Market ReportJapan
Lead Author: Dr Sarika Jain

Foreward
This is an interesting case study for the development of biogas.

I have faith that the Japanese economy will adopt biogas on a

Japan is an extraordinarily industrialised and urbanised

much larger scale as its experience and trust in the technology

country yet with rich traditions in animal husbandry and thegrow. I hope to be able to report in some years’ time on how

exploitation of relatively small amounts of arable land. The

this has happened. Meanwhile, this report gives the situation

nation is facing the challenge of decarbonisation establishedtoday and the potential. I hope you enjoy the read.

by its climate change commitments at a time when its trustin nuclear power was undermined by the 2011 disaster. SoDavid Newman

interestingly Japan is starting its biogas investments virtually

President, World Biogas Associationfrom zero- the industry is still small scale but the potential issignificant in such a large economy.

worldbiogasassociation.org

•Overview

The total number of agriculture-based biogas plants
in Japan is estimated at 100, of which around 70 are
located in Hokkaido5. Hokkaido has large dairy farms;

In the aftermath of the Fukushima Daiichi Nuclear Disaster

agricultural land per farmer is 29ha or 10 times thein March 2011, Japan underwent a significant shift in energy

national average, and the region produces more thanpolicy. Nuclear power plants were shut down for safety

half of Japan’s milk.

checks and modifications. To maintain energy supplies,
import of fossil fuels was increased in the short-term along•

In addition to single farm digesters, there are examples

with implementation of policies to boost renewable energyof centralised digesters for food waste digestion beinggeneration in the long-term. The increased imports haveinstalled by municipalities and by cooperatives on behalf

resulted in a short-term increase in greenhouse gas emissionsof farmers. Data on the exact number of digesters

in Japan, which the Government is determined to bring back

operating are not available.

down by increasing the proportion of renewable energy in theenergy mix. Japan is a signatory to the Paris Climate Accords•The Japanese FIT does not demand heat usage as aand has committed to a GHG reduction target of 26% by 2030

condition for electricity purchase. As such use of heatcompared to 2013.

from biogas plants is limited to heating digesters.

The renewable energy industry has benefited from this•Digesters in Japan tend to be small in size. The averagesignificant shift in energy policy, especially from the generous

installed capacity of electricity generation plants ispower purchase prices under the Feed-in Tariff (FIT)350kW, which is smaller when compared to some of

introduced in July 2012 and tax incentives for renewable energy

the other industrialised countries like the UK where theinvestments. As a result, commercial solar plants saw 40-foldaverage capacity is close to 1MW6. This is due to thegrowth, wind and wood biomass saw moderate growth whilst

virtual absence of those larger municipal solid wastehydro and geothermal have undergone marginal growth.

processing biogas plants which would raise the average

Whilst the biogas industry is still underdeveloped in Japan, it

installed capacity as in other industrialised countries.

has the support of the government and a great potential to

Nearly 80% of waste collected in Japan is incineratedgrow and contribute to Japan’s energy security, greenhouserather than recycled.

gas mitigation targets as well as adding to the sustainability of
its waste management programmes.

•excreta and sewage sludge, to a combination of sewage

Current status•

Feedstock trends are shifting from the traditional livestock
sludge and food waste including industrial waste andfood scraps7.

176 digesters (2019) with a total capacity of 62MW are
currently operating in Japan under the Feed-in Tariff(FIT) scheme. An additional 80MW have been approved

Potential•

and are in the process of being constructed andFood waste: Japan has an extensive system of food waste
collection and recycling. In 2014, 19.5 million tonnes ofcommissioned .
1food waste was generated in Japan of which 83% was•

There are 6 biogas upgrading plants currently operatingfrom manufacturers, 10% from restaurants, 7% from(2019). All of these are installed on waste water treatment

retailers and 1% from wholesalers. Food Waste recycling

plants and utilise the biomethane as transport fuel .

law limits the food recycling method to feed, fertiliser, fuel2(biogas and carbonisation) and oils & fats. Of among•

There are 2,200 wastewater treatment plants in Japan

170 registered food waste recycling plants, 108 areof which 104 have operating biogas digesters as ofcomposting followed by 55 to animal feed production.

May 2018 . Annual wastewater treatment volume is

Only 9 are biogas plants (total exceeds 170 as some

15,500million m but current utilisation rate of sludge isplants have multiple recycling methods)8.

3

4

3

limited at 32% (biogas 15%, agriculture 10%, dewateredsludge fuel 7%).

Epower insight from METI data

5ADBA (2017) UK market report 201764

Ministry of Land, Infrastructure, Transport and Tourism

http://adbioresources.org/adba-market-policy-reports/adba-market-report-

http://www.mlit.go.jp/common/001248618.pdf

july-2017/

Ministry of Economy, Trade and Economy

7

IEA task 37 (2017) Upgrading Plant List

https://www.jetro.go.jp/ext_images/_Events/ldn/Japan_biomass_market_

http://task37.ieabioenergy.com/plant-list.html

overview.pdf

Ministry of Land, Infrastructure, Transport and Tourism

8

http://www.mlit.go.jp/common/000233247.pdf

http://www.maff.go.jp/j/shokusan/recycle/syoku_loss/attach/pdf/161227_6-2.pdf

123

JETRO (2015) Japanese biomass market overview

Ministry of Agriculture, Forestry and Fisheries•Livestock manure: Currently 90% of livestock manurelevels, i.e. approximately 1.042 billion tonnes CO2 eq. as

in Japan is composted. If digested, livestock manure2030 emissions12. Japan intends to achieve this target byfrom cattle, pigs and poultry would have a potential toincreasing renewable energy production and improving

generate 1.65GW of energy for the farms in addition toenergy efficiency.

the organic fertiliser.
••Feed-in Tariff (FIT) – As part of Japan’s efforts to increase

Wastewater treatment facilities: Currently only 5% of

the share of renewables in the energy mix, a Feed-in

wastewater treatment plants in Japan have biogas

Tariff scheme was introduced in July 2012. FIT for biogas-digesters. It is estimated that 93MW of energy could

generated power can be sold at JPY39 [USD 35 cents]

be generated from adding on digesters to sewage

per kWh at a fixed price for 20 years. The Japanese FITtreatment plants.

is amongst the world’s highest offered for renewableenergy generation and considered quite attractive. The•Urban digestion: High-rise buildings with “urban biogas

FIT scheme is funded via a surcharge collected fromsystems” that recycle food waste are being implemented.

electricity users13.

This is seen as a potential growth market within thehighly urbanised parts of Japan9.

•Forestry and Fisheries (MAFF) has laid out an intention toDrivers•

promote use of biogas as a heat source for agricultural
production sites and public facilities, as well as theupgrading of biogas to replace town gas and expand

Energy security – Japan has very limited oil and naturaluse of biogas as vehicle fuel14.

gas reserves. Post 2011, when nuclear power production
was stopped, Japan had to increase its imports of•energy. In 2016, 91.7% of energy consumed in Japan was

Aging sewage infrastructure – Among 440,000km sewerlines and 2200 sewage plants, 25% and 50% are used

imported, raising concerns about secure and stable

over their originally projected lifespan. In an effort toenergy supply. For energy security, Japan has beenfund maintenance costs, Ministry of Land, Infrastructure,

working hard on developing domestic energy sources

Transport and Tourism amended the Sewerage Act

including renewable energy .
10•

Agricultural strategy – The Ministry of Agriculture,envisaging the use of sludge for fuel and fertiliser.

Energy strategy – Renewable energy is an integral
part of the long-term energy strategy of the Japanese
Government. In 2016, the energy mix of Japan constituted

Barriersof 89% fossil fuel (coal, oil and natural gas), 7% renewable•Grid capacity - Though demands for biogas plants areenergy, 3.3% hydroelectricity and 0.8% nuclear power.

increasing, the largest obstacle is grid capacity. Most of

The government targets to increase the proportion of

the open capacities were already taken by solar, andrenewable energy to 22-24% of estimated 1065 billion

seven out of ten power utilities in Japan have constraints

kWh generation target by 2030. This will include 3.7-4.6%

to accept additional renewable power to their grids.

energy generation from biomass .

There is, however, an exception for plants less than 50kW

11whereby no power utilities refuse grid connections15.
•Greenhouse gas emission mitigation targets – Post
the Fukushima Daiichi Nuclear disaster, resulting in the•closure of nuclear reactors and an increase in fossil fuellargely depend on imports as agricultural land area

based energy generation, greenhouse gas emissions

available for crops is small. Dairy cattle farmers inof Japan increased from 1.303 billion tonnes CO2 eq.

Hokkaido are exceptional and harvest grass and corn fromin 2010 to a peak of 1.41 billion tonnes CO2 eq. in 2013.

their own grounds. This is why Hokkaido has the largest

Even though they reduced to 1.307 billion tonnes CO2

number of biogas plants in Japan. Digestate in most places

eq. in 2016, there is a lot of work left to be done. Underin Japan needs further treatment: solids are composted

the Paris Agreement, Japan committed to achieving

while nitrogen and phosphorus are removed from the26% reduction in emissions by 2030 compared to 2013

liquids before they are released to rivers or public sewers.
1210

Digestate application – Japanese livestock feedstock

JETRO (2015) Japanese biomass market overview

Embassy of Japan in the United States of America (not dated) Japan’s INDC

https://www.us.emb-japan.go.jp/english/html/indc-ghg.html
International Energy Agency (2017) Feed-in Tariff for renewable electricity andhttps://www.jetro.go.jp/ext_images/_Events/ldn/Japan_biomass_market_

13

overview.pdf

solar PV auction

METI (2018) Japan’s Energy, 20 Questions to understand the current energy

https://www.iea.org/policiesandmeasures/pams/japan/name-30660-en.php

11

MAFF (2016) Basic plan for the promotion of biomass utilisation

situation, 201714

http://www.enecho.meti.go.jp/en/category/brochures/pdf/japan_energy_2017.

http://www.maff.go.jp/e/policies/env/attach/pdf/index-4.pdf

pdf15

Epower insight•Lack of support for biomethane - Gas to grid regulations
have been announced by gas utilities but biogas

Case studies

upgrading plants are limited to a few experimental cases
due to many conditions set by the industry, and lack of

Bio Energy Corporation16

economic incentives compared with power generation
under FIT.

Inputs: 130 tonnes of food waste per day from 590,000people.

"Outlook

Outputs: The facility generates 26,880 kWh/day ofelectricity for about 2,600 households and 2,400 m3 per

While biogas (converted from animal manure,

day of gas for about 2,000 households. The electricity isfood wastes and sewage sludge) is mainly used

under a power purchase agreement with Tokyo Electricfor power generation in Japan, the government

Power and gas is sold to Tokyo Gas. The facility also

aims to extend its utilization as regional heat

mitigates 7,080 tonnes per year of CO2 emissions.

sources including agricultural production sites
and public facilities.
Ministry of Agriculture, Forestry and Fisheries,
Japan

What is unique: The Bio Energy plant is Japan’s first gas"to grid agreement with Tokyo Gas in 2010. It is also thelargest food waste biogas plant in Japan and is locatedon a reclaimed island near downtown Tokyo. The plant
started operations in 2006, and joined the FIT from2016.

"“Japan’s PV capacity increased by 36GW since

Nakagami Farm17

2012. Biogas will be the next 'big thing’, inlight of its waste volume as well as economic

Inputs: swine manure.

incentives under FIT. If 10% of cattle and swine
farmers in Japan adopt anaerobic digestion,

Outputs: 30kW power plant under twenty-year power

there is a potential to build 7000 biogas plants. Ifpurchase agreement with Chubu Electric Power.

10% of organic waste recycling companies andsewage plants follow, another 300 can be added.

What is unique: This plant started operations with 20kW
power, as the smallest commercial biogas plant inIn the next few years it is expected thatJapan under the FIT. The plant opened a new market

municipal waste and waste from industries will

for under 50kW biogas plants, which can be installed

start to be processed by anaerobic digestion

anywhere in Japan with no grid constraints.

instead of incineration, adding further capacity.
In order to boost growth in the industry,

16

increased awareness on the benefits of

http://www.bio-energy.co.jp/introduction/

anaerobic digestion and increased use of17

digestate is needed.”"Epower Corp.

Bio Energy Corporation (not dated) Facility introduction
Epower communication

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dnewman@worldbiogasassociation.org

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