Hydrogen Economy for Low Carbon Society
Isamu Yasuda
Technology Research Institute, Tokyo Gas Co., Ltd., JapanAs the largest gas utility company in Japan, we Tokyo Gas are willing to contribute to realization ofthe future low carbon society (LCS) by developing and promoting low carbon-intensive energy
supply and utilization technologies. It’s not realistic to try to jump into an ideal LCS, and it’sreasonable to define a transition scenario that can be implemented in the real world. The figure
shows our multi-stage pathway which has 3 phases towards the LCS.

Transition to Low Carbon Society
ShortｰtermLongｰtermMid-term

２．High efficient equipment for energy supply & consumption
３．Maximizing the usage of renewable
４．Development of energy network in cities

CO2emission

５．Realization of H2 economy

CO2 emission reduction

１．Energy saving and switching to low carbon fuels

2010

2020

2030

2040

2050

For short-term solutions, 1) energy saving and switching to low-carbon fuels and 2) highly-efficientequipment for energy supply and utilization are effective and they’re already in progress.
Switching from heavy oils to natural gas for large-scale industrial heating purposes has quickly
been penetrating in the market with the help of skyrocketing rise of crude oil price. Great efforts inindustries and government have been devoted to promote wide use of highly-efficient appliancessuch as fuel cell CHP (combined heat and power) systems for residential markets and gas engine
and gas turbine CHP systems for industrial and commercial markets. The Japanese government
especially METI is leading the world’s effort to fully commercialize the residential fuel cell CHP withannual funding of over 30 billion yen. The number of residential fuel cells installed at customers’
homes all over Japan will be around 1,000 at the end of FY 2007. These systems can reduce CO2
emissions from residential houses by 45% under the best conditions. The key issue for the market
penetration is cost reduction.
For mid-term solutions, 3) more use of renewable energy and 4) energy network in populated
cities will be effective. Many projects are in progress to demonstrate the viability of gasification andutilization of biomass resources. In the near future, biomass wastes from industries andcommercial sectors will be widely and highly utilized to reduce energy consumption and as a result

CO2 emissions. A “Compact City” concept in which thermal and electrical energy demands indensely populated areas are integrated and aggregated will effectively maximize the overall
energy use efficiency and thereby reduce CO2 emissions from urban areas. The key issues forthese mid-term solutions are the best mix of the available energy sources and efficient utilization
technologies which depend on energy supply/demand characteristics of the targeted areas.
Micro-grid technology will be essential for successful realization of the best mix, which canmitigate the fluctuating energy supplies from renewables by integrating them with more stableenergy conversion systems such as fuel cells and other conventional CHP systems.
For long-term solutions, 5) hydrogen economy is expected to play an important role. Hydrogen in
combination with stationary and mobile fuel cell technologies will greatly reduce CO2 emissions; it
can even realize a carbon-free society when hydrogen is produced from renewables or an
ultra-low carbon society even when hydrogen is produced from fossil fuels with proper
management of the byproduct CO2 such as CCS. There is a big project called “JHFC (JapanHydrogen and Fuel Cell demonstration project)” going on led by the Japanese government todemonstrate technical feasibility of hydrogen production and supply to fuel cell vehicles (FCV) andenvironmental advantages of FCV. More than 10 hydrogen refueling stations have been built andsuccessfully operated in mega cities (Tokyo, Osaka and Nagoya). The fuel economy of FCV has
been proved to be 3 times as high as that of conventional gasoline engine vehicles and the CO2emissions on the Well-To-Wheel basis are estimated to be reduced by 50% or more even whenhydrogen is assumed to be produced from fossil fuels. Recently major stakeholders such as carOEMs, energy supply companies and engineering companies get together at the same table todiscuss and share a scenario of transition to hydrogen economy in the transportation market
sector. They have reached a consensus that the present demonstration phase will move on to an
early market entry phase around 2015 and hydrogen supply infrastructure will have to be in placeahead of roll out of FCV. The key issues to pave this pathway are identified as significant cost
reduction of both vehicle manufacturing and hydrogen production and supply equipment, who will
pay for the new infrastructure establishment and byproduct CO2 management including CCS
when hydrogen is produced from fossil fuels. Government leadership and support are stronglyexpected.