Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites
- Aspects Determined as Materiality
Principle and Outline
Contributing to realizing a low-carbon or decarbonized society in line with the worldwide trend toward action against climate change requires taking steady steps to reduce CO2 emissions until decarbonization technology is established. The Daigas Group believes that it is important to reduce not only GHG emissions from its own business activities but also CO2 emissions at customers’ sites. We are seeking to assist customers in reducing their CO2 emissions by popularizing the use of natural gas as clean energy and developing and proposing highly energy-efficient equipment. We are also cooperating with our business partners and affiliated companies to reduce CO2 emissions from logistics.
We announced the Daigas Group Carbon Neutral Vision in January 2021 and the Medium-Term Management Plan 2023: Creating Value for a Sustainable Future in March of the same year to further accelerate our efforts toward low-carbon or decarbonized business operations.
Benefits of Energy Saving and Reductions of CO2 Emissions
Third-party verification completed Osaka Gas underwent a third-party review by Bureau Veritas Japan Co., Ltd.
CO2 emissions reduced by approx. 3.78 million tons at customer sites
The Daigas Group has proposed and sold various products that can help reduce CO2 emissions and thereby contribute to the curbing of climate change. Those products include the “Ene-Farm” fuel cell and the “Eco-Jozu” highly energy efficient water heater, both for residential use. Marketed for commercial and industrial use were gas cogeneration systems, gas absorption chiller, gas engine heat pump (GHP) and natural gas vehicle (NGV). The introduction of these devices (cumulative sales) contributed to a reduction of approximately 3.78 million tons of emissions in FY2022.
Approaches at Customer Sites (Households)
Household cogeneration systems
To help realize a low-carbon society, Osaka Gas is striving to sell and disseminate two types of fuel-cell systems that generates electricity through chemical reactions between the hydrogen extracted from city gas and oxygen in the air, which are polymer electrolyte fuel cells (PEFC) and solid oxide fuel cells (SOFC) sold as “Ene-Farm” and “Ene-Farm type S,” respectively as co-generation systems for household use that help conserve energy and reduce CO2 emissions. These are high-efficiency energy systems that make effective use of the heat generated alongside electricity to supply hot water.
In FY2020, Osaka Gas developed a new product of ENE-FARM Type S*1 in collaboration with Aisin Seiki Co., Ltd., Kyocera Corporation, Noritz Corporation, Purpose Co., Ltd., and Rinnai Corporation. The new product was launched in April 2020. This product attains the highest power generation efficiency in the world*2 of 55%.*3 Installation has been improved by significantly downsizing the main unit. A convenient switch, which has been added to the remote controller, works with a special smartphone app, enhancing the product’s IoT function.
The cumulative sales total of the fuel cell systems, Ene-Farm and Ene-Farm type S, reached 160,000 units*4 on May 12, 2022. These units have helped reduce CO2 emissions by about 290,000 t-CO2*5 annually, which is equivalent to the planting of about 21.13 million sugi cedar trees.*6
- *1 ENE-FARM Type S is an environmentally friendly energy system that generates power through a chemical reaction between hydrogen, which is extracted from clean natural gas, and oxygen in the air. The generated power can be used at home, and hot water generated in the power generation process can also be used effectively. In development, we utilized some of the results obtained from the project commissioned by the New Energy and Industrial Technology Development Organization (NEDO).
- *2 The highest power generation efficiency in the world in terms of fuel cells for household use whose rated output is 1 kW or less (based on a survey conducted by Osaka Gas as of the end of January 2020).
- *3 Power generation efficiency when rated power generation is continued for at least three hours (e.g. under the surplus electricity purchase system). In the cases other than the above, the rated power generation efficiency is 54% (overall efficiency: 87%). The power generation efficiency for LP gas is 53% (overall efficiency: 85%). The values were calculated based on the Lower Heating Value (LHV).
- *4 Based on orders received by Osaka Gas
*5 Our estimated value when a “gas water heater and heating unit,” which is the conventional system, is replaced by “ENE-FARM” or “ENE-FARM Type S” (in the case of a family of four who lives in a single-family detached home)
[Conventional system] A gas water heater/heating unit, gas hot water floor heating system (living/dining room), gas hot water bathroom heater/dryer equipped with a mist sauna function, gas stove, electric air conditioner
[ENE-FARM/ENE-FARM Type S] ENE-FARM/ENE-FARM Type S, gas hot water floor heating system (living/dining room), gas hot water bathroom heater/dryer equipped with a mist sauna function, gas stove, electric air conditioner
[CO2 emissions coefficient] Gas: 2.29 kg-CO2/m³ (our data), electricity: 0.65 kg-CO2/kWh (source: mean coefficient of thermal power sources FY2014 in the Plan for Global Warming Countermeasures [approved by the Cabinet in October 2021])
- *6 Unit CO2 absorption of one sugi cedar tree = 13.9 kg-CO2/year (on the supposition of a 50-year-old sugi cedar tree with a diameter of 26 cm and a height of 22 m; source: 1997 White Paper on Forestry)
■ Cumulative Sales Total of the Fuel Cell Systems
Please see the press release for details about the launch of the new household fuel cell "ENE FARM type S" with the world's highest power generation efficiency and significantly smaller size for easier installation.
“Eco-Jozu” high-efficiency water heater
The “Eco-Jozu” high-efficiency water heater is able to recover the exhaust heat produced during combustion that is ordinarily lost and utilize it to heat water or room spaces; this saves considerable energy and helps mitigate global warming by reducing CO2 emissions.
A cumulative total of about 1,071,000 “Eco-Jozu” units had been sold as of the end of March 2022, helping cut CO2 emissions by 257,000 tons per year.
■ “Eco-Jozu” High Efficiency Water Heater
Participation in the Blue & Green Project creating forests through gas
Osaka Gas promotes the use of high-efficiency residential gas equipment, and since June 2006, it has joined a group of gas companies and gas equipment manufacturers in the Blue & Green Project, which aims to pass on to future generations an abundantly green planet.
The project is two-fold selling energy-saving gas equipment and planting trees both aiming to benefit the environment. Originally, this project was set up around the EcoWill residential gas engine cogeneration system and two models of the Eco-Jozu high-efficiency residential hot-water supply system. In FY2010, the Ene-Farm residential fuel cell cogeneration system was added as a new type of residential gas equipment. The first phase of the project that provided support for tree planting in Vietnam ended in March 2014. With the start of the second phase in April 2014, support was extended to reestablish the Takata-Matsubara pine forest in Rikuzentakata, Iwate Prefecture.
Since project’s launch in June 2006, the number of energy-saving units sold that belong to the project rose from one million cumulatively in 2009, which was the initial target, to two million in October 2011 and on, to the present total of 9.98 million units as of March 31, 2021. This increasingly widespread use contributes to a reduction in CO2 emissions of 2.96 million tons annually, calculated by combining the amount of CO2 absorbed by the trees planted with emissions reductions from the equipment. The number of systems sold by Osaka Gas that are contributing to this reduction is approximately 1.23 million as of March 31, 2022.
Solar power generation
Growing interest in the feed-in tariff for renewable energy and in energy security since the Great East Japan Earthquake has encouraged an expanding number of customers to introduce solar power generation systems. Responding such needs, Osaka Gas prepared a series of equipment for home generation including gas co-generation systems and solar power generation systems for residential use. A cumulative total of about 33,000 units had been sold as of the end of March 2022, helping reduce CO2 emissions by 67,000 tons per year.
We are also recommending “Double Power Generation” that combines a solar power generation system with “ECOWILL” or “Ene-Farm.” We have sold customers a cumulative total of about 49,000 units as of the end of March 2022.
2021 TOPIC) Launch of "Sumai Roof" and "Sumai Roof Plus," free solar power generation system installation services that contribute to the realization of a low carbon/carbon neutral society
In order to promote the widespread use of renewable energy and realize a carbon-neutral society, in April 2022, Osaka Gas launched “Sumai Roof,” a service that allows customers living in existing and new detached houses in the service area of Osaka Gas to install a solar power generation system without any initial cost, and “Sumai Roof Plus,” which includes the lease of a storage battery system as an optional service.
“Sumai Roof” is a service in which Osaka Gas installs a solar power generation system on the roof of a customer’s house free of charge and supplies electricity generated by the system to the customer. Electricity generated by the solar panel during daytime is preferentially supplied to the household, which reduces its electricity purchase from the grid and contributes to the environment by reducing CO2 emissions, as well as to the improvement of the energy-saving performance of the house.
Of electricity generated by the solar power generation system, the portion consumed by the household is billed by Osaka Gas.
“Sumai Roof Plus,” a service that combines the lease of a storage battery system with “Sumai Roof,” makes it possible to store electricity generated by a solar power generation system in the storage battery system, which allows users to feel secure even if a power outage occurs at night. This service also includes the provision of “Tsunagaru-De Alarm System Sumapiko,” a device to provide disaster information, and “Sumikata Plus,” a service in which the service staff of Osaka Gas responds to housing troubles for free, which allows users to feel even more secure in their overall lives.
■ “Sumai Roof” flowchart
■ “Sumai Roof Plus” flowchart
For more details, click here for the press release "Launch of "Sumai Roof" and "Sumai Roof Plus," Free Solar Power Generation System Installation Services That Contribute to the Realization of a Low-Carbon/Carbon-Neutral Society."
High-efficiency residential gas stoves
Easy-to-use stoves that meet the criteria of the Rational Energy Use Act
Gas cooking stoves with safety devices
(Si Sensor-Equipped Cooking Stove)
The Daigas Group has been working on the basic performance of daily-use gas stoves for consumers improving the stoves’ cooking performance and making them easier to use and clean while also working to improve energy efficiency. We have made advances to optimize the burner shape, trivet (pot stand) height, and grill structure, and developed one improved product after another.
At present, the gas stoves sold by the Daigas Group both countertop and built-in units fully meet the criteria of the Act Concerning the Rational Use of Energy set in FY2007 for stove burners and in FY2009 for grills (exempting those items not covered by the law).
Supplying information on how to save energy
“Smart Living Illustrated Tips” section
(Osaka Gas website, Japanese language only)
The Daigas Group uses various media to provide customers with a wide variety of useful information for daily life regarding energy saving so that they can use energy efficiently.
The meter reading slip provided to residential customers lists not only the current month’s usage, but the amount used in the same month of the previous year, making it possible to compare home gas usage. The Osaka Gas website also features a “Smart Living Illustrated Tips” section, which introduces examples of energy-saving actions to take and their effects. The company also produces a “How to Use Gas Safely” booklet and other materials that are distributed to customers when periodic gas checks are conducted to assist in learning how to save energy, how to maintain gas equipment, etc.
Reduction of CO2 Emissions at Customer Sites (Business / Industrial Use)
2021 TOPIC) Launch of a natural gas supply business in Shikokuchuo City, Ehime Prefecture
Shikoku Central Energy Co., Ltd., a joint venture established by Osaka Gas, TESS Engineering Co., Ltd., Shikoku Gas Co., Ltd., and Shikoku Electric Power Co., Inc., decided in October 2021 to launch a natural gas supply business via a gas pipeline to industrial customers, including the Mishima Mill of Daio Paper Corporation in Shikokuchuo City, Ehime Prefecture, from December 2022.
Shikokuchuo City is known as “the city of paper,” whose production volume of the papermaking and paper processing industries is one of the largest in Japan. It is home to industrial customers whose heat demand is high. However, it did not have the natural gas supply infrastructure in place.
Shikoku Central Energy Co., Ltd. will construct an LNGsatellite terminal at the east wharf of the Mishima-Kawanoe Port and supply natural gas to industrial customers in the city via a gas pipeline. It is expected to contribute to CO2 emissions reduction of about 31,000 tons per year at the commencement of the business.
2021 TOPIC) Osaka Gas to convert coal-fired power plant at the Toyobo Iwakuni Production Center to contribute to reducing CO2 emissions by 80,000 tons/year
In November 2021, Daigas Energy Co., Ltd., a wholly owned subsidiary of Osaka Gas, started construction for an upgrade of a coal-fired power plant (completed in 1972, 10,480 kW) at the Iwakuni Production Center (Iwakuni, Yamaguchi Prefecture) of Toyobo Co., Ltd. to a thermal power plant fueled by natural gas and RPF.*1 The new power plant is scheduled to start operations in October 2023.
This joint project with Toyobo has been granted a FY2020 Subsidy to Support the Promotion of Investment in Energy Conservation by the Ministry of Economy, Trade and Industry (under the Program to Support Operators of Energy Use Rationalization Business).*2
At the Iwakuni Production Center, this project will build a high-efficiency power generation system fueled by natural gas and RPF for energy saving and lower carbon emissions and will supply electricity and heat under an energy service contract.*3 The new power plant will not only discontinue the use of coal but also achieve energy-saving control through effective use of both the high-temperature exhaust gas generated from this system and the cold heat of LNG. This conversion from the previous coal-fired power plant will reduce CO2 emissions by about 80,000 tons per year, contributing to reducing the environmental load.
- *1 RPF stands for “refuse derived paper and plastic densified fuel.” It is a solid fuel made mainly from used paper and waste plastics.
- *2 This program supports part of the expenses required for the introduction of high energy saving equipment among business operators’ planned efforts to rationalize energy use.
- *3 Under this type of agreement, Daigas Energy brings its energy facility onto the customer’s premises, saving the customer from buying one and thereby achieving zero initial costs. In this project, Sumitomo Mitsui Finance and Leasing Company, Ltd. owns the system and leases it to Daigas Energy, which provides energy processing services to the customer.
Technological development and the spread
of gas co-generation systems
Distributed energy systems generate power at the site where power is consumed and utilize waste heat from the power generation process for hot water supply and air conditioning. Thus, distributed energy systems are highly economical and environmentally friendly. The Daigas Group is striving to popularize and technically develop gas cogeneration systems that use eco-friendly gas as fuel for business/industrial use in factories, offices, and commercial facilities.
Since releasing the first commercial-use micro-cogeneration system in 1998, we have expanded our lineup of cogeneration systems with power outage response capability. Due to their superior power-saving capabilities, these systems have been widely used in factories, hospitals, public welfare facilities, hotels, spas and restaurants. As of the end of March 2022, there were 4,594 cogeneration systems under operation in the Osaka Gas service area with a combined output capacity of 1,530,000 kW.
In order to meet the diverse needs of customers, we are developing technology to further improve energy efficiency and reliability. In FY2022, Osaka Gas jointly developed a new 850-kW-class gas engine cogeneration system (hereinafter, “the new cogeneration system”) with Mitsubishi Heavy Industries Engine & Turbocharger, Ltd., which is affiliated with the Mitsubishi Heavy Industries Group. The new cogeneration system was developed by significantly improving the 815-kW-class gas engine cogeneration system (hereinafter, “the conventional cogeneration system”), which was jointly developed in 2003 by Osaka Gas and Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (Mitsubishi Heavy Industries, Ltd. at that time). It is equipped with a function to ensure BCP by generating power using gas as fuel and supplying electricity to necessary equipment in the event of an outage. Both output and efficiency have been improved by optimizing combustion and using high-efficiency components while keeping the installation space unchanged. The system achieves a power generation output of 850 kW and a power generation efficiency of 41.9%, which is among the highest in the world. It has been developed to meet the needs of customers who newly introduce cogeneration systems and those who replace conventional cogeneration systems introduced in or after 2004 in Japan.
We will continue to step up energy saving efforts in the future and contribute to reducing environmental impacts by expanding sales of cogeneration systems.
■ Commercial and Industrial Cogeneration Systems: Cumulative Total of Installed Capacity and No. of Units
Starting commercial operation of a high-efficiency gas turbine power generation system at Mitsui Chemicals Osaka Plant Contributing to reducing CO2 emissions by introducing a distributed power source
Full shot of the high-efficiency gas turbine
Daigas Energy Co., Ltd., a wholly owned subsidiary of Osaka Gas, has installed a high-efficiency gas turbine power generation system at the Osaka Plant of Mitsui Chemicals, Inc. The system started commercial operation on December 1, 2020.
This joint project with Mitsui Chemicals has been granted the FY2018 Subsidy to Support the Promotion of Investment in Energy Conservation by the Ministry of Economy, Trade and Industry (under the Program to Support Operators of Energy Use Rationalization Business).*1
The high-efficiency gas turbine power generation system has been introduced at the Mitsui Chemicals Osaka Plant under an energy service agreement.*2 The system is fueled by city gas to operate, and it serves as a distributed power source to supply electricity and heat to the plant. The system raises the in-house power generation rate of the plant, contributing to cutting peak power consumption. Moreover, hot exhaust gas from the system is recycled as combustion air at the plant, which contributes to reducing CO2 emissions by 70,000 tons per year.
- *1 This program subsidizes business operators to cover part of their expenses for implementing the following type of projects to rationalize energy use and level electricity demand: projects to provide external private parties with financial support that covers some of their expenses for introducing equipment and facilities that help save much energy and contribute to reducing peak power consumption.
- *2 Under this type of agreement, Daigas Energy brings its energy facilities onto customers’ premises and allows them to use the facilities for service fees, saving them from buying the facilities and helping them achieve zero initial costs.
The development and spread of high-efficiency gas-powered air conditioning systems
Gas-powered air conditioning systems can help in electricity and energy saving. They include natural-refrigerant-based absorption chillers used for central air conditioning and gas heat pump (GHP) air conditioners used for individual spaces, such as offices.
Natural-refrigerant-based absorption chillers are air conditioning systems fueled by city gas. They provide cool water for cooling and hot water for heating and use water as a refrigerant, instead of CFCs. The Daigas Group has designated models of natural-refrigerant-based absorption chillers that are especially effective in reducing environmental impacts as “green models” and actively recommends them to customers.
Equipped with a gas engine driving a compressor, GHP air conditioners collect heat from the outdoor air and send it into indoor spaces for heating while collecting heat from the indoor air and discharging it outdoors for cooling.
Tokyo Gas Co., Ltd., Toho Gas Co., Ltd. and Osaka Gas developed GHP XAIR III, the latest model of a super-efficient, energy- and power-saving GHP air conditioner, in collaboration with Aisin Seiki Co., Ltd., Panasonic Corporation, and Yanmar Energy System Co., Ltd. This product boasts even better energy-saving performance and functionality, as well as being easier to install, than those of the previous model. It was launched for sale in April 2020. For its great energy-saving performance and functionality, GHP XAIR III received the Commissioner of the Agency for Natural Resources and Energy Prize in the 2020 Energy Conservation Grand Prize and the 2021 Japan Gas Association Technology Prize.
In addition, Smart Multi, a hybrid air conditioning system that uses both a GHP and an electric heat pump (EHP) controlled remotely for optimal operation, has been in the market since July 2016. This product is now available in a lineup of six models from four manufacturers. For its great energy-saving performance, Smart Multi received the 2018 Energy Conservation Grand Prize in the product and business model category.
For more details, click here for the press release “Three Gas Companies Develop GHP XAIR Ⅲ, Latest Models of Gas-powered Air Conditioning System that Saves Energy and Power —New Type of Gas Engine-driven Heat Pump (GHP) with Further Improved Performance and Functions.”
Development of energy-saving gas boilers
Simplified once-through boilers are characteristically small and lightweight and, not requiring any qualifications to operate, they are used by a wide range of customers, including dry-cleaning shops and food/textile/chemical plants requiring large volumes of steam.
Osaka Gas is working with a variety of manufacturers and gas companies to develop, propose, and sell new simplified once-through steam / heating medium boilers.
The products achieve combustion with a lower load than earlier models and recover about 15% more heat from the exhaust gas released during combustion, resulting in a higher operation efficiency of the boiler. In addition, the products also feature lower power consumption of the air blower, helping conserve energy.
In FY2018, Osaka Gas developed the SQ-1200ZL, a gas-fired, once-through small-size steam boiler, Japan's first such device compatible with low-pressure gas pipes, which uses venturi suction technology.* In the same year, the Company also undertook joint development of the best-in-class-performance boiler with an evaporation capacity of 1,000 kg/h. By catering to a broader range of customers through the development of these products, we are contributing to energy saving and environmental conservation.
* The employment of a venturi suction technology enabled the development of a product with specifications that are compatible with low-pressure gas pipes.
The technology envisages gas fuel being taken in and supplied to a burner, using negative pressure which is generated when air flows into a venturi installed at the inlet of a blower. The venturi is designed to create a low-pressure area inside the device by narrowing the cross section where the liquid flows, a mechanism that can lead to a higher liquid flow speed. Conventional boilers required medium-pressure gas due to a mechanism in which gas fuel is injected into a high-pressure area at the outlet of the blower for mixing gas and air. The venturi suction technology has specifications that are suitable for low-pressure gas even in large-capacity boilers. Because it does not require medium-pressure gas pipes, the product can be used by a broader range of customers.
Please refer to a press release for further information on joint development of Japan's first low-pressure gas-compatible boiler with an evaporation capacity of 1,200 kg / h that adopts venturi suction technology. (Japanese version only)
Please refer to a press release for further information on joint development of the best-in-class-performance boiler with an evaporation capacity of 1,000 kg / h that achieves an evaporation rate of 98% and a turndown ratio of 1:5. (Japanese version only)
Development of a high-efficiency industrial
“regenerative burner” system
High-efficiency industrial “regenerative burner” system
The Daigas Group has developed 1,600 models of industrial burners and heat exchangers, along with high-performance control systems, and has contributed to reductions in CO2 emissions at customers sites in a range of industries and business categories through the pursuit of more energy-efficient burners.
There has been great interest particularly in our regenerative burner system, which is a combustion heating system that allows extremely high-efficiency recovery of exhaust heat in an industrial furnace. A regenerative burner system generally ignites a pair of burners that are integrated with heat reservoirs alternately at intervals of several tens of seconds. While one burner is burning, the exhaust gas passes through and heats the other burner’s heat reservoir to recover the energy of the exhaust gas. Then, when the other burner burns, the air for combustion in turn passes through the preheated heat reservoir to recover the exhaust gas energy, achieving a 35–50% energy savings.
We have so far a wide lineup of these types of burners in terms of form and capacity for use in casting, rolling and heat treatment.
We are also developing a natural gas mono fuel combustion burner for glass-melting furnaces that produce glass for bottles, automotive use, and building materials for customer sites, as well as high-efficiency burners for various uses, aiming to provide customers with ideal solutions to reducing CO2.
Reducing CO2 emissions in logistics
LNG tanker truck fueled by CNG
In Japan, the number of trucks used by the group is less than 20% of the overall number of our automotive vehicles, but distribution accounts for approximately 35% of CO2 emissions. Large trucks generate particularly high emissions, so the introduction of natural gas-powered large trucks can have a significant effect on reducing CO2 emissions. According to a road verification report by the Organization for the Promotion of Low Emission Vehicles (LEVO), large natural gas trucks have 12.9% lower CO2 emissions than large diesel trucks. Osaka Gas is working to expand the use of large natural-gas trucks for long-distance transport between cities, and small and medium-sized natural-gas trucks for transport within municipalities.
We have also started transporting LNG using LNG tanker trucks fueled by compressed natural gas (CNG). These LNG tanker trucks can help reduce CO2 emissions by about 7%, compared with diesel-fueled tanker trucks.
Japan’s first commercial LNG station was opened in Osaka City in June 2018, allowing the start of transport using large LNG trucks. LNG features high-efficiency fuel storage, which lets trucks run for over 1,000 kilometers without refueling for further reductions in CO2 emissions.
Working together with customers to save energy
The Daigas Group is united in supporting customers using gas for industrial and business purposes in their energy saving activities and promoting energy conservation to contribute to global environmental protection.
Experts from Osaka Gas take heat and other measurements at the facilities of customers, such as factories, hospitals, and other commercial establishments, and use the results to recommend appropriate ways customers can save energy.
Our energy-saving activities with our customers help deepen the relationship of mutual trust. We are also holding in-house training and educational sessions on energy saving on a regular basis based on the results of energy-saving efforts. These sessions are designed to accumulate energy-conservation technologies and promote the shared use of these technologies while developing human resources with expertise in the field of energy-saving technologies.
Part of efforts to encourage local companies in the Kansai region to introduce natural gas equipment, Osaka Gas is promoting the “Try! Carbon offset” project, which envisages using the central government's J-Credit system to reduce the amount of CO2 emitted at various events held in Kansai region to effectively zero.
Under the government’s J-Credit system, CO2 emission reductions achieved by customer companies when they introduce high-efficiency gas equipment, such as city-gas-fueled boilers and gas cogeneration systems, are converted into credits, which are acquired by us. We then use the credits as carbon offsets for local sports events, local-government-organized events, and so on, which means that the CO2 emissions from such events are offset to the zero level. As a result of this initiative, we are promoting so-called “local consumption,” whereby credits earned by local companies are used for local events.
In FY2022, CO2 emissions dropped by 537 tons, equal to the sum of CO2 emitted from about 134 ordinary households*
* Calculation of CO2 emission from households
This figure has been calculated on the supposition that each household emits about 4 t-CO2, in reference to the result of Osaka Gas’s tentative calculation based on data available on the website of the Japan Center for Climate Change Actions.
Heat measurement at customer's site for saving-energy.
“Try! Carbon Offset”
■ List of Major Events in which Carbon Emissions are Offset in FY2022
|Event||Host||CO2 emissions (t-CO2)|
|Games hosted by Hanshin Tigers||
Hanshin Electric Railway Co., Ltd.
Hanshin Tigers Baseball Club, Ltd.
|Cerezo Osaka home games||Cerezo Osaka Co., Ltd.||454|
Provision of various ICT services
The Daigas Group has worked on a large number of energy-saving measures on the software front on top of proposing optimal and highly energy-efficient devices. Various information and communication technology (ICT) services the Group has developed are being used by many customers.
For example, the “Eneflex” energy-saving service is one such ICT service, through which customers can remotely control the operation of a gas engine heat pump (GHP) while being notified of the operational status of the pump and its energy consumption situation via the Internet or e-mail. “Eneflex” is designed to support the ongoing energy-saving efforts of customers by making energy use status available in a visible form.
In addition, we have also developed a service called “Eneflex Premium,” which offers a menu of functions in addition to the previous “Eneflex” functions, including a patrol function for automatic energy-saving in GHPs, an energy-saving control function, a thinning function, and a charge allocation function. “Eneflex Premium” is designed to enable busy customers to engage in energy-saving activities easily.
■ ICT Services Offered in Response to Various Customer Demands.
In fiscal 2016, we launched “ekul,” a real-time data measurement service that uses wireless and batteries and can be installed simply and inexpensively even in small buildings.
In April 2019, we introduced a new service plan for the simplified data measurement system, “ekul lite.” This plan utilizes the IoT network Sigfox,* provided by Kyocera Communication Systems Co., Ltd., which features low cost, low power consumption, and long-distance transmission. In recent years, people have started to look with keen interest at utilizing the Internet of Things (IoT) to counteract various social issues including the aging population and declining birthrate, labor shortages, and environmental/energy issues. To respond to the request of many customers for a simpler and less costly version through the use of IoT, the new service plan was launched for customers wishing to start with the measurement of a few items.
Going forward, we will work hard to improve convenience and lower costs for customers.
Sigfox, from Sigfox S.A. (France), is operated by Kyocera Communication Systems Co., Ltd. (KCCS) on an exclusive basis in Japan. Sigfox has been rolled out mainly in Europe and the United States, covering 60 countries in total, as a leading low-power wide-area (LPWA)* network. In Japan, the construction of Sigfox infrastructure and provision of the network service are carried out by KCCS.
* Low-power wide-area (LPWA): A general term for wireless communications technology that enables transmission over distances of kilometers with low power consumption. Radio waves can be sent to a base station, which collects data, with low consumption of the device’s battery power. LPWA has been receiving attention as a technology particularly useful for the Internet of Things (IoT).
2021 TOPIC) Introduction of “D-Bio Steam,” a biomass boiler system that uses tea grounds as fuel
Daigas Energy Co., Ltd., a wholly owned subsidiary of Osaka Gas Co., Ltd., decided to install “D-Bio Steam,” a biomass boiler system that uses tea grounds as fuel, at the Kainan Plant of Wakayama Nokyo Foods Industry Co., Ltd., with which an energy service contract*1 was signed recently. This will be Japan’s first installation of a biomass boiler system that uses tea grounds as the main fuel for on-site self-sustaining combustion and steam utilization.
Daigas Energy developed the biomass boiler system “D-Bio Steam” by combining a fluidized bed furnace*2 manufactured by Okawara Mfg. Co., Ltd. and an exhaust gas boiler manufactured by Miura Co., Ltd. and making use of Daigas Energy’s own combustion technology and waste treatment technology. This system enables stable self-sustaining combustion of tea grounds, making it possible for users to utilize steam generated by an exhaust gas boiler for their production process.
At the Kainan Plant of Wakayama Nokyo Foods Industry, the amount of waste is expected to decrease by about 90% annually by using tea grounds as fuel. The use of carbon-neutral steam will contribute to reducing CO2 emissions by about 600 tons annually. The system will be constructed, aiming to start operation in May 2023.
- *1 Energy service contract: A type of contract in which Daigas Energy installs its equipment at the customer’s premises, saving the customer from buying it and helping them achieve zero initial costs. This time, JA Mitsui Leasing, Ltd. owns the system and leases it to Daigas Energy, which provides processing and maintenance services to the customer.
- *2 Fluidized bed furnace: A combustion furnace that can stably burn even substances with a high water content by causing combustion in high-temperature sand fluidized by the force of air blown from the bottom.
Overview of the biomass boiler system
Mid- and Downstream Business Development in Asia
The group began surveying markets in the region around 2010 to determine the potential for mid- and downstream business development. The focus of the survey was Southeast Asia, because of the promise it holds as a market for economic growth with a high percentage of manufacturing industries, besides having many Japanese companies doing business there.
Gas business in Singapore
Members of CITY-OG
Osaka Gas and Singapore’s City Gas Pte. Ltd. (City Gas) agreed to launch joint sales of natural gas in Singapore. Osaka Gas concluded a contract to buy an equity stake in City-OG Gas Energy Services Pte. Ltd. (City-OG), a new company set up by City Gas to sell natural gas for industrial use. Under the agreement, Osaka Gas began selling gas in Singapore in August 2013, marking the company’s first overseas gas sales.
Osaka Gas Singapore Pte. Ltd. (hereinafter, “OGS”) members are strong in proposal-oriented marketing, especially in conversion of boiler fuels, while City Gas members have prowess in approaching potential local customers and in local business procedures.
In FY2020, Osaka Gas invested, through OGS and together with the Japan Bank for International Cooperation, in AGP International Holdings Pte. Ltd. (hereinafter, “AGP IH”) and signed a strategic collaboration agreement with AGP IH on a natural gas value chain. The AGP Group is a corporate group with a history of more than 100 years in the Philippines, mainly engaged in the construction and engineering businesses. The group has reliable technological expertise in the LNG business and a high level of marketing skills. It is actively exploring demand and expanding its LNG business by participating in floating LNG terminal projects and city gas projects mainly in Southeast Asia and India.
This investment and strategic collaboration agreement will enable both parties to mutually utilize the AGP Group’s ability to explore projects and engineering skills in the LNG business and the knowledge and know-how about LNG and pipelines that Osaka Gas has long developed in Japan. The two parties will thus strive to establish a natural gas value chain in emerging countries in the LNG business, including Southeast Asian countries.
For more details, click here for the press release “Investments and Conclusion of Collaboration Agreement with AGP International Holdings Pte. Ltd. as Development of Natural Gas Infrastructure Proceeds.”
Energy service business in Thailand
LNG supply equipment on the customer’s site
At the time of completion
Osaka Gas has stepped up its business in Thailand with a focus on the energy service (ES)*1 business, utilizing Osaka Gas's energy service solution know-how, which is based on its engineering prowess regarding the use of natural gas in the Thai industrial market. Specifically, the new company undertakes overall utility-related businesses, including the installation of boilers and industrial furnaces, CNG supply, water and biotechnology.
In October 2013, Osaka Gas (Thailand) Co., Ltd. (OGT) was founded in Thailand.
In July 2014, Osaka Gas and Nippon Steel Engineering Co., Ltd. (hereinafter, “NSE”; company name at that time: Nippon Steel & Sumikin Engineering Co., Ltd.) agreed to form a business partnership for on-site business*2 using cogeneration systems built in Thailand. Under the agreement, the two companies established NS-OG Energy Solutions (Thailand) Ltd. In 2018, an on-site energy supply system for the Honda Group’s Thai Honda Manufacturing Co., Ltd., which manufactures motorcycles and power products, was completed and started supplying energy. In addition, together with NSE and Toray Textiles Public Company Limited (Thailand) (company name at that time: Luckytex (Thailand) Public Company Limited), Osaka Gas won the Chairman’s Award in the industrial category in the Cogeneration Award*3 2018 organized by the Advanced Cogeneration and Energy Utilization Center Japan for the project “Introduction of Cogeneration through On-site Energy Supply and Realization of Highly Efficient and Stable Operation: Case of Introduction to Luckytex (Thailand) Public Company Limited Mill No. 2."
In November 2015, we made a joint investment with a subsidiary of Thailand-based PTT Public Company Limited in establishing OGP Energy Solutions Co., Ltd. (OGPS), which provides the ES for industrial customers in Thailand. In July 2019, Osaka Gas Singapore Pte. Ltd. and Energy Pro Corporation Ltd., a solar power generation company in Thailand, agreed on establishing a joint venture, OE Solar Co., Ltd., to launch a solar power supply business in Thailand.
- *1 Energy service (ES) business: This service enables customers to introduce natural gas and other facilities, without any initial investment, simply by paying fees that correspond to the amount of energy use. The new company installs natural gas-fired facilities, including boilers and combustion furnaces, to supply steam and other forms of energy to customers to meet their energy-saving needs. As an one-stop service for the management of energy use and facility maintenance, it promotes energy-saving as well as stable energy supply.
- *2 On-site business Service: The Daigas Group sets up a cogeneration system on customers' sites or near their sites, and supplies electricity and heat there. The cogeneration system is operated and maintained by staff posted at the facility.
- *3 Cogeneration Award 2018: The Cogeneration Award was founded in 2012 by the Advanced Cogeneration and Energy Utilization Center Japan. It aims to raise social awareness of the usefulness of cogeneration and facilitate the spread of more excellent cogeneration technologies by commending excellent cogeneration systems in terms of innovativeness, the status as a pioneer, new technology, energy conservation and other factors. The 2018 award marked its seventh presentation. The award has Consumer Use, Industrial Use, and Technological Development categories. The Chairman’s Award, the Award for Excellence and Honorable Mention are presented in each category.
2021 TOPIC) Osaka Gas (Thailand) and Parfun sign CNG agreement
Switching fuel from coal to natural gas to reduce CO2 emissions in Thailand
Osaka Gas (Thailand) Co., Ltd. (hereinafter, “OGT”) signed an agreement on September 30, 2021, with Parfun Textile Co., Ltd. (hereinafter, “Parfun”), a subsidiary of Parfun Co., Ltd., for the delivery of compressed natural gas (CNG) to Parfun’s garment factory in Thailand.
OGT installed a CNG supply system and gas-fired boilers at Parfun’s factory and started to supply CNG to the factory in July 2022.
This project uses the Financing Programme*1 for Joint Crediting Mechanism (JCM)*2 of the Ministry of the Environment of Japan (MOEJ). This is the first project*3 for Osaka Gas to serve as a representative operator and OGT’s first project to receive a subsidy under the Programme. This project is implemented with cooperation from the Thai and Japanese governments.
It has been developed following a feasibility study*4 on garment factory CO2 emissions reduction, which was originally conducted by the City of Osaka and the Eastern Economic Corridor (EEC)*5 Office of Thailand and later joined by Osaka Gas. The project aims to reduce greenhouse gas (GHG) emissions at Parfun’s garment factory in Nakhon Pathom Province by replacing the existing coal-fired water tube boilers with highly efficient*6 gas-fired once-through boilers. OGT will ensure long-term stable supply of CNG, which is used as fuel, by using CNG trailers.
The project aims to reduce GHG emissions by 2,665 t-CO2 per annum.*7 This reduced GHG amount will be counted as a carbon credit under the JCM scheme, which will contribute to the efforts to meet the emissions reduction targets in Japan and Thailand.
Most areas of Nakhon Pathom Province, where the factory is located, do not have natural gas pipelines. Thus, coal and oil are mainly used as fuel. In these areas, OGT has been promoting conversion to natural gas by supplying CNG using CNG trailers. This is the first project for conversion from coal.
*1 Financing Programme for JCM Model Projects
Leading decarbonization technologies are utilized to lower GHG emissions in developing countries through measurable, reportable, and verifiable (MRV) actions. In addition to reducing GHG emissions in developing countries, the JCM projects aim to help Japan and its partner countries achieve their GHG emissions reduction targets. MOEJ’s Financing Programme for JCM Model Projects funds up to half of the cost of the initial investment in advanced decarbonization technologies.
*2 The Joint Crediting Mechanism (JCM) is a system for providing excellent decarbonization technologies, etc., products, systems, services, and infrastructure from Japan to a developing country in order to contribute to the country’s sustainable development, including GHG emissions reduction, and enable both countries to share the benefits.
The JCM enables Japan’s contribution to GHG emissions reduction to be quantitatively evaluated and that data to be utilized to achieve the emission reduction target of Japan.
- *3 A notice of MOEJ’s decision to fund this project (representative operator: Osaka Gas) under the FY2021 Financing Programme for JCM Model Projects was received on August 30, 2021.
- *4 MOEJ’s FY2021 program “City-to-city Collaboration for Low-Carbon Society” commissioned by MOEJ to conduct a feasibility study with the aim of effectively and efficiently supporting joint initiatives to build a low-carbon or decarbonized society implemented by Japanese municipalities that have experience and expertise in this field and their overseas counterparts
- *5 Chachoengsao Province, Chonburi Province, and Rayong Province, which are located in the east of Bangkok, the capital of Thailand, constitute a special economic zone under the Thailand 4.0 policy (a national strategy to increase income by upgrading the industrial structure of Thailand.)
- *6 The efficiency is 98%, which was among the highest at the time of announcement.
- *7 The reduction of GHG emissions is calculated using the methodologies approved in JCM partner countries under the “Financing Programme for JCM Model Projects.” This project is expected to reduce CO2 emissions by approximately 14,535 t-CO2 per annum with the high-efficiency gas-fired once-through boilers, which will be installed to replace the existing coal-fired water tube boilers.
Activities in Indonesia and the Philippines
Members of Osaka Gas Indonesia
Osaka Gas Singapore Pte. Ltd. established a representative office in Jakarta, Indonesia in October 2016, and in Manila, the Philippines in March 2017.
The demand for energy is expected to grow in the near future as the Indonesian economy expands. Osaka Gas had been studying the possibility of operating an energy business in the country by utilizing our expertise in providing energy solutions to meet consumer needs for saving energy. PT Osaka Gas Indonesia (“OGIDN”) was established in August 2018, followed by a joint marketing agreement between OGIDN and PT Pertagas Niaga, the gas trading subsidiary of PT Pertamina (Persero), the state-owned oil and natural gas corporation. A business license was obtained in October 2018, and under the agreement Osaka Gas Indonesia began jointly marketing natural gas with Pertagas Niaga. This development marks the third country in Southeast Asia, following Singapore and Thailand, in which we are involved in energy-related business.
Through this project, we will promote a conversion to natural gas from heavy oil and the efficient use of this clean energy, and will contribute to energy-saving efforts and the reduction of environmental impact in Indonesia.
Osaka Gas Indonesia will also develop a financing plan to aid in creating an energy service business that supports the introduction of equipment and facilities, aiming for business development throughout Indonesia in the future.
Indonesia has a population of over 250 million. Since the demand for energy is expected to increase as the economy expands, we are now conducting a full-scale survey of energy infrastructure development.
In the Philippines an increase in demand is expected and there is a plan to introduce LNG in preparation for the depletion of domestic natural gas resources, so we are aiming to participate in energy infrastructure development projects that make the most of our experience and knowledge, especially in LNG-related ventures.
Activities in Vietnam
External appearance of the gas supply facility at the Phu My 3 Specialized Industrial Park
In October 2019, Osaka Gas Singapore Pte. Ltd., a wholly owned subsidiary of Osaka Gas, Sojitz Corporation, and Sojitz Vietnam formed Sojitz Osaka Gas Energy Company Ltd. (hereinafter, "SOGEC"), a joint venture, with the aim of supplying natural gas in Vietnam.
SOGEC works on natural gas supply for the Phu My 3 Specialized Industrial Park in the southern Vietnamese province of Ba Ria-Vung Tau, as well as supplying compressed natural gas via trucking for industrial customers in the country.
The project marks the Daigas Group’s business expansion in a fourth Southeast Asian country, after Singapore, Thailand, and Indonesia. This also marks the Group’s engagement in natural gas supply in a third overseas country, following Singapore and Thailand.
Vietnam has seen growing energy demand as a result of its economic growth. There are multiple industrial zones in the southern region of Vietnam, where this project has been implemented, in a concentrated area of heavy and chemical industries, with the further expectation that the region will also soon be home to new expansion for several manufacturing companies as well.
Through this project, SOGEC not only promotes the efficient use of cleaner natural gas and actively proposes natural gas as an alternative to coal, heavy oil and LPG but also contributes to energy savings in Vietnam as well as decreasing the environmental impact there.
Taking advantage of the unique knowledge and experience both of the Sojitz Group, with its impressive track record for IPP and industrial park operations in Vietnam, and the Daigas Group, as an experienced natural gas supplier, all the parties involved aim to promote this project to achieve a sales amount of 15 billion yen by FY2031.
There are also future plans under discussion to conduct an energy service business, helping introduce new infrastructure using various financial strategies.
2021 TOPIC) SOL Energy begins rooftop solar generation business in Vietnam
Sojitz Osaka Gas Energy Company Ltd. (“SOGEC”), a joint venture company*1 between Sojitz Corporation (“Sojitz”) and Osaka Gas Co., Ltd. (“Osaka Gas”), has partnered with Looop Inc. (“Looop”) to establish the new joint venture company SOL Energy Company Limited (“SOL Energy”) as of October 21, 2021. At present, SOL Energy operates a rooftop solar power generation business geared towards industrial and commercial customers in Vietnam.
SOL Energy’s solar power business will utilize financial support*2 from the Ministry of the Environment of Japan’s Financing Programme for JCM Model Projects in FY2021,*3 and this project will be conducted in cooperation with the Vietnamese and Japanese governments.
SOL Energy plans to install rooftop solar panels that can provide over 10,000 kW of solar power to customers at the Sojitz-operated Long Duc Industrial Park in southern Vietnam’s Dong Nai Province. Installation of solar panels is expected to reduce CO2 emissions for Long Duc Industrial Park as a whole by approximately 5,800 tons*4 annually. In addition to supplying customers with solar power over the long term, SOL Energy will use the surplus electricity to supply the industrial park’s operating companies. In doing so, SOL Energy will contribute to utilization of renewable energy and decarbonization at the Long Duc Industrial Park.
The company also plans to expand its solar business beyond Long Duc Industrial Park.
In July 2020, Vietnam revised its greenhouse gas mitigation targets, raising its commitment to a 27%*5 reduction of GHG emissions to be realized by 2030 with international support, which includes Joint Credit Mechanism projects. Sojitz, the Daigas Group (an Osaka Gas group brand), SOGEC, and Looop will actively promote the spread of renewable energy through SOL Energy’s rooftop solar power generation business, thereby contributing to Vietnam’s sustainable development and the realization of a low-carbon society.
■ Scheme diagram
Part of Long Duc Industrial Park
- *1 Equity ownership of Sojitz Osaka Gas Energy Company Ltd.: 51% for the Sojitz Group, 49% for Osaka Gas Singapore Pte. Ltd. a fully owned subsidiary of Osaka Gas
- *2 Leading decarbonization technologies are utilized to lower GHG emissions in developing countries through measurable, reportable, and verifiable (MRV) actions. In addition to reducing GHG emissions in developing countries in particular, the JCM projects aim to help Japan and its partner countries achieve their GHG emissions reduction targets. MOEJ’s Financing Programme for JCM Model Projects funds up to half of the cost of the initial investment in advanced decarbonization technologies.
- *3 With the installation of rooftop solar panels (9,800 kW) at Long Duc Industrial Park, Osaka Gas received financial support as the representative participant for the project, which was selected by the Ministry of the Environment of Japan (MOEJ) under the Financing Programme for JCM Model Projects in FY2021 on September 27, 2021. The Project Title is “Introduction of 9.8 MW Rooftop Solar Power System in Industrial Park.”
- *4 Expected GHG Emission Reductions from this “Financing Programme for JCM Model Projects in FY2021” by MOEJ total 4,312 tCO2-eq./year.
- *5: Uses 2014 as the base year for GHG reduction targets
Participated in a fuel switching business at food plants in Vietnam
Switching from coal to natural gas to reduce CO2 emissions by approx. 76,300 t over 10 years
On March 4, 2021, Sojitz Osaka Gas Energy Company Ltd. (“SOGEC”)*1 concluded an agreement with Acecook Vietnam Joint Stock Company (ACV), a subsidiary of Acecook Co., Ltd. (ACJ), to provide natural gas to ACV’s food plants.
SOGEC is concentrating its efforts on fuel switching from coal to natural gas, and this project marks the company’s first time of supplying natural gas to an individual business.*2 This natural gas supply business will be a subsidized project*3 under Japan’s Joint Crediting Mechanism (JCM)*4 scheme. This project is being undertaken through cooperation between the governments of Vietnam and Japan.
This project has been launched after a feasibility study*5 conducted jointly by the municipalities of Osaka and Ho Chi Minh with the participation of ACV and SOGEC to assess the CO2 emissions reduction effects of the project at food plants. The project aims to replace coal-fired steam boilers at the two ACV plants with highly efficient natural gas-fired steam boilers to which SOGEC will provide natural gas in order to improve the work environment and reduce CO2 emissions at the plants.
This project is expected to reduce CO2 emissions by approximately 76,300 tons over a decade. Under the JCM scheme, over half of this CO2 reduction will be delivered as JCM carbon credits to the Japanese government, which will help Japan achieve its CO2 emissions reduction target.
- *1 Equity ownership of Sojitz Osaka Gas Energy Company Ltd.: 51% for the Sojitz Group, 49% for Osaka Gas Singapore Pte. Ltd.
- *2 In April 2020, SOGEC began supplying natural gas to Phu My 3 Specialized Industrial Park in Ba R a-V ng Tau Province in Southern Vietnam.
- *3 The joint crediting mechanism (JCM) is a system for providing excellent low-carbon technologies, products, systems, services, and infrastructure from Japan to a developing country in order to contribute to the country’s sustainable development, including GHG emissions reduction, and enable both countries to share the benefits. The JCM enables Japan’s contribution to GHG emissions reduction to be quantitatively evaluated and that data to be utilized to achieve the emission reduction target of Japan.
- *4 Projects to be subsidized as JCM model projects by the Ministry of the Environment of Japan (MOEJ) should utilize advanced low-carbon and decarbonization technologies to lower GHG emissions in developing countries through measurable, reportable, and verifiable (MRV) actions. In addition to reducing GHG emissions in developing countries, the JCM projects aim to help Japan and its partner countries achieve their GHG emissions reduction targets. MOEJ’s Financing Programme for JCM Model Projects funds up to half of the cost of initial investment in advanced low-carbon and decarbonization technologies. The Global Environment Center Foundation (GEC) has been commissioned by MOEJ to function as a secretariat to manage JCM-related subsidy programs, which are open to private enterprises in Japan. ACJ, ACV and SOGEC received a notice of MOEJ’s decision to fund this project under the FY2020 Financing Programme for JCM Model Projects on September 28, 2020.
- *5 Under MOEJ’s FY2020 program “City-to-city Collaboration for Low-Carbon Society,” the municipalities of Osaka and Ho Chi Minh were commissioned by MOEJ to conduct this feasibility study, in which ACV and SOGEC participated. This MOEJ program aims to effectively and efficiently support joint initiatives to build a low-carbon or decarbonized society implemented by Japanese municipalities that have experience and expertise in this field and their overseas counterparts.
■ Locations and Exterior of Installation Sites
2021 TOPIC) Osaka Gas becomes the first Japanese company to participate in city gas distribution business in India
Osaka Gas participated in the City Gas Distribution (CGD) business in India undertaken by AG&P LNG CGD HoldCo Pte. Ltd. (AG&P CGD Company) through its subsidiary Osaka Gas Singapore Pte., Ltd. (“OGS”) by investing in AG&P CGD HoldCo SPV3 (Singapore) Pte., Ltd. (“AG&P SPV3”), together with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (“JOIN”). Osaka Gas is the first Japanese company to participate in the CGD sector in India through this investment.
India promotes greater use of natural gas*1 through the development of city gas infrastructure that supports the wider use of compressed natural gas vehicles (“CNG vehicles*2”) in response to the increasing energy demand and a need to reduce carbon emissions and air pollution resulting from economic growth in the country. City gas suppliers are determined through bidding systems in divided areas. Successful bidders are awarded exclusive gas sales rights and infrastructure possessory rights (“exclusive rights”) for a fixed period of time.
This city gas venture has been developed by the AG&P Group led by AGP International Holdings Pte., Ltd. (“AGP IH”), AG&P SPV3’s parent company, in which Osaka Gas also invests in.*3 It has been expanding its LNG business mainly in Southeast Asia and India. With exclusive rights for a vast swath of southern India, roughly equivalent to 3/4 the area of Japan, the venture has already been awarded the exclusive rights. The venture also plans to utilize LNG tanker trucks as one of the main gas supply systems, which are introduced for the first time to India, and reduce the time for the development and roll-out of the city gas infrastructure while promoting city gas demand for CNG vehicles as well as for household, commercial, and industrial uses. In the future, the venture aims to develop into a city gas business which is approximately half of Osaka Gas’s city gas sales volume in Japan.*4
AG&P CGD Company, the operator of this city gas business, is jointly owned by AGP IH, I Squared Capital Advisors (US) LLC (“ISQ”) Group, a US infrastructure investment fund with a successful track record for projects in India, and JOIN, a public-private fund supporting Japanese businesses for developing infrastructure projects overseas with their technology and know-how accumulated in Japan. Osaka Gas dispatches its members to provide support in engineering and sales.
Osaka Gas aims to develop this city gas venture in India into one of its core businesses in Asia and to contribute to carbon emissions reduction and stable energy supply in India.
■ Scheme diagram
LCNG (liquefied and compressed natural gas) station (Jodhpur, Rajasthan, India)
■ Gas supply system using LNG tanker trucks
- *1 More than four million CNG vehicles were registered in cumulative total in India as of FY2021 (a little under 50,000 in Japan).
- *2 In December 2019, the Indian government announced a goal of increasing the percentage of natural gas as a primary energy source from 6% in 2019 to 15% by 2030.
- *3 As announced in “Investments and a Conclusion of Collaboration Agreement with AGP International Holdings Pte. Ltd. as Development of Natural Gas Infrastructure Proceeds”
- *4 Osaka Gas’s city gas sales volume (45 MJ/m³) on a non-consolidated basis for FY2021 was 7.121 billion m³.
- *5 The shareholders for AG&P SPV3 are AGP IH, OGS (expected to invest a maximum of USD 65 million), and JOIN.
Efforts in Renewable Energy Business
Solar power generation business
Efficient use of biogas
A main component of biogas is methane, as in the case of natural gas. Biogas is a renewable energy source and is seen as an effective tool to combat global warming. Osaka Gas began purchasing biogas in September 2010 on behalf of customers who are to receive the gas from us through our pipelines, in line with our “Biogas Procurement Guidelines” a set of conditions we apply when we buy biogas for customers.
It is a pilot project Osaka Gas launched jointly with Kobe City and Kobelco Eco-Solutions Co., Ltd., in which biogas produced at the processing plant in Kobe City is provided as our city gas to customers via gas pipeline operated by the Company. The amount of biogas we accepted into our pipelines whose brand name is “Kobe Biogas” was about 800,000 m3 per year (equal to the gas consumed annually by about 2,000 households) by March 2022. Daigas Energy Co., Ltd., one of the Daigas Group companies, has been working to effectively utilize biogas at local governments and private facilities.
For local governments, Daigas Energy Co., Ltd. began operating the “Power Generation Business Using Digester Gas at Sewage Plants in Osaka City” in April 2017 in partnership with the Osaka City municipality, Tsukishima Kikai Co., Ltd., and Tsukishima Technology Maintenance Service Co., Ltd. The total power generation capacity of the 4 treatment plants is approximately 4,090 kW, and the estimated annual power generation is approximately 25.8 million kWh (equivalent to electricity consumption of about 7,100 households). The project is one of the largest of its kind to be launched in Japan under the feed-in-tariff (FIT) power purchasing system, introduced in line with the Act on Special Measures Concerning the Procurement of Electricity from Renewable Energy Sources by Electricity Utilities.
Daigas Energy Co., Ltd. has also been working on a digester gas power generation project jointly with Kobelco Eco-Solutions Co., Ltd. under the FIT system. In Takasago City, operation of the Digester Gas Power Generation Project at the Iho Purification Center in Takasago City (power generation capacity: 75 kW, expected annual power generation amount: about 440,000 kWh, equivalent to electricity consumption of about 130 households) started in April 2018. In Kobe City, operation of the Digester Gas Power Generation Project at the Tamatsu Treatment Plant (power generation capacity: 450 kW, expected annual power generation amount: about 3.1 million kWh, equivalent to electricity consumption of about 900 households) started in May 2018.
For private facilities, Daigas Energy Co., Ltd. started a power generation project under the FIT system by using biogas recovered from wastewater treatment equipment (anaerobic treatment), etc. at the Daimon Plant of Maruyanagi Foods Inc. (power generation capacity: 75 kW, expected annual power generation amount: about 360,000 kWh, equivalent to electricity consumption of about 100 households) in March 2020. At the Yasuda Factory of Cow Brand Soap Kyoshinsha Co., Ltd., operation of a project to use biogas recovered from the wastewater treatment equipment (anaerobic treatment) as the heat source of steam boilers and supply steam started in February 2013. (The energy utilization factor of the factory was reduced by 15% compared to the level before introduction of the equipment.)
In combination with six other private facilities (eight private facilities in total), electricity of about 6,000 kW is generated.
The Daigas Group continues to contribute to a decarbonized society by effectively utilizing biogas.
Energy Bank Japan Co., Ltd.
Power generation project based
on renewable energy sources launched using unique financing technology
Energy Bank Japan Co., Ltd., a Daigas Group company, has undertaken projects aimed at promoting power facilities based on renewable energy sources across Japan, including solar power facilities, using its unique financing technology called “EcoWave,” known to have been effective in diffusing energy-saving facilities developed by Osaka Gas.
A financing scheme under EcoWave enables customers to install power facilities run using renewable energy sources without any initial investment. The scheme focuses on fund raising exclusively earmarked for developing renewable energy sources. Under the scheme, highly professional services backed by technological expertise are provided to local communities to support their efforts to develop renewable energy sources with the aim of promoting local production and local consumption.
As of the end of March 2022, power generation projects totaled 42 cases with a combined power generation capacity of 54,109 kW.
- Sustainability of
the Daigas Group
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