping
to make use of our experiences and technological capability
overseas. Our customers had not actually asked us to make thismove, but we thought that, with over 700 companies in theindustrial park there, things would surely work out once we got
there. Looking back now, it was quite a reckless move, was it not?’Oizuru Corporation’s business in Thailand started to makeheadway when it started supplying to a Japanese company
handling automotive components in 2004. Initially, it won thebusiness with a proposal to reduce the customers’ costs by cutting
the number of cardboard boxes from more than 100 varieties to 60
through standardization and by reviewing the material the boxes
were made from. After that, Oizuru Corporation also captured
demand from a Japanese office equipment manufacturer andother customers and steadily increased its sales.
What Oizuru Corporation focused on in the promotion of its
business in Thailand was its commitment to organizational
operation and on-site environment creation using common
management standards for both head office in Japan and OTC.
Head office has established an integrated management systemcovering quality management, environmental responses, andbusiness continuity, and Oizuru Corporation will work on
establishing the same system at OTC. OTC will also introduce thesame core system and sales support tools as those used at head
office. In doing so, OTC will strive to establish an environment inwhich individual activities can be visualized and the two sites canmutually raise the standard of their activities.
Advanced initiatives have been generated voluntarily by local
staff who have a deep understanding of the philosophy of sitemanagement and quality management in Japan. For example, theplant used to employ a manufacturing system in which production
was carried out for all products one process at a time, including
cutting, pressing, assembly, and packaging, but it has now shiftedto a system of producing single products one at a time by teams offive to eliminate waste in storage and transport. This “single-itemflow” process has contributed to an improvement in production
efficiency of 34%. Since then, OTC employees have continued toengage in self-directed improvement on a daily basis, such as thefive members of a team swapping the processes they are
responsible for regularly.
Back-office operations are also performing excellent
management. Having built good relationships with suppliers, thefemale assistant manager in charge of purchasing andprocurement shares the production plans and confirms delivery
deadlines and quality meticulously before giving instructions.
‘Our five Japanese staff in Thailand develop the local staff by
instructing them on key points of operation and management whilebuilding good working relationships with them through careful
communication. Thanks to the efforts made by our excellent local
staff, we have been able to overcome the various challenges wehave faced,’ Mr. OIZURU explains.
Oizuru Corporation used to excel at packing materials using
foam, but is now stepping up its vacuum formed tray operations.
Vacuum formed trays are widely used for food containers, but thedemand for this product is expanding to packaging materials for
precision components.
In March 2021, OTC received a syndicated loan from the Japan
Bank for International Cooperation (JBIC) and Mizuho Bank, Ltd.
Funds equivalent to approximately THB24 million in total will be

Oizuru Corporation’s overseas business base in Thailand established in 2002

Inside the Thai plantused to upgrade production facilities for vacuum formed trays.
With the introduction of machinery to make molds, OTC hopes todifferentiate itself from its competitors by establishing production
systems that enable speedy delivery of products.
‘Someone from the Tokyo Metropolitan Small and Medium
Enterprise Support Center suggested JBIC to us, and we were able
to take advantage of a loan from JBIC for the first time. The loan isoffered at a long-term fixed interest rate and can be funded in local
currency, which allows us to avoid both interest rate volatility risk
and foreign exchange risk, for which we are truly grateful. Because
we were unfamiliar with the process, we kept making mistakes in
the preparation of the application, but I really appreciated how
kindly the people at JBIC responded to us,’ said Mr.OIZURU.
Mr. OIZURU’s main management focuses for the next decade
will be “human resources” and “environment.” ‘I will devote myefforts to establishing a business in which our employees cansense their own growth through work and to initiatives for the 3Rs(Reduce, Reuse, Recycle).’ By building management foundations
for sustainable growth, Oizuru Corporation aims to achieve further
growth and become the “leading company in packaging.”

Oizuru Corporation
Head Office1188 Ooaza Hakonegasaki, Mizuhomachi, Nishitama, Tokyo
URL
https://www.oizuru.co.jp/
FoundedJanuary 1958
Capital
JPY10 million
Sales Volume
Approx. JPY1.2 billion (Year Ended December 2020)
President and CEO
OIZURU Osamu
Employees
Japan: 60; Thailand 135
Business
Production of soft plastic and foamed products, packaging
technology services including package design, processing,and technical testing, distribution processing service

9Project Frontline
Our People and Their WorkJBIC is engaged in an array of different projects in various parts of the world.
JBIC’s staff talked about their work on the front lines, their commitment toprojects, and what they find most appealing as professionals in theirrespective fields.

The First Waste to Energy Project in Dubai,
an Experience Full of Firsts
I Hope to Make it a Model Case for Project Financing
for Future Waste to Energy Projects

Deputy Director, Division 4,
Social Infrastructure Finance Department

TAKEUCHI Kanae
I was responsible for the project financing
for this project to build, own, and operate awaste treatment and power generation plantin Dubai’s Warsan district for the treatment ofwaste and the generation and sale ofelectricity. In Japan, it is common to disposeof waste by incineration, but in many
countries around the world, landfill is still thenorm. In Dubai, which has achieved
remarkable economic growth in recent years,
most of the country's waste is buried inlandfill, and it is facing an increasing shortageof land for that purpose.
Moreover, Dubai relies on gas-fired
generation for more than 90% of its power
needs, so there is a growing need to promote
the introduction of renewable energies anddiversify electricity generation. This project
aims to provide a solution called “Waste to
Energy” to resolve these issues. This facility
is one of the largest of its kind in the worldand has the capacity to treat as much as 45% of
the waste generated in Dubai.
ITOCHU Corporation and Hitachi Zosen
Corporation, the two key players in thisproject, have abundant experience in waste
treatment and power generation overseas.
Hitachi Zosen has undertaken design,
procurement, and construction in many
projects to date, but for this project, it will also
be involved in the plant’s operation andmaintenance. This project will serve as afoothold for infrastructure system exports by
Japanese companies in the areas of waste
treatment and power generation. JBIC also
wants to support the overseas roll-out ofJapan's advanced infrastructure technologies.
This project is truly significant in that respect,and I believe it will become a kind of modelcase for the future.
Waste to energy projects have different
business risks from ordinary power
generation. Various factors affect the stabilityof power supply and the profitability of thebusiness, such as whether sufficient volumesof waste can be collected, whether the waste
is properly separated, and whether the qualityof waste suitable for incineration can beensured. Moreover, as Dubai is one of theemirates that make up the United ArabEmirates (UAE), the credit risks that need to
be assessed differ from those of national
projects. Building a scheme based on thesekinds of complex structural risks was aconsiderable challenge for us. To further
complicate matters, we were unable to visit
the site due to the COVID-19 pandemic, andall negotiations had to be conducted online.
From my previous experience, I believed that
communication between stakeholders was
essential for this kind of negotiation, so I
focused on sharing information with theparties concerned, both sponsors andlenders, and on making progress in the
project with common goals and directions.
This will be Dubai’s first waste to energy
project. For JBIC as well, it will be our firstrisk-taking project in Dubai, and at the sametime, our first project financing for a waste
to energy project. Given its significance inthe contributions it can make toward therealization of a circular, decarbonizedeconomy, to be involved in a project that is sofull of “firsts” and to help it reach theconclusion of such a satisfactory agreement
makes me very happy both as a banker andas an individual human being, and it has been
an invaluable experience. Going forward, we
can expect to see more and more of thesewaste to energy projects around the world.
JBIC hopes to contribute toward therealization of these projects by leveraging
the knowledge and experience that thisproject will provide us.

I was assigned to work on the financeneeded for environmental preservation
projects in Benin by extending a credit line to
the government of Benin. This is JBIC’s firstproject in that country. JBIC has beenstrengthening its support to expand social andenvironmental-related investments in Africa
since 2019, and this project is consistent withthis policy.
As the credit line covers environmental
preservation projects, JBIC is able to provide awide range of funds for environmental projectsof a highly public nature that are led by thegovernment of Benin. One thing expectedfrom this project is the improvement of Benin’s
electric power situation. Benin has anelectrification rate of just 41.4% (70.8% in urban
areas and 18% in rural areas). Progress has
been particularly slow in rural areas, due to thecountry’s undeveloped power grid. Various
options are currently under consideration,
including the introduction of an off-grid powersystem that combines compact power grids forlimited areas with a solar power system. Somemay have an image of JBIC as mostly financing
large-scale projects, but with this credit line,
we are able to provide funds in flexible ways tosmaller projects like this.
In the Fourth Medium-term Business Plan
released in June 2021, JBIC announced that it
would “address global issues toward realizing
sustainable development for the global
economy and society” as a key focus area. To
achieve this, “green finance,” which provides
support to projects related to renewable energy
and smart energy for the realization of adecarbonized society, and “social impact
finance,” which provides support to resolve
social problems, are important. If clean andstable energy supply can be realized throughthis credit line, as well as the increase inelectrification rate, it can be expected to havesocial impacts, such as power supply bringing
about improvements in educational
infrastructure and medical standards. In thisrespect, this project has aspects of both green
finance and social impact finance.
Benin is located in Sub-Saharan Africa(south of the Sahara Desert), a region thatfaces challenges such as poverty and conflict,but it has a relatively stable political situation
within the region. The government of Beninhas some excellent people and is highly
regarded internationally in the area of policy
management. This is a country that is working
on environmental policies in advanced ways,
being quick to develop climate change actionplans based on the Paris
Agreement. JBIC has beenworking to build a relationshipwith the government of Benin,
including inviting high-ranking
officials from its Ministry of
Economy and Finance to our
JBIC seminar, an international
exchange event that we holdevery year (cancelled in 2020
due
to
the
COVID-19
pandemic). It is a result of suchpeople - to-people exchange
efforts that this project hascome to fruition.
Division 3,

HOHZOH KahoFirst Credit Line to Government of Republic of Beninunder GREEN Operations
Supporting Environmental Preservation Projects
in Republic of BeninIn March 2021, JBIC signed a loan agreement in project financing for up to approximately USD452
million (JBIC portion) with Dubai Waste Management Company P.S.C. (DWMC) in the United ArabEmirates (UAE), which is invested in by ITOCHU Corporation, Hitachi Zosen Corporation, and otherentities. In this project, Dubai’s first waste to energy project, DWMC will build, own, and operate oneof the world’s largest waste treatment and power generation plants in Dubai’s Warsan district. The
company will treat waste and sell the electricity produced by the plant for a period of 35 years
following the completion of construction.

In March 2021, JBIC signed a general agreement with the Government of the Republic of Benin toprovide a credit line of up to EUR30 million, of which JBIC's portion is EUR18 million. The credit line,
JBIC's first extended to Benin, is intended to provide, through the Government of Benin, the funds
necessary to implement environmental preservation projects in Benin under GREEN operations.

Image of the waste to energy plant

Having dialogue with Benin’s excellent
policymakers through this project has been an
invaluable experience for me. Based on mystrong impression of Benin as a country with ahigh awareness of the SDGs (Sustainable
Development Goals), I tried to tell them thesocial significance of this credit line as honestly
and clearly as possible during the negotiation
process.
As the talks proceeded, I was impressed by
the Benin officials’ passion in cherishing“people” for the development of the country.
For example, most elementary schools in
Benin’s rural areas currently do not haveelectricity. If this project helps to improve theelectrification rate of these schools and, inturn, the educational environment, it will leadto the development of the people who will leadthe country into the future. I am honored tohave been involved in a project that willcontribute to the future of Benin.

Oil and Gas Finance Department (then)

GREEN (Global action for Reconciling Economic growth and ENvironmental preservation): Operations aimed at
supporting projects recognized to have a positive impact on the preservation of the global environment, such as
significant impacts in the reduction of greenhouse gas emissions, with the aim of preserving the global
environment, including the prevention of global warming.

Project Financing for Warsan Waste to Energy Projectin the Emirate of Dubai, UAE
Supporting Japanese Companies’ Participationin First Waste to Energy Project in Dubai

https://www.jbic.go.jp/en/information/press/press-2020/0329-014477.html

10First Credit Line to Government of Republic of Beninunder GREEN Operations
I Hope to Contribute toward Solutions to Social Problems
in Africa through Environmental Preservation Projects

Helping Benin’s sustainable development

https://www.jbic.go.jp/en/information/press/press-2020/0325-014478.html

11

A “Hidden” Digital Innovation Giant
Release of Report that Reveals the Real Power of the Nordic
and Baltic Region
Start-up Ecosystem Supported by Cutting-Edge Technology and Social Transformation
In April 2021, JBIC IG Partners and JB
Nordic Ventures Oy (NordicNinja VC)
co - published a report titled “Digital
Innovation and Social Transformation – Case
Study of Nordic and Baltic Region.”
In 2017, the Japan Bank for International
Cooperation (JBIC) and Industrial Growth
Platform, Inc. (IGPI) established a joint
venture, JBIC IG Partners, which invests inforeign companies through investment advice
to funds. NordicNinja VC is the second fundestablished by JBIC IG Partners. Since its
establishment in January 2019, it has invested
in 13 companies in the Nordic and Baltic
region. The report features abundant
information and findings obtained over morethan two years of their activities.
The common images of the Nordic andBaltic region are “welfare” and “interiors,” butit has many other facets. The region has
produced the largest number of unicorn
companies per capita in the world outside
Silicon Valley and leads the world in theadvancement of social transformation indigit al an d ES G d o m a i n s s u c h a s
E-government.
The report describes the characteristics ofthe region from four perspectives, namely“start-up ecosystem,” “digital transformationof government and society,” “strong
awareness of sustainable development,” and“effective utilization of human resources,”presenting them with the latest trends andinterviews with locals.
‘This report is designed to provide an
overall picture of the region, but what we wantreaders to focus on most is the section onsustainable development. The Nordic andBaltic region is a collection of small nations
that has always been sensitive to the global
agenda and ahead of the world in promoting
sustainable development initiatives. There ismuch we can learn from the way they think

Brings together the latest trends in innovation andsocial transformation in the Nordic and Baltic region

about the circular economy, in which
resources are used, recycled, and reused in apermanent cycle, and their efforts to achieveit.’ (SOHARA)
We have already received feedback fromcompanies and organizations that have readthe report.
‘JBIC is seen as a traditional organization,
but we are committed to supporting projects
with a high policy significance through fundbusiness, as well as by conventional efforts inthe form of investments and loans. We wantmore people to know about these kinds of newchallenges such as NordicNinja VC. We aim,
through these activities, to enhance support
for Japanese companies. We hope to expand
the circle of that support beyond theconventional loans and investments.’ (HIRAI)HIRAI Yasushi

Director
Division 3,
Equity Investment Department (then)

SOHARA Tomosaku

Investment Director, JBIC IG Partners
Managing Partner, JB Nordic Ventures Oy (NordicNinja VC)

Visit the address below for the detail and download the PDF of “Digital Innovation and Social Transformation– Case Study of Nordic and Baltic Region” (available in Japanese only)
https://www.igpi.co.jp/2021/04/20/report_jbicig_20210420/
JBIC Today September 2021
Published by】Press and External Affairs Division, Corporate Planning Department,
Corporate Planning Group, Japan Bank for International Cooperation
4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan
Cover photo : iStock*No part of this magazine may be reproduced without the written permission of JBIC.

Tel. +81-3-5218-3100 URL: https://www.jbic.go.jp/en/
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