NEDO’s Energy Conservation Activities

1. NEDO’s Energy Conservation Activities September 2, 2013 Masahide Shima Director General Energy Conservation Technology Department, New Energy and Industrial Technology Development Organization (NEDO), JAPAN

2. Index 1. Trends of Energy Consumptions in Japan 2. Energy Policy for Promoting Energy Conservation in Japan 3. Examples of NEDO‘s R&D technologies in Energy Conservation

3. 1. Trends of Energy Consumptions in JapanJapan’s Energy Conservation Trends Source: Development of Energy Conservation Policy, Law and Management Concept in Japan (Akira Ishihara, ECCJ)

4. Japan’s Energy Consumption Trends • Final energy consumption has increased about 1.3 times since 1973, whereas real GDP increased about 2.4 times in the same period. • Industrial sector energy consumption has leveled off, but a significant increase in energy consumption has been observed in the consumer sector (commercial and residential subsectors). (JPY trillion) (Petroleum equivalent in million tons) Real GDP 1973→2011 2.4times 23.3% Transportation sector 33.8% Consumer sector 42.8% Industrial sector Source: Comprehensive Energy Statistics and Annual Report on National Accounts

5. 2. Energy Policy for Promoting Energy Conservation in Japan Energy Policy for Promoting Energy Conservation in Japan

6. Outline of 2011 Strategy for Energy Efficiency Technologies Objectives • In order to achieve goals for 2030 included in the Basic Energy Plan, the 2011 Strategy for Energy Efficiency Technologies aims to develop energy efficiency technologies, promote the introduction and international deployment of such technologies, serve as a guideline for stimulating economic growth and realize Japan’s aspiration to be the world’s leading nation in terms of energy efficiency technologies. • This strategy therefore prioritizes wide-ranging energy efficiency technologies and selects key technologies that can meaningfully contribute to Japan’s energy-saving efforts. Industrial sector Key technologies • Technologies to minimize exergy loss • Technologies to improve system energy efficiency • Technologies to manufacture energy-saving products Cross-sector • ZEB and ZEH • Energy-saving information devices and systems • Energy efficiency technologies to suit personal preferences • Stationary fuel cells • Next-generation heat pump systems • Power electronics • Next-generation heat and power networks • Next-generation vehicles • ITS • Intelligent logistics system Transport sector Residential/ Commercial subsectors

7. Key Technologies of 2011 Strategy for Energy Efficiency Technologies

8. Key Technologies (1/4) Industrial Sector Technologies to minimize the loss of exergy (available energy) being used in various production processes Examples: ・Energy-saving production ・Innovative iron-making technology ・Industrial heat pumps ・High-efficiency thermal power generation Technologies that are expected to achieve significant energy-saving effects when used in conjunction with other technologies or new concepts (flexible heat utilization by means of heat storage, heat transportation, etc.) Examples: ・Cross-industry energy networks ・Laser processing Technologies to manufacture products which are not particularly energy-saving but will offer significant energy-saving effects for manufactured products Examples: ・Ceramic manufacturing technology ・Carbon fiber/composite material manufacturing technology Technologies to improve system energy efficiency Technologies to manufacture energy-saving products Technologies to minimize exergy loss

9. Key Technologies (2/4) Residential and Commercial Sectors New concepts and methods to develop energy-saving efficiency that focus on utilizing and applying different personal comfort levels and preferences, and continue to regard such differences with respect to development. Example: Improving energy-saving efficiency for building frameworks and equipment in homes and buildings, and comprehensive design systems such as load control and integrated control to reduce energy consumption in homes and buildings to virtually net zero. ZEB (Net-zero Energy Buildings) ZEH (Net-zero Energy Homes) Energy-saving That Suits Personal Comfort and Preferences High-efficiency lighting, next-generation lighting Passive building High-efficiency lighting, next-generation lighting Super-insulated home Super-insulated building Technologies that optimize energy-saving for residential and office environments by using control technologies and sensor technologies based on the understanding of human movement. Passivehome Home air-conditioning heat pump ZEH ZEB BEMS Hot-water heat pump High-efficiency water heater Hot-water heat pump High-efficiency water heater Building air-conditioning heat pump HEMS Developing energy-saving technologies for devices and equipment in order to reduce power consumption increases due to the use of IT and other equipment. Technologies that significantly reduce primary energy consumption by enhancing power generation efficiency and heat utilization Technology development Stationary Fuel Cells Energy-saving Information Equipment andSystems Energy-saving next-generationnetwork communication Energy-saving information equipment Technologies to reduce standby power consumption High-efficiency displays Solid oxide fuel cell （SOFC）,Polymer electrolyte fuel cell （PEFC）

10. Key Technologies (3/4) Transport Sector Next-generation vehicles such as electric vehicles have the potential for substantial improvement of fuel efficiency compared to conventional vehicles Examples: ・Electric vehicles ・Plug-in hybrid vehicles ・Fuel cell vehicles Next-generation Vehicles Intelligent Transport Systems (ITS) Technology to promote optimization of traffic systems, including those for people, freight and vehicles, by utilizing information and communication technology and control technology. ITS also includes developing technologies aimed at reducing accidents, mitigating traffic congestion, and promoting energy-saving and environmentally friendly systems. Examples: Example of energy-saving driving support technology): platoon driving ・Energy-saving driving support technology 　　・Transportation demand management technology (TDM) ・Traffic control and management technology 　　・Traffic information provision and management information technology ・Traffic flow mitigation technology Intelligent Logistics ◆Visualization of locations and delivery status of freight, vehicles and storage, delivery management, quality management, and storage management. ◆Provide options for energy-saving methods of transportation ◆Matching technologies between freight information and transportation information ・System integration and unification of facilities and freight handling for transport freight and the coordination of storage facility information Technologies to improve energy saving efficiency and logistics by using communication technologies which coordinate and control information relating to freight, and transportation facilities for processes such as door-to-door transportation, storage, loading and unloading. ・Freight Information using microchips and IC tags ・Location information via GPS ・Visualization of energy consumption ◆Traceability technology for actual transfer conditions ◆Measuring techniques for environmental performance ・Optimal distribution coordination of automobiles, railways and vessels and node upgrades ・Consolidated freight transportation via platoon driving ◆Modal shift ◆Node intelligence

11. Key Technologies (4/4) Cross-sector Technology that supports high-efficiency electric power supply systems used in all fields and meets the soaring energy consumption demand as a result of IT development. Examples: ・Wide-gap semiconductors　・High-efficiency inverters Systems to achieve high-efficiency, low cost heat pumps and reduce greenhouse gas emission by developing systemization and innovative element technologies for heat pumps. ●Systemization technologies: Technologies for utilizing unused heat, technologies for collecting and storing high-efficiency heat, technologies for streamlining low load areas, etc. ●Innovative element technologies: Technologies for high-efficiency refrigeration cycles, development of new refrigerants, high-efficiency heat exchange equipment,technology for high-efficiency compressors, etc. Examples: ・HPs for home, office buildings and factory air-conditioning ・HPs for car air-conditioning ・Industrial use HPs ・HPsfor hot water ・HPs for refrigerators, freezers, etc. Next-generation Heat Pump Systems Power Electronics Comprehensive energy-saving technologies, including heat networks designed for the efficient use of heat, next-generation energy management systems designed to optimize energy use within certain regions, and next-generation energy transmission and distribution networks which support the introduction of renewable energy. Examples: ・Next-generation energy management systems ・Next-generation energy transmission and distribution networks ・Next-generation district heating networks ・Cogeneration ・Industrial fuel cells （SOFC） ・Heat transport systems ・Heat storage systems Next-generation Heat and Power Networks

12. 3. Examples of NEDO‘s R&D technologies in Energy Conservation Materials and Power Application of Coated ConductorsM-PACC Project (2008-2012)SMES,Cable,Transformer and High-performance/Mass Production of C.C. Budget: Up to $30 Million Per Year for 5 Years

13. 2MJ SMES model for >20MJ SMES 2MVA transformer for 20MVA transformer Market Field Test 66kV-5kA, 275kV-3kA cable Coated conductorsfor mass-production (10-20km) ----2006’07 ’08 ’09 ’10 ’11’12 SMES Project Materials & Power Application of Coated Conductors,M-PACCProject SMES using LTS metal super- conductors ～ Coated conductors project (1) Applicationenvironment Effect (2) High Ic in B (3) Low AC loss (4) High Jcandmechanical strength (5) Low cost and high yield Y系超電導線材 YBCO tape Preliminary work for applications

14. M-PACC Project: 2008–2012 Project Leader Yuh SHIOHARA SMES NagayaSPL Cable Fujiwara/ Ohkuma SPL Transformer Hayashi SPL C.C. Izumi SPL Standardi- zation JFCC JFCC JFCC Collaborating Universities & Research Labs Kyushu Univ.Nagoya Univ. Kyoto Univ.Waseda Univ. Kagoshima Univ.Iwate Univ.Osaka Univ. Tohoku Univ.LANL 14

15. Conceptual View of Electric Grid System with Superconducting Power Devices for a Stable and Large Capacity Electric Power Supply － SMES, Cable and Transformer － Solution for voltage deviation and step-out of power generator by controlling active power １．Stabilization of electric power system ＳＭＥＳ Cooling tower Cooling devices 2. Superconducting cable Duct retrofitting Duct Cutransformer 3. Superconducting transformer Cu CV cable 500 MW/circuit SC cable 1500 MW/circuit Weight：1/2 Area：2/3 Loss：1/3 Plus: Fault current limiting and nonflammable 3times Capacity Underground transformer

16. Strategic Innovation Program for Energy Efficiency Technologies Based mainly on the 2011 Strategy for Energy Efficiency Technologies, the New Energy and Industrial Technology Development Organization (NEDO) is promoting seamless development of key technologies that are expected to achieve significant energy-saving effects following their commercialization. (FY2013 budget：　9 billion yen (about 90 million US dollar) The goal of this energy conservation program is to reduceJapan’s energy consumption by 10 million kl crude oil equivalent by 2030. By introducing a stage gate evaluation system, each technology development plan will focus on achieving energy conservation targets. Research and Development Selection of Key Technologies Research and Investigation of Energy Efficiency Technologies ●Search for technology seeds ●Consideration of development themes Development of Energy Efficiency Technologies ●Evaluation for selection, stage gate evaluation C O M M E R C I A L I Z A T I O N E V A L U A T I O N Strategy for Energy Efficiency Technologies （13 key technologies） E V A L E V A L E V A L Demonstration phase 　　（up to 1/2of subsidy rate） Practical application phase （up to 2/3of subsidy rate） Incubation phase （up to 2/3 of subsidy rate） Theme Consortiumsbased on technology areas × Power electronics ZEB × Next-generation HP systems Within 1 year Generally within 2 years Generally within 2 years Next-generation heat and power networks

17. Example of Strategic Innovation Program for Energy Efficiency Technologies Project Small Once-through Boiler Power Generation System (1/2) Entrusted company: Kobe Steel, Ltd. Project period: (1) FY2001-FY2003: Preparatory research phase (2) FY2004-FY2006: Scheme for Strategic Development of Energy Conservation Technology Project/Practical Application Development of a Small Once-through Boiler Power Generation System AWARDS 2009NIKKEI BP Japan Innovators Award 2008 JSME Medal for New Technology 2008 The 5th Eco-Products Awards Japan’s industrial technology grand prize "Prime Minister's Prize" 2008 JMF Excellent Energy Saving Machine（Agency for Natural Resources and Energy） Secondary effects ◎ The system is being used at various facilities, including energy companies, food companies, waste disposal sites and hospitals. Multiple systems can be installed in response to load changes. ◎ Air compressors using the same system have also been developed. Micro Screw Expander Steam Generator

18. Example of Strategic Innovation Program for Energy Efficiency Technologies Project Small Once-through Boiler Power Generation System (2/2) Energy Saving Pressure valve Before Installation To process Pressure is only depressed. Boiler Pressure valve After Installation To process Background and technology overview ● Steam is depressurized to appropriate pressure levels by pressure reducing valves in order to be used in manufacturing processes such as heating, distilling, drying and sterilizing. However, pressure energy released in the depressurizing process is not utilized. Steam generators have been developed to generate electricity by effectively recycling the untapped pressure energy. ● Steam generators are equipped with screws that can rotate by a small amount of low-pressure steam. A maximum power output of 160 kW has been achieved from steam at about 10 atmospheres. 160 160 kW Boiler Pressure is depressed and 160kWis generated.

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