Weekly Japanese Industry and Policy News (September 1-September 7, 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. 

Mitsui & Co., IHI and others to build a hydrogen and ammonia supply network in the Osaka coastal industrial zone
Mitsui & Co., Mitsui Chemicals, IHI, and Kansai Electric Power Company announced on August 30 that they will begin a joint study to build a hydrogen and ammonia supply chain based in the Osaka waterfront industrial area. Hydrogen is planned to be extracted by decomposition (cracking) technology of ammonia. Going forward, they will begin discussions with Kobe Steel (Kobe City, Hyogo Prefecture), which is one of the candidate companies for utilization and has announced the challenge of achieving carbon neutrality in its electric power business.

Through this initiative, Mitsui & Co., Ltd., which has the top share of ammonia imports to Japan, Mitsui Chemicals which owns chemical plants in the Sakai and Senboku coastal industrial districts, IHI which is working to build a value chain with a wide range of ammonia-related technologies, and Kansai Electric Power Company which is in the energy businesses in the Kansai region, will combine their experience and knowledge in each field and work to realize a zero-carbon society.
Ammonia contains hydrogen in high density and is easy to handle, so it is also attracting attention as a hydrogen carrier for transporting and storing hydrogen. In addition, ammonia is expected to be used in a wide range of fields, such as fuel use in the power generation field and heat use in the industrial field, because the production, transport, and storage technologies for ammonia have already been established.

Mitsui & Company website:
https://www.mitsui.com/jp/en/topics/2023/1247215_13949.html

AGC and Mitsubishi Gas Chemical manufacture and sell methanol from CO2 generated during glass manufacturing process
On August 31, AGC and Mitsubishi Gas Chemical announced that they will start studying the manufacture and sale of the world's first "environmentally-recycling methanol" that uses CO2 generated during glass manufacturing as a raw material. The aim is to commercialize it by around 2030. In this study, they applied the methanol production technology developed by Mitsubishi Gas Chemical and used the CCU technology that recovers and utilizes CO2. The goal is to convert it into methanol, which has a wide range of uses, and to manufacture and sell it.

Chemical products that use CO2 as a raw material contribute to reducing environmental impact, but the cost increase associated with CO2 capture and conversion poses an issue. To address this issue, Mitsubishi Gas Chemical will seek to cultivate new customers through its existing sales network. In addition to this study, AGC is considering replacing the methane gas it uses as a raw material in its chemical business with environmentally-recycling methanol, and intends to commercialize chemical products based on the premise of carbon recycling.

AGC website:
https://www.agc.com/en/news/detail/1204505_2814.html

JERA agrees with Germany's Uniper to sell low-carbon hydrogen and ammonia produced in the United States
On September 5, JERA announced that it had reached an agreement with Uniper S.E. of Germany and ConocoPhillips of the United States on the sale of low-carbon hydrogen and ammonia produced in the United States to Uniper. The three companies exchanged a memorandum of understanding one year ago on September 5, 2022, and this time the memorandum has been advanced.

Germany has formulated a national hydrogen strategy aimed at decarbonization, and assuming that the demand for hydrogen in the country will increase, it has indicated a policy to promote the procurement of hydrogen from overseas. Ammonia, a hydrogen derivative, is also covered. JERA is collaborating with ConocoPhillips to develop a manufacturing base on the U.S. Gulf Coast that will produce hydrogen on a large scale and convert it into ammonia. The aim is to start commercial operation of a plant with an annual production capacity of approximately 2 million tons by the end of the 2020s.
JERA plans to consider supplying low-carbon hydrogen and ammonia produced in the United States to Europe, including Uniper, as well as to Japan and other Asian countries in the future.

JERA website:
https://www.jera.co.jp/en/news/information/20230905_1655

Kansai Electric Power considers underground CO2 storage with Australian company
Kansai Electric Power (KEPCO) announced on September 5 that it will jointly consider commercialization of "CCS" that captures carbon dioxide (CO2) and stores it underground with Woodside Energy, a major energy company in Australia. They are considering a project to separate and capture CO2 emitted from Kanden's domestic thermal power plants and store it in Australia. The timing of commercialization is undecided. The two companies signed a memorandum of understanding on joint studies. After sorting out issues such as technology and cost, the feasibility of the project is evaluated. It is also considering a project to manufacture synthetic methane, which is a chemical reaction between hydrogen and CO2, in Australia and import it to Japan.

CCS is a mechanism that recovers CO2 from the exhaust gas of power plants and stores it underground under high pressure, and is expected to lead to decarbonization. However, there are few depleted gas fields that can be used as CO2 storage sites in Japan. KEPCO will promote the development of technology to utilize hydrogen and other fuels for thermal power generation, aiming for decarbonization. KEPCO sees CCS as one of the options that will lead to a reduction in environmental impact, and it is conducting research with Mitsui & Co. to commercialize CCS.

KEPCO website:
https://www.kepco.co.jp/english/corporate/pr/2023/pdf/sep5_1.pdf

Shin-Etsu Chemical and others develop a new manufacturing method for power semiconductor materials, reducing costs by more than 90%
On September 5, Shin-Etsu Chemical, the largest semiconductor wafer manufacturer, and OKI, which manufactures ATMs and communication equipment, announced that they have developed technology to create power semiconductor materials using gallium nitride (GaN) at low cost. Manufacturing costs can be reduced to less than one-tenth compared to conventional manufacturing methods. Power semiconductors are incorporated into chargers, small home appliances, and controllers that connect the motors and batteries of electric vehicles (EVs) to control power. GaN can be used to control large amounts of power.

The new technology developed by Shin-Etsu Chemical and OKI grows crystals by spraying gallium-based gas onto a proprietary substrate. By combining Shin-Etsu Chemical's technology to thicken the crystal with OKI's bonding technology, only the crystal can be separated from the substrate. The crystal is placed on a separate substrate and used as a wafer for power semiconductors.

Compared to manufacturing methods that grow GaN crystals on silicon substrates, this method eliminates the need for an insulating layer between the substrate and the crystal. Combined with the thicker crystal film, it will be possible to flow 20 times more current. Most of the raw material gallium comes from China, but the Chinese government has introduced a permit system for export since August. But, new manufacturing methods use derived gases that are not subject to the export license system, so they are not affected by the regulations.

Shin-Etsu Chemical website:
https://www.shinetsu.co.jp/en/news/news-release/shin-etsu-chemical-to-further-drive-forward-its-qst-substrate-business-for-implementation-in-gan-power-devices/

METI holds the 5th International Conference on Carbon Recycling (2023)
The Ministry of Economy, Trade and Industry (METI) will hold "Tokyo GX Week 2023" in order to realize Green Transformation, which will transform the economic, social and industrial structure centered on clean energy, leading to decarbonization and economic growth and development. As one of the conferences, the 5th Industry-Academia-Government International Conference on Carbon Recycling 2023 will be held in Hiroshima on September 27 in collaboration with the New Energy and Industrial Technology Development Organization (NEDO). 
Although they plan to stream the event online to allow as many people as possible from overseas to participate, they also plan to have in-person participation and networking at the Hiroshima venue. The conference portal site will update program and speaker information as appropriate, and will also post content related to carbon recycling from various companies and institutions, as was the case up until last year. You can register to participate from the portal site, and the deadline is Friday, September 15.

Date and time: Wednesday, September 27, 2023, 14:00-18:00
Location: Hilton Hiroshima

METI website:
https://www.meti.go.jp/english/press/2023/0804_001.html

NEDO Portal:
https://carbon-recycling2023.nedo.go.jp/en/