SUETOSHI Tetsui
末利 銕意
President TES Research Co. Ltd.
P.E. (Chemistry & C.T. Management)
1968-2003: Engineer & Manager at Osaka Gas Company
Researcher: Catalyst to remove NOx Pipe repair methods
Corrosion protection Method
Manager
: Singapore Office
Corporate Planning Dept.
JICA Expert : Planning of natural gas business in Indonesia
2000: Certification of Professional Engineer
2003: Certification of Environment Counselor
2005: Establishment of TES Research Co., Ltd.
Deregulation in Japanese Energy Sector
and its Technology Trends
1) Tri-lemma “ Energy, Ecology,
Economy”
2) Economic Solution “Deregulation”
3) Technical Solutions ”New Energies”
4) Energy Scenario in the Future
Mr. Tetsui Suetoshi
末利銕意
billion ton oil equivalent
World Energy Demand
16
14
12
10
8
6
4
2
0
Renewable
Hydro
Nuclear
NG
Oil
Coal
1971
1997
2010
year
2020
World Energy Resources
Oil
Trillion barrel
1.16
Coal
Trillion ton
1.0
Natural Gas
Trillion m3
146
Proven
reserve
Years
43
212
62
supply
( HP : Japanese Ministry of Economy, Trade and Industry )
COP 3 Kyoto Protocol
EU
-8
USA
-7
Japan
-6
Russia
0
Reduction
goal
in 2010
Based on emission volume of global warming gases in 1990
USA withdrew.
Russia ratified.
Background of deregulation
-
Mrs. Thatcher started implementing
deregulation policy in national enterprises
including coal mining, telephone &
telegram and energy sectors in order to
revitalize industries in the UK.
- National Electric and Gas Co. were both
privatized and the markets were opened .
- The deregulation trend spread to the whole
world.
Deregulation in Japanese
Electricity and Gas Sector
1994-1995
1999-2000
2004
2005
Electricity sector
Whole sale bid system introduced.
Independent power producers (IPP)
started.
Open market >2000kw
(26%)
Open market >500kw
(40%)
Open market >50kw
(63%)
Gas sector
Open market >2 million m3/y
(40%)
Open market >0.5 million m3/y
(44%)
Open market >0.1 million m3/y
(50%)
Results of Deregulation
Intensification of competition
（Reduction in prices)
 M & A among energy sectors
 Diversification into new businesses
 Lack of long term business plan
（Cut investment cost for new facilities)

Mutual Penetration of Electricity
and Gas Companies
Ex.Elec. Co. New Gas Co.
Ex. Others
Tokyo Elec
Mitsubishi Oil
NextEnergy
Imperial Oil
New Elec. Co.
My Energy
Ex. Gas. Co.
Tokyo Gas
Nippon Oil
Shizuoka
NTT Facilities
Kansai Elec
L-Energy
Iwatani Ind.
Ennet
KandenGASC
O
G&P, CTS
*
capital investment flow
Gas
Osaka
Gas
ESCO Business Structure
Payment
After investment
Custome
r’s profit
Energy cost
Before Invest
Interest
Investment
New energy
cost
Current Energy Cost
Customer‘s Profit
ESCO’s profit
After expiry of agreement
Negative Effect of
Deregulation


Bankruptcy of PG&E in western USA
Return of PG&E as a public enterprise
Prolonged blackout and power cuts in
northeastern US and eastern Canada
Direction of Deregulation
Technical Solutions
New Energy Utilization to be Developed
 Dispersed Energy System (Cogeneration )
 Fuel Cell
New Energy Resources to be Developed
 Solar
 Wind
 Biomass
Target of New Energy Utilization
to be Developed
New energy utilization
2002
2010
Ratio
2010/2002
Clean energy vehicle
(1000)
Natural gas cogeneration (MW) *
Fuel cell
(MW) *
139
3,480
250
2,150
4,640
2.2
12
2,200
183
(Japanese Ministry of Economy, Trade and Industry )
Target of New Energies to be
developed
New energies
2002
(1000 kl-oil eq.)
2010
(1000kl-oil e.)
Share in
2010
Ratio
2010/2002
(%)
Solar
power
156
1,180
generation＊
Wind
power
189
1,340
generation＊
Waste burning power
1,520
5,520
generation
Biomass
power
226
340
generation *
Thermal use by new
5,546
10,720
energies
Total
7,640
19,100
(Share among 1st
(1.2%)
(3.1%)
energy sources )
(Japanese Ministry of Economy, Trade and Industry )
0.19
7.6
0.22
7.1
0.90
3.6
0.06
1.5
1.74
1.9
3.10
2.5
Image of Cogeneration
System
( Annual Report 2002 of Osaka Gas Co., ltd.)
Lineup of Gas Turbine and Engine Cogeneration
%
コージェネレーションラインアップ
Miller Cycle Engine M
Miller Cycle Engine JB
Lean Burn Engine
Engine
Micro E.
Turbine
Micro Turbine
Output KW
Gas Engine Cogeneration
(Annual repot 2002 of Osaka Gas Co., Ltd.)
Micro Gas Cogeneration（9.８kw）
1 kw Cogeneration (Eco-will)
(Eco-will Life issued by Osaka Gas)
Cumulative Volume of Gas Cogen.
(Data from Japan Gas Association)
Cumulative MW
Cumulative number
Comparison of Fuel Cells
Type
Polymer electrolyte
Phosphoric acid
(PEFC)
(PAFC)
Molten
carbonate
Solid oxide
800～1000
(SOFC)
Ope.temp.（℃）
50～80
150～210
(MCFC)
600～700
Fuel
H2
H2
CH4 etc.
CH4 etc.
Power
efficiency (%)
Development
level
Good points
35～40
40～45
45～50
45～55
Demonstration
△
Low temp.
Easy to start & stop
Hydrogen needed
CO removal needed
Commercial
○
commercialized
Demonstration
△
No converter
Bad points
Higher cost
(than engine)
Demonstration
△
No converter,
Highest efficiency
Taking long time to start & stop
Tests in Japan Gas Association
Manufacturer
EbaraBalard
Sanyo
Toshiba
Toyota
Matsushita
H-power（USA）
Matsushita
(portable)
Capacity Num
Fuel
Connect or
(KW）
ber
stand alone
1.0
２ Natural
connect
gas
0.8
２
Ditto
Ditto
0.7
２
Ditto
ditto
1.0
１
Ditto
ditto
1.3
２
Ditto
ditto
3.0
１ propane Stand alone
0.2
１ butane Stand alone
Test Sites of PEFC
Tokyo test site
Nagoya test site
Osaka test site
Demonstration of PEFC (1KW)
Solar Power Generation
Cumulative capacity World share
MW
%
Japan
637
49
Germany
277
21
USA
212
16
Others
186
14
Total
1,312
100
(Trend in Photovoltaic Applications/IEA/PVPAS(2002).)
Wind Power Generation
1
2
3
Germany
Spain
USA
Cumulative
capacity MW
11,968
5,043
4,674
World share
%
41
17
16
Growth rate
%/year
37
42
10
4
Denmark
2,880
10
17
5
India
1,702
6
17
9
10
Japan
China
Total
486
473
29,329
2
2
100
36
17
28
( Wind Horse 12 )
Biomas Cogeneration Process
Community center
garbage
10 t/day
Crushing
Hot water
Sewage
treatment
Fermenting
Vessel
Gas Engine
Commercial elec.
company
Cold water
Methane gas
2,400 m3/day
Electricity
3,100 kwh/day
Economic Analysis of Biocogen.
Methane gas ：２４０ｍ3／ton of garbage
 Power generation：590kwh（self consumption280kwh）
 Electricity tariff sold：310kwh×¥16/kwh=\5,000
 Benefit：Elec. tariff sold＋reduced cost(incineration)
\5,000 + \19,200 = \24,200/ton of garbage
(US$ 220/ton of garbage)
* Garbage treatment cost：¥60,800 /ton of garbage
（collect\37,400 incinerate\19,200 reclaim\4,200）

Energy Scenario in the Future



Natural gas pipeline in Northeast Asia
Methane Hydrate and its reserve
Hydrogen society
北東アジア天然ガスパイプライ
Natural Gas Pipeline Plan
ン構想
Burning Methane Hydrate
メタンハイドレート
Potential Reserves of Methane Hydrate
Distribution Around
Japan
世界のメタンハイドレート分布
By Mr. Mikio Sato
METI JAPN
Image of natural gas production
from a off-shore rig
海底メタンハイドレート層からガ
スを生産する仕組みイメージ
①Injecting steam
③Gathering methane
Methane
hydrate
②Gasified by steam
Free methane
Free methane
Iceland Aiming a Hydrogen
Society



Producing hydrogen using abundant
geothermal and hydraulic power
Under development of a hydrogen
driven ship and boat
Replacing 40% of oil to hydrogen in
2050
Conclusion



Deregulation in energy sector should go
step by step with careful preparation.
New technologies including
cogeneration, fuel cell, solar, wind and
bio-mass power are being
commercialized.
Hydrogen society is emerging.
Thank you for your attention