Weekly Japanese Industry and Policy News (Feb. 3-Feb. 9, 2023)

The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

METI holds “Nuclear Supply Chain Symposium”
The Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry (METI) announced on February 3 that it will hold a symposium on March 6 to discuss measures to maintain and strengthen domestic and international nuclear power supply chains by domestic nuclear power companies. This symposium will be held in collaboration with relevant organizations such as the regional Bureaus of METI and the Japan Atomic Industry Association, as an opportunity to launch the Nuclear Supply Chain Platform established by METI as a framework to support nuclear-related companies. In addition to the announcement of the establishment of the platform, it will discuss measures to maintain and strengthen the nuclear power supply chain, such as overseas expansion by Japanese companies, business succession, and support for human resource development. METI also intends to jointly build a nuclear power supply chain with friendly countries by inviting overseas nuclear power companies and holding an exhibition to introduce the technologies and achievements of domestic nuclear power suppliers.

METI website (in Japanese):
https://www.meti.go.jp/press/2022/02/20230203001/20230203001.html

Investing JP￥10 trillion to nurture start-up companies, government's 5-year start-up plan
In November last year, the Japanese government presented a "5-year start-up plan" aimed at nurturing start-up companies. And on February 6, the English version of the draft was posted on the Cabinet Office website. According to the draft, the proposal sets a goal of increasing domestic investment from the current JP￥ 800 billion per year to JP￥ 10 trillion in five years from now, in FY2027. In the future, the number of start-up companies will be increased to 100,000, and the number of unlisted “unicorns” with a corporate value of $1 billion or more will be increased to 100, each more than 10 times the current level. In order to achieve these goals, the plan has three pillars: (1) Building human resources and networks for creating startups, (2) Strengthening funding for startups and diversifying exit strategies, and (3) Promoting open innovation. And 49 specific initiatives have been set up in the three pillars. In terms of taxation, the government will extend the period of preferential treatment for stock options (the right to purchase its own shares), which allows employees of start-up companies to benefit from rising stock prices. It will also provide incentives for large companies to acquire existing issued shares so that new companies can grow through mergers and acquisitions (M&A) with large companies. It also helps entrepreneurs sell their shares and reinvest in other start-ups. Regarding preferential tax treatment, it was reflected in the "FY2023 Tax Reform Outline" announced in December last year, and preparations are being made for its actual institutionalization.

Startup Development Five-year Plan on the cabinet secretariate website: https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/pdf/sdfyplan2022en.pdf

Roadmap for the Startup Development Five-Year Plan on the cabinet secretariate website: https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/pdf/sdfyplan_roadmap2022en.pdf

Honda sells fuel cell systems externally, 60,000 units a year by 2030
Honda announced on February 2 that it will begin external sales of next-generation fuel cell system modules in the mid-2020s. The company will start with annual sales of 2,000 units, and by expanding in stages, aims to sell 60,000 units annually in 2030, and several hundred thousand units annually in the latter half of the 2030s. First, four core domains for fuel cell system utilization were set: fuel cell vehicles (FCEV), commercial vehicles, stationary power sources, and construction machinery. It will also actively engage in collaboration with other companies. In addition to promoting the electrification of products, the company will actively work to expand the use of hydrogen as an energy carrier and expand its hydrogen business. The company will launch FCEVs equipped with a next-generation fuel cell system jointly developed with General Motors (GM) in North America and Japan in 2024. In addition to the joint development with GM, the company aims to cut the cost in half and double the durability by around 2030, when fuel cells are expected to become widespread. In addition, The company will proceed with research and development with a view to utilizing hydrogen technology such as fuel cell technology and high-pressure water electrolysis technology in the space domain in the future. It has concluded a research and development agreement with the Japan Aerospace Exploration Agency (JAXA) on a "circulating renewable energy system" to supply power to the lunar exploration vehicle's living space and system.

Honda website: https://global.honda/newsroom/news/2023/c230202eng.html?from=RSS&from=newsrelease_area

AGC reduces CO2 emissions by up to 75% during glass manufacturing, demonstration experiment with French company
AGC announced on February 6 that it will jointly develop glass manufacturing technology that reduces carbon dioxide (CO2) emissions with French glass giant Saint-Gobain. It is possible to reduce Scope 1 CO2 emissions, which indicate company emissions, by 50 to 75%. Glass has been manufactured using fossil fuels such as natural gas in a process that melts raw materials at a high temperature of about 1,600 degrees Celsius. However, about 80% of the air that reacts with natural gas contains nitrogen, which is not directly involved in combustion, and the combustion heat of oxygen cannot be used efficiently. Therefore, a new method of burning 100% oxygen and natural gas is adopted, and about half of the necessary temperature is heated by electricity, improving efficiency. The demonstration facility will be newly constructed by completely renovating the glass manufacturing facility at AGC's existing plant in the Czech Republic. At this stage, the scale of production is not disclosed, but the plan is to conduct small-scale trial production of patterned "figure glass." In the future, the company is considering large-scale production of architectural glass, and intends to sell it as a product that reduces the environmental impact by reducing CO2 emissions during manufacturing.

AGC website: https://www.agc.com/en/news/detail/1203721_2814.html

NEC and Nagasaki University manage newborn vaccines in developing countries using biometric authentication
NEC, Nagasaki University, and the Kenya Central Medical Research Institute announced on February 7 that they have developed a system for managing newborn vaccination records for developing countries. By matching the newborn's fingerprint with the mother's voice, it solves the problem of difficulty in authenticating the newborn's fingerprint. Demonstration tests are underway in Kenya from the fall of 2022, aiming for full-scale introduction within 2023. The use of biometric authentication reduces the burden on hospital staff and parents who verify identities. On the day of birth, a total of four fingerprints from the thumb and forefinger of the newborn's left and right hands are photographed, and the parent's voice information is linked. With voice recognition, authentication can be performed in as little time as the guardian and the name of the child, and there is little effort required for information registration and authentication at the time of vaccination. Immediately after birth, it is difficult to photograph a newborn's fingerprints precisely. Therefore, they adopted a method of matching fingerprint swirls for a total of four fingers, the left and right thumbs and forefingers. Accuracy is improved by combining and collating four pieces of information. NEC's biometric authentication is in strong demand in emerging countries where information management mechanisms are not sufficiently developed. In Vietnam, fingerprint authentication and face authentication systems have been adopted for ID cards used by all citizens over the age of 14. Accumulating a track record in emerging countries, they will promote technological development and rule-making for privacy protection.

NEC website: https://www.nec.com/en/press/202302/global_20230207_01.html