Green Innovation Fund Projects

Green Japan,

Green Innovation
Working toward a carbon-neutral future.

Contents
Working toward a carbon-neutral future.… …………………………………………………………………………P.33
Green Innovation Fund Projects… ……………………………………………………………………………………P.44
List of Projects……………………………………………………………………………………………………………P.66

Field of Green Power Promotion, etc.
Cost Reductions for Offshore Wind Power Generation… …………………………………………………………P.78
Development of Next-Generation Solar Cells… ……………………………………………………………………P.89

Field of Energy Structure Transformation
P.9
Large-scale Hydrogen Supply Chain Establishment… ……………………………………………………………10
P.10
Hydrogen Production through Water Electrolysis Using Power from Renewables… …………………………11
P.11
Hydrogen Utilization in Iron and Steelmaking Processes… ………………………………………………………12
P.12
Fuel Ammonia Supply Chain Establishment…………………………………………………………………………13
P.13
Development of Technology for Producing Plastic Raw Materials Using CO2 and Other Sources……………14
P.14
Development of Technology for Producing Fuel Using CO2, etc.… ………………………………………………15
P.15
Development of Technology for Producing Concrete and Cement Using CO2… ………………………………16
P.16
Development of Technology for CO2 Separation, Capture, etc.……………………………………………………17

Field of Industry Structure Transformation
P.17
Next-Generation Storage Battery and Motor Development… ……………………………………………………18
P.18
Development of In-vehicle Computing and Simulation Technology for Energy Saving in Electric Vehicles…………19
P.19
Smart Mobility Society Construction…………………………………………………………………………………20
P.20
Next-generation Digital Infrastructure Construction… ……………………………………………………………21
P.21
Next-generation Aircraft Development… ……………………………………………………………………………22
P.22
Next-generation Ship Development… ………………………………………………………………………………23
P.23
Development of Negative Emissions Technologies in Agriculture, Forestry, and Fisheries Industries… ……24
P.24
Promotion of Carbon Recycling Using CO2 from Biomanufacturing Technology as a Direct Raw Material… ……25
P.25
Decarbonization of thermal processes in manufacturing… …………………………………………………………25

P.26
Outreach Initiatives Related to Green Innovation Fund Projects… ………………………………………………26
P.27
Background Information… ……………………………………………………………………………………………27

2

Working toward a carbon-neutral future.
The driving force behind Japan's future growth is the challenge ofachieving carbon neutrality.

In October 2020, Japan declared that it aims to achieve carbon neutrality by 2050, with the goal of

reducing overall greenhouse gas emissions to zero by this year. Carbon neutrality by 2050 cannot berealized through ordinary efforts. It is necessary to significantly accelerate efforts toward structuralchanges in the energy and industrial sectors, and undertake bold investment for innovation.

For this reason, the Ministry of Economy, Trade and Industry (METI), in collaboration with otherministries and agencies, formulated the “Green Growth Strategy through Achieving Carbon Neutrality
in 2050.”

The strategy specifies 14 promising areas expected to demonstrate future growth and provides actionplans for each of these areas from the viewpoints of both industrial and energy policies. The strategy

reflects Japan’s determination to pursue ambitious goals while highlighting to the greatest extent
possible realistic pathways toward their achievement.

Moreover, to support the forward-looking efforts of companies aiming to realize these goals, many kindsof policy measures are being mobilized. As part of this effort, a 2 trillion yen* fund has been establishedat NEDO in March 2021 to launch the Green Innovation Fund Projects.

*300 billion yen has been added to the second supplementary budget for FY2022, and 456.4 billion yen will be added to the initial budget for FY2023 (as of July2023).

Image of Carbon-neutral Industries

Promoting carbon-neutral electrification in the industrial sector
Hydrogen-related technologies are vitally important for utilization in power generation, industry, transportation and other sectors
CO₂ is recovered for carbon recycling and other activities related to CO₂ capture and storage (CCS)
Coalmines

Offshore
floating-type
wind power generation

Solar panels

Waterelectrolysis plants

Hydrogenation plants

CCS
Underground storage facilities

Hydrogen power generation
Hydrogen mono-combustion

LNG-fired power generation
Co-combustion of hydrogenin high-efficiency GTCC

Chemical plants

Production of plastics by artificial photosynthesis
and production of hydrogen by photocatalysts

Direct absorption of CO₂
from atmosphere

CCS
Underground storage facilities

Methanation/synthetic fuelproduction plants

Hydrogen storage
tanks

Production of fuels(e.g., methane gas)from CO₂ and hydrogen

Grid storage batteries

Agriculture, forestry and fisheries

Solar panels

Fuel ammonia mono-combustion

Production of safe carbon-neutralhydrogen for power generation

-neu

bon
Car

Biomass power generation

CCS
Underground storage
facilities
Sewage treatment facilities
Used for biomasseFoundation for digital society

andPower semiconductors Residentialcommercial buildings
Used in wide range

Carbon recycling
Working to make CO₂ reusable resource for everyday
necessities such as fuels, plastics, and concreteelNext-generation solar cells(perovskite, etc.)

Lifestyle changes
Circulation of resources

New materials derived
from biomass“Elite” and fast-growing trees
CO₂ absorption by forests

Local production andconsumption of energy
Distributed energy systems

Stationary storage batteries
and fuel cells
EV/Plug-in
hybrid vehicles
Storage batteries

Data centersc fuHydrogen fueling stations
Charging stationsof electronics

CO2

theti

than

me
tral

Nuclear reactors,
including small nuclear reactors

Enhancement of safety and cost-efficiency

Fuel produced from biomass

Syn

Stable storage of green power

High-temperature gas-cooled
and nuclear fusion reactors

Ammonia power generation

Electricity

Development of fuels using
CO₂ from seaweed,
waste wood-based
building materials, and waste pulp

Paper plants

Ammonia carriers

Hydrogen

DAC
Biofuel plants

CO₂-absorbing concrete

Production of hydrogenby water electrolysis

LNG carriers

LegendDevelopment of electric-poweredsmall passenger planes

Concrete plants

Offshore fixed-bottom
wind power generation
Water electrolysis plants

Production of ammonia
from natural gas
and renewable energy sources

Co-combustion of ammonia andbiomass in high-efficiency thermal
power generation (USC/IGCC)

Electric aircraft

MCH carriers
Hydrogen carriers

Ammonia plants

Coal-fired power generation

Carbon capture
utilizing marine ecosystems

Development of carbon-neutral steel
that uses hydrogen to reduce iron ore

Methylcyclohexane

Coal carriersBlue carbon

Ships powered by fuel cells,
electricity, and fuel gases(e.g., hydrogen and ammonia)

Ironworks

MCH plants

Gas fields

Partial use of electric power
technology for propulsion

Use of hydrogen fueland fuel cells

Zero-emission ships

Production of hydrogenby water electrolysis

Hybrid aircraft

Hydrogen aircraft

FCVs

Synthetic fuels(e-fuels)

Fuel cell-powered railcars
FC buses

Logistics
EV/FC trucks

Demand response/
virtual power plants

EV/FCV construction machinery

Construction of high-rise buildings
using wood-based materials

Source: Created by NEDO based on “Image of Carbon Neutral Industries” by METI

3

Green Innovation
The Green Innovation Fund Projects, carried out on the basis of ambitious goals shared by the public and private sectors, aims
to provide continuous support to companies and other organizations committed to addressing such goals as part of theirbusiness activities. Such support, available for up to a maximum of ten years, ranges from research and development (R&D)
activities and demonstrations to social implementation of project outcomes.

Basic Policies for Green Innovation Fund (Summary)

01

02

Purpose and Outline

To achieve carbon neutrality by 2050, METI established a 2 trillionyen fund as part of NEDO and provide continuous support for R&D
projects, demonstrations, and social implementation projects for
up to 10 years to companies that commit to ambitious goals.

03(Per project)
Ambitious 2030
targets, etc.

（Performance, Cost,
etc.）

04

Support Target

METI’s support will focus on priority fields for which implementation plans
have been formulated within the Green Growth Strategy, or key fields forwhich a future roadmap has been presented based on the "Basic Policy
for Realization of GX", where policy effects are significant, and long-term
continuous support is required to realize public implementation.
Average size of conventional R&D projects (20 billion yen) or more.

Projects for which short-term government support programs issufficient are not eligible.
Main implementers should be companies or other profit-making
businesses capable of carrying out the entire process of public
implementation (participation of small and medium-sized venturecompanies is encouraged; participation of universities and research
institutions is also expected).

The project must include innovative and fundamental R&D elementsthat are worthy of being commissioned by the government.

Program Target
Monitor Cross-sectoral monitoring offund projects based on the following; ・CO2 Reduction
Effect＊International Competitiveness・Economic＊Commercialization (TRL, etc.)
Effect＊Potential for attracting private
investment

Strategy for Maximizing Results

To ensure that research and development results are steadily
implemented publicly, METI seeks the commitment of the
managers of companies and other organizations to persevere inchallenging these goals as long-term business issues.
(Efforts required of company managers)＊Submission of the vision and the long-term business strategy at thetime of application＊Attendance and report to the WG＊Submission of a management sheet showing the status of initiatives(Implementation of a system to enhance commitment)
1)If the status of the project is inadequate, the project will be canceled,
and a portion of the consignment fee will be returned.
2)Introduction of a system(an incentive measure)that allows the government
to pay more depending on the degree of achievement of targets.

The 14 priority fields in the Green Growth Strategy for which action plans have been compiled
Energy-related Industries● U pholding ambitious
goals, steadily implement
action planscorresponding to thephase of technology, andstrengthen international
competitiveness.
● Trial calculations
indicate that theeconomic effect will beapproximately 290
trillion yen and the effectin terms of employment
will be approximately 18
million jobs in 2050.

01

Offshore Wind Power,
Solar Power, Geothermal
Power

03

By 2050, aim to inject synthetic
methane by 90% into existing
infrastructure.

For passenger vehicles, electrified
vehicles will account for 100% of
new vehicle sales by 2035

Hydrogen and FuelAmmonia

04

06● By 2040, develop projects
to generate 30-45GW[Offshore wind power]● By 2030, aim for a power
generation cost of 14 yen/
kWh through nextgeneration solar cells[Solar power]

02● By 2050, introduce
approximately 20 million tons
[Hydrogen]● Aim to capture amarket of 500 billion
yen in Southeast Asia
[Fuel ammonia]

Next-generation Heat
EnergyNuclear Power

By 2030, establish underlying
technologies related to carbonfree hydrogenproduction by
hightemperature
gas-cooled
reactors (HTGR).

05

Automobiles andStorage Batteries

Semiconductors andInformation andCommunication

By 2040, aim to achieve carbon
neutrality in the semiconductor/
information and communicationindustries.

＊In accordance with Japanese law, NEDO is not authorized to implement or provide funding for research and development activities solely targeting nuclear power.

4

Fund Projects
Moreover, by leveraging government funding, this program is intended to serve as an impetus encouraging private
sector investment in R&D activities and infrastructure development, and also attract global ESG-related funding,estimated to total approximately 35 trillion dollars, to Japan. Through such efforts, Japan aims to realize carbon
neutrality by 2050.

05

SchemeBuild a highly transparent and effective governance system that incorporates theknowledge of external experts and close cooperation among related organizations.

Green Innovation Project committee＊Deliberation on the "Basic Policy”＊Preparation of the "Policy for Allocation of Funds for each
Field," etc.
Presentation and deliberation of
the draft basic policy

Installation
ReportField-specific working groups (WG)
＊Deliberation on the content and scale of each project, etc.
＊Confirmation of the status of the project, etc.

Presentation and deliberationof proposed R&D and public
implementation plan＊1

METI＊Project Management office for the committee and WGs＊Preparation of basic policies＊Planning of each project ＊2, etc.

Progress reports
and Advice

NEDO＊Management and administration of funds＊Administrative work related to public solicitation, screening,inspection, payment, etc.
＊Technical and business advice by experts, etc.

Subsidize andcollaboration

1 A plan describing the project's goals for 2030, R&D items, maturity level of the target technologies(TRL, etc.), budget scale, etc. (A draft of the plan is discussed by the WG.)
2 Including the division office in charge of the project in the relevant ministry or agency.

06

Program Schedule
March 2021

From March onward

From April onward

Every year

at any time

Formulatethe Basic Policy

Organize
the Projects

Implement
the projects

Evaluatethe Projects

End ofthe Projects＊Deliberations in thecommittee＊Preparation of fundallocation policy foreach field＊Deliberations in WGs＊Public Offering,Examination, Inspection,
Payment, etc.

Transportation and manufacturing-related industries

07

Shipping

Realize the commercial operationof zero-emission ships before
2028.

08

Logistics, People Flows,
and Civil Engineering
Infrastructure

By 2050, realize carbon neutral
ports and decarbonization of
construction works, etc.

Home and office - related industries

Food, Agriculture,
Forestry, and Fisheries
Industries

11

By 2050, achieve zero fossil-fuelderived CO2 emissions in the
agriculture, forestry and fisheries
industries.

● By 2050, aim to bring the priceof plastic raw materials made by
artificial photosynthesis to thesame level as existingproducts [Carbon
recycling]● Realize zero-carbon
steel [Materials]

10

Aircraft

12

09

Aim for the phased
implementation of coretechnologies for aircraft batteries,
etc. from 2030.

＊Completion or termination＊Ex-post evaluation＊(NEDO → WG →committee)
Periodic monitoring

Carbon Recycling andMaterials

Housing and Building and
Next-generation PowerManagement

By 2030, realize zero-energy on
average in newly built
zero-energy homes(ZEH) andzero-energy
buildings (ZEB).
[Housing andbuilding]

13

Resource Circulation

By 2030, introduce approximately
2 million tons of bioplastics.

14

Lifestyle-related

By 2050, aim to realize carbonneutral, resilient and comfortableliving.

5

List of Projects

Projects ranging from researchand development (R&D) activities
a n d d e m o n s t ra ti o n s to s o c i a l
implementation of project
outcomes with view to realizing
carbon neutrality by 2050

Field of Green Power Promotion, etc.
119.5 billion yen

Cost Reductions for Offshore
Wind Power Ge neration

P.7

49.8 billion yen

Development of
Next-Generation Solar Cells

P.8

Field of Energy Structure Transformation
300 billion yen

Large-scale Hydrogen
Supply Chain Establishment

P.9

70 billion yen
Hydrogen Production
through Water Electrolysis
Using Power from Renewables

68.8 billion yen

Fuel Ammonia Supply Chain
Establishment

P.12

P.15

Hydrogen Utilization in Iron andSteelmaking Processes

126.2 billion yen
Development of Technology for
Producing Raw Materials for Plastics
Using CO2 and Other Sources

56.78 billion yen
Development of Technology
for Producing Concrete andCement Using CO2

P.10

193.5 billion yen

P.13

P.11

115.28 billion yen

Development of Technology for
Producing Fuel Using CO2, etc.

P.14

38.23 billion yen

Development of Technology
for CO2 Separation, Capture, etc.

P.16

Field of Industry Structure Transformation
151 billion yen

Next-Generation Storage Battery
and Motor Development

P.17

42 billion yen
Development of In-vehicle Computing
and Simulation Technology for Energy
Saving in Electric Vehicles

141 billion yen

Next-generation Digital
Infrastructure Construction

P.20

15.92 billion yen
Development of Negative Emissions
Technologies in Agriculture,
P.23
Forestry, and Fisheries Industries

P.18

113 billion yen

Smart Mobility Society Construction

21.08 billion yen

Next-generation Aircraft
Development

P.21

35 billion yen

Next-generation Ship Development

176.7 billion yen
Promotion of Carbon Recycling
Using CO2 from Biomanufacturing
Technology as a Direct Raw Material

P.24

P.22

32.51 billion yen

Decarbonization of thermal
processes in manufacturing*The amount shown in each project image is the maximum amount to be contributed from the fund (as of July 2023).
In addition, there are other costs to be borne by the implementing companies, etc.

6

P.19

P.25

Field of Green Power Promotion, etc.

Cost Reductions
for Offshore Wind Power
Generation
Budget
Up to

119.5

Project Overview

billion yen

To achieve carbon neutrality by 2050, it is essential to introduce
renewable energy as much as possible. Given the feasibility of large-

scale introduction and cost reductions as well as the anticipatedeconomic ripple effects, offshore wind power generation holds the
key to making renewable energy a main source of power.

Offshore wind power has been expanding mainly in Europe, but the

Asian market is expected to grow rapidly between now and 2050.
Especially in Japan and other parts of Asia, which have large areas ofdeep sea, there is an increasing need for systems optimized to suit

local oceanographic and meteorological conditions, such as low
wind speeds, typhoons, and lightning strikes.

The aim of this project, therefore, is to establish technology that can

Based on the results of demonstration projects carried out thus far,the cost of offshore wind power, particularly for floating windturbines, can be quickly reduced, thereby facilitating an expansion in
public implementation efforts.
≪ Research & Development ≫● Technology development project for next-generation wind turbines● Technology development project for basic manufacturing andinstallation cost reduction for floating wind turbines● Technology development project for offshore wind power-related
electrical systems● Innovative offshore wind power operation and maintenance project● Floating offshore wind turbine demonstration project

achieve a power generation cost of 8 to 9 yen/kWh with fixed-bottom
wind turbines under cer tain conditions, and technology tocommercialize floating offshore wind turbines at internationallycompetitive cost levels.

CO₂ Reduction Effect (Japan)

Economic Effect (World)

In2030In2030In2050In2050Approximately 3-7 million tons/year
Approximately 90 million tons/year

Approximately 1 trillion yen
Approximately 2 trillion yen

Source : METI, R&D and Social Implementation Plan

Image of technology development for floating type offshore wind power
Development of next-generation wind turbines

Floating typeoffshore transformer
substation

Development of offshore wind power operationand maintenance technology

Barge
Development of electric system technology

Tension leg
platform (TLP)
mooring type

Spar

Development of floating typefoundational structures, etc.

Detailed information

Project period

Semi-submersible

https://green-innovation.nedo.go.jp/en/project/offshore-wind-power-generation/

Maximum of 10 years from FY2021 to FY2030

Department in charge

New Energy Technology Department

gi-wind@nedo.go.jp

7Field of Green Power Promotion, etc.

Development of
Next-Generation Solar
Cells

BudgetUp to

49.8

Project Overview

billion yen

To achieve carbon neutrality by 2050, it is necessary to introduce

formation, and sealing processes) for scaling up products, the aim ofpossible with the aim of using them as primary sources of power. In

less by 2030 as conventional silicon solar cells.

renewable energy sources, including solar power, as much as

this project is to achieve the same electricity costs of 14 yen/kWh orJapan, where most land is not flat, one way of securing suitable areas≪ Research & Development ≫for solar power generation is installing next-generation solar cells● Project for fundamental technology development of next-generation
solar cells

that can be installed in places where existing photovoltaic cells couldnot (walls of buildings, factory roofs that can only support small● Project for practical realization of next-generation solar cells

loads, etc.). Installation in such locations, therefore, requires the● Project for demonstration of next-generation solar cells

development of lightweight next-generation solar cells that are

flexible enough to be installed on curved surfaces such as walls andwhich are also comparable to existing photovoltaic cells in terms of
performance (conversion efficiency, long-term reliability, etc.).

Economic Effect (World)

In2030In2030In2050In2050Approximately 0.6 million tons/year

Through the development of basic technologies for next-generation

Approximately 100 million tons/year

solar cells (perovskite solar cells) and R&D for realizing technologies

for various manufacturing processes (coating processes, electrode

Improved performance atlaboratory size

CO₂ Reduction Effect (Japan)

Approximately 12.5 billion yen
Approximately 1.25 trillion yen

Source : METI, R&D and Social Implementation Plan

Installation andcommercialization

Upsized with enhanced durability
Development of basic technologies corresponding toeach process, for example, technology for uniform
nano-level coating

A = CH 3 NH 3+ etc.
+

B = Pb2 etc.
X = I- etc.

Perovskite crystal structure(general type: ABX3)
Sunlight

Power generating layer

Electrode formation

Electrode raw
materials

Power generating
layer coating

Coating raw
materials＊ImagePatterning

Glass

Electrode formation

Source: Taisei Corporation

Electrode raw
materials

Electrode
Solar cells

Source: The University of Tokyo

Source: Toshiba Corporation

Detailed information

Project period

Maximum of 10 years from FY2021 to FY2030

Department in charge

8

https://green-innovation.nedo.go.jp/en/project/next-generation-solar-cells/

New Energy Technology Department

nedo.gi-pv@ml.nedo.go.jp

Field of Energy Structure Transformation

Large-scale Hydrogen
Supply Chain
Establishment

BudgetUp to

300

Project Overview

billion yen

Hydrogen can not only directly contribute to the decarbonization ofplant (co-combustion with other fuels and single-fuel combustionhydrogen for storage and utilization, it can also maximize its potential

make reducing supply costs possible along with creating a large-

the power generation sector by converting surplus power into
as a zero-emission renewable energy power source. Hydrogen istherefore expected to be used as a secondary energy source forachieving carbon neutrality and contribute to decarbonization inindustrial fields such as raw material utilization and heat demand
where decarbonization through electrification is difficult.

To promote the social implementation of hydrogen, supply costs

must be reduced by increasing the size of supply facilities while also
creating large-scale hydrogen demand. However, since long-termhydrogen demand is currently uncertain, it is difficult for privatecompanies to make large-scale investments in infrastructure. To

using hydrogen only). The aim is to establish technologies that will
scale demand for hydrogen, and to achieve a hydrogen supply costof 30 yen/Nm³ by 2030, and 20 yen/Nm³ or below by 2050 (similarlevel to fossil fuels).

≪ Research & Development ≫● Large-scale hydrogen supply chain demonstration, anddevelopment of innovative hydrogen transportation technology● Developing a foundation for material evaluations to support R&D on
liquefied hydrogen-related equipment● Demonstration of hydrogen power generation technology at an
actual power plant

reduce this uncertainty, a social implementation model must be

established that can increase supply and create hydrogen demand

CO₂ Reduction Effect (World)

Economic Effect (World)by maximizing use of existing infrastructure.

In2030In2030In addition to enlarging the transportation facilities, and other

In2050In2050resources including hydrogen carriers, the project will implement
demonstrations of hydrogen power generation at an actual power

Approximately 7 million tons/year

Approximately 0.3 trillion yen/year

Approximately 400 million tons/year

Approximately 5.5 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Large-scale hydrogen supply chain for liquid hydrogen and methylcyclohexane (MCH) (image)
Liquefaction plant(Liquefier, etc.)

Hydrogenproduction
abroadHydrogenation plant(Toluene → MCH)

Maritime transport(Liquid hydrogen carrier)Maritime transport(Chemical tanker)

Receiving terminal(On-shore tank, loading arm, etc.)

Dehydrogenation plant＊

Hydrogen power generation(co-combustion with otherfuels / single-fuel combustion
using hydrogen only)＊Demonstrations expected
to be conducted at multiple
locations(MCH → toluene)

Toluene＊Oil refineries and other existing facilities are expected to be utilized to the maximum
Source: Created by the Agency for Natural Resources and Energy based on the websites of HySTRA, AHEAD, etc.

Detailed information

Project period

https://green-innovation.nedo.go.jp/en/project/hydrogen-supply-chain/

Maximum of 10 years from FY2021 to FY2030

Department in charge

Fuel Cell and Hydrogen Technology Office,
Smart Community and Energy Systems Departmenthydrogen@ml.nedo.go.jp

9Field of Energy Structure Transformation

Hydrogen Production
through Water
Electrolysis Using Powerfrom Renewables Budget
Up to

70

Project Overview

billion yen

Hydrogen can not only directly contribute to the decarbonization of

To achieve this social implementation model, as well as establish ahydrogen for storage and utilization, it can also maximize its

the aim of this project is to develop technologies at a close-to-the power generation sector by converting surplus power into
potential as a zero-emission renewable energy power source.
Hydrogen is therefore expected to be used as a secondary energys o u r c e fo r a c h i ev i n g c a r b o n n e u t r a l i t y a n d c o n t r i b u te todecarbonization in industrial fields such as raw material utilization

domestic hydrogen production base and develop markets overseas,commercial level that will realize alkaline type water electrolysers at

a cost of 52,000 yen/kW and PEM type water electrolysers at a costof 65,000 yen/kW.

and heat demand where decarbonization through electrification is≪ Research & Development ≫To promote the social implementation of hydrogen, supply costs● Establishment of performance evaluation technologies for waterelectrolysers

difficult.

must be reduced by increasing the size of supply facilities while also
creating large-scale hydrogen demand. However, since long-termhydrogen demand is currently uncertain, it is difficult for private● Technology development for increasing the size of waterelectrolysers, and Power-to-X large-scale demonstrations

companies to make large-scale investments in infrastructure. To

CO₂ Reduction Effect (World)

established that can increase supply and create hydrogen demand

Approximately 40 million tons/year

reduce this uncertainty, a social implementation model must be
by maximizing use of existing infrastructure.One such model
fo c u s e s o n th e u ti l iza ti o n of wa te r e l e c t ro l ys e r s fo r s e l fconsumption and hydrogen utilization in nearby areas.

Economic Effect (World)

In2030In2030In2050In2050Approximately 1.52 billion tons/year

Approximately 0.4 trillion yen(Total up to 2030)

Approximately 4.4 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Power-to-X system's structure
Electricity
Hydrogen

Storage facilities to fill in the difference in output between processes(storage batteries, hydrogen tanks, etc.)

Transformer Rectifier

Process 1(Power generation)

Compressor
Electrochemical
Storage

Reduce equipment costs
through the increase in size,
modularization, etc.

＊Utilize hydrogen that is manufactured using power generated from excess renewable energy in various sectors,
such as industries including electric power, transportation, heating, and industrial raw materials.

Detailed information

Project period

DemandProcess 3(Hydrogen use)
Meeting thermal demand,
manufacturing processof chemicals, etc.

https://green-innovation.nedo.go.jp/en/project/hydrogen-production-water-electrolysis-utilizing-electric-power-derived/

Maximum of 10 years from FY2021 to FY2030

Department in charge

10

Hydrogen Storage

Process 2＊(Hydrogen production)

Fuel Cell and Hydrogen Technology Office,
Smart Community and Energy Systems Departmenthydrogen@ml.nedo.go.jp

Field of Energy Structure Transformation

Hydrogen Utilization in
Iron and Steelmaking
Processes

Budget
Up to

193.5

Project Overview

billion yen

where hydrogen is used instead of carbon to reduce iron ore, but thisSteel is used in many products, ranging from spacecrafts to moremethod has not yet been put into practical use.

common products such as automobiles, bullet trains, computers,

smartphones, and houses, and the steel industry is the foundationfor various other industries.

To achieve carbon neutrality in the steelmaking process, this project

Even in the carbon-neutral society of 2050, demand is expected toof hydrogen reduction technology to existing blast furnaces (using

aims to reduce CO₂ emissions by at least 50% through the application
blast furnace hydrogen reduction technology) and technology forremain high for automobiles, electronics, and infrastructure-relatedusing hydrogen to directly reduce low-grade iron ore (using direct

products. During the manufacturing process for these products,hydrogen reduction technology).

however, large quantities of CO₂ are emitted.

CO₂ emissions in the iron and steel industry totaled approximately≪ Research & Development ≫131 million tons in FY2020, and currently account for roughly 40% of● Development of hydrogen reduction technology using blast
furnaces

all industrial CO₂ emissions in Japan.

● Development of direct hydrogen reduction technology that reduces
iron ore with hydrogen only

Since ancient times, the primary method for making steel has been

to use carbon, in the form of charcoal or coal, as the means for

Economic Effect (World)

CO₂ Reduction Effectreducing iron ore. However, this method inevitably generates CO₂.

Therefore, to reduce CO₂ emissions, it is necessary to radically

In2030(Japan)In2030material/reduction agent. For this reason, research is underway all

In2050(World)In2050Approximately 2 million tons/yearchange the steel-making process by moving away from coal as a raw

Approximately 1.3 billion tons/year

over the world on steelmaking through the use of hydrogen reduction

Approximately 320 billion yen/year
Approximately 40 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Image of hydrogen reduction ironmaking

Iron ore

Producing 1 ton ofsteel generates
about 2 tons of CO₂

CIron ore

Steel products

CO2

Fe

Fe2O3
Reduction reaction(Carbon takes oxygen away from iron ores)

Detailed information

Project period

H2

Reduction with hydrogenrather than carbon:

Hydrogen reduction ironmaking

Zero CO₂ emissions

Steel products

H 2O

Fe2O3

Fe

Reduction reaction(Hydrogen takes oxygen away from iron ores)

https://green-innovation.nedo.go.jp/en/project/utilization-hydrogen-steelmaking/Maximum of 10 years from FY2021 to FY2030

Department in charge

Environment Department

cct.projects@ml.nedo.go.jp

11Field of Energy Structure Transformation

Fuel Ammonia Supply
Chain Establishment

BudgetUp to

68.8

Project Overview

billion yen

Similar to hydrogen, ammonia does not emit CO₂ during combustion,

To address these issues, the aim of this project is to realize

generation and shipping, thereby helping to realize carbon neutrality.

10 yen range perNm³ (equivalent to hydrogen bycalorific value) by

technology necessary to reduce ammonia supply costs to the highso it is expected to be used as a zero-emission fuel for power

2030. Another goal concerns establishing high-ratio co-combustion

For power generation applications in particular, it is important toand mono-fuel combustion technologies for using ammonia power

promote the decarbonization of thermal power generation by

generation to achieve the estimated domestic demand level of 30

replacing fossil fuels with ammonia. Ammonia can also be used as amillion tons/year by 2050.

hydrogen carrier, so by using existing infrastructure, it can be

manufactured and transported inexpensively. Because of these≪ Research & Development ≫characteristics, ammonia fuel is attracting attention all over the● Reduction of ammonia supply costs

world, and demand is expected to increase rapidly in the future,● High-ratio co-combustion and mono-fuel combustion needed forammonia power generation

especially in Asia.

However, ammonia is not currently used as a fuel, so to realize a

Economic Effect (World)

CO₂ Reduction Effectsociety where ammonia fuel can be used, various issues must be
addressed, such as expanding its use, securing stable supply

In2030(Japan)In2030In2050(World)In2050Approximately 6.15 million tons/year

sources, and reducing its cost.

Approximately 1.15 billion tons/year

Approximately 0.75 trillion yen
Approximately 7.3 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Fuel Ammonia Supply Chain
Scope of this projectBlue

Natural gas

Power generation uses

Ammonia synthesis Discharging equipment(tanks, etc.)
Renewable energy

Electrolysis

Boiler co-combustion/mono-combustion

NH3

Reforming＋CCS/EOR

Transportation

Green

Gas turbine co-combustion/mono-combustion

Receiving equipment(tanks, etc.)

Shipping and industrial uses

Shipping fuelRaw materials

Fertilizer

Source: Created by NEDO based on diagram produced by IHI Corporation

Detailed information

Project period

Maximum of 10 years from FY2021 to FY2030

Department in charge

12

https://green-innovation.nedo.go.jp/en/project/building-fuel-ammonia-supply-chain/

Reduction of Ammonia Supply Costs ：Smart Community and Energy Systems Department

smartcommunity@ml.nedo.go.jp

Use of Ammonia for Power Generation ：Environment Department

cct.projects@ml.nedo.go.jp

Field of Energy Structure Transformation

Development of Technology
for Producing Raw Materials
for Plastics Using CO2 andBudgetOther Sources
Up to

126.2

Project Overview

billion yen

Carbon Recycling is a key technology that effectively utilizes CO₂ ascarbon-free heat sources, technology for producing chemicals fromindustrial sector accounts for 29.3% of total CO₂ emissions in Japan,

chemicals from CO₂, and technology for producing chemicals froma resource for realizing a carbon neutral society. As of 2019, theand the chemical industry, which accounts for 18.6% of the industrial
sector, emits 60.18 million tons on an annual basis.

Most of the raw materials for plastics are derived from naphtha(crude gasoline), which is obtained from refining petroleum, andabout half of the CO₂ emitted by the chemical industry is due toprocesses like cracking naphtha to produce basic chemicals such as
ethylene and propylene.

In addition, about 84% of waste plastics are recycled, but some 57%

waste plastics and rubber, technology for producing functional
alcohols.

≪ Research & Development ≫● Development of advanced technology for naphtha cracking
furnaces by adopting carbon-free heat sources● Development of technology for producing chemicals from waste
plastics and rubber● Development of technology for producing functional chemicals
from CO2● Development of technology for producing chemicals from alcoholsof these are used as a heat source for waste-to-energy plants, etc.

CO₂ Reduction Effect (World)(thermal recycling), and are eventually discharged as CO₂. So drastic
measures are therefore necessary.

In2030In2030In2050In2050Approximately 40 million tons/year

The aim of this project, therefore, is to develop four carbon recycling

Approximately 1.1 billion tons/year

technologies related to the manufacture of plastic raw materials:

advanced technology for naphtha cracking furnaces by adopting

Economic Effect (World)
Approximately 10 trillion yen/year
Approximately 360 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Positioning of R&D topics under projectGreen hydrogen

Technology for producing chemicals
from CO₂ derived alcohol(Artificial Photosynthesis)
Solar energy

O2

Power stations, factories
Technology
for producing
functional chemicals
from CO₂

Detailed information

Project period

H2

CO2

Synthetic gas
H₂,CO, etc.

Biomass

Chemical raw materials(alcohol)CN fuel(NH3, etc. )Advances Naphtha cracking
furnace technology

Thermal decomposition (olefin)
Basic chemicals(olefin, BTX, etc.)

Waste plastics

RubberWaste rubber

Polycarbonate
polyurethane

Off-gasCH4

Thermalcracking
furnace

Plastics

Distillation

Gasification (H2, CO)
Thermal decomposition(liquefaction)

Conversion of waste plastics andrubber into raw materials(chemical recycling)https://green-innovation.nedo.go.jp/en/project/development-plastic-raw-material-manufacturing/

Maximum of 10 years from FY2021 to FY2030

Department in charge

Materials Technology and Nanotechnology Department

gi_cr_plastic@nedo.go.jp

13Field of Energy Structure Transformation

Development ofTechnology for
Producing Fuel Using
BudgetCO2, etc.
Up to115.28

Project Overview

billion yen≪ Research & Development ≫To achieve carbon neutrality by 2050, it is essential to replace fossil● Development of technology for improving production yield andutilization technology of synthetic fuels

fuels with fuels that do not increase CO₂ levels in the atmospherewhen burned.

● Development of technology for producing Sustainable Aviation Fuel
(SAF)

Such fuels have the potential to transform the energy supply and● Development of innovative technology for the production ofsynthetic methane

demand structure in Japan—which is dependent on fossil fuels fromother countries—making it important from the perspective of energy● Development of technology for synthesizing green LPG without
fossil fuels

security. Using existing infrastructure will greatly help reduce initialcosts. The goal is to solve issues related to production technology
and lower production costs to implement them throughout society.

CO₂ Reduction Effect (World)

Economic Effect (World)

In2030In2030recycling fuels as one of the various options for realizing a

Approximately 6.008 million to
9.438 million tons/year

implementation of two liquid fuels—(1) synthetic fuels and (2)In2050

It is necessary to promote the development of technology for carbon

decarbonized society. This project will work toward the social

Approximately 270.4 billion to
1.1 trillion yen(Total up to 2030)

Approximately 320 million tons/yearsustainable aviation fuels (SAF)—and two gaseous fuels—(3)synthetic methane and (4) green LPG.

In2050Approximately 17.1 trillion yen(Total up to 2050)

Source : METI, R&D and Social Implementation Plan

Image of utilization of CO₂ etc. in major carbon recycle fuels

Secure stable supplyof raw materials
CO２＋

derivedfromrenewableenergyH２

Establish process technologies
Synthetic fuels
production

Synthetic Methane,
Green LPG
Production
SAF
Production

CO₂ from factory, power plant emissions

Contribute to carbon neutral in each field
Passenger cars

Truck

Vessels

Factory

OfficeHome

Aircraft

Response policy

Response policy

Response policy

Cross-linkage of technologies basedon collaboration between projects

R&D in this project

Demand creation
Utilization of existing technologies and infrastructure
Establishment of international assessmentof carbon-recycled fuelSource: METI, Development of technology for producing fuel using CO2, etc, revision

Detailed information

Project periodMarket capture

https://green-innovation.nedo.go.jp/en/project/development-fuel-manufacturing-technology-co2/

Maximum of 9 years from FY2022 to FY2030

Department in charge

Synthetic Fuels ( Improving Production：Environment Department
Yield), Synthetic Methane,Green LPG

Synthetic Fuels (Utilization Technology) ：Energy Conservation Technology Department
Sustainable Aviation Fuels (SAF)

14：New Energy Technology Department

cct.projects@ml.nedo.go.jp
gi8eng@ml.nedo.go.jp
nedo.biofuel@ml.nedo.go.jp

Field of Energy Structure Transformation

Development ofTechnology for Producing
Concrete and Cement
BudgetUsing CO2
Up to

56.78

Project Overview

billion yen

Carbon Recycling is a key technology that effectively utilizes CO₂ as

To realize a carbon neutral society, the aim of this project is tocompetitive edge in the field of CO₂ separation and capture, as well

Carbon Recycling technologies, and strategically promote theiraddress the above issues related to the social implementation ofa resource for realizing a carbon neutral society. Japan has adiffusion in Japan and overseas.

as certain kinds of chemicals relevant to this technology.

≪ Research & Development ≫Due to the high potential for CO₂ fixation and the stability of● Development of concrete produced with maximized volumes of CO 2
emissions reduction and CO 2 fixation

products, the use of CO₂ in concrete, cement, and carbonates● Development of technology related to quality control/fixation
evaluation methods for concrete produced with maximized volumesof CO 2 emissions reduction and CO 2 fixation(hereinafter referred to as “concrete and cement fields”) in particularwill be implemented in society, which is expected to greatly reduce
CO₂ levels. In Japan, the United States, and Europe, R&D and● Design and demonstration of CO 2 -recovering cement production
processdemonstration projects in this area are already underway.

● Establishment of carbonic acid chloride technology using various
calcium sources

In order to achieve decarbonization in concrete and cement field,

however, it is necessary to reduce CO₂ emissions and increase CO₂

fixation of concrete, a product used all around the world, as well as

promote its use by reducing costs. Cement, a material used inconcrete, also emits CO₂ through the decarbonization reaction of

CO₂ Reduction Effect (World)

Economic Effect (World)

In2030In2030In2050In2050Approximately 0.6 to 1.4 billion tons/year

limestone, one of its raw materials, making it another issue thatneeds to be addressed.

Approximately 3 billion tons/year

Approximately 380 billion yen
Approximately 156 trillion yen

Source : METI, R&D and Social Implementation Plan

Producing concrete and cement using CO2

Task : CO₂ emissions reduction

Task : Maximized volumes of CO2 emissions
reduction and CO2 fixation and cost reduction

CO2 fixation

CO2 emissions during production

Limestone

Clinker

Cement+ Water+ Aggregate

Used asregenerated limestone

Soil conditioners,
paper, paints,etc.

Used asmaterials/chemicals

Detailed information

Long- term use
in public infrastructure

Waste concrete

Used asaggregat

Carbonate(CaCO3)

CO2 fixation

Task : Price reduction,
Secure supply chain：Carbon Recycling technology

Project period

Concrete

CaO

Extraction of CaO

Task : Expansion of extraction amount of Ca,
Increase CO2 absorption amount,
Reduce extraction energy cost

Roadbed materials
Recycled crushed stone,etc.
Waste, etc.

• Steel slag
• Lime ash• Remaining
concrete/returned concrete

https://green-innovation.nedo.go.jp/en/project/development-manufacturing-concrete-using-co2/

Maximum of 10 years from FY2021 to FY2030

Department in charge

Environment Department

cct.projects@ml.nedo.go.jp

15

Field of Energy
IndustryStructure
StructureTransformation
Transformation

Development ofTechnology for CO2
Separation, Capture,
Budget
etc.
Up to

38.23

Project Overview

billion yen

The power sector is moving toward decarbonization by introducing

a concentration of 10% or less, to expand the business for CO₂

renewable energy to the greatest extent possible. However, in orderseparation and capture equipment and materials, and to strengthen

to meet domestic demand for electricity, it is necessary to maintain aJapan's international competitiveness in the carbon recycling market

certain amount of thermal power generation and capture thewhile linking these results to the development of negative emission

resulting CO₂ emissions.

technologies such as Direct Air Capture (DAC).

At the same time, while efforts to realize decarbonization in the≪ Research & Development ≫● Technology development and demonstration of large-scale CO 2
separation and capture from natural gas-fired power generation
exhaust gas

i n d u s t r i a l s e c to r a r e m ov i n g fo r wa r d , by s u c h m e a n s a selectrification and fuel conversion to hydrogen, demand for fossil
fuels is expected to continue to some degree due to cost-related● Technology development and demonstration of small- andmedium-scale CO 2 separation and capture from factory exhaustgas, etc.

factors. In addition, it is difficult to avoid CO₂ emissions emanatingfrom raw materials used in industrial sectors such as cement, steel,and chemicals.

● Establish a common base for evaluating the standards of CO 2
separation materials

There is consequently an increasing need for CO₂ separation andcapture technologies in both the power generation and industrial

sectors. However, challenges include the large amount of energy
inputs needed for separation and capture and high costs for the

CO₂ Reduction Effect (World)

Economic Effect (World)

In2030In2030In2050In2050Approximately 1.6 billion tons/year

equipment and materials used for capture.

Approximately 8 billion tons/year

The aims of this project are to establish technology for the first time
for low-pressure, low-concentration CO₂ separation and capture at

Approximately 6 trillion yen/year
Approximately 10 trillion yen/year

Source : METI, R&D and Social Implementation Plan

CO2 (Low Pressure/Low Concentration) Separation and Capture Process
Scope of this project

Exhaust Gas(less than 10% CO2 Concentration)

Exhaust Gas fromNatural Gas Fired Power Plant,
Industrial Factory, etc

Detailed information

Project period

CO2 Separation andCapture Process

CO2 Utilization Process(Chemical, Fuel, etc)

https://green-innovation.nedo.go.jp/en/project/development-co2-separation-recovery/

Maximum of 9 years from FY2022 to FY2030

Department in charge

16

CO2

Environment Department

cct.projects@ml.nedo.go.jp

Field of Industry Structure Transformation

Next-generation
Storage Battery andMotor Development

BudgetUp to151

Project Overview

billion yen

Use of automobiles accounts for 16% of total CO₂ emissions bothproducing storage batteries and motors, materials with lower supply

vehicles to stem global warming is accelerating worldwide, and theavailability, and issues related to recycling must also be addressed.

globally and domestically. The movement toward the use of electricspread of electric vehicles and plug-in hybrid vehicles is rapidly

chain risks must be developed to overcome constraints on resource

expanding in Europe and China. Efforts to support the development

The aim of this project, therefore, is to address the following

To maintain and strengthen competitiveness in the automotiveof storage batteries and motor systems, 2. Improving performanceof fuel-cell trucks and buses are also increasing in many countries.
industry, the main pillar of Japan's economy, it is essential toaccelerate initiatives toward electrification.

The challenges to be addressed toward the widespread use ofelectrified vehicles include expanding social acceptance throughvehicle price reductions and infrastructure development such as

electrified vehicle charging infrastructure and hydrogen stations.

Another challenge will be to strengthen electrified vehicle-related
technologies, supply chains, and value chains, including storage
batteries, fuel cells, and motors. It is especially important to develop

small lightweight storage batteries and motors for light andcommercial vehicles which face restrictions in terms of vehicle bodydesign and whose pricing is an important issue for consumers. In

technological issues: 1. Improving the performance and affordability

and promoting resource saving at the level of materials, and 3.
Commercializing advanced recycling technologies. The aim of thisproject is also to strengthen the industrial competitiveness of storage
batteries and motors along with developing basic technologies tosupport electrified vehicles in the future and strengthen supply andvalue chains.

≪ Research & Development ≫● Research and development of high-performance storage batteries
and materials● Development of technology for storage battery recycling● Development of high-efficiency and high-power-density
technologies for mobility-related motor systems

issue, from the perspective of reducing life cycle CO₂ emissions of a

CO₂ Reduction Effect (World)

Economic Effect (World)

In2040In2040disposal of storage batteries and motors. In addition, since

In2050In2050addition to developing highly efficient motors, another importantcar, is the reduction of CO₂ emissions during the manufacture andsignificant amounts of natural resources, such as lithium, nickel,
cobalt, graphite, neodymium, and dysprosium, are used forApproximately 260 million tons/year
Approximately 940 million tons/year

Approximately 62 trillion yen
Approximately 182 trillion yen

Source : METI, R&D and Social Implementation Plan

R&D Targets under Project
Scope of research and development

In-vehicle computing

DCM

Software
SoC・ECU
Sensors
Networks Power semiconductors Scope of researchand development
Power trains Motors
Storage battery

Simulation infrastructure
Efficient development
Safety assessments

Storage Battery

Project period

Cooling loss

Kinetic energy

MBD

EVs and self-driving cars

Detailed information

Electrical energy

Storage battery

Inverters

Switching loss
Conduction loss

MotorsIron loss,
copper loss

Gears

Mechanical loss

Motor System

https://green-innovation.nedo.go.jp/en/project/development-next-generation-storage-batteries-next-generation-motors/

Maximum of 9 years from FY2022 to FY2030

Department in charge

Storage Battery ：Electricity Storage Technology Development Division,
Smart Community and Energy Systems Department
Motor System ：Robot and Artificial Intelligence Technology Department

gi_battery@ml.nedo.go.jp
gi_motor@nedo.go.jp

17Field of Industry Structure Transformation

Development of In-vehicle
Computing and Simulation
Technology for Energy Saving
Budgetin Electric Vehicles
Up to

42

Project Overview

billion yen

As a comprehensive effort to reduce CO₂ emissions from the use of

At the same time, in order to strengthen the competitiveness of thedriving will lead to the prevention of traffic congestion and accidents

and automation need to be transformed, the project will develop a

automobiles, it is expected that publicly implementing automatedentire supply chain, where development systems for electrificationthat cause such congestion.

standard simulation model for electric vehicles overall that iscompatible with automated driving.

However, in-vehicle computing, which is required for automateddriving, uses a significant amount of power, which can affect the≪ Research & Development ≫technology, could be a bottleneck to widespread use of electric● Development of automated driving sensor systems to realize highperformance and low power consumption● Development of automated driving open platform software

driving time and distance of electric vehicles, and given the current
vehicles.

● Development of electric vehicle simulation infrastructure

Therefore, in order to greatly improve the energy efficiency of in-

CO₂ Reduction Effect (Japan)

vehicle computing (namely by reducing power consumption by 70%

compared to current technology), this project will conduct R&D on

In2030In2030In2050In2040Approximately 1.69 million tons/year

improving the energy efficiency of automated driving software andse nsor syste ms , which have a sig nific a nt ef fec t on p owe r

Approximately 13.2 million tons/year

consumption.

Economic Effect (World)
Approximately 43 trillion yen
Approximately 148 trillion yen/year

Source : METI, R&D and Social Implementation Plan

R&D Targets under Project

DCM

Scope of research and development

In-vehicle computing

Open platform software

Sensor systems

Networks Power semiconductors

Simulation infrastructure

MBD

SoC・ECU

Power trains Motors Storage battery

EVs and self-driving cars

Detailed information

Project period

Maximum of 9 years from FY2022 to FY2030

Department in charge

18

https://green-innovation.nedo.go.jp/en/project/in-vehicle-computing-simulation-technology/

Robot and Artificial Intelligence Technology Department

gi_vehicle_computing@nedo.go.jp

Field of Industry Structure Transformation

Smart Mobility
Society Construction
BudgetUp to113

Project Overview

billion yen

CO₂ emissions during the automobile use phase account for about

optimization simulation system for the entire society based on

about 40% of these emissions come from vehicles intended forinfrastructure usage status, and maps [1].

16% of total CO₂ emissions both in Japan and abroad, and in Japan,
commercial use. Electrification for commercial vehicles, in addition
to passenger cars, is also underway worldwide

external data such as vehicle and driving data, energy consumption,
In addition, we will conduct research and development involving alarge-scale demonstration of commercial use of electric vehicles bymultiple companies to collect the data necessary for this purpose

with the aim of curbing global warming.

As the commercial use of electric vehicles (EVs) expands, society will

face issues including increased demand for electricity for recharging
and increased social costs such as power grid reinforcement due tooverlapping recharging timing. For transportation companies thatown vehicles, there are concerns that recharging will reducetransportation efficiency and increase transportation business costs,

such as the review of contracted electricity consumption and theinstallation and maintenance of related equipment. Therefore, it isand to realize operation management and integrated energy
management to expand the introduction of electric vehicles on atransportation company-by-company basis [2].
≪ Research & Development ≫● R&D for development of simulation model to promote widespreaduse of commercial EVs● R&D for development of integrated energy/fleet management
system to realize large-scale introduction of commercial EVs

necessary to manage operational planning and power demand in an

CO₂ Reduction Effect (World)

integrated manner. In addition, the commercial use of fuel cellvehicles (FCVs) requires the optimal placement and administration

Therefore, in order to reduce costs and optimize the operation of theentire social system that contributes to the spread and expansion ofelectric vehicles (E Vs and FCVs), this project will build an

In2040In2040In2050In2050Approximately 90 million tons/yearof hydrogen stations, which are expensive to maintain.

Economic Effect (World)

Approximately 260 million tons/year

Approximately 2.6 trillion yen/year
Approximately 7.1 trillion yen/year

Source : METI・Ministry of Land, Infrastructure, Transport and Tourism (MLIT), R&D and Social
Implementation Plan

[1]Development of simulation system to achieve global optimization of a society
Commissioned project

Social optimization Computational infrastructure(Operational efficiency x energy use)

Data linkage related to operations and energy use
Optimal operation calculation model and simulation
Energy management

Fleet management

Energy management

Energy management

Fleet management

Fleet management

taxis
Subsidized
projects

trucks
Subsidized
projects

EV バス

buses
Subsidized
projects[2]Research and development of energy management integrated with operation management for transportation companies
Detailed information

Project period

https://green-innovation.nedo.go.jp/en/project/smart-mobility-society/

Maximum of 9 years from FY2022 to FY2030

Department in charge

Energy Conservation Technology Department

gi-smartmobility@nedo.go.jp

19Field of Industry Structure Transformation

Next-generation
Digital Infrastructure
Construction

BudgetUp to141

Project Overview

billion yen

Increasingly electrified and digitalized society can realize Carbon

data center servers. Because of this rapid increase in large-scaletransportation, and infrastructure. Therefore, the semiconductor/

increase, and the current pace of technological evolution will not be

N e u tra l it y i n a l l fi e l d s i n c l u d i n g m a n u fa c tu ri n g , s e r v i c e s ,information and communication industries, as a foundation for

digitization and electrification, are the key to advancing green anddata centers, power consumption for all data centers is expected toable to keep pace with increases in power consumption.

digital initiatives at the same time.

The aim of this project, therefore, is by 2030 to: reduce the power

In addition, Power semiconductors are used to control various

reduce the cost of such semiconductors to a level similar to that ofelectrical products related to everyday life, such as automobiles andindustrial equipment, electric power generation and railways, andhome appliances.

To realize a carbon-neutral society, the energy efficiency of suchelectric devices is extremely important. Demand is expected toincrease with the development of electric and digital technologies in
the following areas:

1. Medium-capacity electric vehicles, 2. Large-capacity renewableenergy power generation systems, and 3. Power supplies for smallcapacity data centers.

Moreover, data flows are increasing rapidly (at an annual rate of
approximately 30%), resulting in a steady expansion in the market for

loss of next-generation power semiconductors by more than 50%,
silicon(Si) power semiconductors, and improve data center
efficiency by over 40%.

≪ Research & Development ≫● Development of next-generation green power semiconductor
technology● Development of next-generation green data center technology

CO₂ Reduction Effect (World)

Economic Effect (World)

In2030In2030In2050In2050Approximately 175.6 million tons/year
Approximately 449 million tons/year

Approximately 19 trillion yen
Approximately 88 trillion yen

Source : METI, R&D and Social Implementation Plan

Digital transformation/digitization forms basis of all industries:
Need for the strategy for semiconductors and the digital industry

All industries(Digitization is inevitable)

Cybersecurity

CloudsPlatforms

Digital industry
Digital infrastructure

Semiconductors(integrated circuits)

Detailed information

Project period

Semiconductors (integrated circuits)/ Storage batteries

Communication
devices

5G

Storagebatteries

https://green-innovation.nedo.go.jp/en/project/building-next-generation-digital-infrastructure/

Maximum of 10 years from FY2021 to FY2030

Department in charge

20

Data
centers

Internet of Things Promotion Department

gi-digital@ml.nedo.go.jp

Field of Industry Structure Transformation

Next-generation
Aircraft Development
Budget
Up to

21.08

Project Overview

billion yen

Although the COVID-19 pandemic has caused a global downturn indramatically lighter primary structural components with complex(IATA) expects demand for air travel to recover to 2019 levels by

the global movement toward carbon neutrality is considered an

the aircraft industry, the International Air Transport Association
2024, and then, due to economic growth in emerging countries,

continue sustainable annual growth levels of approximately 4%. In
this context, the aircraftindustry can still be considered a growthindustry.

The International Civil Aviation Organization (ICAO) has adopted ashapes necessary for next-generation aircraft. Through this project,

opportunity to strengthen the competitiveness of Japan’s aircraft
industry. By leveraging Japan’s strengths in core technologies forhydrogen and materials, the aim of the project is also to improve
Japan’s level of participation (currently about 20 to 30%) in joint
international aircraft development projects.

goal of no increase in CO₂ emissions from international aviation after≪ Research & Development ≫increases, is carrying out technology development related to weight● Development of primary aircraft structures with complex shapes
and dramatically reduced weight

2020, and, as the demand for carbon-neutral solutions rapidly
reduction and efficiency improvement of aircraft bodies and engines,● Development of core technologies for hydrogen aircraft

mainly through European and U.S. aircraft manufacturers.

Furthermore, since Airbus announced its intent to launch a “carbonneutral aircraft” in 2035 that uses hydrogen fuel and fuel cells, thecompetition for developing hydrogen aircraft has intensified.

The aim of this project, therefore, is to promote the development ofcore technologies for hydrogen aircraft, as well as technologies for

CO₂ Reduction Effect (World)

Economic Effect (World)

In2050In2050Approximately 390 million tons/year

Approximately 1.2 trillion yen/year

Source : METI, R&D and Social Implementation Plan

R&D targets under project
Development of core technologies
for hydrogen aircraft

Development of core technologies
for hydrogen aircraft① Engine combustor and system② Liquefied hydrogen fuelstorage tank development

Development of core technologies
for hydrogen aircraft

Development of primary aircraft
structures with complex shapes anddramatically reduced weighttechnology development③ Study of hydrogen aircraft

Image of next-generation aircraft

body structure

Detailed information

Project period

https://green-innovation.nedo.go.jp/en/project/development-next-generation-aircraft/

Maximum of 10 years from FY2021 to FY2030

Department in charge

Materials Technology and Nanotechnology Department

gi-aircraft@nedo.go.jp

21

Field of Industry Structure Transformation

Next-generation Ship
Development
BudgetUp to

35

Project Overview

billion yen

As of 2018, international shipping accounts for approximately 2.1%

prevent methane slip, an important challenge for using LNG-fueled

demand for shipping is expected to continue increasing and, if nocompetitiveness of Japan's shipping-related industries, and promoteof global CO₂ emissions. Since the global economy is growing,
action is taken, CO₂ emissions from the shipping sector will also
continue to increase.

To achieve carbon neutrality in the shipping sector, it is essential to
move away from existing heavy fuel oil to gas fuels such as hydrogen,ammonia, and clean methane from recycled carbon dioxide. It is also

necessary to develop shipping products that utilize hydrogen andammonia as fuels and reduce methane slip on vessels fueled by LNG
that contains clean methane from recycled carbon dioxide.

With the goal of realizing zero-emission ships by 2050, under thisproject, engines, fuel tanks, and fuel supply systems will be developed

for ships using hydrogen and ammonia fuels and carry out demonstration

operations using actual ships. Technology will also be developed toships. The project ultimately aims to strengthen the internationalsocial implementation in conjunction with the shipping industry.
≪ Research & Development ≫● Development of hydrogen-fueled ships● Development of ammonia-fueled ships● Preventing methane slip on LNG-fueled ships

CO₂ Reduction Effect (World)

Economic Effect (World)

In2030In2030In2050In2050Approximately 0.33 million tons/year
Approximately 560 million tons/year

Approximately 0.17 trillion yen
Approximately 6.8 trillion yen

Source : MLIT, R&D and Social Implementation Plan

Aiming for conversion from heavy fuel oil to low- and zero-carbon fuelssuch as hydrogen, ammonia, and LNG fuelHydrogen / ammonia-fueled
enginesMethaneslip reducers

Fuel tank / fuel supply
systems

Install on ships for demonstration of an ocean-going ships

Nextgeneration
ships

Detailed information

Project period

Maximum of 10 years from FY2021 to FY2030

Department in charge

22

https://green-innovation.nedo.go.jp/en/project/development-next-generation-vessels/

Frontier and Moonshot Technology Department

gi-ship-kobo@nedo.go.jp

Field of Industry Structure Transformation

Development of Negative
Emissions Technologies inAgriculture, Forestry, andFisheries Industries Budget
Up to

15.92

Project Overview

billion yen

Industries in the food, agriculture, forestry, and fisheries sector are

In this project, which focuses on the development of promising

supplies of high-quality food, replenishment of the atmosphere andanticipated in the agriculture, forestry and fisheries industries,

expected to play multiple roles, including the provision of stablewater sources, and promotion of biodiversity conservation throughthe appropriate management and conservation of croplands, forests,

and oceans. Moreover, the amount of greenhouse gases captured
and stored in areas such as croplands and forests reached 44.5
million tons in FY2020.

With a view to achieving carbon neutrality by 2050, the Ministry ofAgriculture, Forestry and Fisheries formulated its “Strategy for

Sustainable Food Systems,” known as MeaDRI (Measures forAchievement of Decarbonization and Resilience with Innovation) in

May 2021. This strategy clarifies Japanese government policies
intended to accelerate R&D and the commercialization of technologies,

including those that; promote the use of biochar to capture and store
carbon on croplands, promote the use of wood-based materials forthe construction of high-rise buildings, and promote the use of
seaweed beds to capture and store CO₂ (the latter being an exampleof the “blue carbon” concept).

negative emissions technologies for CO₂capture and storageemphasis will be placed on the promotion of ambitious R&D efforts
that go beyond conventional ideas and technical limitations,targeting impactful issues that will lead to the creation of future
growth industries.

≪ Research & Development ≫● Development of technologies to realize and effectively utilize
high-functional biochar and other materials● Development of wood-based large-scale isotropic cross-sectional
structural members for the construction of high-rise buildings andother structures● Development of technologies for constructing seaweed beds insupport of blue carbon efforts

CO₂ Reduction EffectEconomic EffectIn2030(Japan)In2030(Japan)In2050(World)In2050(World)Approximately 0.53 million tons/year

Approximately 46.61 million tons/year

Approximately 54.4 billion yen/year
Approximately 2.0 trillion yen/year

Source : Ministry of Agriculture, Forestry and Fisheries, R&D and Social Implementation Plan

R&D contents tackled in this project
Cropland carbon storage using
High-functional biochar

New engineered woodfor urban carbon storage
Characteristics ofconventional woodbased materials

BiocharEffective
microorganisms foraiding supply offertilizer constituentsand promoting growthSorie trong
ntat
ion

k
Weaationnt
orie

Promotion of blue
carbonIsotropic large-scalecross-sectional
structural members

Base blocks
for seaweed farming
Seaweed transplant
cartridges

Strong in bothorientations

Buildings
constructed withwood-basedmaterials

High functional biochar

Detailed information

Project period

https://green-innovation.nedo.go.jp/en/project/development-co2-agriculture-forestry-fisheries-industries/

Maximum of 9 years from FY2022 to FY2030

Department in charge

Frontier and Moonshot Technology Department

gi-agri@nedo.go.jp

23

Field of Industry Structure Transformation

Promotion of Carbon
Recycling Using CO2 from
Biomanufacturing Technology
as a Direct Raw Material Budget
Up to

176.7

Project Overview

billion yen

Since carbon recycling that leverages biomanufacturing technology

a view to resolving technical issues and promoting carbon recycling

the application of cutting-edge bio technologies such as genome

addition, by constructing a value chain ranging from the supply of

can be expected to greatly improve productivity in the future due toediting and genome construction, it is a viable option for helping
realize a carbon neutral society.

Biomanufacturing refers to activities for producing chemicals used inbioplastics, functional materials, fuels, and foods (such as protein

and livestock feed) using CO₂ recovered from biomass resources

and the atmosphere as a raw material. In the industrial sector inJapan, biomanufacturing-related industries such as chemicals,

textiles, and food/beverages discharge 89.017 million tons of CO₂
per year, and biomanufacturing technologies can be expected tohelp reduce CO₂ emissions.

Through promoting joint development efforts between microorganism
modification platform businesses, who play a central role inbiomanufacturing, and businesses in a variety of fields such as
innovative materials and fuels, this project aims to nurture andstrengthen operating companies that will drive large-scale

fermentation and biomanufacturing production. Moreover, byleveraging the technologies of platform businesses related to thehighly efficient development of microorganisms, the inherent
capacity of microorganisms to fixate CO₂ will be fully maximized withthrough biomanufacturing that uses CO₂ as a raw material. In
CO₂ raw materials to the manufacturing of products, and bypromoting upscaled commercial production and more sophisticatedmanufacturing technologies, the project aims to realize both thesocial application of new biomanufacturing products made from CO₂

raw materials and the structural transformation of the industrial
sector through carbon recycling.

≪ Research & Development ≫● Sophistication of microorganisms and modification of platform
technologies for accelerating the development of usefulmicroorganisms● Development and enhancement of microorganisms that can
produce materials using CO₂ as raw material● Development and demonstration of technologies using
microorganisms that can produce materials using CO₂ as raw
material

CO₂ Reduction Effect (World)

Economic Effect (World)

In2040In2040In2050In2050Approximately 1.35 billion tons/year

Approximately 65.4 trillion yen/year

Approximately 4.21 billion tons/year

Approximately 199.4 trillion yen/year

Source : METI, R&D and Social Implementation Plan

Manufacturing Flow of Products based on Microorganisms Using CO2 as a Raw Material

Originalstrain AI analysis

Build
Design
Robot
DBTL
cycle
Learn
Test

CO2
Improvedvariant

CultureDeliver
CO2
Factories, thermal
power station, etc.

Culture• Develop culture methods• Develop technology for scaling

RefineEnd
product

Separate
RefineProcess• Improve separation efficiency • Improve yields• Developing treatment• Reduce wastewater• Improve yields
processes
https://green-innovation.nedo.go.jp/en/project/bio-manufacturing-technology/

Maximum of 9 years from FY2022 to FY2030

Department in charge

24

Separate

Process

Detailed information

Project period

Microorganisms Materials

Bioeconomy Promotion Division, Materials Technology and Nanotechnology Department

gi_bio@ml.nedo.go.jp

Field of Industry Structure Transformation

Decarbonization ofthermal processes inmanufacturing

Budget
Up to

32.51

Project Overview

billion yen

The production industry accounts for about 30% of the CO₂

emissions of Japanese industry, and since a large amount of CO₂ isemitted from industrial furnaces used in the thermal process ofheating metals, the decarbonization of thermal processes inmanufacturing is an urgent issue.

Industrial furnaces used for thermal processes include "combustion

furnaces," which heat by burning fuel, and "electric furnaces," whichheat by electricity.

Combustion furnaces are fueled by natural gas and other fossil fuels,

and the use of ammonia and hydrogen, which do not emit CO₂ during

combustion, is promising for decarbonization, but the challenge is toestablish combustion technologies that achieve combustion stability

and NOx reduction, while suppressing chemical changes such as
nitriding and hydrogen embrittlement in metal products.

On the other hand, electric furnaces, which do not emit CO₂ whenused, are a promising option for decarbonization, but there are someissues to be solved, such as the need for a special high-voltage
power contract and installation of power receiving equipment whentransitioning from combustion furnaces to electric furnaces.

furnaces, it is important to establish a combustion furnace option as
well.

This project will develop technologies for combustion furnaces

compatible with ammonia and hydrogen fuels, etc., and forminimizing and increasing the efficiency of electric furnace receiving
capacity, which is essential for promoting the transition fromcombustion to electric furnaces, with a view to establishing a supply
base for zero-emission fuels in the future.
≪ Research & Development ≫● Establishment of ammonia and hydrogen combustion industrial
furnace technology for handling metal products● Establishment of technology to reduce the capacity of electric
furnace receiving equipment and increase efficiency

CO₂ Reduction Effect (Japan)

Economic Effect (World)

In2040In2040Approximately 0.02 billion tons/year
In2050Approximately 0.08 billion tons/year

Given the economics, efficiency, and characteristics of electric

Approximately 4.2 trillion yen(Total up to 2040)

In2050Approximately 10.0 trillion yen(Total up to 2050)

Source:METI,R&D and Social Implementation Plan

Development of industrial furnaces that handle carbon-neutral compatible metal products
Development of ammonia combustion industrial furnaces
Development of hydrogen combustion industrial furnaces

Development of next-generation electric furnaces

・Hybrid operation technology combining
ammonia/hydrogen combustion technology and electricheating・Development of 50% co-combustion industrial furnaces
with existing fuels such as natural gas
・Demonstration of 100% mono-fuel combustion
technology

・Technology to reduce peak power consumption andpower receiving capacity

Development of common base technology
・Combustion stability and control
・NOx emission control
・Simulation, digital twin technology, etc. for optimal design and operational
efficiency

Detailed information

Project period

https://green-innovation.nedo.go.jp/en/project/thermal-processes-in-manufacturing/

Maximum of 9 years from FY2023 to FY2031

Department in charge

Energy Conservation Technology Department

gi-thermal-process@ml.nedo.go.jp

25

Outreach Initiatives Related toGreen Innovation Fund Projects
Dedicated Website
A dedicated website has been established to provide information to the public regarding the Green Innovation Fund Projects.
In addition to introducing Green Innovation Fund Projects through management interview video, special reports, and project
updates, information related to relevant industries and technologies is provided using a dashboard format.
Video

Project information

Special reports(Only available in Japanese)

Dashboard
https://green-innovation.nedo.go.jp/en/

Public Symposium
The Nikkei SDGs forum special symposium "Toward a carbon-neutral future with
the Green Innovation Fund" was held.

The Ministry of Economy, Trade and Industry (METI), NEDO, and Nikkei Inc. hosted the Nikkei
SDGs forum special symposium "Toward a carbon-neutral future with the Green Innovation
Fund" in February 2023.
The symposium showcased government initiatives, including the Green Innovation Fund
Projects, as well as the challenges posed by companies and others with ambitious program
targets. In the panel discussion, the panelists discussed industry-academia-governmentfinance initiatives and collaboration, maximizing the results of the Green Innovation Fund
Projects, and realizing social implementation at an early date.

Inquiries
For general inquires related to Green Innovation Fund Projects, pleasecontact the NEDO Green Innovation Fund Projects Coordination Office
NEDO Green Innovation Fund Projects Supervision Officegreen-innovation@nedo.go.jp

Implementation contents, etc. of each project in the Green Innovation Fund
Projects concerning the system

For inquiries related to the implementation of specific Green Innovation Fund Projects,
please contact the NEDO department responsible for project implementation.
Other Inquiries

https://qasys.nedo.go.jp/webapp/form/13394_evt_7/index.do
Inquiries on other NEDO activities may be submitted via the inquiries pageon our website.
(I nquiries may be submit ted at any time, however, please allow time for
NEDO to respond during regular business hours)

26

NEDO’s SNS

NEDO regularly releases information
to the public regarding our activities
via news releases, public solicitations,
event-related announcements, andother types of communication.

Twitter

Facebook

Only available in Japanese

NEDO also provides regular updates on social
media platforms regarding Green Innovation
Fund Projects so please follow us on
Facebook, Twitter, and YouTube.
#NEDO#Green Innovation Fund Projects

Background Information
Designation

Foundation
Purpose

Details of Major Operations
Minister in Charge
Governing Laws
Personnel
BudgetExecutives

National Research and Development Agency
New Energy and Industrial Technology Development Organization (NEDO)
Business name: New Energy and Industrial Technology Development Organization (NEDO)
Originally established on October 1, 1980;
reorganized as an incorporated administrative agency on October 1, 2003
The purpose of NEDO is to enhance industrial technology and promote commercializationby comprehensively performing functions such as: promoting research and development(R&D) carried out using skills from the private sector; promoting R&D carried out by theprivate sector with regard to technology for non-fossil energies, combustible natural gas,and coal; promoting the technology required for the rational use of energy and technology
in mining and industry; and promoting the utilization of such technology in cooperation with
the international community; to thereby contribute to ensuring a stable and efficient energy
supply in accordance with the changes in the domestic and foreign economic and social
environments and to the development of the economy and industry.
Operations relating to technology development management (national projects andpractical application promotion activities)
Minister of Economy, Trade and Industry
Act on General Rules for Incorporated Administrative Agencies
Act on the New Energy and Industrial Technology Development Organization
1,464 (as of April 1, 2023)
Approximately 152.8 billion yen (initial budget for FY 2023)*In addition to the above, fund projects and other activities will be implemented.
Chairman		President		
Executive Directors				
Auditors		

Mr. SAITO Tamotsu
Mr.YOKOSHIMA Naohiko
Mr.YOSHIOKA Masatsugu, Dr. YUMITORI Shuji,
Mr.NISHIMURA Tomoyasu, Mr.HAYASHI Shigekazu, Dr.IIMURA Akiko
Mr.YABUTA Keisuke, Mr. FUKUSHIMA Michi(as of October 1, 2023)

Organization
Technology Strategy Center

ChairmanPresident
Executive Directors
Auditors

Audit Office

General Affairs
Department
Personnel Affairs
Department
Accounting Department
Risk Management
Department
Information and Systems
Department

Green Innovation Fund Projects Coordination OfficeEvaluation Department
Project Management OfficeInnovation Promotion Department
Frontier and Moonshot Technology Department
Moonshot Research and Development Program Office
Robot and Artificial Intelligence Technology Department
AI Promotion Division

Public Relations
Department

Internet of Things Promotion Department

Kansai Branch Office

Materials Technology and Nanotechnology Department

Overseas Offices
Representative Office in Washington, D.C.
Representative Office in Silicon Valley
Representative Office in Bangkok
Representative Office in Beijing
Representative Office in Europe
Representative Office in New Delhi

Post-5G Project Promotion Office
Bioeconomy Promotion Division
Bioproduction Fund Project Promotion Office
Energy Conservation Technology Department
New Energy Technology Department
Smart Community and Energy Systems Department
Fuel Cell and Hydrogen Technology OfficeElectricity Storage Technology Development DivisionInternational Affairs Department
Global Environment Technology Promotion Division
Environment Department(as of july 1, 2023)

27

Domestic Offices● Kansai Branch Office● Head Office

9th Floor, Knowledge Capital Tower C Grand Front Osaka
3-1 Ofuka-cho, Kita-ku, Osaka 530-0011 Japan
Tel: +81-6-4965-2130
Fax: +81-6-4965-2131

MUZA Kawasaki Central Tower
1310 Omiya-cho, Saiwai-ku
Kawasaki City, Kanagawa 212-8554 Japan
Tel: +81-44-520-5100
Fax: +81-44-520-5103

Overseas Offices● Washington, D.C.

● Europe● Silicon Valley● New Delhi

1717 H Street, NW, Suite 815
Washington, D.C. 20006, U.S.A.
Tel: +1-202-822-9298
Fax: +1-202-733-3533
3945 Freedom Circle, Suite 790
Santa Clara, CA 95054 U.S.A.
Tel: +1-408-567-8033

10, rue de la Paix 75002
Paris, France
Tel: +33-1-4450-1828
Fax: +33-1-4450-1829
15th Floor, Hindustan Times House
18-20 Kasturba Gandhi Marg
Connaught Place
New Delhi 110 001, India
Tel: +91-11-4351-0101
Fax: +91-11-4351-0102

MUZA Kawasaki Central Tower, 1310 Omiya-cho, Saiwai-ku
Kawasaki City, Kanagawa 212-8554 Japan
Tel: +81-44-520-5100 Fax: +81-44-520-5103
URL: https://www.nedo.go.jp/english/index.html● Beijing

2001 Chang Fu Gong Office Building
Jia-26, Jian Guo Men Wai Street
Beijing 100022, P.R. China
Tel: +86-10-6526-3510
Fax: +86-10-6526-3513● Bangkok

8th Floor, Sindhorn Building Tower 2
130-132 Wittayu Road, Lumphini
Pathumwan
Bangkok 10330, Thailand
Tel: +66-2-256-6725
Fax: +66-2-256-6727

September 2023