potential of h supply chain business - in japaninjapan.no › ... › uploads › 2017 › 02 ›...

Proprietary & Confidential

Potential of H2 supply chain business

28th

Feb, 2017


Agenda

2

1. Introduction of Mitsubishi Corporation (MC)

2. Energy Mix Policy and H2 Roadmap of Japan

3. Potential H2 market size for Power Generation

4. MC’s LNG experience and H2 related activities

Proprietary & Confidential Proprietary & Confidential

Transportation Infrastructure Business

Environmental Business, R&D

Water Business

Environmental Energy Business

Power Systems International

Asia & Oceania Power Business

Americas Power Business

Infrastructure

Business Div.

New Energy &

Power Generation Div.

Group CEO Office

Industrial Finance, Logistics & Development Group

Energy Business Group

Metals Group

Machinery Group

Chemicals Group

Living Essentials Group

Business Service Group

Corporate Staff Section

Global Environmental

& Infrastructure

Business Group

President

Business Groups

Plant Projects

Engineering Business

Administration Dept.

Environmental

Business Div.

3

EMEA Power Business Development

Power Systems Dept. A

Power Systems Dept. B


Mitsubishi Corporation(MC)’s Organization chart

Trading and Investment activities in 7 Business Groups


Examples of Business Activities of

Global Environmental & Infrastructure Business Group

2 Power Business in the U.S.

1 Power Plant Supply

in Japan and Overseas

Diamond Generating Corpo-

ration in Los Angeles develops

and owns gas-fired power

stations and wind farms.

Wind farm in Idaho, USA.

Supply and the after-sales services of the thermal, nuclear, hydro and geothermal power plants.

Gas combined-cycle power station

3 Power Business in Europe

Offshore wind firm in Netherland

4

6

South Staffordshire Plc

A UK water company providing

comprehensive water services

(water intake to distribution and

billing). It also provides water-

related technical and retail

services through over 30 offices

in UK.

Water treatment plant in suburban Birmingham

8 Next Generation Energy

Business development of clean

energy (H2) supply chain and

relevant infrastructure.

7

Lithium-ion Battery Business

The partnership with Bosch/

GS Yuasa to promote the lithium-

ion battery business which is

indispensable to electric vehicle,

energy storage applications, etc.

The headquarters of LEJ／Lithium-ion battery

5

Valencia Container Terminal

Serving as the main port for

Spain’s hinterland and principal

economic corridor with Spanish

global container operator

GMTCB.

Valencia Container Terminal

4 Offshore Transmission

in Europe

Diamond Transmission

Corporation owns offshore

transmission assets to link

between offshore wind firms and

onshore grids in UK and Germany.

Offshore substation in Germany

Diamond Generating Europe

develops and owns wind and

solar power stations in Europe.

http://eco.nikkeibp.co.jp/article/special/20081208/100203/?SS=imgview&FD=2144597799


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Original Target in

2030

New Target in 2030

11.0%

26.0% 13.0%

27.0%

2.0%

3.0% 53.0%

22.0～

20.0%

21.0% 22.0～

24.0%

Renewable

Energy

Nuclear

Power

Oil

LNG

Coal

(Strategic Energy Plan issued in 2010)

Energy Mix Plan

Data: METI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1965 1975 1985 1998 2010 2012

26%

4% 10%

15% 25% 28%

0%

5%

22%

24%

29%

43%

31% 66% 28% 13%

7%

18%

0%

6% 27%

37% 29%

2%

42%

19% 14% 11% 10% 10%

Power generation mix in Japan

88%

New Energy Mix Plan of Japan

5 Proprietary & Confidential

※ METI : Ministry of Economy, Trade and Industry

After the Earthquake in 2011, only several nuclear reactors out of 54 restarted.

Higher dependency on foreign fossil fuels & increase of CO2 emission

“New Energy Mix Plan” for 2030 released by METI in July 2015

Restart of nuclear reactors toward 2030 is a key to realize the Plan


Large scale H2 Power Plant

CO2-free H2 from R/E

or with CCS

“The Strategic Road Map for H2 and Fuel Cells” by METI was issued on June 2014.

The Road Map defines 3 phases to realize “H2 Society”.

The Strategic Road Map for H2 and Fuel Cells

Global H2 Supply Chain Demonstration 1. Transportation from overseas 2. Utilization of unconventional/unused energy sources

2015 2030 2040 2025

FCV, H2 Refueling Station, Stationary FC

1st Phase

2nd Phase

3rd Phase

Development and demonstration of CO2-Free H2 supply system

Acceleration of H2 related R&Ds Cooperation with H2 supplier countries

Expansion of H2 market, Full-scale installation of FCs to Society

Establishment of Large Scale H2 Supply System

Large Scale Operation

CO2-Free H2

With Governmental Support Commercial (full-scale)

By-product H2 Brown Coal

Tokyo Olympics

2020

6

http://3.bp.blogspot.com/-H_ARAHKBFWQ/UYiN2CzBcmI/AAAAAAAARUA/7OlQKQpRAYQ/s800/dam.png


Existing Gas/Coal fired power plants can be used with some modifications.

Large scale and stable power supply is possible, compared with PV and Wind

7

Advantages of H2 Power Generation

Decrease of CO2 emission can be realized with relatively limited risks

Proprietary & Confidential Proprietary & Confidential 8


MC’s business target: Large scale H2 supply chain

Target :To establish a large scale H2 supply chain from overseas to Japan/overseas

Why? :MC’s worldwide and long experience of LNG business: MC is… The 1st LNG importer to Japan

The largest LNG trading company & about 50% market share in Japan* (*2015)

MCH*1

Liquefied

Port

Port Port

Overseas

City Gas

Domestic Use

Power Plant

Gasification Liquefied Gas field

Hydrogen station

Stationery FC

H2

LNG

Refinery

+CCS/EOR

Japan and/or Overseas

H２

H２

H２

Port H２

Petrochemical Plant

*1 MCH: Methylcyclohexane


MC’s experience: Introduction of LNG in Japan


MC

External

Environment Air Pollution Problems 1st Oil Crisis 2nd Oil Crisis

Alaska LNG

FS Start

‘57

Brunei LNG

FS Start

‘67

Data：IEEJ, ”Energy White paper 2013” by Agency for Natural Resources and Energy, Bibliographic Survey and MC Analysis

400

200

0

62 61 60 59 58 57 56 55

10

70

10

69 73

38 49

72

10

71

2

68 74 75

23

67 66 78

110

77

78

81

Electricity

83 85

200

65

270

84 82

171 163

76

59

City Gas 260

64 63 79

139 163

80

Natural Gas

Consumption

[Mt]

’54: LNG Transportation Technology Establishment

LNG Tanker Technology

Establishment

‘69

LNG Production Company with

Shell and Brunei Government

Power

Company

A

Gas

Company

A

Alaska LNG (with Power Company)

’67: Agreement

Brunei LNG (with Power Company & Gas Company)

Decision for LNG

Introduction Approached by

US Company

‘57 ‘60

Participation in LNG

Projects all over the world

’69: 1st Shipment

’70: Agreement

Alaska LNG (with Power Company)

’67: Agreement

Brunei LNG (with Power Company & Gas Company)

‘66 ’69: 1st Shipping

’70: Agreement

‘65

Decision for

introduction

Approached by Gas

company for

Joint Introduction

Introduction Lead Time (15 years) Introduction

Phase

Mature

Phase


MC’s LNG Market Share in Japan (2015)


47%

In Japan

643 cargo (MC)

1,382 cargo (total)

（about 83.6 million ton）

MC

Others

50%

In Tokyo Bay Area

286 cargo(MC)

587 cargo(total) （about 35.8 million ton）

MC Others


Feasibility Study “Hyper” in Norway

FS on Liquefied H2 production from wind / hydro power, and fossil sources with CCS, and H2 transportation

Period: 2016 – 2019

Partially subsidized by Research Council of Norway

Data：SINTEF

Partners Scheme of FS


H2 Supply Chain Demonstration Project

from Overseas to Japan (supported by METI/NEDO)


Project Members

Overview of Project Scheme (awarded in June 2015)

+

http://www.nyk.com/english

https://www.mhps.com/en/index.html

potential of h supply chain business - in japaninjapan.no › ... › uploads › 2017 › 02 ›...

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