Ministry of Economy, Trade and IndustryAgency for Natural Resources and Energy

Collaboration for CCTTowards the Balancing of 3E+S

29th March 2018

Hideyuki UmedaDeputy Director, Coal Division,

Agency for Natural Resources and Energy(ANRE), METI

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Is renewable energy perfect? Maintenance of the capacity of thermal power and its dispatch ability is

essential.

PV

DemandCurve

Pumped Storage Power Generation

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

Stop or restrain the operation of thermal power, and pump up water during day time

38% (the ratio of Renewables per day)

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

Thermal Power as a baseload

Decrease of out put of thermal power, responding to the electricity decrease caused by PV output increase.

4.9 million (kW) (aroud 66% of the total demand) out put of PV and Wind during day time(at 13:00) Pumped Storage Power Generation

Pumpingupwater

Demand & Supply Balance in Kyushu Area (May 4th,2016）

Crude oil (2016) Natural gas (2016)

Ref.: Trade statistics

Strait of HormuzSteam Coal (2016)

So, Natural Gas is the best choice?(Fossil Fuel Export Countries to Japan)

2

Saudi Arabia, 35.7%

UAE, 24.5%

Qatar, 9.2%

Kuwait, 6.8%

Iran, 6.7%

Russia, 6.1%Mexico, 2.7%

Iraq, 2.3%Indonesia, 1.6%

Malaysia, 0.6%

Others, 3.8%

Middle-East dependence

86.4%Total import: 3.35 million

BD/year

Australia, 75.6%

Indonesia, 10.8%

Russia, 9.8%Canada, 1.8%

China, 1.1%USA, 0.7% Others, 0.1%

Middle-East dependence 0%

Total import: 109.8million

t/year

Australia,25%

Malaysia,16%

Qatar,15%

Russia,8%

UAE7%

Indonesia7%

Brunei,4%

Papua New Guinea,

4% USA4%

Oman,3%

Nigeria,2%

Others,5%

Middle-East dependence

23.6%Total import: 94.24million

t/year

2

0

10

20

30

40

50

60

70

80

90

Comparison of stock days Stock of coal is 1 month in Japan, since coal is easy to stock and can stock

even in the open field. On the other hand, stock of LNG is less than 2 weeks in Japan (3weeks

including stocks in ships).

State Storage

Comparison of stocks of each fuel (End of March, 2017)

別途多量の在庫

State Storageand Another many stocks

78days55days

28days 9days 15days

Petroleum

LPG

Coal LNG for power generation

LNG for thermal use

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Importance of balancing 3E+S policy targets

1. Self Sufficiency ↑up3. CO2 Emission ↓down

2. Electricity Costs ↓down

Use Renewable Less LNG More Coal

Max Renewable Use LNG Less Coal

No more inefficient Coal-fired Power PlantsMore Clean Coal technologies

Energy Mix (Supply & Demand Outlook)To secure ‘Safety+3E’ of Japan’s Energy supply and demand:Foremost condition: Nuclear safety ⇒Safety

1. Improved energy self-sufficiency (about 25%) ⇒Energy Security2. Lower electricity costs ⇒Economic Efficiency3. Set a GHG reduction target and lead the world ⇒Environment

（Total Electricitygeneration）

1,065TWh

Electricity generation mix

2030

Hydro8.8～9.2%

Solar 7.9%

Wind 1.7%

Bioenergy3.7～4.6%

Geothermal1.0～1.1%

Renewable Energy22～24%

Nuclear 22～20%

ＬＮＧ27%

Coal 26%

Oil 3%

2013

Renewable Energy11%

Nuclear1%

ＬＮＧ43%

Coal 30%

Oil 12%

Electricity cost

Self-Sufficiency Rate

From 11% to 22～24%

Lower the cost fromthe current level

Greenhouse Gas Emissions

Reduction target at the same level as in Europe and the US

Safe

ty• Japanese government set out Japan’s energy mix toward 2030 in July, 2015• The basic principles of “3E+S” is to achieve 3E+S (Safety, Energy security,

Economic efficiency, Environment) simultaneously, and to materialize balanced electricity configuration.

• Coal is positioned as the important energy source to be used while reducing the environmental burden. The dependency of thermal(coal) will still a base-lord generation (26%) in 2030.

Japan’s Current Energy Policy and Position of Coal

Reality: Increasing capacity of coal-fired power

The capacity of coal-fired thermal power is estimated toincrease along with economic growth mainly in India, China,and Southeast Asia.

800gCO2/kWh

709gCO2/kWh

593gCO2/kWh

World Electricity Generation (New Policies Scenario)(TWh)

Perspective of increase or decrease of Capacity of Coal-Fired and Gas-Fired Power Generation in the World

（Source: IEA World Energy Outlook 2017） （ＧＷ）

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2000 2015 2016 2025 2030 2035 2040

Other RE

PV

Wind

Hydro

Nuclear

Gas

Oil

Coal

-200 -100 0 100 200 300 400 500

Russia

US

EU

MiddleEast

Africa

Southeast Asia

India

China

Coal Gas

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Source: IEA World Energy Outlook 2017

New Policies Scenario

EU(826TWh→207TWh)

Russia(158TWh→131TWh)

Middle East(1TWh→16TWh)

Africa(257TWh→294TWh) India

(1,042TWh→2,116TWh)

Southeast Asia(308TWh→898TWh)

USA(1,471TWh→1,199TWh)

Central and South America

(73TWh→85TWh)

Upper : Country or Region

Lower : Change in Generation (2015 → 2040)

: Year 2015, : Year 2040

Up to 2040, the world’s total coal-fired power generation will expand (9,532TWh(2015)→10,086TWh(2040)).

Particularly in Asia Pacific region, large expansion is expected.

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Projection of electricity generation by coal-fired power

China(4,134TWh→4,008TWh) Japan

(343TWh→236TWh)

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Importance of Clean Coal TechnologiesClean Coal

Technologies－StableAdvantage

of Coal

Disadvantageof Coal

－Economical

51years 53years

153years

020406080

100120140160180

The reserves to production ratio

Oil Gas Coal

13.7% 6.5%27.5%

19.4%

4.1%

1.6%9.1%

31.0%

34.8%

47.7% 42.7% 0.1%

7.6%7.6%

3.6%

2.5% 8.2%

32.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Oil Gas Coal

Amount of reserves by region

North America Central and South Africa

Europe & Eurasia Middle East

Africa Asia Pacific

・The reserves to production ratio of coal is longer than others

・The area of available coal resources is wide and not depending on Middle East

0

2

4

6

8

10

12

2000

/1/1

2001

/1/1

2002

/1/1

2003

/1/1

2004

/1/1

2005

/1/1

2006

/1/1

2007

/1/1

2008

/1/1

2009

/1/1

2010

/1/1

2011

/1/1

2012

/1/1

2013

/1/1

2014

/1/1

2015

/1/1

2016

/1/1

2017

/1/1

Transition of CIF

Oil Gas Coal

yen/kcal

ＣＩＦ Price（Dec, 2017）Oil：4.83yen/1000kcalGas：3.61yen/1000kcalCoal：1.91yen/1000kcal

Sources: BP Statistics 2017 Sources: IEE JAPAN DATA

－emit GHG

－emit some pollutants

①High efficiency andlow emission technologies

②Air Pollutant Reduction technologies・Coal fired power plants emit more CO2 than

other fired power plants like oil and gas.

・Coal fired power plants emit pollutants like PM,Sox and Nox which raise air pollution.

10000

15000

20000

25000

30000

Current USC IGCC IGFC

CO2 reduction potential by thermal power technologies

23%of CO2 emissions are produced from coal-fired power plants in Japan. Around 6.6million tons/year of CO2 will be reduced if the efficiency of coal thermal power plants improve by an average of 1%.

▲13million ton

Potential reductions of CO2 through the improvement in efficiency

CO2 emissions from thermal power plants account for total emissions（2014）

（10thoutands t-CO2)

Others658million ton（55％）

Coal Power270 million ton

（23％）

LNG Power184 million ton

（15％）

Oil Power etc.78 million ton（7％）

▲46 million ton▲83million ton

（10thouthandst-CO2)

Coal Power

38％ 40％ 46％ 55％(+2%) (+8%) (+17%)

Net thermal EfficiencyHHV

Source：GHG Emissions(2014) by Ministry of the Environment

Power GenerationType

SUB-C (Sub-Critical) coal fired power

SC (Super Critical)coal fired power

USC (Ultra Super Critical)

coal fired power

Structure

Upper ：Steam PressureLower：Steam

Temperature

Less than 221barLess than 566℃

※1bar≒1 atmospheric pressure

Not less than 221barLess than566℃

Not less than 240barNot less than 593℃

Power Generation Efficiency

LowAround 38%

MediumAround 40%

HighAround 43%

CO2 Emissions（g/ 1KWh）

ManyAround 900g

MediumAround 850g

SmallAround 800g

Boiler

Steam Turbine

10

Boiler

Steam Turbine

Boiler

Steam Turbine

Drum

The type of Coal Fired Power Plant

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Coal fired power plants in EU countries are low efficient and aging, and delay environmental countermeasures.

Comparison of Coal Fired Power Plants each country

11Source）IEE Japan made it based on Platts data

Ref）* The percentage is based on capacity. Breakdown by technologies remove what coal type are unclear. ** Operation Start before 1980 ***The percentage of capacity against total 504 facilities including coal fired power plants

Coal Fired Power Year EU UK France Spain Italy Netherlands Germany Poland JapanInstalled Capacity(GW) 2015 176.6 18.7 5.4 10.4 9.5 7.1 50.8 28.5 45.7

Installed Capacity（GW）* 2017 168.2 15.3 3.3 10.2 10.7 5.9 51.4 32.1 43.6

　Lignite (%) 2017 31.4 0.0 0.0 0.0 0.0 0.0 41.8 29.0 0.0

　Less than 0.5million kW (%) 2017 60.4 20.8 8.5 72.2 51.1 0.0 35.3 93.8 25.9

　Deterioration (%)** 2017 44.8 83.0 3.0 34.3 43.9 18.6 30.9 57.9 10.2

　Sub-Critical (%) 2017 79.2 100.0 100.0 100.0 51.1 18.4 61.4 94.4 25.3

　Super Critical (%) 2017 10.0 0.0 0.0 0.0 30.3 21.8 16.1 5.6 38.1

　Ultra Super Critical (%) 2017 10.8 0.0 0.0 0.0 18.5 59.8 22.6 0.0 36.7

Power Generation Efficiency (%) 2014 38.3 39.5 39.6 37.8 38.6 41.8 38.4 35.3 43.3Unachieved rate ofenvironmental standard (%)***

2012 39.0 53.0 67.0 25.0 16.0 4.0 21.0 100.0

Plan of new power plant (GW) 14.8 0.0 0.0 0.0 0.0 0.0 2.2 8.3 19.5

　Lignite (%) 2017 31.4 0.0 0.0 0.0 0.0 0.0 50.0 16.3 0.0

　Sub-Critical (%) 2017 16.4 0.0 0.0 0.0 0.0 0.0 0.0 5.9 4.0

　Super Critical (%) 2017 21.7 0.0 0.0 0.0 0.0 0.0 0.0 30.7 2.8

　Ultra Super Critical (%) 2017 48.3 0.0 0.0 0.0 0.0 0.0 100.0 51.4 89.0

Overview of Installed Capacity(GW)

2030 100.9 0.5 3.8 4.0 5.1 4.4 36.8 20.7 47.0

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The breakdown of coal fired power plants under construction and planning in ASEAN The capacity of coal fired power plants under construction and

planning in ASEAN is 80GW. There is huge potential for reduction of CO2 by HELE technologies such as USC and IGCC, because Sub-C and SC are still major facilities in the breakdown of 80GW.

Sources） WCA(World Coal Association 「2017 Clean Coal Day」

Plant Unit Size(Gross) Large Medium Small

Steam Condition ＞500MW ≧300MW ＜300MW

USC≧593℃＞240Bar

Maximum repayment terms

12 yearsMaximum repayment terms

12 yearsMaximum repayment terms

12 years

SC＞550℃＞221Bar

Ineligible10 years

[IDA-eligible countries, Low electrification ratio,Geographically isolated location (islands area) ]

10 years [IDA-eligible countries,

Low electrification ratio,Geographically isolated location (islands area) ]

SUB-C221Bar＞ Ineligible Ineligible

10 years [IDA-eligible countries,Geographically isolated location (islands area) ]

OECD Sector Understanding on Export Credits for Coal-fired Electricity Generation Projects agreed in Nov-2015

Effective 1 January 2017

60％

55％

50％

45％

40％

Power generation efficiency

IGCCCompleted verification by blowing air・Power generation efficiency: Approximately 45%・CO2 emissions: Approximately 750 g/kWh

Ultra Super Critical (USC)Pulverized coal thermal power utilizing steam power・Power generation efficiency: Approximately 40%・CO2 emissions: Approximately 820 g/kWh

Around 2025Present

Integrated Coal Gasification Combined Cycle 1700 ℃ – class (IGCC)

Coal-fired thermal power generated through coal gasification, utilizing the combined cycle combining gas turbine and steam turbine・Power generation efficiency: Approximately 46 to

50%・CO2 emissions: 650 g/kWh (1700 ℃ class)

Pulverized coal thermal power utilizing high temperature and pressure steam turbinePower generation efficiency: Approximately 46%CO2 emissions: Approximately 710 g/kWh

Advanced Ultra Super Critical (A-USC)

Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)

Coal-fired thermal power utilizing the triple combined cycle combining IGCC with fuel cell・Power generation efficiency:

Approximately 55%・CO2 emissions: Approximately

590 g/kWh・Technological establishment: Around

2025

Around 2020

Reduction of CO2 by approximately 30%

Reduction of CO2 by approximately 20%

Photos by Mitsubishi Heavy Industries, Ltd., Joban Joint Power Co., Ltd., Mitsubishi Hitachi Power Systems, Ltd., and Osaki CoolGen Corporation

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Development of Next-Generation Coal-Fired Power Technologies

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Integrated Coal Gasification Combined Cycle (IGCC)

Fukushima Revitalization Power540MW Nakoso IGCC (COD: Sep.2020)540MW Hirono IGCC (COD: Sep.2021)

Joban Joint Power Co.250MW Nakoso #10(Demo.2007-, Commercial 2013-)

Osaki CoolGenOsaki CoolGen Project(Demo 2016-)

IGCC Projects in Japan

• In IGCC, coal is gasified and burned at a “gas turbine”, and heat is recovered by combined cycle steam turbine.

• Thermal efficiency is approximately 46 to 50% and CO2 emissions can be reduced to approx. 700 g/kWh.

Overview○ Osaki CoolGen Project aims to realize innovative low-carbon coal-fired power generation that combines CO2 separation and capture with IGFC, which is the ultimate high-efficiency coal-fired power generation technology. Demonstration operation started on August 16, 2016.

(1) Technical feature Thermal Efficiency Target: 55% (up from 40% of USC)

※net, HHV CO2 capture & storage through Oxygen-blown IGCC

(2)Project entity: Osaki CoolGen Corporation(Joint Venture of J-POWER and Chugoku Electric Power)

(3)Project Schedule: FY2012 to FY2021

Plant image

Project Outline

Project Schedule

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FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

<1st stage>Oxygen blown

IGCCDemonstration

<2nd stage>CO2 Capture

with IGCCDemonstration

<3rd stage>CO2 Capture

with IGFCDemonstration

Demonstrationtest

Oxygen blown IGCCDesign, Manufacturing and Construction

Demonstrationtest

CO2 CaptureDesign, Manufacturing

and ConstructionFeasibility study

Demonstration test

CO2 Capture with IGFCDesign, Manufacturingand Construction

Feasibility study

Waste water treatment unit

(Existing)

Coal gasification

unitGas clean up

unit

Waste water treatment unit(new)

CO2 capture unit

Air separation

unit

Gas turbine unit

Project Site: Osakikamijima cho, Toyota gun, Hiroshima

IGFC Demonstration Project (Osaki CoolGen)

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IEA Energy and Air Pollution(WEO Special Report)“Air pollution is a major public health crisis, with many of its root causes and cures to be found in the energy sector. Around 6.5 million deaths are attributed each year to poor air quality.”

The IEA proposes a Clean Air Scenario to cut pollutant emissions by more than half compared with WEO’s New Policy Scenario. Clean Air Scenario recommends;1. Setting an ambitious long-term air quality goal.2. Putting in place a package of clean air policies for the energy sector to achieve the long-term goal.3. Ensuring effective monitoring, enforcement, evaluation and communication.

(Source: IEA Energy and Air Pollution: WEO Special Report)

“State-of-the-art ESPs can achieve dust removal efficiencies of 99%, but reaching such high levels requires a sound configuration of the control device with the plant’s operational characteristics and the coal type. Introducing strict monitoring of plant emissions is a necessary step in the face of widespread lack of compliance with pollution control regulations.”

Source: Kanagawa Environmental Research Center, Bureau of Environment.TMG.

Japan’s Experience - Air Pollution and Acid Rain in the 1960s-70s

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Before (Capacity 256MW×２)

0

20

40

60

Before After

PM

0

100

200

Before After

NOx

0

50

100

Before After

SOx83%Down92%Down 90%Down

ppm ppm mg/m3N

After (Capacity 600MW×2)

1967～2001

2002～

There are many coal power plants, located near large city or residential area in Japan.

For example, Isogo coal power plant is located near residential areas in Yokohama City. Air pollutants are reduced drastically by using CCT.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

US(2014)

Canada(2014)

UK(2014)

France(2014)

Germany(2014)

Italy(2014)

Japan(2014)

Isogo(2016)

1.0

2.0

0.6

0.9

0.5

0.1 0.2 0.001

0.6

1.2 1.1

1.3

0.8

0.2 0.3 0.06

(g/kWh)

SOxNOx

International comparison of the amount of SOx, NOx per thermal power generation

Synthesis of Coal, Oil, Gas Power Coal Power

The case of Isogo coal power plant

Steam Turbine

Bulk Terminal

Coal Mill

FGD【Remove Sox】

SCR【Remove Nox】

Generator

EP

Boiler

【Remove PM】

Air pollutant reduction technologies such as SCR, FGD and EP can remove NOx, SOx and PM from the emission gas of coal thermal power plant.

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Air Pollutant Reduction Technology for Coal Fired Power Plant

© 2018 HORIBA, Ltd. All rights reserved. 21

Monitoring Technologies for Coal Fired Plant

EmissionMonitoring

Exhaust GasTreatment Monitoring

Combustion Control Monitoring

Environmental Impact management

Reduce Operation and Maintenance Cost

Water Quality Monitoring

Monitoring

Support for CCT promotion in developing country

Invite people from government & power companies to Japan to understand cutting edge CCT.

Send Japanese coal experts to hold technical seminars or to diagnose old power plants.

Provide O&M training program for engineers through invitation to Japan.

Training program in Japan power plant

Training program in Japan manufacturing factories

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Diagnosis old coal power plants

Gross thermal efficiency (%, HHV)

Efficiency degradation

X Coal-fired thermal power generation in Japan

Maintenance of efficiency by appropriate O&M

Designed thermal efficiency

Y Coal-fired thermal power generation in developing countries

Years in operation

USC needs much higher O&M expertise

Comprehensive technical support, not only for plant construction, but also for O&M is required when developing countries deploy USC plants

Change in efficiency across the ages

Japan’s coal-fired power plants can maintain the designed efficiency level for a long period due to appropriate operating and maintenance (O&M).

Ultra supercritical (USC) needs sophisticated plant O&M and know-how.

Cooperation for Public Acceptance

24

Japan is available to cooperate the support which provides the knowhow regarding EIA including public acceptance.

Document of EIA

Briefing to local residents

Structure of Stakeholders on EIA in Japan

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Summary (message)

• There are no perfect energy sources. In considering energy mix, it is important to diversify energy sources in terms of “3E+S” (Safety, Energy security, Economic efficiency and Environment). Coal is still one of the most important energy sources in the world due to its affordability and stable supply.

• As coal power plants emit more CO2 and air pollutants (SOx, NOx, PM) compared to other energy sources, it is essential to utilize the clean coal technology. When building coal power plant, it is desirable to introduce a higher efficient and cleaner one.

• Japan continue to contribute world electricity supply and climate change issues by disseminating our Clean Coal Technologies.

Agency for Natural Resources and Energy

Thank you for your attention!

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