World Trend of Energy Resource
and Prevention of Global Warming, and Related Development ofTechnologies in Mitsubishi Heavy
Industries, Ltd.

Boiler & G/T
Naturalgas etc.

DME
manufacturing plant

DME
carrier

Receivingterminal/
storage

Fuel cell
DieselengineYOSHINORI OKI
DME (dimethyl ether) Chain- from production to transportation, storage and effective use-ply of Primary Energy" (published in 2001) by Energy
Information Administration of U.S. Department of Energy (DOE) puts the energy demand and supply for 1990
through 2020 in the levels given below.
(1) The demand and supply for primary energy will increase by 55%.
(2) The demand and supply of petroleum will cover thegreater part of the primary energy sources, with thelevel expected to increase by 50% (particularly 100%in Asia) in 2020 and the dependency on the Middle
East is to increase from 28% to 44%.

1. Introduction
Mitsubishi Heavy Industries, Ltd. (MHI) considers the
problems of energy and global warming as the most important global problems in the twenty-first century, andis making an effort to be a leader in these fields throughbusiness activities with a view to contributing to society. Described below are the research and development
programs of MHI in these fields.

2. Awareness of energy and global environmental
problems

Note: In the case of Japan, the dependency on petroleum in

2.1 Past awarenessAs for energy problems, in collaboration with industrial, governmental and academic circles MHI has
promoted development of alternative energy sources tosubstitute for petroleum and of energy-saving machines
in compliance with the government policy of reducing
the dependency on petroleum after the so-called "2ndoil crisis". Such development programs are to continue
indefinitely.
As for global environmental problems, MHI has developed technologies to prevent emissions of SOx, NOx andsoot in order to cope with atmospheric pollution, a byproduct of the postwar high-growth period. MHI has also
made efforts to deal with the problem of dioxin, and isdetermined to keep improving in accordance with the future trends in the regulation of contaminants.
2.2 Present awarenessThe recent problems of primary energy and global
warming and the new trends in energy deregulation entangle with one another to bring about changes in all fieldsof business related to energy and the environment andare at the very foundation of economic activity. The development and commercialization of technologies
corresponding to such trends and changes are critical
Fig(Fig
Fig.. 1 ).

terms of primary energy source (for fiscal year 1999)
was 52%, with the dependency on the Middle East being 86%.

(3) Among fossil fuels, natural gas, due to less emissionof CO2, will overtake coal in demand and supply andkeep on expanding, with coal still remaining the third
major energy source next only to petroleum and natuFig
ral gas because of its stable supply (Fig
Fig.. 2 ).
3.2 Natural gas with abundant supply
3.2.1 Primary energy resources
According to a survey made by the Institute of Applied
Energy (IAE), the minable years obtained by dividing theconfirmed minable reserves by the annual production isestimated to be 45 years for petroleum, 65 years for natural gas and 231 years for coal, with the confirmed minable
reserves of petroleum being unevenly distributed to theMiddle East, comprising two-thirds of the entire reserves
Global warming problem

Economic society
Primary energy(fossil fuel)3. Trends in primary energy (Fossil Fuel)

Energyconverter

Deregulation of energy

3.1 Estimation of demand for primary energy
The "Long-term Outlook of Global Demand and Sup-

Economic growthSecondaryenergyCO2, SOx, NOx
and other wastes
Countermeasure for
reduction of wastes

Fig. 1 Outline of energy and global environmental problems

Mitsubishi Heavy Industries, Ltd.
Technical Review Vol.40 No.1 (Feb. 2003)

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Trillion Btu

300(Carbon-rich fuel)

250

Coal

200

Tar
Petroleum

Petroleum
Natural gas

150

Associated gas

2 000

2 010

2 020

2 030 Year

Roll over point of petroleum(around 2015)
Supply- and pricestability region (zone)

Low-supply and high-priceregion (zone)

Natural gas

100

Coal

Note: The "roll over point" is a point and theconcerned year can be identified by tracing thepoint where the fuels cross the line in the figure.

(Hydrogen-rich fuel)Others50

Nuclear power

Fig. 3 Roll Over Points of various fossil fuels

0
1995

2000

2005

2010

2015

2020

140

Fiscal year

U.S.A.

120
Billion m3

Fig. 2 Outlook of long-term global primary energy
demand and supply(1)of the world. As for the natural gas reserves, 40% lie in
the former Union of Soviet Socialists Republics (U.S.S.R.)
Table 1 ).
and 30% in the Middle East (TFurther, according to a U.S. geological survey (2000),
the ultimate minable reserves of petroleum that is technically and economically possible for human beings to
dig out is 3 trillion barrels (1 barrel = approx. 160 liter),with nearly half of the resources to be consumed by 2030.
The ultimate minable reserves of natural gas, on theother hand, is estimated in terms of petroleum to be 2
trillion and 600 billion barrels, with the quantity so far
consumed being no more than a scanty dozen percent,thus an adequate quantity still remains.
3.2.2 Prediction of primary energy supply
Despite the minable years of petroleum estimated tobe 45 years, the supply of petroleum will fall down below the demand level in and around 2015, according to
the prediction made by International Energy Organ,
OECD (Organization for Economic Corporation and Development) and major oil companies, pushing the oil priceto a drastic high level. This time where the supply falls
below the demand level is called a "Roll Over Point"
Fig(Fig
Fig.. 3 ). With the various fossil fuels reaching the rollover point, new alternative energy sources competing
price-wise with such fuels will appear, bringing further
changes in the demand and supply of these fuels.

+6.6%/Year
Japan

100
80
60

TaiwanRepublic ofKorea (ROK)
Europe40
20
19641970 1975 1980 1985 1990 19951999
From IAE Review
Year(Energy Sougou Kougaku) etc.

Fig. 4 Transition of LNG import (country-wise)(3)3.2.3 Expansion of demand for natural gas
In addition to its abundant reserve power, natural gas
is a clean fuel with high hydrogen content and free from
sulfur, nitrogen and ash content, and it is expected thatdemand for natural gas will expand in the future as a countermeasure against air pollution and global warming.
Currently 80% of the world output of the natural gas
is transported from producing areas to consuming countries through pipe lines and 20% as liquid natural gas(LNG). The world import of LNG has been expanding
since 1985 at an average annual growth rate of 6.6%,
amounting to 120 billion m 3 as of 1999. A country surrounded by the sea, Japan has been importing a great
deal of LNG, accounting for about two thirds of the world
Fig. 4
import of LNG (Fig.
4).
Turning natural gas into fluid like LNG to transport
using a tanker enables supply from different regions of
the world, ensuring high energy security and contribut-

Table 1 Status of energy resources and reserves(2)Petroleum
Confirmed minable reserves (R)North America
South and Central America
Region- Western Europe
Middle East
wise
statusAsia and Australia
AfricaFormer Soviet Union
and Eastern Europe
Annual output (P)Minable years (R/P): Area with top reserves

1 trillion and7.5 billion barrels
2.7%
12.8%
1.5%
65.5%
4.4%
7.3%

Natural gas

Coal

141 trillion m3

1 trillion and31.6 billion ton

4.9%
5.2%
3.8%
32.0%
7.0%
6.9%

24.2%
1.1%
7.3%
30.9%
6.0%

5.9%

40.2%

30.6%

61.44 million barrels/day
45 years

2.18 trillion m3
65 years

4.47 billion ton
231 years

From IAE Review (Energy Sougou Kougaku, October 1998)

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ing to price reduction through the principle of competition. On the other hand, there are some hurdles(problems) given below that must be cleared for the useof natural gas in Japan.
Reduction in utilization cost and stabilization of natural gas (reduction in LNG import cost and domestic
distribution cost)
Consolidation of domestic infrastructure such as pipeline, LNG satellite system, etc. (There are 21 LNG
receiving terminals in Japan, while the consolidationof supply (distribution) infrastructure from these terminals is a future problem.)Promotion of new utility form (such as using natural
gas as a liquid fuel substitute to gasoline, not as a
primary energy source.)
3.3 Natural gas reformed liquid fuelAfter the roll over point of petroleum (in and around2015), the liquid fuels obtained from modified naturalgas (such as synthetic kerosene/light oil, dimethyl ether
Table 2
[DME], methanol [MeOH], etc.) (T2) that still has
sufficient reserves will make up for the shortage of petroleum supply and start expanding their use. The time
will then come when natural gas will be in short supply.
However, after the roll over point of natural gas (in andaround 2030), liquid fuels with coal as the raw material
are expected to spread.
In order to turn natural gas into liquid fuel, it is necessary to add water vapor (stream) and oxygen to the natural
gas to make a mixed gas mainly of hydrogen and carbon
monoxide before synthesizing the mixed gas into liquid fuelwith properties almost equivalent to kerosene/light oil byusing catalyzer, etc. The liquid fuel thus obtained has thesulfur, nitrogen, ash content, etc. eliminated during theprocess of production, making it a clean fuel.
There are some restrictions such as the need of alarge-scale gas field with a huge quantity of natural gas
containing less CO2 for LNG production, but since such
restrictions are fewer in the production of modified liquid fuel, it is possible to make use of the low-priced
natural gas from medium and small size oil fields notsuitable for LNG production.

.

.

4. Trend in countermeasures against global warming.

4.1 Target for controlling emission of greenhousegasses
The supply and demand of primary energy both inJapan and abroad will undergo a drastic change depending on the trend of the Framework Convention on Climate
Change aimed at the prevention of global warming.
Bills on international law related to the implementation of the Kyoto protocol were adopted (and agreement
was reached on the working rules) in the Seventh Conference of the Parties to the U.N. Framework Convention
on Climate Change (COP7) held in Marrakech, Morocco
on October 29, 2001 through November 9, 2001.
The adoption almost led to the effectuation of the International Framework Convention based on the Kyoto
protocol. As a country that ratified the agreement, Japan bears an obligation to reduce the emission ofgreenhouse gas between 2008 and 2012 annually by anaverage of 6% against the level of emission in 1990. Japan aims at keeping the CO2 emission level produced by
the primary and secondary energy sources to the level ofTable 3). However, the CO2 emission level produced
1990 (Table

Table 2 Outline and features of natural gas reformed liquid fuels
Example of natural gas
reformed liquid fuel

Merit

DemeritHandling

Boiling point oC

Likely to be interlockedwith petroleum price
Needs modification ofmachines in use, low lubricity

Treated in the same way
as kerosene/light oil

70 to 180
Approximately

Dimethyl ether (DME)

Needs less modification ofmachines currently in use
Excellent ignition, inflammability
and environmental features

Methanol (MeOH)

Liquefaction possible at room
temperature and normal pressure

Toxic and low calorie

LNG

Established for power
Needs cryogenic machines and Liquefied at extremely low temperature
for transportation and storage
generation and use as city gas difficult for inland transportation

Synthetic
kerosene/light oil (GTL)

Pressurized liquefaction fortransportation and storage
Treated in the same way as
the existing kerosene/light oil

-24.8
64.5

-161.5

Note: LNG is returned to gas whereas natural gas reformed liquid fuel is used in the form of liquid.
Table 3 Details of "6% reduction" of greenhouse gasses in Japan(4)Measure (Policy)
Restraint on
anathermal
gas emission
Absorption by forest
Cutdown realized
overseas
Total

Petroleum
Elimination of CO2 emission from energy source
Elimination of CO2 emission
through development of innovated technology
Elimination of methane nitrogen monoxide
Restraint on alternative CFC emission
CO2 absorption through growth and control of forest
Utilization of Kyoto mechanism such as tradeof emission rate, etc

Effect
-2.0%
-0.5%
+2.0%
-3.9%
-1.6%
-6.0%

(From) "Guideline for Measures to Prevent Global Warming (March 2002)"

Mitsubishi Heavy Industries, Ltd.
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by the primary and secondary energy sources in 1999
has already shown an increase of 8.9% since 1990. It is,therefore, necessary to cut down on this increase rate
while dealing with the increase in demand of energy due
to economic growth in the future.
The Agency of Natural Resources and Energy has
therefore drafted an estimate of primary energy supply
for 2010 and announced the figure as the policy target(objective) aiming at the ± 0.0% emission reduction
Table 4(T
4). The key points of the estimate draft are as
follows.
Drastic increase of nuclear power, natural gas, renewable energies (such as solar power generation, wind
power generation, geothermal power generation, etc.)
and new energy, effective for reducing CO2
Reduction in the use of petroleum in order to decrease
the petroleum dependency on the Middle East
Continuous utilization of coal while ensuring high stability in supply
As a concrete action policy to reduce the greenhousegas by 6%, the government of Japan decided a new"Guideline for Measures to Prevent Global Warming"
on March 19, 2002.
4.2 Technologies and products required for reductionof CO 2 emission
In order to put the CO 2 emission from primary andsecondary energy sources back to the level of 1990 andto correspond to the increase of energy because of the
future economic growth, new markets for CO2 reducing
Fig. 5technologies and products will be created (Fig.
5).
The area equivalent to the CO 2 reducing market in
Fig. 5 is anticipated as the new market, with the main
countermeasure technologies highly effective for CO 2
reduction in the new market being given below.
Production, introduction and expanded utilization offuels with less CO 2 emission (such as utilization of
nuclear power, natural gas, natural gas reformed fueland renewable energy)
Reduction of energy consumption and higher efficiency
utilization [such as high-efficiency generation, cogeneration (distributed power generation), resource
circulation, etc.]
Recovery, sequestration, utilization and trading of CO2
4.3 Measures taken by Japanese government for
reduction of CO2 emission
In order to comply with the increasing demand forenergy in addition to the need for reducing CO2 emission while maintaining economic growth, the Japanese
government is going to promote intensively the following measures (policies) in the future.
Intensification and expansion of "Top Runner" machinery and technologies with low energy consumption

.

.

.

.
.
.

.

.

Note: 1998 revision of the Energy Conservation Law (in Japan) led to the introduction of "Top Runner system" in

Table 4 Transition and outlook of CO2 emission from primary energies and energy sources(5)Unit: Converted into crude oil; 1 million kL
Item

Fiscal year

Primary energy supply
Energy-wise division
Petroleum
Coal
Natural gas
Nuclear power
Hydraulic power
Geothermal power
New energy, etc.

1990

1999

526
Real number
307
87
53
49
22
1
7

593
Real number
308
103
75
77
21
1
7

%
58.3
16.6
10.1
9.4
4.2
0.2
1.3

2010 (Target)
Approx. 602
Real number %
%
45
52.0
271
17.4
19
114
12.7
83
14
13.0
93
15
3.6
20
3
0.2
1
0.2
1.1
20
3

CO2 emission from energy source(carbon weight; 1 million ton)

(Converted into crude oil, million kL) /(Converted into carbon, million t)(From) "Long-Term Outlook of Energy Demand and Supply" by
Sougo Shigen Energy Survey Committee (July 2001)

Without
measure

460
440
420
400

Final energy consumption(Converted into crude oil,million kL)

Without measure

CO2
reducing market
Target380

Target

360
340
320

: Economic growth 1.6%
Without measure for CO2 reduction

CO2 emission(Converted into carbon,
million t)

Without
measureCO2 reducing
market300

Target280
1990 92 94 96 98 2000 02 03 04 06 2010
Fiscal year

: Economic growth 1.6%
With measure for CO2 reduction(In conformity to COP7)
Prepared on the basis of the attachedpaper of “Guideline for Measures toPrevent Global Warming (March 2002)”

Fig. 5 Record and outlook of final energy consumption and CO2 emission in Japan(6)Mitsubishi Heavy Industries, Ltd.
Technical Review Vol.40 No.1 (Feb. 2003)

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.
.
.
.
.

ers (users) have also started to grope for development of
new business on the basis of self-owned resources (suchas land, fund, energy equipment, etc.)

defining energy saving standards for home/office appliances and fuel economy standards for automobiles.

Positive support and promotion for the extension of
nuclear power generation
Measures for new and expanded utilization of new energy and renewable energy (such as setting up theframework for the introduction, publication and trading of the utility bonds after the introduction, etc.)
Supportive measure for fuel conversion (subsidy, regulation and taxation, etc.)
Introduction of CO 2 emission tax and utilization of
the tax revenue for reducing CO2 emission
Promotion of CO 2 trading through utilization of the
Kyoto mechanism

6. Status of the relevant technologies in MHI
As mentioned above, the primary energy, the problem of global warming and the trends in energy
deregulation are inflicting mutual influence on eachother and have begun to show great changes. In order tocope with these changes MHI has taken a leading roleand promoted various development programs. Some examples of such programs is listed in Table 6
6. Some ofthe development programs listed in the Table are described below.
6.1 Example of correspondence to the change inprimary energy
The practical example of MHI's undertaking to correspond to the change in primary energy is the generalproject of DME (DME Chain) from production to transportation, storage and effective use. The DME Chain
program currently underway through government support includes construction of large-size DME
manufacturing (production) plant abroad and transportation of the produced DME to Japan to use for boilers,gas turbines and diesel engines as the low-pollution fuel.
6.2 Example of correspondence to the global warming
The recovery and underground sequestration of CO2
is a program involving recovery of the CO 2 discharged
from coal-burning power plants, etc. at low cost before
feeding to the aquifer sealed deep under the ground withrock layer for permanent sequestration. Further, the CO2
emission credit obtained through the sequestration isabout to be traded in the international market as a new
business.
MHI is also promoting research and development together with the Japanese government for the productionof hydrogen using nuclear heat, and for transportation,
storage and utilization of hydrogen as an effective utilization of nuclear power which is an indispensablecountermeasure against global warming, to comply withthe "hydrogen society" expected to come in the future.

5. Energy deregulation
Various regulations related to the energy businesshave so far contributed greatly to ensuring security inthe supply and demand of energy and developing business in Japan.
However, under pressure from the recent demand forthe reduction in energy prices (cost) and for the globalization of market economy and finance, the Japanese
government is promoting deregulation of the energy business, bringing about mutual advance and competitionin these business fields, such as the Electric Power Company starting the sales of gas and the Gas Company
entering into the business of selling electric powerTable 5 ).
(T
able
Further, the spread of distributed power generation
like cogeneration has motivated the Electric Power or
Gas Company to reduce the prices and has triggered
the reduction of prices of various energies. Further deregulation of electric power is scheduled for 2003, withthe electric power companies making efforts to comply
with the forthcoming situation and eventually to reducethe cost.
Further, the energy-related business firms have begun to establish new companies as joint ventures withdifferent business companies in accordance with thebusiness form. On the other hand, the energy consum-

Table 5 Outline of deregulation of energy in Japan
Industry

ElectricPower

Deregulation. Deregulation of wholesale supply business. Establishment of specific electric power business. Deregulation of specific supply

Expected effect. Price down of electric power due to entry ofgeneral enterprisers into the wholesale supply business. Promotion of introduction of cogeneration. Further price down due to entry of large-scale powercompany into retail business. Vitalization of electric power consignment. Expansion of new entry into large-scale gas consumer. Vitalization of gas consignment. Deregulation of retail business. Abolition of business control. Deregulation of large-scale gas rate
. Deregulation of entry into large-scale gas business
City gas. Expansion of large-scale deregulation limits. Notification and publication of consignment and agreement. LPG sales business shifted from license system. Expansion of new entry into LPG sales business
LPG
to registration system. Formation of domestic price levels and price systems due. Deregulation of import of products related toOilto competition between imported and domestic products
gasoline, kerosene and light oil, etc.

Mitsubishi Heavy Industries, Ltd.
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Table 6 Examples of intensification and expansion of energy and environment business
Field

Correspondence
to changes inprimary energy

Correspondence
to global warming

Correspondence
to deregulation

Expanding needs

Examples of undertakings by MHI. Expansion of the use ofnatural gas and LNG

Expansion, enhanced efficiency with emission of cleaner gas of machines
such as gas heat pump, gas engine, gas turbine, etc.

. Production and utilizationof clean liquid fuel. GTL (synthetic kerosene/light oil)
. DME (dimethyl ether)

Promotion of survey on trends in technical developments, correspondence
to the newly established plant and development of technologies andproducts related to manufacture, introduction and use. Use of reproducible energy(elimination of
petroleum consumption)

Intensification of technologies for wind power and geothermal power
generation and expansion of their sales underway; promotion of the use of
biomass gas and commercialization of fuel synthetic system; mass
production and expanded sales of solar batteries underway. Recovery and sequestrationof discharged CO2

Reparations underway for verification test of recovery, underground andocean sequestration of CO2 discharged from power plants, etc.

. Utilization of CO2 emission
credit trading

Trial experiments under implementation for elimination of CO2 emission
and for trading of obtained emission credit. Utilization of nuclear power

Research and development on fuel cycles of innovated future furnaces
including multi-purpose furnace (manufacture of hydrogen using nuclear
heat), and fast-breeder reactor (FBR) underway. Expansion of forestation,etc. for CO2 absorption

Joint projects in collaboration with industrial, official and academic circles
underway for improving desert environment and securing water source(in collaboration with Ministry of Education, Culture, Sports, Science andTechnology, universities, Saudi Arabia, etc.). Expansion of distributed
power generation

Intensification of development on distributed generation, and intensificationand expansion of sales of cogeneration underway. Expansion of retail businessfor electric power

Entry into power wholesale business for power retail enterprisers. Energy solution businessComprehensive business on MHI energy and environment related
machines and systems underway for diversified needs and customers

6.3 Example of correspondence to the deregulation
MHI is making efforts to supply electric power using
its own power generating facilities (engine, wind power
generation, etc.). As the electric power companies are
establishing new energy businesses jointly with the fuelcompanies, etc. and promptly advancing to the energy
solution business, so is MHI promoting joint developmentwith other companies by supplying systems through combination of distributed power generating equipment suchas engines, etc. and air-conditioning & refrigerationequipment.

any steps. MHI takes it as a mission to make efforts incultivating technical power to have a clear view of thesetransitions and, accordingly, to comply comprehensively
with them.
References(1) “Annual Energy Outlook 2001” U.S. DOE /Energy Intelligence Agency(2) IAE Review (Energy Sougou Kougaku) Vol.21 No.3 (Oct. 1998)(3) IAE Review (Energy Sougou Kougaku) Vol.24 No.3 (Oct. 2001)(4) "Guideline for Measures to Prevent Global Warming (March
2002)" by Global Warming Prevention Headquarters(5) "Long-term Outlook of Energy Demand and Supply" by Sougo
Shigen Energy Survey Committee (July 2001)(6) The attached paper of “Guideline for Measures to Prevent
Global Warming (March 2002) ” by Global Warming Prevention Headquarters

7. Conclusion
Various research and development programs have so
far been made in consideration of the energy problems
as an important topic for the national security of Japan.
However, with the current deregulation of energy in addition to the various restrictions imposed as thecountermeasures against global warming, a number ofcountermeasures are getting entangled. It is therefore
necessary to discern how these countermeasures will be
put into practical programs in the future before taking

TECHNICAL HEADQUARTERS
Technology Planning Department,
Technical Headquarters
Yoshinori Oki

Mitsubishi Heavy Industries, Ltd.
Technical Review Vol.40 No.1 (Feb. 2003)

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