Progress toward zero emission thermal power, JERA President Satoshi Onoda: Nihon Keizai Shimbun Advance toward zero emission thermal power, JERA President Satoshi Onoda
JERA, Japan's largest thermal power company, has started to realize a thermal power plant that does not emit carbon dioxide (CO2) during combustion. First, one year earlier than the initial plan, the low-carbon thermal power plant, which is operated by mixing 20% ammonia, will start in FY2023. As with liquefied natural gas (LNG), which boasts the world's largest handling volume, we will hurry to build a supply chain (supply network) for stable procurement of ammonia. President Satoshi Onoda is eyeing full-scale commercial operation, saying, ``We can create a coalition of hydrogen and ammonia to generate electricity at low cost.''
Satoshi Onoda Completed the Graduate School of Engineering at Keio University in 1980 and joined Chubu Electric Power. After serving as Executive Vice President and President of the Power Generation Company, he assumed his current position in 2019. Born in Aichi Prefecture. 67 years old
Asian migration boosted by ammonia
We will provide a clean energy supply base that combines renewable energy and low-carbon thermal power, and contribute to the sound growth and development of Asia and the rest of the world. This is the "New Vision for 2035" formulated in May. In its 2019 Vision for 2025, it set out "LNG and renewable energy", but changed it to "renewable energy and low-carbon thermal power."
Europe's argument to lead the decarbonization debate is to "stop all fossil fuels immediately and replace them with renewable energy." The United Nations Framework Convention on Climate Change Conference of the Parties (COP) also developed this kind of discussion and tried to impose it on the world.
In fact, Asian countries are in great trouble over the debate in Europe. In Asia, renewable energy is not as cheap as it is in Europe, and there are no cross-border power grids. After all, in order to achieve decarbonization while meeting the demand for electricity, which is experiencing remarkable economic growth, it is not possible to respond with the European-style “one-step approach.”
"JERA Zero Emissions 2050" announced in 2020 has three approaches: (1) mutual complementation of renewable energy and zero emission thermal power, (2) formulation of optimal roadmaps for countries and regions, and (3) adoption of smart transitions. In 2050, we aim to achieve virtually zero CO2 emissions from domestic and overseas operations.
New reduction target of over 60%
The Japanese version of the roadmap was updated in May 2010. The company has set a new goal of reducing CO2 emissions from its domestic business by 60% or more compared to the fiscal 2013 level by fiscal 2035.
While increasing the use of renewable energy, thermal power generation will be used as a balancing power. It is possible to absorb fluctuations in renewable energy while increasing supply capacity. However, increasing thermal power will increase CO2. The solution to this contradiction is the use of ammonia and hydrogen, which do not emit CO2 when burned. The goal of carbon neutrality by 2050 is the same, but the Japanese style, which is different from that in Europe, can easily be applied to Asia.
We will support decarbonization through investment and collaboration with major power generation companies in Asian countries. In April 2010, the company signed a memorandum of understanding with Summit Power, Bangladesh's largest power producer with 22% of outstanding shares, to formulate a decarbonization roadmap.
Aboitis Power, a major Philippine company with a stake of about 27%, has a power generation capacity of about 4.6 million kilowatts, of which 60% depends on coal-fired power. The plan is to double the power generation capacity by 2030 in line with economic growth, introducing an additional 3.7 million kilowatts of renewable energy and an additional 1 million kilowatts of LNG, which has a lower environmental impact than coal. Although the ratio of coal will be halved, it will not reach zero. Therefore, we intend to use ammonia and hydrogen for coal-fired and LNG-fired power to reduce CO2 emissions.
New reduction target of over 60%
The Japanese version of the roadmap was updated in May 2010. The company has set a new goal of reducing CO2 emissions from its domestic business by 60% or more compared to the fiscal 2013 level by fiscal 2035.
While increasing the use of renewable energy, thermal power generation will be used as a balancing power. It is possible to absorb fluctuations in renewable energy while increasing supply capacity. However, increasing thermal power will increase CO2. The solution to this contradiction is the use of ammonia and hydrogen, which do not emit CO2 when burned. The goal of carbon neutrality by 2050 is the same, but the Japanese style, which is different from that in Europe, can easily be applied to Asia.
We will support decarbonization through investment and collaboration with major power generation companies in Asian countries. In April 2010, the company signed a memorandum of understanding with Summit Power, Bangladesh's largest power producer with 22% of outstanding shares, to formulate a decarbonization roadmap.
Aboitis Power, a major Philippine company with a stake of about 27%, has a power generation capacity of about 4.6 million kilowatts, of which 60% depends on coal-fired power. The plan is to double the power generation capacity by 2030 in line with economic growth, introducing an additional 3.7 million kilowatts of renewable energy and an additional 1 million kilowatts of LNG, which has a lower environmental impact than coal. Although the ratio of coal will be halved, it will not reach zero. Therefore, we intend to use ammonia and hydrogen for coal-fired and LNG-fired power to reduce CO2 emissions.
20% co-firing, one year ahead of schedule
In fiscal 2009, we started a demonstration project for ammonia co-firing at the coal-fired Hekinan Thermal Power Station (Hekinan City, Aichi Prefecture). We are working with IHI with a grant from the New Energy and Industrial Technology Development Organization (NEDO). In May 2010, it issued its first transition bond and raised 20 billion yen. In the future, we will modify the burner of Unit 4 and install an ammonia receiving tank and piping. The start of operation with 20% ammonia was originally planned for FY2012, but it has been pushed forward by one year and is expected to start in FY2011.
The reason for the start of commercial operation in FY2015 is that building a supply chain for fuel ammonia will be an issue. International competitive bidding will be conducted on the premise of a long-term contract for 15 to 20 years to procure 500,000 tons of fuel ammonia per year. There are more than 40 applications, and there are many other inquiries.
Furthermore, if a "hydrogen/ammonia coalition" on the consumer side is formed with Asian power producers, it will be easier for manufacturers to join. By building a very thick supply chain, cheap ammonia power generation using cheap ammonia can be started. Start with what you can and aim for a decarbonized society. This is smart transition.
Hekinan Thermal Power Station (Hekinan City, Aichi Prefecture) Accelerates Demonstration Test of 20% Mixed Combustion Ratio by One Year
"Fossil fuel x (X), renewable energy ○ (Maru)" is not a simple composition, but LNG will also have a place to play an active role for a while." President Satoshi Onoda explains. The energy situation changed drastically with the Russian invasion of Ukraine. Germany is postponing the phase-out of nuclear power and is increasing its procurement of LNG. In Southeast Asia, which heavily depends on coal-fired power, LNG is positioned as a “transition fuel” until decarbonization. Ammonia and hydrogen, which do not emit CO2 when burned, contribute to the decarbonization of LNG.
Ammonia is used for fertilizer and industrial purposes, and the annual domestic consumption is about 1 million tons. A thermal power plant with an output of 1,000,000 kW would require 500,000 tons of ammonia per year for 20% co-firing. If only two units were used for co-firing, the amount would be equivalent to the current domestic consumption. Therefore, JERA has set out to build a supply chain from upstream to downstream, collaborating with major domestic and foreign companies on the manufacturing side and Asian power generation companies on the consuming side.
"Green ammonia" or "blue ammonia" was the condition for the international competitive bidding. The former uses hydrogen generated from renewable energy sources such as solar and wind power. The latter is manufactured from fossil fuels and captures and stores the generated CO2. Ammonia, which liquefies at -33°C, is cheaper to transport than hydrogen, which liquefies at -253°C. Ammonia is easily converted to hydrogen through a process called cracking by adding heat. For this reason, ammonia and hydrogen can be shared in the supply chain, which is a great advantage.
The cost of ammonia is high until mass production gets on track. Therefore, if there are promotion measures such as the government subsidizing the price difference with conventional fuel, "The unit price of ammonia power generation should decrease. I expect that it will spread like renewable energy."
On the other hand, we are also focusing on expanding renewable energy both in Japan and overseas. The goal is to raise the output from 1.7 million kilowatts at the end of fiscal 2021 to 5 million kilowatts in fiscal 2025. For example, in the large-scale offshore wind power generation business, in addition to Gunfleet Sands of the UK, we have invested in Formosa of Taiwan. In order to make use of the know-how of investees, we will actively participate in domestic offshore wind power projects.
A stable supply of electricity is a major premise of the business. In the public offering for additional kW (supply capacity) in the winter season from January to February 2011, we won a bid to supply the Anegasaki Thermal Power Station Unit 5 (Ichihara City, Chiba Prefecture), which has been suspended for a long period of time. Aging power plants are expensive to maintain and generate electricity. "Because of the invasion of Ukraine, etc., a stable supply is required, and we will positively engage in kW and kWh (power supply) public offerings," he said.
