JOGMEC’s Contribution to Stable Coal Supplyin Carbon Neutrality
カーボンニュートラルを踏まえた石炭安定供給への貢献

IGARASHI Yoshiaki, Executive Vice President
September 6, 2023

History of JOGMEC

1Mission: Governmental organization (1) to ensure stable supply of oil, gas, metals andcoal resources to Japan, (2) to promote renewable energy development such as
geothermal resources and offshore wind power plant inside Japan, (3) to promote
CCS/CCUS project, and to promote production and storage of H 2/NH3.
Metal Mining Agency ofJapan (MMAJ)

2004 Feb.

Japan National Oil
Corporation (JNOC)Japan Oil, Gas and Metals National
Corporation (JOGMEC)

UraniumExploration2007 Apr.
2012 Sep.

2022 Nov.

Japan Atomic
Energy Agency(JAEA)

Japan Organization for
Metals and Energy Security(JOGMEC)

New Energy andIndustrial
TechnologyDevelopment
Organization (NEDO)

Upstream activity of
Coal /geothermal
resource

H2/Ammonia, Offshore wind,
Carbon Capture Storage (CCS)New JOGMEC

2Activities

Support menu

Geothermal

Coal

H2,NH3• Geological surveys• Technologicaldevelopment• Financial support

MetalsOil &Gas• Stockpiling

CCSWindpower• Environmentalprotection• Gathering andprovision ofinformation

Overview of the Strategic Energy Plan
Composition of Power Generation

6 th Strategic Energy Plan for Japan
6 th Strategic Energy Plan to realize carbon
neutrality by 2050;⚫ Reduce greenhouse gas emissions by
46% in FY 2030 from its FY 2013 levels,⚫ With Safety as a major premise, work on
Energy Security, Economic Efficiency, andEnvironment in parallel.

S+3E
Energy Security

SafetyEconomic Efficiency

Environment

3Renewable
18%
Nuclear6%
Oil
7%

FY 2019

Coal
32%

H21%
Natural Gas
37%

Renewable
36-38%FY 2030

Nuclear20-22%Natural Gas
20%

Coal
19%
Oil2%

Composition of Power Energy Mix
Left: in 2019 Right: target values in 2030

⚫ “6th Strategic Energy Plan for Japan” endorsed by theJapanese Cabinet in Oct. 2021 declares to maintain
60% of coal’s independent development ratio in 2030.
⚫ “Ambitious outlook of energy demand in 2030” released
by METI in November 2021 explains that coal willcontribute 19% of the energy mix.

Coal Business Trend in Japan
Thermal Coal
■ Divestment from thermal coal enterprises & assets⚫ Decarbonization policy of coal-related companies and investors towards carbon neutrality⚫ Credit policy of financial institutions (not to finance to thermal coal development / operation)⚫ Investors’ requests to promote decarbonization【Japanese companies’ divestment】
Hunter Valley Op., Ravensworth, Bulga, Rolleston, Bara Alam Utama, Malinau, Drummond■ Trend to choose high-calorie coal for Japan’s coal-fire power generators⚫ Concentration to limited countries which produce high-quality coal

Metallurgical Coal
■ COURSE50 project still needs cocking coal
■ Credit policy of financial institution positive to metallurgical coal projects■ New balance of metallurgical coal flow
⚫ After Russian invasion against Ukraine, which caused “new balance” of global coal flow, Japan depends
metallurgical coal supply on Australia more
Japanese companies tend to maintain coking coal assets to secure the stable supply

4

Current Status of Global Coal Trade

5

Coal flow (in 2021)

Coal import in EU and JapanEU (by Eurostat)

19.9

21.1

19.7

62.5
OECD(Europe)
144.9

Russia
214.6

57.0

5.9

12.9
17.7

195.7

12.9
India
199.1
2.7
19.3

South Africa
63.3

55.2

Korea,
Chinese Taipei
195.4
37.7

Indonesia
436.1

North America
109.0

21.0

China332.0Japan
182.6

22.6

98.5

53.4

Japan (by MOF trade statistics )119.5

Colombia
48.3

Australia
363.3

21.5
Unit: Million ton
By IEA Coal Information, trade statistics of each country※: Only major transportation

How to Support Stable Coal SupplySurvey

Exploration

6
Development

Production

Geological and Coal Survey
Financial Support
Human Resources Development
Strategic Diplomacy for Coal
Collection & Provision of Coal Information
Technical Support to (i) Japanese company, (ii) Coal Producing CountrySupport Scheme by Survey/Exploration & Subsidy

7
Subsidy for CoalExploration

Survey and Exploration
Joint Coal Survey

JV＜Conventional JV＞

JOGMECCoalProducing
Country

MOU

Joint Coal Survey

Benefit forJapaneseCompany

JOGMEC

ForeignCompany

JVAgreement

JV Exploration

Transfer ofInterests/Coal Marketing
Right

JOGMEC＜Nikkei JV＞
JOGMECJapaneseCompanySubsidy

Japanese
Company

JV
Agreement

Development
Possibility Survey

JV Exploration

Transfer ofInterests

•••••
•

Drilling
Geophysics
Coal Quality Test
Infrastructure Study
Environmental Study
Project Evaluationetc.

Joint Coal Survey in Vietnam

8

Joint Coal Survey
Joint Coal Survey
•••
•
•

MOU
Benefit for Japanese Company: Coal Purchasing Right

Geological survey,
Trenching,
Drilling,
Geophysical logging,Coal property analysis,etc.,<Strengthening bilateral relations>⚫ ANTHRACITE imports from Vietnam are still
important for Japan.

Anthracite Imports from Vietnam to Japan

KtYear / Location

Quang Ninh Coal Field 2012-2013: Dong Ri①③①②④⑤

2014-2017: Bac Suoi Lai②
2018: Nam Mau③
2019: Bac Bang Danh④
2022: Suoi Lai⑤

1,200

Data: World Integrated Trade Solution

1,000800600
40020002012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Financial Support

9Equity Capital
JOGMECJapaneseCompany

Liability Guarantee
BankLoanEquityMax. 50%

Guarantee
Max. 80%

Japanese Company orits overseas subsidiary

Exploration

JOGMECJapanese Company or
its overseas subsidiary

Development

Strategic Diplomacy for Coal／Human Resource Development
Human Resource Development
on Coal Mining and Safety

MOUs with QLD & NSW⚫ Discussion on coal policy & Japanese coaldemand outlook⚫ Promotion of Japanese companies’ funding

MOU with QLD since 2013•••

Sep. 2022; Meeting@JOGMEC between QLD
Treasurer and Minister for Trade and Investment
and JOGMEC CEO
Nov. 2022; On-line Investment Seminar cosponsored with QLD
Feb. 2023, Meeting@Brisbane on Japanese coaldemand outlook and QLD’s coal policy

10•

Training on Japanese coal mining and safety
technology to coal producing countries for the stablesupply of coal resources in Japan
No. of trainees from 2002-2022
Trainingin Japan

Training
in Overseas

Vietnam

2,363

144,837

China

1,836

25,408Indonesia

662

44,458

Colombia

78―MOU with NSW since 2017
•Mar 2023; Meeting@Sydney on Japanese coaldemand outlook and NSW’s coal policy

Meeting with the QLD Treasurer andMinister for Trade and Investment

Investment Seminar co-sponsored with QLD

Reference byVINACOMIN data

Gathering and Providing Information

11⚫ News Flash; Daily news from JOGMEC overseas offices and overseas media⚫ Current Topics; Brief report by JOGMEC⚫ Research Report; 2023JFY’s reports are (i) Coal market in the world, (ii) Utilization of low-quality
coal in Colombia and Malaysia, and (iii) Safeguard Mechanism in Australia

Tool to provide information to Japanese companies(i) JOGMEC Homepage, (ii) email newsletter, (iii) Face-to-face or Online Seminar, (iv) YouTube
(i)

(ii)

(iii)

(iv)

Joint Study for Technical Solution

12

Target Scope of Works

JOGMECTechnical issues of coal mine project associated with50%① Evaluation and F/SJapanese company
50%

Joint Study② Production Technology③ Environmental Countermeasures

New development of stable and low-costmine operation

2 Joint Studies in JFY 2022
Study on new project for GHG reduction byreclamation/planting and biomass utilization
at coal mine

Feasibility study on production of biomass
carbon products for sustainable use of minesite

• Quantitative evaluation of GHG reduction effect byreclamation/planting• Development of biomass
carbon products, and coal
blending technology for usein steel production• R/D of grass biomass
utilization for black pellets
and high-performancecarbon products• Pre F/S based on theresults of bench scale tests

JOGMEC’s Support Scheme to Japanese Companies

13

Thermal Coal・・・ struggle to contribute to stable and steady thermal coal supply despite of divestment trend by;⚫ Subsidy⚫ Technical support⚫ Gathering and providing Information
Metallurgical Coal・・・ continue to contribute to stable and steady Metallurgical coal supply to the Japanese steel
makers by;⚫ Equity Capital, Liability Guarantee⚫ Geological Survey (JV)⚫ Subsidy⚫ Technical support⚫ Gathering and providing Information

Possible Support to Japanese Companies

14

Technical support to coal mining operation towards Carbon Neutrality•

Reduction GHG byCapturing and using
CH4 gasJoint Study item between
Japanese company and JOGMEC⚫ Reduction of GHG from coalmine by✓capturing and utilizing CH4 gas✓decarbonization of CH4 gas⚫ Equipment electrification using
green-energy⚫ Utilization AI and IoT

CO2,CH4 gas••

Equipment electrification
Utilization AI and IoT formining

Thank you for your attention.