Weekly Japanese Industry and Policy News (July 21-July 27, 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. 

Four parties build a supply network for low-carbon reduced iron in the UAE
On July 18, ITOCHU, JFE Steel, Emirates Steel (Abu Dhabi), the largest steel company in the United Arab Emirates (UAE), and Abu Dhabi Ports Group (ADPG), a state-owned port management and land developer in Abu Dhabi, signed a memorandum of understanding on building a supply chain for low-carbon reduced iron.

In order to decarbonize the steel industry, ITOCHU, Emirates Steel, and JFE Steel are participating as core members in building a supply chain for low-carbon reduced iron, and conduct a detailed feasibility study with Abu Dhabi as the candidate site for the project. This time, they have agreed to build a cooperative system with ADPG regarding port development and infrastructure development for this project. By collaborating with ADPG, they aim to secure a project area and build a stable logistics system for purchasing raw materials and shipping products.

ADPG has 10 ports and 550 square kilometers of economic and industrial area in Abu Dhabi. Also, like Emirates Steel, the company is a subsidiary of Abu Dhabi's state-owned investment company ADQ (Abu Dhabi government-affiliated holding company), and is entrusted with raw material import operations for Emirates Steel's operations.

ITOCHU website (in Japanese):
https://www.itochu.co.jp/ja/news/press/2023/230718_2.html

Sojitz invests in Nordic Startup to produce Turquoise Hydrogen
Sojitz announced on July 18 that it has invested in Hycamite TCD Technologies Oy (Hycamite), a Finnish start-up company that develops technology to produce turquoise hydrogen by thermally decomposing methane, the main component of natural gas, without producing CO2. Hycamite's proprietary catalyst technology enables the production of hydrogen with 13% of the power consumption of the electrolysis hydrogen production process, and also produces high value-added solid carbon products such as carbon nanotubes.

This time, Hycamite has raised a total of 25 million euros through a third-party allotment of new shares, and in addition to Sojitz, the Finnish Climate Fund, a Finnish sovereign wealth fund, and other investors have agreed to subscribe. Hycamite plans to use the funds procured this time to build a demo-scale plant with an annual production capacity of 2,000 tons (approximately 2,880Nm3/h) in terms of hydrogen. Technical demonstration at the pilot level has already been completed, and operations are scheduled to start in the middle of 2024 at the Kokkola Industrial Park in central Finland.

Through this investment, Sojitz has acquired the exclusive right to use Hycamite technology in Japan. In the future, it will promote commercial-scale project formation with Hycamite, aiming to build a business in the latter half of the 2020s. The envisioned commercial plant will have an annual production capacity of tens of thousands of tons of hydrogen equivalent, and will contribute to the decarbonization of various industries not only in Japan but around the world.

SOJITZ website:
https://www.sojitz.com/en/news/2023/07/20230718-02.php

Interstellar launches beef-derived liquefied methane as rocket fuel
Rocket developer Interstellar Technologies (IST) announced on July 21 that it will use liquefied biomethane produced from livestock manure such as cows as fuel for the rocket "ZERO" developed in-house. The engine combustor will also be tested at Hokkaido Space Port (HOSPO), a private rocket launch site in autumn.

Liquefied biomethane is made by extracting carbon dioxide (CO2) from biogas from cow manure and liquefying the remaining methane. IST uses methane produced by Air Water Hokkaido in Obihiro, Hokkaido. It is characterized by a high purity of 99% or more methane concentration, and was adopted as it is also suitable for rocket fuel. IST's Zero is a rocket for launching microsatellites, aiming to launch in 2024 at the earliest.

Interstellar Technologies website:
https://www.istellartech.com/news/en_news/8180

RIKEN develops safe ammonia storage at normal temperature and pressure
A research team from RIKEN and Saitama University has developed a new method for storing ammonia at normal temperature and pressure. It uses a special crystal that can convert ammonia into another substance and take it in. It may be possible to safely transport ammonia, which is expected to be an energy source for a decarbonized society.

Ammonia is a toxic gas at room temperature. In addition to being liquefied at low temperatures, it is also transported by compressing it under pressure, but this is time-consuming and costly, so there is a need for a method of transporting large quantities at normal temperature and pressure. RIKEN development team has discovered a type of perovskite-type crystal made of organic matter and metal that reacts with ammonia at room temperature and pressure.

It can be easily stored and transported. Since the color changes when it reacts with ammonia, it can also be applied to sensors that detect ammonia. In the future, they will look for a partner company to make it larger and aim to put it into practical use around 2030. Perovskite crystals are also being applied to next-generation solar cells.

RIKEN website:
https://www.riken.jp/en/news_pubs/research_news/pr/2023/20230710_3/index.html

JOGMEC revised technology business strategy
The Japan Organization for Metals and Energy Security (JOGMEC) announced on July 26 that it has revised its technology business strategy for JOGMEC/TRC (Technology & Research Center). This is based on the new functions given to JOGMEC by the government's 6th Strategic Energy Plan and legal revisions in order to achieve both social demands and stable energy supply toward the realization of carbon neutrality in 2050.

In this revision, JOGMEC/TRC established three new pillars and technical bases for technological development and technical support, with the aim of contributing to carbon neutrality as well as a stable supply of energy.

Pillar 1: Maintain and expand stable energy supply (oil and natural gas business area)
Pillar 2: Contribution to CCS business promotion
Pillar 3: Challenge new businesses toward a carbon-neutral society (new business areas such as hydrogen and ammonia)
Technology base: Maintaining and strengthening human resources/technical capabilities that form the foundation for the above projects

JOGMEC website:
https://www.jogmec.go.jp/english/news/release/news_10_00042.html

JERA signs memorandum with Saudi Arabian government fund for green hydrogen production
On July 20, JERA announced that it has signed a memorandum of understanding that it started a feasibility study of a green hydrogen/ammonia production project with the Public Investment Fund (PIF) of Saudi Arabia's sovereign wealth fund, with the aim of supplying Japan and other international markets.

JERA established JERA Middle East & Africa Management in Dubai, UAE in October 2021. In addition to gas-fired power generation and desalination projects, it is constantly exchanging information with business operators in the Middle East region with a view to business development in a wide range of fields, such as large-scale renewable energy projects and low-carbon fuel production projects. Saudi Arabia is aiming for net-zero greenhouse gas emissions by 2060. PIF, which promotes strategic investment in highly public fields, is expected to play an important role in achieving this goal.

JERA believes that the Middle East region, which is rich in renewable energy resources, is a promising production base for green hydrogen and ammonia, and is working to build and expand a supply chain for hydrogen and ammonia in cooperation with leading companies in Japan and overseas. 

JERA website:
https://www.jera.co.jp/en/news/information/20230720_1568

METI Minister Nishimura signs semiconductor supply chain partnership with India
On July 20, the Minister of Economy, Trade and Industry, Nishimura visited Delhi, India, and announced the "Japan-India Industrial Co-Creation Initiative" at the "Japan-India Deep Tech and Clean Energy Seminar". He also met with Minister of Electronics and Information Technology, Vaishnaw and signed a memorandum of cooperation on the "Semiconductor Supply Chain Partnership".

At the Japan-India Deep Tech and Clean Energy Seminar, Minister Nishimura announced the Japan-India Industrial Co-Creation Initiative. This initiative aims to take the quality and breadth of Japan-India industrial cooperation to a new dimension, with the following pillars: (1) creation of future industries through innovation, (2) evolution of existing industries, and (3) expansion into new markets such as Africa.

At the meeting with the Minister Vaishnaw, they exchanged views on cooperation in the fields of semiconductors, startups, and digital technology between the two countries. And, “The Japan-India Semiconductor Supply Chain Partnership” was concluded with the aim of strengthening cooperation between Japan and India to strengthen the resilience of the semiconductor supply chain.

METI website (in Japanese):
https://www.meti.go.jp/press/2023/07/20230721005/20230721005.html