Challenges for Japan’s Energy Transition

- Basic Hydrogen Strategy -

June 24
Masana Ezawa
Director, Hydrogen and Fuel Cell Strategy Office,
Ministry of Economy, Trade and Industry (METI), Japan
Fossil Fuel Exporting Countries to Japan
Steam Coal (2016)
Strait of Hormuz USA, 0.7% Others, 0.1%
China, 1.1%
Canada, 1.8%
Russia, 9.8%

Indonesia, Middle-East
10.8% dependence 0%
Total import:
109.8million
t/year

Australia, 75.6%

Crude oil (2016) Natural gas (2016)

Nigeria,
Indonesia, 1.6% Papua New Oman, 2%
Iraq, 2.3% Malaysia, 0.6% Guinea, 3%
Mexico, 2.7% USA Australia,
Others, 3.8% 4% Others,
Russia, 6.1% 4% 25%
5%
Iran, 6.7% Brunei,
Middle-East Saudi Arabia,
4% Middle-East
dependence 86.4% 35.7%
dependence
Total import: Indonesia 23.6%
Kuwait, 6.8% 3.35 million BD/year 7% Total import:
94.24million
UAE t/year Malaysia,
Qatar, 9.2% 7% 16%
Russia,
UAE, 24.5% Ref.: Trade statistics 8% Qatar,
15% 1
Mission/ Background
 Japan’s Responsibility for Energy Transition
⇔ Energy trilemma
 Energy security
 Environment (Sustainability) 3”E” + Safety
 Economic affordability (Cost)
Japan’s Primary Energy (FY2016)
Hydro Renewables
 Measures; Nuclear

 Energy saving
 Renewable energy Gas Oil
(27%) (40%)
 Nuclear energy
 CCS + Fossil fuels Imported
Fossil Fuel Coal
(27%)
 Hydrogen <90%
2
Why Hydrogen?
 Contribution to 3”E”
 Contribute de-carbonization (Environment)
 Mitigate dependence on specific countries (Energy security)
 Enable to utilize low cost feedstock (Economic affordability)
+ Japan’s edge in technology since 1970s

 Roles of H2 in Electrified Mobility/ Generation Mix

Powertrain Costs Analysis for FCEVs & BEVs Power Supply & Demand Simulation for Germany in 2050

Power supply & demand, GW

Source: “Hydrogen Scaling Up”, Hydrogen Council (2017) Source: “How Hydrogen Empowers the Energy Transition”, Hydrogen Council (2017) 3
Direction of Activities to Realize a “Hydrogen Society”
Transportation and supply
Production （supply chain） Use
• 3,000 vehicles installed
• 40,000 vehicles by 2020
City gas pipeline/LPG supply network
Domestic fossil fuels Liquefied hydrogen lorry Fuel cell vehicles

Transportation
Hydrogen pipeline （FCV, FC bus, etc.）
City gas
LP gas Reforming
• Installation of 113
stations nationwide
• Promotion of regulatory • Entered service
Byproduct in Tokyo in
reform for cost
hydrogen reduction March 2017
• 100 buses by
2020
Future
• Over 280,000 units installed • For Business
and Industry
Fuel cell cogeneration use, some
Overseas unused energy （e.g. Ene-Farm） models have
already been
Reforming launched in
Brown coal Gasification
Hydrogen station 2017

CCS
Byproduct

generation
hydrogen • Demonstration of the

Power
world’s first international Future
hydrogen supply chain in
Overseas Water 2020
renewable energy electrolysis
Hydrogen power generation
Large-scale hydrogen ocean （CO2-free thermal power plants）
Transportation network
Renewable energy
• Combined heat and
power supply using
Solar power hydrogen cogeneration
Water in Kobe in early 2018
electrolysis
Wind power • Demonstration of large-
scale power-to-gas

Other
*Use hydrogen as a means of energy @Fukushima/aiming for
storage (absorb fluctuations in use in the 2020 Tokyo Use in the industrial sector
Olympic and Paralympic
intermittent RES)
Games
（Power-to-X）
4
Strategy
 “Basic Hydrogen Strategy” (Prime Minister Abe’s Initiative)
 World’s first national strategy
 2050 Vision: position H2 as a new energy
option (following Renewables)
 Target: make H2 affordable
($3/kg by 2030 ⇒ $2/kg by 2050)

3 conditions for realizing affordable hydrogen

① Inexpensive feedstock (unused resources, renewables)
【Supply】
② Large scale H2 supply chains
【Demand】 ③ Mass usage (Mobility ⇒ Power Generation ⇒ Industry)
・・・

 Key Technologies to be Developed

Production Transportation Use
• Electrolysis System • Energy Carrier • Fuel Cells (Mobility, Generation)
• Gasification + CCS (LH2, MCH, NH3, etc.) • H2-fired Generation
5
 Scenario
Current 2020 2025 2030 2050
International
Supply

H2 Supply Chains
Domestic H2 (RD&D) CO2-free H2
Domestic Power-to-gas

Volume (t/y) 200 4k 300k 5～10m

Cost ($/kg) ～10 3 2

Large Power Plant (RD&D) 1GW 15～30GW

Gene-
ration

Replace
FC CHP* 274k 1.4m 5.3m
Old Systems
Demand

*Primary energy: natural gas.

Replace
HRS 100 160 320 (900)
Filling Stations
Mobility

FCV 2.9k 40k 200k 800k

Replace
FC Bus 5 100 1.2k Conventional
Mobility
FC FL 140 500 10k
Industry Use (RD&D) Expand H2 Use
6
Summary of the Strategic Road Map for Hydrogen and Fuel Cells

 Set of new target to achieve (Spec for basic technologies and

cost breakdown goals)

 Price difference between FCV and HV: ￥3m → \0.7m

 Main FCV System cost, FC : \20,000/kW → \5,000/kW,
Storage : \0.7m → \0.3m
 HRS Construction cost: \350m → \200m
 HRS Operating cost: \34m/year → \15m/year
 HRS components cost Compressor: \90m → \50m
Accumulator: \50m → \10m

 Production cost from brown coal gasification:

several hundreds JPY/Nm3→ \12/Nm3
 Electrolyzer Cost: \200,000m/kW→\50,000/kW
The Strategic Road Map for Hydrogen and Fuel Cells～ Industry-academia-government action plan to realize Hydrogen Society ～（overall）
 In order to achieve goals set in the Basic Hydrogen Strategy,

① Set of new targets to achieve (Specs for basic technologies and cost breakdown goals), establish approach to achieving target

② Establish expert committee to evaluate and conduct follow-up for each field.

GoalsintheBasic
HydrogenStrategy Set of targets to achieve Approach to achieving target

FCV 200k b y2025 2025  Price difference between FCV and HV (\3m → \0.7m ) • Regulatory reform and
800k by 2030  Cost of main FCV system FC \20k/kW → \5k/kW developing technology
Hydrogen Storage \0.7m → \0.3m
Construction and • Consideration for creating
HRS 320 by 2025 2025  Construction cost \350m →
Mobility

operating costs nation wide network of HRS

900 by 2030 \200m • Extending hours of operation
 Operating cost \34m → \15m
Costs of components for Compressor \90m → \50m
HRS Accumulator\50m → \10m
Use

Bus 1,200 by 2030 Early  Vehicle cost of FC bus (\105m → \52.5m) • Increasing HRS for FC bus
2020s
※In addition, promote development of guidelines and technology development for expansion
of hydrogen use in the field of FC trucks, ships and trains.
Power

Commercialize 2020  Efficiency of hydrogen power generation（26％→27％） • Developing of high efficiency

by 2030 ※1MW scale combustor etc.

Early realization Realization of grid parity in commercial and • Developing FC cell/stack

2025 
FC

of grid parity industrial use technology

Early  Production: Production cost from brown coal gasification • Scaling-up and improving
+CCS

Hydrogen Cost 2020s （\several hundred/Nm3→ \12/Nm3 ） efficiency of brown coal

gasifier
 Storage/Transport : Scale-up of Liquefied hydrogen
\30/Nm3 by 2030 （thousands ㎥→50,000㎥） • Scaling-up and improving
Fossil

tank
Fuel

\20/Nm3 in future thermal insulation properties

Supply

Higher efficiency of
（13.6kWh/kg→6kWh/kg）
Liquefaction • Demonstration in model regions for
System cost of 2030  Cost of electrolyzer（\200,000m/kW→\50,000/kW）
Green H2

water electrolysis social deployment utilizing the

 Efficiency of water（5kWh/Nm3→4.3kWh/Nm3） achievement in the demonstration of
\50,000/kW electrolysis Namie, Fukushima
in future • Development of electrolyzer with
higher efficiency and durability
Hydrogen Cost Targets
 In order to achieve grid parity, Hydrogen cost is needed to be lower than
price of natural gas.
 Target of hydrogen importing cost in Japan has to be ￥13/Nm3 in future
(US$1.3/kg, equivalent to US$10/MMBtu).

from World Energy Outlook 2018 (IEA)

9
 Hydrogen Cost Perspective of the Supply Chain Project
 Target cost of hydrogen supply in 2030 is ￥30/Nm3.
 Natural gas price is unpredictable, however further cost reduction is needed.

￥29.7/Nm3
30
Hydrogen cargo ships

25 Freight base
Hydrogen Cost [￥/Nm3]

20
Hydrogen liquefaction 9,4

15 Environmental Value
Hydrogen pipeline 0,5

Hydrogen production 5,5

10
￥13/Nm3
Hydrogen purification
4,2 ≒US$1.3/kg
(CO2 caputure)
5
CO2 storage 2,1
Brown coal fuel 2,3
0

2030 Future target cost 10

 Ongoing Projects (Supply-side)
International H2 Supply Chain Power-to-gas

Japan-Brunai Pilot Project Japan-Australia Pilot Project Fukushima Renewable H2 Project

2020～ 2020～ 2020～

Off-gas
Brown Coal
+CCS

Steam
Methane
Reforming
Gasification

Hydro- Power-to-Gas Plant*

genation*
(TOL→MCH) Electrolysis
System
Liquefied (Alkaline)
Chemical
H2 Carrier*
Tanker

Dehydro- Loading
genation* Fukushima
Facility* Tokyo
(MCH→TOL)
* Image 11
 Olympic and Paralympic games Tokyo in 2020
Olympic torch and flame
 The first Olympic and Paralympic games with Olympic torch and flame lighted by
hydrogen

Li Na K Ca Sr Ba Cu

Can be colored in various colors！

Transportation

12
Demand & Supply Balance in Kyushu Area (May 4th, 2016）
• Dispatch ability of thermal power plant is essential.
4.9 million (kW) (around 66%
of the total demand) out put of
Stop or restrain the operation of PV and Wind during day time
thermal power, and pump up water (at 13:00)
during day time Pumped Storage Power Generation

38% (the ratio of Renewables

per day)
Pumped Pumping
Storage Demand up
Power Generation Curve water

PV

Decrease of output of thermal power,

responding to electricity decrease
caused by PV output increase.
Thermal Power as a baseload
Increase of output of thermal power and
pumped storage power, responding to the rapid
electricity demand increase (around 2Gw/hour),
caused by PV output decrease.

O`clock O`clock O`clock O`clock O`clock

13
Ongoing Projects (Demand-side)
H2 Mobility H2 Power Generation

H2 Station Network H2 Applications H2 Co-generation Demonstration Project

2013～ 2016～

*134 Stations
by May 2019
FC Bus
× 100 in 2020
Hydrogen Gas
Turbine (1MW class)

2018～
FC Truck Demo

Joint Venture for H2 Infrastructure Development R&D of H2 Burner Systems

2018～

For Power
Generation
<500MW Burning Simulation
(H2 + CH4) 14
G20 Ministerial Meeting on Energy Transitions and Global
Environment for Sustainable Growth

 Date: 15th, 16th June 2019

 Venue: Karuizawa, Japan
 Outcomes :
 Communique
 Action Plan
 Hydrogen
The importance of hydrogen was referred in the
Communique and Action Plan for the first time in G20.
Hydrogen Report was released at G20 by IEA
One of the main themes of G20 Exhibition in Karuizawa
was Hydrogen.
Over FCVs are used for transportation of Ministers in the
venue
 Presentation and input about hydrogen by Hydrogen
Council
 Japan, EU and US announced the Joint Statement of
future cooperation on hydrogen and fuel cell
technologies at the margin of G20.
15
Hydrogen Energy Ministerial Meeting
• Date / Place： October 23rd, 2018 / Dai-ichi Hotel Tokyo
• Organized by： METI , New Energy and Industrial Technology Development
Organization (NEDO)
• Participants： 300 people including representatives from 21 countries,
regions, international organizations, etc.*
*Japan, Australia, Austria, Brunei, Canada, China, France, Germany, Italy, the Netherlands, New
Zealand, Norway, Poland, Qatar, South Africa, Korea, United Arab Emirates, United Kingdom,
United States, European Commission, IEA Participants：

PROGRAM
●Ministerial Session
●Industry and International Organization Session
- Plenary Session: Potential of Hydrogen Energy for Energy Transition
- Session 1: Expansion of Hydrogen Use - Mobility & H2 Infrastructure -
- Session 2: Upstream & Global Supply-chain for Global Hydrogen utilization
- Session 3:Renewable Energy Integration & Sectoral Integration

Tokyo Statement
We share the view that hydrogen can be a key contributor to the energy transitions underway to clean energy future and an
important component of a broad-based, secure, and efficient energy portfolio. Also, we confirmed the value of collaborating
on the following four agendas on “Tokyo Statement” to achieve a “Hydrogen Society” .

Harmonization of Regulation, Codes and Standards Study and Evaluate Hydrogen’s Potential
International Joint R&D emphasizing Safety Communication, Education and Outreach
*Hydrogen Energy Ministerial Meeting 2019 is scheduled for September 25th in Tokyo. 16
 Hydrogen Energy Ministerial Meeting 2019
●Objective:
 Follow up “Tokyo Statement” to realize it
 Set “Global Hydrogen Target” to share global goal.

●Date: September 25th, 2019

●Venue: TOKYO, Japan
●Host: Ministry of Economy, Trade and Industry, Japan
●Attendees : Ministers, Government officials, Private Company’s
CEOs

 Agenda(tentative):
AM: Ministerial Session
 Opening Remarks (Japan: Tokyo Statement, Global Hydrogen Target)
 Ministerial Discussion (Short Speech by Minister level)
 Updates from cooperating organization(IPHE, IEA, CEM/MI, HC, G20)
 Discussion (Other participant’s)
PM: Work Shop with Industry and International Organization session
 Plenary
 Mobility WS
 Hydrogen Supply Chain WS
 Sector Integration WS
17