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2014.No.52

Reporting on Today and Tomorrow’s Energy, Environmental and Industrial Technologies

Smart CommunitiesDeveloping Towns of the Future

that Coexist with the Environment

FeaturedArticle

No.1

Japan’s Clean Coal TechnologyAttracting Global AttentionFeatured

Article

No.2

Developing Towns of the Future that Coexist with the Environment

Smart Communities

NEDO’s Ongoing Smart Community Demonstration Projects in Collaboration with Other CountriesConstructing total solutions to address the unique energy situations in each country by combining technologies from both countries, then verifying practical operability through demonstration projects.

Lyon, France Page 10

We aim to create an eco-friendly, futuristic smart community model city in Lyon, the Confluence district where the Rhone and Saone Rivers meet, with introducing large-scale renewable energy and expanding the use of electric vehicles (EV).

PEB stands for “Positive Energy Building”. By actively introducing power from renewable energy sources and storage batteries to the electrical grid, a PEB produces energy in excess of what it consumes from the grid.

What is PEB?CMS stands for “Community Management System”. By aggregating and analyzing data collected from a variety of sources such as PEBs and EV charging management systems, a CMS reveals important indicators that can be used to manage power throughout an entire region.

What is CMS?

1. PEB (Positive Energy Building)2. EV charging management system and EV sharing utilizing Photovoltaic power3. Home energy monitoring system4. CMS (Community Management System)

Demonstration project details

Málaga, Spain Page 9

We are constructing a management system to guide each individual electric vehicle driver to their optimal charging station through their navigation system in advance of the large-scale expansion of electric vehicles and the necessary infrastructure to support them. Through mass dissemination, we aim to mitigate overloads in the electrical grid through mass dissemination and make effective use of renewable energy.

1. Technology to reduce the load2. Charging guidance through navigation systems3. Integrated ICT (Information and Communication Technology) platform4. Integrated services (car-sharing, charging guidance based on location, etc.)


CONTENTS 2014. No.52

Japan’s Clean Coal Technology 12

Attracting Global Attention: FeaturedArticle

No.2

NEDO’s Ongoing Smart Community Demonstration Projects in Collaboration with Other Countries 2

Reporting on Today and Tomorrow’s Energy, Environmental and Industrial Technologies

Smart CommunitiesFeaturedArticle

No.1 Developing Towns of the Future that Coexist with the Environment 2

Aiming for the Stable Supply of Solar Power 6

New Mexico, USA

Building Infrastructure for an Electric Vehicle Society 9

Málaga, Spain

Constructing a Model City of the Future in an Ancient City 10

Lyon, France

Aiming for the Development that Balances Economy and Environment 11

Java, Indonesia

Maximizing the Use of Renewable Energy 8

Hawaii, USA

Future Cities Coming to LifeCurrent Status of NEDO’s Demonstration Projects 6

Project Formation Research on High-Efficiency Coal Utilization Systems 15

Supporting the Improvement of Global Energy Efficiency and the Diversification of Energy Sources

Front cover: Post-redevelopment image of the Lyon Confluence, France, the subject of NEDO’s Smart Community Project

Source: SPL Lyon Confluence, Les espaces verts.© Depaule/Asylum

NEDO Topics 16

FeaturedArticle

No.1

NEDO Smart Community Department Director General,Masaaki Yamamoto Discusses:Initiatives in the Area of Smart Communities 4

NEDO Environment DepartmentClean Coal Group Director, Nobuyuki Zaima Discusses:Making Great Contributions to Resolving Global Environmental Problems through Clean Coal Technology 12

2

Smart Communities

New Mexico, USA Pages 6-9Manchester, UK Page 16

A smart grid demonstration project was launched in 2009, the same year when “Green New Deal” policy proposed by the Obama administration drew attention. This project aims to resolve issues related to the large-scale penetration of solar power generation in commercial buildings as in Albuquerque site as well as in typical individual homes as in Los Alamos site.

A smart grid is a power grid that optimizes power supply by using information on both energy supply and demand utilizing the networked control functions of devices with communication capabilities such as smart meters.

What is a “smart grid?”A smart house is a home that manages the energy supply and demand balance of an entire house by introducing a HEMS (Home Energy Management System).

What is a “smart house”?

1. Demonstration of a smart grid in Los Alamos2. Demonstration of smart houses in Los Alamos3. Demonstration of a commercial district smart grid in Albuquerque4. Comprehensive research


FEMS is a factory energy management system that controls energy consuming devices using ICT. It enables the visualization of energy consumption and the optimization of the industrial facility operations.

What is FEMS?DSM is a demand side management system for electric power. It suppresses factory power consumption based on demand suppression requests from the power company to adjust the balance of power supply and demand in the system.

What is DSM?

Hawaii, USA Page 8

A demonstration project was launched in 2013 on Maui Island in Hawaii where the use of renewable energy is expanding. The goal is to construct a smart grid that integrates electric vehicles to resolve problems related to the large-scale introduction of renewable energy.

1. Demonstration of a smart grid for remote islands utilizing EVs on Maui Island2. Demonstration of a smart grid at the distribution substation level in the

Kihei District 3. Demonstration of a low voltage (low voltage transformer level) smart grid

system4. Comprehensive research


Java, Indonesia Page 11

First demonstration project in Asia. We aim to establish a stable power supply by introducing a system that solves issues such as voltage fluctuations and sudden power outages at industrial park enabling what we call a “smart and eco-friendly industrial park model” that makes optimal use of energy.

1. Power quality stabilization technology2. Promotion of energy conservation through FEMS (Factory Energy Management System) and

control demand through DSM (Demand Side Management)3. Development of an ICT (Information and Communication Technology) platform to support 1.

and 2. mentioned above


A smart community is a mechanism to use energy intelligently by sharing data in both directions between the supply and demand sides of the system using ICT. This enables the optimal use of renewable energy such as solar power, wind power, and biomass while limiting the impact on the environment and increasing energy efficiency.

What is a “smart community?”

Six Demonstration Projects Underway Worldwide

3

NEDO Interview

to counter global environmental issues as well as micro-grids

used to prepare for natural disasters. These are shared global

technological challenges, and this is the reason why NEDO is

conducting technology demonstrations within an international

cooperative framework. With the energy conservation, system

control, and storage battery technologies Japan has developed

over many years, we recognize the contribution we can make.

—Please tell us about NEDO’s roles and mission, as well as

current progress of your demonstration projects.

Yamamoto: In order to conduct technical and social demonstrations

with government agencies in other countries, NEDO is creating

“demonstration opportunities” through negotiations with national

and local government partners.

We use the term “technical demonstrations” because we try to

combine technologies from both countries and optimize them

in order to meet the different needs of each partner country and

region.

Additionally, we chose to use the term “social demonstrations”

to convey the importance of exploring the human reaction

aspect in smart community demonstrations as I mentioned

before. In order to make these kinds of demonstrations

successful we must share a similar awareness of the issues,

and obtain the cooperation of a local government that is

willing to ask for the participation of its residents in societal

experiments. Furthermore, with the varying interest in energy

—Please explain the definition of “smart community” and

tell us about the special characteristics of the demonstration

projects NEDO is working on.

Yamamoto: A smart community is a mechanism to use energy

wisely by utilizing ICT to turn what was until now a one

directional energy supply mechanism focused on the supply

side into a bidirectional mechanism that includes the demand

side by sharing information. At NEDO we use the term “smart

community” rather than “smart grid.” More than just the power

system called the grid, this definition encompasses a broader

range of fields we would like to work on, such as consumer

sides including transportation systems, housing and office/

commercial buildings.

The major characteristic of the smart community demonstration

projects NEDO is currently working on is that we are not just

examining things from a technological perspective, but similar

to demand response we are exploring human reactions from a

social perspective.

—Please tell us about the future prospects of smart communities

in the world.

Yamamoto: Smart communities have become a global trend

with hundreds of smart community demonstration projects

being performed in both developed countries as well as

emerging nations. In addition, smart community technology

has become essential to the intensive use of renewable energy

Addressing shared global environmental issues through international cooperation

Creating demonstration opportunities through bilateral partnerships between two governments.

Since around the year 2000, NEDO has been developing grid interconnection technologies to deal with the large-scale connection of power generated from sources such as solar and wind as well as conducting demonstration projects, and our efforts to expand their practical use have advanced. Building upon our knowledge and experience, we are conducting our demonstration projects with the aim of realizing “smart communities” that use not only electricity but also heat as an energy source, and can share information with the consumer side and the transportation system, and improve efficiency and optimize overall local energy supply and demand. We spoke with NEDO Smart Community Department Director General Masaaki Yamamoto about the current situation and progress in this area.

Initiatives in the Area of Smart Communities

4

Director GeneralMasaaki Yamamoto

NEDO Smart Community Department

results that correspond to local needs.

—How will NEDO expand these projects in the future?

Yamamoto: The number of demonstration sites where we

are starting operations will increase going forward. I think

that we want to contribute to worldwide smart community

development by analyzing data from demonstration projects

and diffusing our technical results. I also believe that it is

NEDO’s role to raise the awareness within global society about

the effectiveness and necessity of smart communities to save

energy and make intensive use of renewable energy.

Moving forward, I think that we want to contribute the

development of smart communities by pursuing the dual tracks

of overseas smart community demonstrations and fundamental

technology development.

and environmental issues among local residents, it is necessary

to configure the environment and establish mechanisms to

encourage more and more people to cut peak energy usage and

participate in energy-saving behavior.

With these ideas in mind, we are currently conducting

demonstration projects in the United States, France, Spain,

Indonesia and the United Kingdom.

—Are you already seeing the results of these projects?

Yamamoto: As a whole the situation is that we have many

projects that have just recently started demonstration

operations, but in New Mexico we have a demonstration that

is starting to produce concrete experimental results such as the

realization of a micro-grid to contribute to a stable regional

power supply and economical power procurement by using

the actual power grid along with batteries for stationary use

to appropriately absorb fluctuations of solar power generation

based on weather forecast information, and a successful

transition at a commercial facility to an independent power

supply in the event it is cut off from the power system during

an emergency.

Due to measures to deal with power outages caused by natural

disasters and growing expectations that power generation will

move toward low-cost distributed power sources amid the

shale gas revolution, interest in micro-grids has been growing

in the United States, and we think that we are getting timely

Japan Smart Community Alliance (JSCA)

In anticipation of growing business

opportunities following the completion

of smart community demonstrations,

JSCA was established in April 2010. The

association has 322 member companies

and organizations participating from a

broad range of industries including power

and gas, automotive, information and

communications, electronics, construction,

trade, local government, academia, and

more. JSCA promotes collaborations

between public and private entities as

well as information collection and sharing

across industry boundaries. NEDO is in

charge of administrative work of JSCA

while promoting coordination with not

only the Ministry of Economy, Industry

and Trade (METI) but also other ministries

and related organizations.

JSCA deals with issues that are

difficult for individual companies to

work on through the participation and

cooperation of multiple companies on four

working groups: International Strategy,

International Standardization, Roadmap,

and Smart House & Building.

Furthermore, JSCA is active not only

in Japan, but also promotes global

collaboration through participation in

initiatives like the Global Smart Grid

Federation that includes 17 alliance

members from around the world.

(As of August 2014)

Column

5

Scope of NEDO demonstration

Demonstration of a commercial building capable of autonomous operation

Grid monitoring

Demonstration of a smart building which is capable of responding to requests from the power grid (autonomous operation is also possible). This system will be critical when new energy accounts for most of our energy generation and consumption.

SubstationAbsorb system fluctuations

Direct energy consumption

level

○Legend Power grid Information system

Gas engine

Solar power generation system

General households

BEMS


Mesa del Sol Center Building

Demonstration projects have been conducted to resolve issues

related to the introduction of large quantities of power to the grid

from unstable solar power generation at commercial buildings

and ordinary homes in the state of New Mexico.

In Albuquerque, a project was conducted to demonstrate a

building system that could provide ancillary service to absorb

fluctuations from solar power generation in the grid through the

building’s gas engine-type electric generator. In an emergency,

the building system was disconnected from the grid but yet could

operate autonomously to supply power for the entire building.

So far, the uninterrupted transition to independent operation

has been successful primarily by using the flexibility of the gas

engine. It is safe to say that this is a world-class smart building

demonstration.

In Los Alamos, there is an ongoing smart grid demonstration that

maintains an optimum electric supply through the use of electric

storage batteries designed for grid and consumer household

Exploring the potential of a smart grid from smart buildings and smart houses

Aiming for the Stable Supply of Solar Power

New Mexico, USA★

Current Status of NEDO’s Demonstration Projects

Future Cities Coming to Life

A commercial building at the Albuquerque site (Mesa del Sol Center Building)

Monitor grid

voltage and

frequency

Storage batteries

Storage batteries

6

Smart houses with HEMS, etc. installed

Control micro grid via µ-EMS

Direct charging and discharging

Monitor grid voltage and frequency

Demonstrate real-time pricing and demand-response

Communication of pricing data via high-speed PLC communication

Demonstration of energy management under circumstances where a large amount of solar power generation has been introduced in an actual power grid in a residential area.


Monitor power generation volume

demand-response (changing the volume of the power used on the

demand side based on the available supply of electricity) as part

of an actual power grid to maintain the optimal electric supply.

As a distribution system-level micro-grid, this is the world’s first

successful implementation of power flow control that combines

mega solar and storage batteries. In addition, we are promoting

the demonstration of smart houses that integrate energy storage

devices and smart appliances and control household energy

consumption through HEMS (Home Energy Management

System). In particular, the testing of communication, coordination

and co-operation between micro-grid control system (µ-EMS) in

the grid and the smart house HEMS was the first in the world.

Although most of the demonstrations in New Mexico were

completed in March 2014, the demand-response demonstration

in Los Alamos was extended for another year. Starting from July

of 2013, we recruited volunteers to install smart meters in their

residences, and as a result we had 900 households participate in

the demonstration. We are currently gathering data and already

getting very interesting results.

In New Mexico, which is blessed by about 300 days of sunny weather per year, we have conducted three demonstration projects aimed at providing a stable electricity supply from the irregular output of solar power generation. This includes a world-class smart building in Albuquerque, a micro-grid dealing with large amounts of renewable energy and smart house that allow the “visualization” of electricity use and costs in Los Alamos.

Currently NEDO is conducting various smart community demonstration projects that are designed to meet the different needs of partner countries and regions around the world. Expectations and acclaims for Japanese technology at the local level are high, and we are making a great progress in contributing to solving global environmental problems by realizing smart communities.

Satoshi Morozumi NEDO Smart Community Department

A 1MW solar power generation system at the Los Alamos site


Grid monitoring

Substation


General households

Storage batteries

Smart meters


7

Power distribution management system

Maximizing the Use of Renewable Energy

Hawaii, USA

The introduction of renewable energy production such as wind and

solar power generation has been increasing in the state of Hawaii, and

there is a plan to meet over 40% of electricity demand through renewable

energy by 2030. Underlying this are concerns about the adverse effects

on the environment of heavy dependence on fossil fuels and rising fuel

costs due to transportation cost increases that are a specific challenge for

island communities.

Maui, which is the second largest island in the state of Hawaii, is

currently operating 72MW of wind power generation and 40MW of

solar power generation to meet an electricity demand of 90 to 200MW.

However, problems have already emerged that threaten the stability

of the power supply and prevent the effective utilization of renewable

energy, such as power surpluses during times of lower demand,

frequency variations due to changes in the volume of power generation,

and excessive load on the distribution line.

As part of the NEDO project we are conducting demonstrations

of smart grid technologies at various levels including the power grid,

distribution substations, and low-voltage transformers. For example, at

the power grid level, we have introduced an EVMS (Electric Vehicle

Management System) to take advantage of surplus wind power when

demand is low at night and control the optimal timing to perform the

charging of electric vehicles (EVs) based on the balance of supply and

demand. In addition, we are trying to optimize the balance of electric

supply and demand on the island by instantly interrupting charging in

situations where the power supply is insufficient, such as when wind

power generation stops unexpectedly.

Interest among the public is very high. By May 2014, 300 individuals

had volunteered their own EVs and expressed interest in participating.

Based on our upcoming analysis and review results, we would like to

expand this system that can help to achieve a low-carbon society on islands

and subtropical regions that have an environment similar to Maui’s.

Absorbing fluctuations in wind and solar power through electric vehicle storage capacity

★

The goal is to mitigate impacts on grid frequency due to introduction of large-scale wind power generation by realizing the charging of EVs using surplus wind power at night.


Constructing a system that does not overload grid equipment by controlling EV charging and other operations

Renewable energy

Development of µ-DMS capable of coordinated operation with higher-level DMS without burdening grid equipment

■Peak shift (utilization of nighttime surplus wind power and avoidance of EV charging during peak times)

■ Issue EV charging termination command to correct frequency issues associated with interruptions to wind power generation

Island-wide smart EV system

µ-DMS

Information on power generation volume

Charging terminated during power shortage

Energy management system

EVMS(Electric Vehicle

Management System)

EV charging station

District where the PV system, EVs and the electric power system can communicate.


Wind power generation

In December of 2013, in order to provide a stable supply of electricity and reduce environmental impacts, a demonstration project to make efficient use of renewable energy and overcome issues including supply and demand fluctuations and load on the power grid by utilizing the storage capacity of electric vehicles was launched on the island of Maui in Hawaii, where the transition to renewable energy has been advancing.

Kazuyoshi TakadaNEDO Smart Community Department

Transmission grid

Power distribution

grid

Distribution substation

General householdsLow-voltage transformers

8

Building Infrastructure for an Electric Vehicle Society

Málaga, Spain

Our demonstration project in Spain is part of the Japan-Spain

Innovative Program based on a technology development cooperation

agreement with the Spanish government and the Centre for the

Development of Industrial Technology (CDTI).

The project is conducted in Spain associated with its various

initiatives aimed at achieving the European “20-20-20”

environmental targets.

The project started in April 2013 as one of collaborative efforts of

Malaga City’s Smart City Malaga Project.

Using 200 EVs and charging infrastructure including quick

chargers, we are demonstrating smart community technology in

expectation of the large-scale introduction and dissemination of EVs.

From the control center, we manage the position, charging status, and

navigation systems of the EVs in an integrated manner. For drivers

who want to charge their EVs, the system presents them with the best

charging location, of the nine locations in the city where we installed

23 chargers, based on consideration of the influence charging has

on the grid. By guiding drivers through the navigation system, we

are taking full advantage of ICT that are linked to EV management

systems and power management systems in an attempt to reduce the

load on the grid posed by the mass dissemination of EVs.

In this project, Málaga citizens and businesses participate by

leasing the EVs. Although we had a hard time gathering interested

participants at first, once the vehicles started hitting the streets of the

city the response was favorable, and currently there is a waiting list

for people interested in leasing EVs. User reactions have also been

extremely positive, and we’ve heard comments such as “I want to

use it more” and “I want chargers installed in the suburbs too.”

This demonstration project is planned to continue through FY2015.

Our aim is to establish the technology and systems necessary for the

expansion of EVs in the urban areas.

Demonstration technologies to reduce the load on the power system.

★

quick charging station installed in Málaga City

Demonstrating technology to reduce the load on the grid caused by large-scale EV recharging by encouraging changes in EV user behavior through making full use of ICT (Information and Communication Technology)


Smart City Málaga Project

Renewable energy

EV management center

Manage EV charging condition, position, and navigation system in an

integrated manner

Verify optimal charger allocation

Provide information such as charger

location

Coordination

Regional energy management system

Smart buildings

Smart mobility

Smart meters

* “20-20-20” (Triple 20) is an energy policy implemented by the EU. By 2020 the aim is to, compared to 1990 levels, reduce greenhouse gas emission by 20%, increase the share of renewable energy by 20%, and improve energy efficiency by 20%.

Electric vehicles are one of the essential elements in the development of a smart community. In Spain, where transportation accounts for 40% of total energy consumption, they set a goal of introducing 250,000 EVs by 2014. Accordingly, NEDO is conducting a demonstration project in the southern city of Malaga in expectation of the large-scale introduction of electric vehicles in urban areas.

Takeshi YoshidaNEDO Smart Community Department


EV charger

EV charger locations

EV management, navigation, etc.

Storage batteries


Wind power generation

9

General households

Lyon, France★

Illustration of proposed completed Positive Energy Building (PEB) that creates more energy than the entire building consumes through implementation of solar panels, BEMS/HEMS and energy-saving equipment..

In this demonstration project in the Lyon Confluence (area of 150

hectares), we are building a urban city model using electric vehicle

(EV), photovoltaic (PV), and smart building technologies.

There are four specific tasks involved in the project. Task 1 is

the construction of PEB (Positive Energy Building) that actively

introduce renewable energy and storage batteries to produce

energy in excess of the amount consumed within the building.

Task 2 is the implementation of EV charging management

system and EV sharing that utilize PV. Task 3 is the promotion

of energy-saving behavior among residents by visualizing the

energy consumption of existing housing. Finally, Task 4 is to

aggregate energy information from Tasks 1, 2, and 3 to construct

a community management system that presents indicators for use

throughout the entire region.

At present, Task 2 regarding EV sharing is making the most

progress, and we are compiling data received from the registered

citizen users of our 30 EVs. In addition, with Task 3 on visualizing

energy consumption, we began monitoring energy consumption

by distributing tablets to 270 households concentrated in the target

district this summer. Both countries are bringing technologies to

complete the PEB in 2015. The PEB is currently under construction

and this will be a pioneering project in Europe where the “20-20-

20” * initiative has been implemented.

Although there are now tens of different types of smart community

projects underway in Lyon, this project is considered to be a

centerpiece and it has attracted great expectations. This futuristic

city being constructed as a joint project between Japan and France

is a message to the world, and we want to keep contributing to a

low-carbon revolution not only in Europe but also globally.

NEDO demonstration project with the four tasks draw high expectations from local residents

Demonstration of the development of a comfortable and environmentally friendly urban city model through the integration of advanced Japanese energy technology with Europe’s strict environmental goals and the environmental urban planning concept of “Grand Lyon.”


Demonstrate Positive Energy Building (PEB)

P-plot building

Smart battery

PV system

EV car sharing


Charging stations

Visualize energy consumption in the home

Implement EV charging management system and

EV sharing utilizing solar power generation

Community management

system

Build a system to optimize the energy use of the entire city

HEMS

LEDBEMS

Tablet

(Source: SPL Illustration made by Asylum for SPL Lyon Confluence© Illustration made by Asylum for SPL Lyon Confluence)

* “20-20-20” (Triple 20) is an energy policy implemented by the EU. By 2020 the aim is to, compared to 1990 levels, reduce greenhouse gas emission by 20%, increase the share of renewable energy by 20%, and improve energy efficiency by 20%.

Constructing a Model City of the Future in a Historic CityIn Europe, where environmental regulations are strict, NEDO has started a project to turn a historic city “smart” utilizing Japanese technology. We are aiming to build an environmentally friendly urban city model through demonstration projects in smart buildings and EV sharing.

Shintaro MatsuokaNEDO Smart Community Department

10

FEMS manager

DSM client

Switches

Java, Indonesia

As Indonesia’s rapid economic development continues, its

energy demand is also expanding remarkably. Because of this,

insufficient electricity, frequent electricity outages and unstable

electricity quality are often to be seen. In order to reduce the

risk of lower productivity and equipment damage due to this,

many factories are introducing their own power generation

equipment.

For Indonesia to develop further in the future, it is necessary to

build systems that stabilize the quality of electricity and enable

efficient use of energy. To that end, Japan and Indonesia are

working together on a demonstration project at the industrial

park in Suryacipta City of Industry, aiming to achieve high

quality electricity supply and energy conservation with the goal

of creating a “smart and eco-friendly industrial park model.”

In addition to achieving a reduction in the length of outages

through the implementation of automated power distribution

systems, we are building a system to supply high quality

electricity without fluctuation in voltage or frequency

by introducing equipment for voltage stabilization and

uninterruptible power supplies. In addition, we are promoting

the efficient use of energy through the implementation of

FEMS (Factory Energy Management System) along with

DSM (Demand Side Management System), with the goal of

controlling power consumption in response to power shortages

through cooperation between FEMS and DSM. In order to

achieve this we will lay down high-quality communication

infrastructure in the industrial park to build a common

underlying ICT (Information and Communication Technology)

platform.

Achieving improved power quality and energy savings through mutual cooperation

★

Demonstration of smart community technology achieved through integration of power and ICT in an industrial park with high energy density

The Suryacipta industrial park that will become the site for the “smart and eco-friendly industrial park model” demonstration project

Load dispatching center

PLN Industrial park Factory

Automated power distribution system

PLN

Substation

DAS server

Voltage stabilization equipment

UPS

○Legend Conventional electricity High quality electricity Communication lines (monitoring/control)

High quality power supply system

FEMSPower visualizationLoad control

EMSEnergy visualizationOptimized control

Conventional electricity

DSM, FEMS, EMS server

ICT platform

DSM system

Toward the hamonized development of “Economy and Environment” In Indonesia, with its remarkable economic growth, we aim to transform an industrial park with high energy density to a “smart and eco-friendly industrial park” by using smart community technology. Yoshinori Furukawa

NEDO Smart Community Department

11

NEDO Interview

—Why is coal now receiving global attention once again?

Zaima: There are large coal reserves that are not geographically

concentrated. Moreover, compared with other fossil fuels the price is

low and relatively stable, and unlike oil or natural gas there is almost

never a steep rise in price. For this reason, coal is currently fulfilling

roughly one-fourth of the entire world’s energy demand, and it is

estimated that the demand for coal will expand even further heading

towards 2035. —In Japan, since the Great East Japan Earthquake, coal-fired

power generation is being reconsidered. Please tell us about the

role of coal in meeting Japan’s energy demand in the future.

Zaima: Due to the risk of resource-poor Japan favoring one type

of energy, it is important to utilize an ideal mix of various types of

energy. Coal-fired power generation amounts to roughly one-fourth

of Japan’s current power supply portfolio, and we believe that coal

will continue to be an important energy resource in the future.

In the case of oil or natural gas power generation, the cost of

electricity remains high. In this respect, coal is inexpensive, and from

the perspective of strengthening Japanese industry it is extremely

important given that coal can generate electricity for about one-third

the cost of natural gas.

In this way, from the perspectives of both energy security and

economics, coal will be an important energy source in the future,

contributing to the stability of Japan’s energy market structure.

—I understand that coal-fired power generation has a lot of

CO2 emissions. On this point, won’t there be a concern with

continuing coal-fired power generation?

Zaima: Japanese coal-fired power generation technology is among

the most advanced in the world, and at the most cutting-edge power

plant the thermal efficiency of 42% and a CO2 emission rate of 0.8kg/

kWh make it the highest level among all other countries. If all of

the world’s coal-fired power generation technology were converted

to Japanese technology, emissions of CO2 would be dramatically

reduced.

Coal is a cheap, stable resource, and its importance will increase further

Coal satisfies one-fourth of global energy demand and accounts for more than 40% of power generation capacity; global energy demand is projected to increase by a factor of 1.2 and power generation by a factor of 1.4 by 2035.

The role of coal among global energy resources

Mto

e

Source: IEA, “World Energy Outlook 2012”

Projected global energy demand

Source: IEA, “World Energy Outlook 2012”

1990

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2020

2025

2030

2035

■Other■Biomass■Hydroelectric■Nuclear ■Natural gas■Oil■Coal

0

2000

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6000

8000

10000

12000

14000

16000

18000

Mto

e

Projected global power generation capacity

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

0

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2000

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FeaturedArticle

No.2 Attracting Global Attention:

Making Great Contributions to Resolving Global Environmental Problems through Clean Coal Technology

Japan’s Clean Coal Technology

Japanese Coal-fired Power Generation Technology is Among the Most Advanced in the World

12

NEDO is aiming for even more efficient coal-fired power generation

through a project for innovative CO2 recovery-type coal gasification

technology development called EAGLE (Coal Energy Application

for Gas, Liquid and Electricity). The technology developed with

EAGLE is a type of combined cycle generation technology which

gasifies coal, which then turns a gas turbine, and by further utilizes

the waste heat to generate electricity through a steam turbine,

increasing the thermal efficiency to 48%. As thermal efficiency goes

up, the amount of coal used decreases, which also reduces the amount

of CO2 emissions.

—Please tell us about EAGLE’s CO2 Capture and Storage

(CCS) technology.

Zaima: With EAGLE we are aiming to establish technology that

separates and recovers CO2 directly as it occurs in the process of

gasifying coal. When coal is burned CO2 is released; in the same

fashion, carbon dioxide is generated during the gasification process,

and this technology directly captures this. However, until recently the

critical problem was that it requires a substantial amount of energy in

order to capture the CO2.

For this reason, we tried to reduce this energy in the EAGLE project

and we have succeeded in reducing energy required roughly by 30%

by using chemical and physical absorption method.

Although we concluded the EAGLE pilot test this fiscal year,

we have now begun a large-scale demonstration test using the

EAGLE results with what is called the “Osaki CoolGen Project”

at the Osaki Power Plant in Hiroshima Prefecture. This is a project

subsidized by Ministry of Economy, Trade and Industry (METI),

and they are considering a demonstration of the ultimate coal-fired

power generation with an increase in thermal efficiency to 55% by

integrating fuel cells utilizing hydrogen by-products produced during

the gasification process in the process. —How will NEDO continue the work on Japan’s world-class

clean coal technology in the future?

Japanese coal-fired power generation accounts for roughly one-fourth of the amount of total power generation. The importance of coal-fired power generation has been increasing, especially since the Great East Japan Earthquake.

Composition of Japanese power supply (by amount of electricity generated)

Elec

trici

ty g

ener

ated

(kW

h)

Source: The Federation of Electric Power Companies of Japan

28％28％

18％18％

42％42％

2％2％10％10％

0

2,000

4,000

6,000

8,000

10,000

1980 1990 2000 2010 2012FY

■Other■Nuclear power■Natural gas■Oil■Coal

“Clean Coal Technology” enables the efficient use of coal in an environmentally friendly way. Coal was one of the resources NEDO focused on for technology development when it was established. We spoke with Environment Department Clean Coal Group Director, Nobuyuki Zaima about the current situation and future plans.

Japan’s Clean Coal Technology

Aiming for Coal-fired Power Generation that Doesn’t Emit CO2

DirectorNobuyuki Zaima

Clean Coal Group,Environment DepartmentNEDO

Japanese coal-fired power generation is recognized as having the world’s highest thermal efficiency through efforts in continuing technology development, technology commercialization and appropriate operations and management.

27

29

31

33

35

37

39

41

43

Source: International Comparison of Fossil Power Efficiency and CO2 Intensity 2011, by Ecofys19

9019

9219

9419

9619

9820

0020

0220

0420

0620

08

Japan

Germany

USA

China

India

Australia

Gre

ss th

erm

al e

ffici

ency

(LH

V, %

)

Coal-fired thermal efficiency by country

13

Coal gasification unitCoal gasification unit

Air separation unitAir separation unit Gas turbine unitGas turbine unit

Gas clean-up unitGas clean-up unit

SourshiftSourshift

CO2 capture unit (physical absorption method)

CO2 capture unit (physical absorption method)

Sweetshift

Sweetshift

CO2 capture unit(chemical absorption method)

CO2 capture unit(chemical absorption method)

Fine desulfurizerFine desulfurizer

GypsumGypsum

StackStack

Regenerationtower

Regenerationtower

GG

N2N2N2N2

O2O2

GTGTCompComp

Absorptiontower

AbsorptiontowerNo.1

water scrubber tower

No.1 water scrubber tower

GGHGGH

AirAir

CoalCoal

Syngascooler

Syngascooler

Gasification furnace

Gasification furnace

AirAirRectification towerRectification towerAir feed compressorAir feed compressor

Char FilterChar Filter

CharCharSlagSlag

No.2 water scrubber towerNo.2 water scrubber tower

COS converterCOS converter

Sulfur capture towerSulfur capture tower

Incinerator heat recovery boilerIncinerator heat recovery boiler

Generated gas incineratorGenerated gas incinerator

Zaima: We are promoting the strategic development of clean coal

technology according to three pillars of technological promotion:

saving energy and reducing CO2 in the process of high-efficiency

coal-fired power generation and steel production; achieving zero

emissions-type coal-fired power generation; and deploying facilities

and technology related to Japan’s superior high-efficiency use of coal.

While we strive to make progress with the expansion of world-class

cutting-edge clean coal technology as well as the development of

coal-fired power generation technology with an improved efficiency,

eventually we want to achieve “zero-emissions coal-fired power

generation” that eliminates CO2 emissions.

We believe that we can reduce the load on the environment due to

the use of coal and stabilize a balance between demand and supply of

energy globally by advancing Japanese clean coal technology.

Although Japan’s coal-based technology is already at the highest level in the world, NEDO is concentrating on developing technology for even higher efficiency coal-fired power generation in order to maintain competitiveness and contribute to resolving global energy and environmental issues.

Improvement of Thermal Efficiency

40

45

50

55

60

65

70

Net

ther

mal

effi

cien

cy (H

HV)

, % A-IGFC65%

A-IGFC65%

A-IGCC 57%A-IGCC 57%

700°C class 46%700°C class 46%

750°C class48%750°C class48%

Integrated coal gasification fuel cell (IGFC) combined cycle

Integrated coal gasification fuel cell (IGFC) combined cycle

Integrated coal gasification combined cycle (IGCC)

Integrated coal gasification combined cycle (IGCC)

Advanced ultra-supercritical (A-USC) coal-fired power plantsAdvanced ultra-supercritical (A-USC) coal-fired power plants

55％55％

600°C class42%

600°C class42%

Ultra-supercritical (USC) coal-fired power plants

Ultra-supercritical (USC) coal-fired power plants

1700°C class GT 50%

1700°C class GT 50%

1500°C class GT46～48%

1500°C class GT46～48%

2000 2010 2020 2030 2040 2050Year

Aiming to verify the applicability of IGCC and reduce energy required for CO2 capture.

EAGLE 150t/d pilot plant system diagram

Compiled from “CoolEarth Energy Innovative Technology Plan” data

A-USC (Advanced Ultra-Supercritical Coal-fired power plants)Technology that increases thermal efficiency by placing steam that is being used for thermal power generation above the critical pressure of water to reduce the thermal energy. METI has been working on development of A-USC that can achieve an efficiency ratio of 46% in 2015 and 48% by 2020.

IGFC (Integrated coal gasification fuel cell combined cycle)Triple combined cycle that generates electricity through a combination of fuel cells, gas turbine, and steam turbine, using gasified coal. If achieved, it is expected that the net thermal efficiency will exceed 55%, and in comparison with preexisting pulverized coal-fired power plants, CO2 emissions are also expected to decrease roughly by 30%.

IGCC (Integrated coal gasification combined cycle)High-efficiency power generation technology that uses gasified coal as fuel for gas turbines. Utilizing EAGLE results, METI plans to begin demonstration test operation at the Osaki Power Plant in Hiroshima Prefecture in 2017.

Tests and verification were conducted at the pilot-level, aiming to optimize high-efficiency power generation and CO2 capture for the realization of zero emissions coal-fired power plants.

EAGLE (innovative CO2 capture coal gasification technology development)

Exterior of pilot test plant. This pilot test combining IGCC and CO2 capture is considered as one of the world’s most advanced efforts.

Coal gasification unit

Gas turbine unitCO2 capture unit(chemical absorption method)CO2 capture unit

(physical absorption method)

Air separation unit

Gas clean-up unit

14

Column

Southeast Europe ・ Foundational study on high-efficiency coal utilization system

Kyrgyzstan, Uzbekistan and Tajikistan ・ Foundational study on high-efficiency coal utilization system

China ・ FS on low-grade boiler operation optimization project

Poland ・ FS on implementing USC project

Bosnia/Herzegovina ・ FS on USC project

Taiwan ・ FS on conversion of existing

power plant to a CCS facility project

Vietnam ・ FS on High efficiency power generation from

cofiring imported and domestic coal project

India ・ FS on Upgraded brown

coal (UBC) + USC project

Australia ・ FS on implementing hydrogen supply

infrastructure chain project ・ FS on high efficiency coal-fired CCS

project

Indonesia ・ FS on improved power plant efficiency through STD drying system project ・ FS on high-efficiency power plant using low quality coal (CFB) project

USA ・ FS on implementing HECA IGCC project

Kazakhstan ・ Foundational study on high-efficiency coal utilization system

Since NEDO is a governmental agency it seems that the level of trust from partner country representatives is high.

32 research projects have been conducted in 19 countries by 2013. Since partner country representatives understand the high level of the Japanese technology, we anticipate that, while we do not predict immediate agreements, projects with signed agreements will emerge in the near future.

We have high hopes because if all of the project formulation research of the past two years reaches project

implementation stage, we can achieve reductions of roughly 1,500 tons of CO2 emissions. If coal-fired power plant construction goes forward, the scale of investment may reach the 100 billion yen mark, and this holds major significance for Japanese industry if they are selected to participate in the project.

The “Project Formation Research on High-Efficiency Coal Utilization Systems” will serve as a part of infrastructure system export strategies and has the ability to make great contributions to both developing the Japanese economic growth and reducing CO2.

In order to export Japan’s technologies related to highly efficient use of coal to overseas, NEDO is conducting the “Project Formation Research on High-Efficiency Coal Utilization Systems.” This is in line with an infrastructure export strategy by the Japanese government, which sets an export sales target for 2020 at 30 trillion yen, three times as much as the current export sales of 10 trillion yen. This export sales target includes 9 trillion yen from energy field.

NEDO began this project in 2011. Specifically, a feasibility study has been conducted in order to advance the overseas expansion of high-efficiency coal utilization systems that include Japan’s high-efficiency power generation technology, carbon dioxide capture and storage (CCS) technology and operation management technology. Through the study we are examining each country’s energy efficiency and market conditions to expand systems matched to country-specific issues. For example, Japanese technology would enable a country to make use of unused low rank coal in ways that are highly efficient and environmentally-friendly. Combustion tests and other tests for partner countries to show how they can properly make use of coal can be used as effective promoting tools for Japan’s advanced technological achievements.

Our goal is to improve the energy efficiency and support the diversification of energy sources in partner countries while at the same time strengthening the global competitiveness of Japan and contributing to solving global environmental problems.

Overseas dissemination of NEDO’s high-efficiency CCT technology (2012 results)

Supporting the Improvement of Global Energy Efficiency and the Diversification of Energy SourcesProject Formation Research on High-Efficiency Coal Utilization SystemsNEDO has started the “Project Formation Research on High-Efficiency Coal Utilization Systems” to promote the export of infrastructure from Japan.

Yoshiko YamamotoClean Coal Group,Environment Department NEDO

Research project objective: Dissemination of Japanese Clean Coal Technology1. Promote a project by Japanese entities in areas where it is difficult for private entities to develop the project

on their own. 2. Conduct activities to gain understanding and cooperation about the high level and efficacy of Japanese

technology from partner countries and the management teams of partner companies through result reporting, policy discussions and bilateral meetings.

3. In addition to the research studies, provide assistance for testing processes to verify possible applications of Japanese technologies in partner countries (combustion technology, furnaces, gasification, etc.).

15

Overseas Offices

Head OfficeMUZA Kawasaki Central Tower, 16F-20F1310 Omiya-cho, Saiwai-kuKawasaki City, Kanagawa 212-8554 JapanTel: +81-44-520-5100Fax: +81-44-520-5103

Kansai Branch OfficeUmeda Dai Building, 6F, 3-3-10Umeda, Kita-kuOsaka 530-0001 JapanTel: +81-6-7670-2200Fax: +81-6-6344-4574

Washington2000 L Street, N.W., Suite 605Washington, D.C. 20036 U.S.A.Tel: +1-202-822-9298Fax: +1-202-822-9289

Silicon Valley3945 Freedom Circle, Suite 790Santa Clara, CA 95054 U.S.A.Tel: +1-408-567-8033Fax: +1-408-567-9831

Domestic Offices

Europe10, rue de la Paix 75002Paris, FranceTel: +33-1-4450-1828Fax: +33-1-4450-1829

New Delhi7th Floor, Hotel Le MeridienCommercial Tower, Raisina RoadNew Delhi 110 001, IndiaTel: +91-11-4351-0101Fax: +91-11-4351-0102

Beijing2001 Chang Fu Gong Office BuildingJia-26, Jian Guo Men Wai StreetBeijing 100022, P.R. ChinaTel: +86-10-6526-3510Fax: +86-10-6526-3513

Bangkok8th Floor, Sindhorn Building Tower 2130-132 Wittayu Road, LumphiniPathumwanBangkok 10330, ThailandTel: +66-2-256-6725Fax: +66-2-256-6727

NEDO concluded on March 12, 2014 a memorandum of understanding (MOU) with the Department for Business Innovation & Skills (BIS), the Department of Energy and Climate Change (DECC) of the British government and the Greater Manchester Combined Authority (GMCA) to conduct a smart community demonstration project in Manchester leveraging Japan's heat pump technology and Information and Communication Technology (ICT).NEDO Chairman Furukawa, at the MOU signing ceremony in the presence of Mr. Hayashi, Japan's ambassador to the

United Kingdom in the Houses of Parliament, stated that this unprecedented demonstrative project that would aggregate residential negawatt (conserved electricity by the demand side) to trade in the power market could play a significant role in making a shift of the principal source of energy from gas to electricity as well as in establishing a low-carbon society in England, drawing a number of lessons Japan could learn at the same time and contributing to the advancement of economic and technological exchange between Japan and England through the dissemination of the state-of-the-art smart technology.

NEDO and UK Government Concludes MOU for Smart Community Project in Manchester

MOU signing ceremony

NEDO TOPICS

Mar. 12th2014

New Energy and Industrial Technology Development OrganizationMUZA Kawasaki Central Tower, 1310 Omiya-cho, Saiwai-kuKawasaki City, Kanagawa 212-8554 JapanTel: +81-44-520-5100 Fax: +81-44-520-5103URL: http://www.nedo.go.jp/english/index.html

March 2015

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