Clean Coal Day in Japan 2013 International Symposium
Shale Gas Revolution &&
Competition between Fuelspin the Asia Pacific Region
September 5, 2013Tokyo
Yoshihiko SAKANASHIExecutive Vice President
Electric Power Development Co., Ltd. (J-POWER)
U.S. Energy Coal Exports by Destination
60
Mt
50Others
51
(+48%)
30
4034
( 47%)
Asia
( )
20
30 (+47%)
Europe
10
01996 98 2000 02 04 06 08 10 2012
1Source: U.S. Energy Information Administration (EIA), 1996-2012
U.S. Energy Coal Exports to Europe and Asia
To Europe To Asia
35
Mt
To Europe To Asia
35
Mt
25
30
35
25
30
35
(+74%)
15
20
(+124%)15
20
5
10(+124%)
5
10(+59%)
(+35%)
02010 2011 2012
02010 2011 2012
2Source: U.S. Energy Information Administration (EIA), March 2013
Coal Imports into the U.S.
18
Mt
18
141618
(-32%)
18
101214
Others( 35%)
(-30%)13 12
8
68
(-35%)
(-27%)9
8
6
024 Colombia
02010 2011 2012
3Source: U.S. Energy Information Administration (EIA), March 2013
Recent Energy Coal Flows
Russia
JapanChina
USA
Europe
India
C l bi
Korea
TaiwanSoutheast
Asia
ExporterIndonesia
South
Colombia
Australia
Exporter
Importer
South
Africa
4
Coal and Natural Gas Consumption for Generation in the U.S.
Coal consumption for power generation
Natural gas consumption for power generation
10100Mt
for power generationin the U.S.
101,000bcf
for power generationin the U.S.
789
10
789
10
(-12%) (+21%)
8.5
7.5 7.6
9.1
4567
4567
1234
1234
01
2011 201201
2011 2012
5Source: U.S. Energy Information Administration (EIA), March 2013
Energy Networks in the U.S.
Railway networksRailway networksby companies
El t i it t i iElectricity transmission & Natural gas pipelines
6Source: Cambridge Systematics, National Rail Freight Infrastructure Capacity and Investment Study, September 2007,
Copyright 2007, AAR U.S. Energy Information Administration (EIA), January 2011
Power Generation in the U.S. (2013 Outlook)
2012 2013Coal fired : 37.4 40.3 (%)Natural gas-fired : 30.4 27.4
7
World Energy Coal Markets
1 A l i 2 A i P ifi1. Atlantic 2. Asia PacificAPI2, API4 globalCOAL NEWC Index
Coal Prices US$/ton
globalCOAL NEWC Index
Direct competition between the two marketsAPI4
API2
8Source: globalCOAL, Argus Media
World Natural Gas Markets
1. North America 2. Europe 3. Asia Pacific
Hub pricing Hub & oil-linked pricing Oil-linked pricing
× × × ×× × × ×Middle East LNG Prices (FOB)
US$/MMBt
15
20US$/MMBtu Asia – Pacific bound
10
15
Europe bound
No direct competition among the three markets
0
5
1 1 1 2 2 2 2 2 2 2 2
Europe bound
9
among the three marketsO
ct-1
Nov
-1D
ec-1
Jan-
1Fe
b-1
Mar
-1Ap
r-1
May
-1Ju
n-1
Jul-1
Aug-
1
Source: Argus spot LNG price assessments
Examples of New Factors Emerged in 2013
- Action plan on climate change by the Obama Administration
President Obama spoke on climate change on June 25, 2013.
Source: White House
- Deregulation plan on electric power industry by the Japanese GovernmentGovernment
10
Three Essentials for New Pricing System
Transportation networks &- Transportation networks & infrastructure
- Technology developmentTechnology development
- International deployment
11
Transportation Networks & Infrastructure
NetworksNetworksInfrastructure
12
Technology Development
- Coal
- USC- IGCC
CCS- CCSJ-POWER’s Isogo Power Plant located at Yokohama in Japan, a coal-fired power plant with USC technology
- Bottleneck at downstream of l l h icoal value chain
13
*1: Ultra Super CriticalJ-POWER’s examples of international deployment
International Deployment
Isogo power plantJapanChina
Hezhou power plant
*1: Ultra Super Critical2: Integrated Coal Gasification Combined Cycle
J-POWER s examples of international deployment of advanced technologies in Asia
Isogo power plantin operation with the latest USC technology, the highest thermal efficiency level in the
o ld coal fi ed
Hezhou power plantin operation, one of the latest USC*1 plants in China J-POWER invests in and cooperates in construction and operation world coal-fired
generation (2 X 600 MW)
Japan
and operation (2 X 1,000 MW)
Osaki power plant
Indonesia
Osaki power plantunder construction in order to demonstrate IGCC*2 technology to be in operation in 2017
Australia
(image rendering)
p(1 X 166 MW)
(signing ceremony)
Callide oxy-fuel projectin operation in order to achieve recovery of condensed CO2 in oxygen and recycled exhausted
14
Central Java power plantunder development, the first USC plant in Indonesia J-POWER invests in (2 X 1,000 MW)
gas together with geological CO2 storage J-POWER implements jointly with other companies (1 X 30 MW)
Our Next Stage in the Pacific
CoalCoalNatural gas (LNG)
- Transport networks/infrastructure- Technology development- International deployment
15
Thank you very much for your attention.
16
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