Since 1975
  • facebook
  • twitter
  • Home
  • Business
  • Expectations high for Japan’s leadership on the energy front in 2021

Expectations high for Japan’s leadership on the energy front in 2021

Masakazu Toyoda, Chairman & CEO of the Institute of Energy Economics of Japan IEEJ. (ANJ photo)
Masakazu Toyoda, Chairman & CEO of the Institute of Energy Economics of Japan IEEJ. (ANJ photo)
Short Url:
19 Jan 2021 01:01:33 GMT9
19 Jan 2021 01:01:33 GMT9

Khaldon Azhari

TOKYO: With energy one of the factors in maintaining stability in the Middle East, Japan will be expected to demonstrate leadership in key areas, Masakazu Toyoda, Chairman & CEO of the Institute of Energy Economics of Japan (IEEJ) said in his New Year message.

In the published message, Toyoda highlighted seven areas in which Japan and the IEEF are expected to exert leadership, including the continuation of joint demonstration tests with partners such as Aramco on the combustion of zero-carbon ammonia.

The Middle East has high growth potential once COVID-19 subsides, he said, noting that for several years, former Prime Minister Shinzo Abe made great efforts in the region with the aim of achieving peace.

Japan is the Middle East’s major partner in decarbonizing fossil fuels, and depends on the Middle East for over 80% of its oil and over 20% of its gas supplies.

Preparing for the post-COVID world is another front where Japan can lead, Toyoda believes. He said that Japan needs to raise its independent development ratio for oil and natural gas – currently at 40% – and invest steadily. The demand for energy, particularly in Asia, is seen as increasing.

While Japan has enough oil stockpiled to cover over 200 days of consumption, India and the ASEAN countries have just 10 to 40 days’ worth. Natural gas reserves last only two to three weeks due to the difficulty of storage. Building energy stockpiles for Asia is a pressing issue.

Achieving its carbon-neutrality target is another goal for Japan and lies in the decarbonization of fossil fuels. This is done by producing zero-carbon hydrogen and ammonia from fossil fuels using carbon capture and storage (CCS), and through the use of carbon recycling technologies.

Renewable energy is also seen as becoming a major power source, while the 2030 target level of nuclear power must be maintained as one of the elements of zero-carbon energy. However, power consumption accounts for barely 30% of final energy consumption. Achieving 50% of total consumption will be difficult even if electrification makes substantial progress. Thus, hopes must rely on the decarbonization of fossil fuels for the remainder.

Japan and the United States are collaborating on realistic energy and environmental policies such as the decarbonization of fossil fuels. Involving other Asian countries in the decarbonization of fossil fuels as part of the Indo-3 Pacific cooperation framework is another lead proposed by Toyoda.

Renewable energy accounted for just 7.8% of primary energy as of 2018 – no different from Japan’s 7.3% – whereas fossil fuels accounted for 82%. The US has become one of the world’s major oil and gas producers through the shale revolution and is now a net exporter.

It is also one of the top producers and consumers of coal. The country has an abundance of locations suitable for CCS and is interested in carbon recycling technologies. 

Collaboration between Japan, China and South Korea on climate action is important despite the political differences these countries have.

Toyoda said the three countries rank fifth, first, and eighth in the world in terms of energy-related carbon emissions, and their net-zero carbon targets have a similar timeline. If they cannot solve their territorial disputes and lingering historical issues, the countries should seek a resolution in international courts.

Toyoda’s proposal included nuclear options as nuclear power satisfies the 3Es of energy security:  economic, efficient, and environmentally friendly. However, the shadow of the Fukushima Daiichi accident in 2011 still hovers over the issue in Japan.

The Atlantic Council issued an insightful geopolitical analysis in December, predicting that without success in Japan’s nuclear policy and without U.S. cooperation, China and Russia are likely to take the lead in forming the global nuclear order.

The response to the Sixth Strategic Energy Plan is important as well, Toyoda said. The world is paying attention to Japan now that it has a target for carbon neutrality. One of the reasons for the surprise change of heart by Japan may be that it has gained some confidence in its ability to decarbonize fossil fuels.

Green ammonia is produced by water electrolysis using renewable electricity, and blue ammonia is made with fossil fuels using CCS. Nuclear-based hydrogen will eventually be launched, too. The key is always how to secure large amounts at low cost, a significant factor for emerging and developing countries, especially in Asia. The role of developed countries such as Japan is to bring about climate change at minimum cost through innovation and international cooperation.

topics
Most Popular
Recommended

return to top