Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities

Aspects Determined as Materiality
  • Emissions

    305-5

Principle and Outline

In view of the worldwide trend to combat climate change, the Daigas Group is working on reducing emissions of greenhouse gases generated through our business activities, such as CO2 and methane (CH4), in order to help bring about a low-carbon society. Specifically, we are reducing CO2 emissions when transporting liquefied natural gas (LNG), when manufacturing city gas and when generating electricity. We are also taking various company-wide steps to promote energy saving in business offices while verifying whether our energy-saving efforts have produced the intended results in our own buildings.

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.

Reduction of 2.52 million tons of CO2 emissions in Group business activities

The Daigas Group has been introducing cryogenic power generation facilities for city gas processing, high-efficiency thermal power generation, and renewable energy sources (solar, wind, biomass, etc.). These business activities have contributed to a reduction in emissions of approximately 2.52 million tons in FY2020.

GHG Emissions at Daigas Group

Third-party verification completed Osaka Gas underwent a third-party review by Bureau Veritas Japan Co., Ltd.

Initiatives to reduce CO2 emissions from energy consumption and methane (CH4) emission

In the Daigas Group, we work to reduce CO2 emissions from energy consumption and methane (CH4), the main component of natural gas in the gas business and in the thermal supply and power generation businesses, as well as CO2 emissions from energy consumption at affiliates.*

* Affiliated Companies

Of Osaka Gas's 156 consolidated subsidiaries, 58 companies are subject to the calculation of GHG emissions. Those housed in office buildings as tenants and whose environmental data are difficult to grasp and whose environmental effects are minimal are not subject to such calculation. Also excluded from the calculation are overseas companies whose environmental impacts are minimal. However, the aggregate number of companies may differ by fiscal year and by item due to company mergers and others.

(As of March 31, 2020)

Group companies No. of companies Company names
Energy Resources & International Business Unit 1 Michigan Power Limited Partnership
LNG Power & Engineering Business Unit 17 Gas and Power Co., Ltd., Nakayama Joint Power Generation Co., Ltd., Nakayama Nagoya Joint Power Generation Co., Ltd., Hirogawa Myojinyama Wind Farm Co., Hayama Wind Farm, Yura Wind Farm Development, Hizen Wind Farm, Hirao Wind Farm, Inami Wind Power Plant, Senboku Natural Gas Power Generation, Daigas Oita Mirai Solar, Osaka Gas Liquid Co., Ltd., Cold Air Products Co. Ltd., Cryo-Air Co. Ltd., Kinki Carbonic Co., Ltd., Gasnet Co. Ltd., Osaka Gas Engineering Co., Ltd.
Pipeline Business Unit 2 Kinpai Co., Ltd., Osaka Gas Renotech Co., Ltd.
Residential Energy Business Unit 10 Living Maintenance Service Hokuto Co., Ltd., Living Maintenance Service Osaka Co., Ltd., Osaka Gas Cooking School Co., Ltd., Create Kansai Co., Ltd., Osaka Gas Customer Relations Co., Ltd., Aqua Brain Co., Ltd., Kansai Business Information Inc., Osaka Gas Housing & Equipment Co., Ltd., Osaka Gas Security Service Co., Ltd., Osaka Gas Finance Co., Ltd.
Commercial & Industrial Energy Business Unit 9 OGCTS Co., Ltd., Ashiyahama Energy Service Co., Ltd., Rokko Island Energ Service Co., Ltd., Enetec Kyoto Co., Ltd., Enetec Osaka Co., Ltd., Nabari Kintetsu Gas Co., Ltd., Toyooka Energy Co., Ltd., Shingu Gas Ltd., Biwako Blue Energy Co., Ltd.
Group Headquarters 5 OG Sports Co., Ltd., Osaka Gas Autoservice Co., Ltd., Osaka Gas Finance Co., Ltd., Osaka Gas Business Create Co., Ltd., Active Life Inc., KRI Inc.
Osaka Gas Urban Development Group 3 Osaka Gas Urban Development Co., Ltd., Osaka Gas Facilities Corp., Kyoto Research Park Co., Ltd.,
OGIS Research Institute Group 7 OGIS-RI Co., Ltd., Agnie Consulting Corp., Sakura Information Systems Co., Ltd., SIS Techno-Service Co., Ltd., JOE Corp., Ltd., Ube Information Systems Inc., System Answer Inc.
Osaka Gas Chemicals Group 4 Osaka Gas Chemicals Co., Ltd., Minabe Chemical Industries Ltd., Mizusawa Industrial Chemicals, Ltd., Mizuka Unyu Co., Ltd.
Total 58
■GHG Emissions* (1,000 t-CO2e)
(FY) 2016 2017 2018 2019 2020
Consolidated companies (Osaka Gas and its affiliates) 69 65 58 57 59
Total 4,164 4,363 5,159 5,350 4,963
Osaka Gas 212 259 259 209 207
LNG terminal 93 88 84 89 97
Power plant 65 120 124 73 63
District heating / cooling 11 11 10 9 9
Other 43 40 41 38 38
Affiliates 3,952 4,104 4,900 5,140 4,756
Power generation 3,622 3,783 4,581 4,805 4,431
District heating / cooling 107 108 104 97 91
Other 224 214 215 238 234
  • *GHG emissions
    [CO2 emissions] CO2 emissions calculated using the average emission factor for thermal power source are subject to management in the Daigas Group so that the benefit of reducing the consumption of purchased electricity can be properly evaluated.
    CO2 emissions for FY2017 were calculated using the average emission factor of 0.65 t-CO2 / 1,000 kWh, a figure Decemberided under a government plan to combat global warming, approved by the Cabinet in 2016. CO2 emissions through FY2016 were calculated using the factor of 0.69 t-CO2 / 1,000 kWh, a figure shown in an Interim Summary Report compiled in 2001 by the Target Attainment Scenario Subcommittee under the Global Environmental Committee of the Central Environmental Council.
    [CH4 emissions]
    CH4 emission is calculated using the global warming factor of 25, defined in the UNFCCC reporting guidelines on annual greenhouse gas inventories published in 2012. Greenhouse gas emissions are defined as the aggregate of CO2 emissions and CO2 equivalent of CH4 emissions.
■(Reference) GHG Emissions for Comparison* (1,000 t-CO2e)
(FY) 2016 2017 2018 2019 2020
Total 4,089 4,283 5,073 5,248 4,853
Osaka Gas 185 239 239 181 170
LNG terminal 73 75 72 68 68
Power plant 65 120 124 72 62
District heating / coolings 10 10 9 9 8
Other 36 33 34 31 31
Affiliates 3,904 4,045 4,834 5,067 4,683
Power plant 3,619 3,781 4,579 4,803 4,428
District heating / cooling 97 98 94 86 78
Other 188 167 162 178 176
  • * GHG emissions for comparison
    For calculation of the yearly CO2 emissions of purchased electricity, the most recent emission factor of the Kansai Electric Power Co., Inc. is used. (e.g. The CO2 emission factor of FY2015 is calculated based on the emissions during FY2014) CO2 emissions of FY2016 and after are calculated using emission factors of electric companies from which we purchased electricity. The yearly CO2 emissions of purchased electricity is calculated by multiplying the year's electricity consumption by the year's emission factor.

CO2 emissions from Osaka Gas's city gas business * Not subject to third-party verification.

CO2 emissions in Osaka Gas’s city gas business for FY2020 stood at 136,000 tons, with CO2 emissions per cubic meter of gas production (emissions intensity) of 18.2 g-CO2/m³. Compared to 1990, the Kyoto Protocol’s benchmark year, total CO2 emissions were down by 49%, and emissions on a per-unit basis fell by 69%.

Efforts in recent years, such as the use of cogeneration systems and cryogenic power generation at city gas processing plants, energy efficient operations, and efforts to conserve energy in office buildings have succeeded in keeping both emissions and intensity at low levels. In FY2020, CO2 emissions and intensity increased from the previous fiscal year due to the impact of partial line stoppages caused by construction work at processing facilities.

In 1979, Osaka Gas became the first company in the world to begin operating a cryogenic power generation facility, and in FY2020 the Senboku LNG Terminal and the Himeji LNG Terminal produced approximately 60.0 million kWh cryogenically.

We will work toward further CO2 emission reductions by aggressively using electricity produced by unused energy such as LNG cryogenics and the gas pressure of gasification, as well as by promoting energy savings in office buildings.

■ CO2 Emissions from the City Gas Business of Osaka Gas (LNG terminals and business locations)
CO2 Emissions from the City Gas Business of Osaka Gas

Methane emissions from Osaka Gas's city gas business

In the city gas business of Osaka Gas, methane (CH4) gas is emitted during measurement of gas quality and gas fitting work. We therefore strive to reduce emissions by introducing a system that can recollect gas without it being released into the air after the measurement, by employing a no-blow gas shutting-off method and using an Eco Purge vehicle.

In FY2020, Osaka Gas emitted 106 tons of methane from its city gas business.

■ Methane Emissions at Osaka Gas
(FY) 2016 2017 2018 2019 2020
Methane emission (t-CH4) 92 75 77 88 106

CO2 emissions from affiliates

CO2 emissions from affiliate companies amounted to about 4.756 million tons in FY2020.

Most of the total comprised CO2 emitted at fossil-based power stations. The Daigas Group is striving to curb CO2 emissions from its business operations and at the same time achieve energy savings by combining the operation of energy-efficient fossil-derived power stations with the use of renewable energy sources.

Efforts by the Daigas Group to Reduce CO2 Emissions from City Gas Business

Efforts to reduce CO2 emissions in LNG transportation

  • In November 2018, Osaka Gas put the fuel-efficient LNG JUNO into service for the transport of LNG, an essential material for city gas. Osaka Gas adopted the new Sayaringo type of LNG carrier, which was instrumental in increasing LNG capacity without changing the width of the vessel. The carrier also adopted a new hybrid propulsion system, further reducing fuel consumption and lowering CO2 emissions and transport costs.
  • Low fuel consumption LNG carrier chartered

    Low fuel consumption LNG carrier chartered

Efforts to reduce CO2 emissions at city gas processing terminals

We are endeavoring through a variety of energy conservation activities to reduce CO2 emissions at city gas processing terminals. We are endeavoring to reduce CO2 emissions at city gas processing terminals through a variety of energy conservation activities.

One example is the reduction of purchased electricity achieved by recovering the kinetic energy from LNG regasification and using it for power generation. This is cryogenic power—LNG cryogenics—a system that generates power without fuel and produces zero CO2 emissions. A new cryogenic power generation facility was put into operation at the Himeji LNG Terminal in March 2017.

The Group is also putting in place various policies to ensure the efficient operation of LNG cryogenic power generation facilities. Cold energy from LNG is supplied to a chemical plant adjacent to the Senboku Terminal for their cooling processes, also helping other companies in the vicinity to save energy and reduce CO2 emissions.

Reducing CO2 emissions at offices

At offices of each company of the Daigas Group, many small steps are being taken to save energy that will add up for achieving energy consumption and CO2 emissions targets. These include having all employees turn off lights that are not needed, switching off office equipment if not in use, and maintaining air conditioning temperatures at reasonable levels. The effort is based on standards such as ISO 14001, Eco Action 21, developed by the Ministry of Environment, and the Daigas Group Environmental Management System (OGEMS). Under the EMS, each and every employee strives to reduce his or her own energy consumption by turning off lights and office equipment not currently needed or in use, and setting air conditioning to reasonable temperatures in line with set targets.

The Daigas Group has actively been implementing advanced energy-conservation measures and measures to reduce CO2 emissions when its buildings are renewed or renovated.

Measures deemed effective for energy saving are horizontally applied to all office buildings of the Daigas Group under the Green Gas Buildings project, which has so far resulted in nine extensively renovated or newly constructed “Green Gas Buildings” by August 2018.

In addition, the Fukiai office of Osaka Gas, located in Kobe City, Hyogo Prefecture, introduced “BCP-Lite,” *1 an emergency power-supply system that enables even a small-sized building not usually equipped with a backup power generator to continue the minimum level of business operations in the event of a natural disaster. The “BCP-Lite” is a system in which the concept of a Business continuity plan (BCP) was added to our conventional energy-saving equipment. We expect this to help the building of a low-carbon society in the future while supporting our business continuity in the event of a contingency.

The “hu+gMUSEUM,” a showroom of Osaka Gas, is equipped with facilities with high energy efficiency, including cogeneration systems, regional air-conditioning systems, solar power generation systems, and solar-heat systems. Furthermore, the Group has built a Smart Energy Network in Osaka City's Iwasaki District where the showroom is situated. The network has played an important role in promoting the region's overall energy saving by establishing an optimal energy control system to ensure the most efficient use of energy (electricity and heat) generated in buildings and devising a high energy security system that can effectively respond to unscheduled power outage.

  • Fukiaki Office

    Fukiaki Office

  • The “hu+gMUSEUM”

    The “hu+gMUSEUM”

  • The Daigas Group received the “Building Energy-efficiency Labeling System (BELS)” *2 assessment for two of its properties in FY 2017. The most recently constructed buildings of the Fukiai Office and the hu+gMUSEUM received four stars and five stars, respectively, under the five-star BELS system for their excellent energy conservation performance. Their respective energy-conservation rates in the year were a high 33% and 39%.

    Osaka Gas received the 2018 technology promotion award from the Society of Heating, Air-Conditioning and Sanitary Engineers of Japan for its contribution to local communities and concretization of an advanced energy system through its hu+gMUSEUM showroom, which was recognized as the utility's new information dissemination base.
  • BELS table and plate for hu+gMUSEUM

    BELS table and plate for hu+gMUSEUM

  • *1 ”BCP-Lite”
    ”BCP-Lite” is an emergency power supply system for office buildings in which electricity can be supplied without interruption even if power outage occurs following a natural disaster. A self-driven gas engine heat pump (GHP) is incorporated into the system.
  • *2 BELS
    BELS stands for “Building Energy-efficiency Labeling System.” The labeling system for buildings and housing is aimed at evaluating the energy-saving ability of nonresidential buildings based on the Act on Improvement of the Energy Consumption Performance of Buildings. The evaluation, certified by third parties, is given on a scale of one to five stars. The evaluation result is represented by a number of stars displayed on a special plate.
  • Smart Energy Network

    Osaka Gas structured a district heating and cooling system at the area surrounding the facilities of the Company in Nishi Ward in Osaka City. The system also functions as the Smart Energy Network, where heat and electricity generated in the area are accommodated in the community. The system can be controlled optimally from the perspective of the entire area, realizing an approach to urban planning that allows energy to be used efficiently.

  • Smart Energy Network

Efforts to reduce CO2 emissions through district heating and cooling systems

  • District heating and cooling systems are designed to enable people and offices in the same district to share air conditioning, heating, and hot-water supplying equipment with each other, produce a large amount of cold and hot water for the entire district, and supply it. The Daigas Group was Japan’s first to begin operating a district heating and cooling system in the Senri Chuo district in Toyonaka City, Osaka Prefecture, on the occasion of Expo ‘70 in Osaka in 1970. Since then, the Group has adopted a variety of optimal energy systems in the respective districts in various urban development projects. Currently, a total of nine districts, including five in Osaka Prefecture, as well as in Kyoto, Nara, and Kobe, use district heating and cooling systems. We were ahead of other companies in introducing gas cogeneration systems within the framework of district cooling and heating systems. We have also proactively launched new businesses, including accepting waste heat from customers’ cogeneration systems and supplying power as a registered Specified Electricity Transmission and Distribution Utility.

    The Daigas Group has also been working to secure stable heat supplies, promote the advanced use of energy, increase the efficiency of management work, and cut business costs. The Group has recently built a Smart Energy Network combining a natural gas cogeneration system and renewable energy in the Iwasakibashi district (Nishi-ku, Osaka City) with the aim of conserving energy and strengthening energy security.

    Currently, we are introducing high-efficiency equipment on the occasion of equipment renewal in the Iwasakibashi district and the Sanjo district in Nara Prefecture. We aim to further increase the efficiency of our systems.
  • High-efficiency gas-fired absorption chiller in the Iwasakibashi district

    High-efficiency gas-fired absorption chiller in the Iwasakibashi district

Efforts to Reduce CO2 Emissions from Electricity Business

The Daigas Group engages in the electricity generation business using various power sources it owns, including fossil-based power generation, gas cogeneration systems and renewable energy sources. The Daigas Group is striving to reduce CO2 emissions—not only from its own business operations but also from operations at customers—by introducing highly energy-efficient fossil-based power generation systems and actively using renewable energy sources.

■ Power Generation Facilities Operated by the Daigas Group (domestic facilities for power generation)

(As of March 31, 2020)

Name of project Location Power generation
capacity
Power generation
method
When the project began
operating
Natural gas-based power
generation
  Senboku Terminal (No. 1 Plant) Sakai City,
Osaka Prefecture
20,000 kW GTCC*1 and others July 2002
Senboku Natural Gas Power Generation Co., Ltd.
Senboku Natural Gas Power Plant
(Unit 1, Unit 2: No. 2 Plant of Senboku
Terminal)
(Unit 3, Unit 4: No. 1 Plant of Senboku
Terminal)
Osaka Prefecture
Unit 1, Unit 2:
Takaishi City
Unit 3, Unit 4:
Sakai City
Unit 1, Unit 2:
277,000 kW
Unit 3, Unit 4:
277,500 kW
Total
1,109,000 kW
GTCC April 2009 (Unit 2)
May 2009 (Unit 1)
October 2009 (Unit 4)
November 2009 (Unit 3)
Himeji Terminal Himeji City,
Hyogo Prefecture
66,000 kW GTCC and others April 2004
Nakayama Joint Power Generation
Co., Ltd.
Funamachi Power Plant
Taisho Ward,
Osaka City
149,000 kW GTCC April 1999
Daigas Gas and Power Solution
Co., Ltd.
Torishima Energy Center
Konohana Ward,
Osaka City
141,000 kW GTCC April 2002
Daigas Gas and Power Solution
Co., Ltd.
Uji Energy Center
Uji City,
Kyoto Prefecture
67,000 kW GTCC October 2004
Daigas Gas and Power Solution
Co., Ltd.
Settsu Energy Center
Settsu City,
Osaka Prefecture
17,000 kW Gas engine April 2006
Daigas Energy Co., Ltd.
Senri Energy Center
Toyonaka City,
Osaka Prefecture
7,000 kW Gas turbine January 2008
Biomass-fired and coal-fired power generation
  Nakayama Nagoya Joint Power Generation Co., Ltd.
Nagoya Power Plant
Chita County,
Aichi Prefecture
149,000 kW Coal steam turbine,
biomass (5%)
April 2000
Nakayama Nagoya Joint Power Generation Co., Ltd.
Nagoya No. 2 Power Plant
Chita County,
Aichi Prefecture
110,000 kW Coal steam turbine,
biomass (30%)
September 2017
Biomass power generation
  Biomass Power Technologies Inc.
Matsusaka Woody Biomass Power
Plant
Matsusaka City,
Mie Prefecture
2,000 kW Exclusively for biomass
burning, direct burning plant
(air-cooling method)
January 2018
Wind power
  Hayama Wind Power Generation Co., Ltd.
Hayama Wind Farm
Takaoka County,
Kochi Prefecture
20,000 kW Wind power
(1,000 kW x 20 units)
March 2006
Hirogawa Myojinyama Wind Power Generation Co., Ltd.
Hirogawa Myojinyama Wind Farm
Arida County,
Wakayama
Prefecture
Hidaka County,
Wakayama
Prefecture
16,000 kW Wind power
(1,000 kW x 16 units)
November 2008
Yura Wind Development Co., Ltd.
Yura Wind Power Plant
Hidaka County,
Wakayama
Prefecture
10,000 kW Wind power
(2,000 kW x 5 units)
September 2011
Hizen Wind Power Generation
Co., Ltd.
Hizen Wind Farm
Karatsu City,
Saga Prefecture
12,000 kW Wind power
(1,500 kW x 8 units)
March 2005
Hizen Wind Power Generation
Co., Ltd.
Hizen Minami Wind Farm
Karatsu City,
Saga Prefecture
18,000 kW Wind power
(1,500 kW x 12 units)
January 2008
Hirao Wind Development Co., Ltd.
Hirao Wind Power Plant
Kumage County,
Yamaguchi
Prefecture
9,000 kW Wind power
(1,500 kW x 6)
April 2009
Inami Wind Power Station Co., Ltd.
Inami Wind Power Station
Hidaka County,
Wakayama Prefecture
26,000 kW Wind power
(2,000 kW x 13 units)
June 2018
Solar power generation and others
  Daigas Gas and Power Solution
Co., Ltd.
Torishima Solar Power Plant
Konohana Ward,
Osaka City
1,800 kW*2 Solar power April 2013
Daigas Gas and Power Solution
Co., Ltd.
Torishima Second Solar Power Plant
Konohana Ward,
Osaka City
1,200 kW*2 Solar power January 2014
Daigas Gas and Power Solution
Co., Ltd.
Shoo Solar Power Plant
Katsuta County,
Okayama
Prefecture
900 kW*2 Solar power April 2013
Hirogawa Myojinyama Wind Power Generation Co., Ltd.
Hirogawa Myojinyama Wind Farm
Arida County,
Wakayama
Prefecture
800 kW*2 Solar power April 2013
Yura Wind Development Co., Ltd.
Yura Solar Power Plants
(North and South)
Hidaka County,
Wakayama
Prefecture
1700 kW*2 Solar power December 2016
Nabari Kintetsu Gas Co., Ltd.
Yahata Solar Power Plant
Nabari City,
Mie Prefecture
700 kW*2 Solar power September 2013
Daigas Oita Mirai Solar Co., Ltd.
NISSAN Green Energy Farm in Oita
Oita City,
Oita Prefecture
26,500 kW*2 Solar power May 2013
Daigas Energy Co., Ltd. 6 plants 11,000 kW*2 Solar power and others
Energy Bank Japan Co., Ltd. 25 plants 44,300 kW*2 Solar power and others
Total domestic power generation capacity for electricity
business
2,003,500 kW*3
  • *1 GTCC
    Gas turbine combined-cycle power generation method
  • *2 Output capacity for solar power is measured in terms of solar power panels.
  • *3 Calculated based on the output capacity owned by our company

Overview of Senboku Natural Gas Power Plant

Senboku Natural Gas Power Plant contributing to the reduction of environmental impacts
  • In FY2010, Osaka Gas's natural gas power plant at the Senboku LNG Terminal, a core part of our power generation business, went into operation, with four turbines working at a total capacity of 1.109 million kW. The Senboku Natural Gas Power Plant uses natural gas for power generation, creating far less impact on the environment than using other fossil fuels such as oil and coal. Other features make this plant a cutting-edge facility with minimal environmental impact; for example, the use of the gas turbine combined cycle method, which has a high energy efficiency.
  • Senboku Natural Gas Power Plant

    Senboku Natural Gas Power Plant

Adoption of a gas turbine combined-cycle power generation method

Under the gas turbine combined-cycle power generation system, natural gas is combusted in the gas turbine's combustor, and the combusted gas then turns the gas turbine to generate electricity. In addition, the heat of the gas turbine's exhaust gas creates steam in an exhaust heat recovery boiler that turns a steam turbine to generate electricity. This gas turbine combined-cycle power generation is thus able to attain high efficiency in producing power by recycling the heat of exhaust gas.

The Senboku Natural Gas Power Plant uses a 1,300℃-class gas turbine to achieve a high power generation rate of about 57% (Lower heating value (LHV) standard), helping conserve energy and reducing CO2 emissions.

Also, Himeji Natural Gas Power Generation Co., Ltd., a wholly owned subsidiary of Osaka Gas, is proceeding with a project for newly building the Himeji Natural Gas Power Plant. This project adopts a highly energy-efficient gas turbine combined-cycle system and has undergone an inspection based on the Environmental Impact Assessment Act. As part of this power generation business plan (about 1.8 million kW), Osaka Gas decided in September 2019 to invest in power generation of about 1.2 million kW.

Fukushima Gas Power Co., Ltd., in which Osaka Gas has a 20% investment, has been working on a natural-gas-fired power generation project at Soma Port, Fukushima Prefecture. This project, too, adopts a high-efficiency gas turbine combined-cycle system consisting of two 590,000 kW power generation facilities, and one of them started operation in April 2020.

■ Energy Efficiency of Gas Turbine Combined-Cycle Power Generation
Energy Efficiency of Gas Turbine Combined-Cycle Power Generation
Preventing air pollution

Because the Senboku Natural Gas Power Plant uses natural gas, its exhaust gas contains no sulfur oxides (SOx) or soot and dust. Although nitrogen oxides (NOx) are generated by the combustion of natural gas, they are minimized by the use of a low NOx burner, and those that are generated are further reduced by an exhaust NOx removal system.

■ Plant Specifications
Power generation system Gas turbine combined cycle power generation Generating capacity
Generating capacity (Senboku LNG terminal Ⅱ) (Senboku LNG terminal Ⅰ)
No. 1 turbine: 277,000 kW No. 3 turbine: 277,500 kW
No. 2 turbine: 277,000 kW No. 4 turbine: 277,500 kW
Total: 554,000 kW Total: 555,000 kW
Fuel Natural Gas
Environmental protection measures Low NOx burner, ammonia-based exhaust NOx removal system, discharged water processing system, etc.
■Plant System Flowchart
Plant System Flowchart
・Use of existing infrastructure

The need for new facilities for the plant is being minimized by locating the plant on the site of the Senboku LNG Terminal, which is equipped with an infrastructure that includes fuel supply facilities.

・Remote operational surveillance system

Stable operation of the plant by a small workforce is achieved by development of an integrated operational monitoring system for controlling power generating facilities spanning two sites.

・Fuel

Use of natural gas (LNG) as the fuel for generating electricity means that no SOx or soot and dust are generated.

・Burner

The latest low NOx burners are used to reduce NOx emissions.

・Inlet air cooling system

Gas turbine intake air is cooled to limit the reduction in power output at high temperatures.

・Flue

Flue height is increased to reduce ground-level concentrations of NOx.

・NOx removal system

Inside the waste heat recovery boiler is an exhaust NOx removal system, which uses the dry ammonia catalytic reduction method to break the NOx content of combustion gas down into water and nitrogen and reduce the concentration of NOx in the exhaust gas.

・Cooling towers

No warm wastewater is discharged due to the use of a cooling tower system.

・Wastewater treatment system

Wastewater from the power plant is treated by a wastewater treatment system comprising coagulation sedimentation, filtration, activated carbon adsorption, and pH adjustment to reduce the impact on water systems.

Overview of Nagoya Power Plant and Second Nagoya Power Plant

Smooth operation of Nagoya Power Plant and Second Nagoya Power Plant contributes to the reduction of environmental impacts.
  • Nagoya Power Plant (capacity: 149,000 kW) and Second Nagoya Power Plant (capacity: 110,000 kW) use mixed fuel, coal and woody biomass, to substantially reduce CO2 emissions. The plants are also equipped with the latest environmental conservation technology to reduce hazardous substances and noise.
  • Nagoya Power Plant and Second Nagoya Power Plant

    Nagoya Power Plant and Second Nagoya Power Plant

Biomass-combined coal-fired power generation
  • Nakayama Nagoya Joint Power Generation Co., Ltd., a Daigas Group company, has adopted a biomass-combined coal-fired power generation method at the Nagoya Power Plant (coal-fired plant) and the Second Nagoya Power Plant (coal-fired plant) to curb CO2 emissions. The method uses woody biomass in the base fuel of coal.

    The fuel used at the 149,000-kW Nagoya Power Plant contains 5% woody biomass, while woody biomass accounts for 30% of the fuel used at the 110,000-kW Second Nagoya Power Plant. We aim to operate these plants effectively by taking advantage of lessons and know-how drawn from existing power plants.
  • Biomass fuel burned together with coal(white pellet)

    Biomass fuel burned together with coal (white pellet)

Preventing air pollution

The boilers at Nagoya Power Plant and Second Nagoya Power Plant are equipped with various flue-gas purifiers, such as a low NOx burner and denitration system to reduce NOx generation, an electrostatic precipitator to eliminate dust, and a desulfurizer system to reduce sulfur emissions.

■Plant Specifications
Nagoya Power Plant Second Nagoya Power Plant
Power generation
system
Steam-power generation
(using pulverized coal and subcritical pressure)
Steam-power generation
(using pulverized coal and subcritical pressure)
Generating
capacity
149,000 kW 110,000 kW
Fuel Coal, woody biomass (5% mixture in energy ratio),
and kerosene (auxiliary fuel)
Coal, woody biomass (30% mixture in energy ratio),
and kerosene (auxiliary fuel)
Environmental
protection
measures
Low NOx burner, ammonia-based exhaust NOx removal system, electrostatic precipitator, flue-gas desulfurizer system using limestone-gypsum method, etc. Low NOx burner, ammonia-based exhaust NOx removal system, electrostatic precipitator, flue-gas desulfurizer system using limestone-gypsum method, etc.
Cooling system Cooling system using sea water Cooling system using industrial water
■Plant SpecificationsSystem Flow of Second Nagoya Power Plant
Plant SpecificationsSystem Flow of Second Nagoya Power Plant
・Fuel

Woody biomass is mixed with the base coal fuel to reduce CO2 emissions.

・NOx removal system

A flue-gas denitration system (using dry ammonia catalytic reduction method) is installed after the boiler to Decemberompose NOx contained in exhaust gas to water and nitrogen and reduce the NOx concentration in flue gas.

・Electrostatic precipitator

An electrostatic precipitator is installed after the denitration system to eliminate dust in combustion gas.

・Desulfurizer system

A desulfurizer system (limestone-gypsum method) is installed after the electrostatic precipitator to eliminate sulfur emissions in combustion gas.

Sulfur is recovered as a form of gypsum to be effectively recycled.

Introduction of Cogeneration-Based Electricity Sources

Energy-efficient natural gas cogeneration facilities are set up on the premises of a client plant. Electricity and heat (steam) generated using the cogeneration system are provided to client companies. The Daigas Group uses part of the electricity generated as electricity sources for its power business, which helps improve the cogeneration facility utilization rate, promotes efficient energy use and reduces CO2 emissions. Daigas Gas and Power Solution Co., an Osaka Gas Group company, operates this type of facility at two locations—one at the Uji Energy Center for Unitika Ltd. and the other at the Settsu Energy Center for Kaneka Corp. Power output capacity is 66,800 kW at the Uji Energy Center and 17,460 kW at the Settsu Energy Center.

Efforts to Develop and Procure Renewable Energy Sources

  • Inami Wind Power Station in Inami Town, Hidaka County, Wakayama Prefecture

    Inami Wind Power Station in Inami Town, Hidaka County, Wakayama Prefecture

  • The Daigas Group has contributed to reducing CO2 emissions by operating power facilities in Japan using renewable energy sources, such as wind power, solar power and biomass, with a combined output capacity of about 240,000 kW. In Wakayama Prefecture, Inami Wind Power Co., Ltd. began operating the Inami Wind Power Station, a power plant with an output capacity of 26,000 kW, in June 2018.

    In FY2019, the Group announced to build two 75,000 kW biomass-fired power generation plants, the largest of their kind in Japan, in Sodegaura, Chiba Prefecture, and Himeji, Hyogo Prefecture, as part of efforts to further expand electricity generation from renewable energy sources.

    In FY2020, Osaka Gas signed a cooperative agreement with Acacia Renewables K.K., a Macquarie Group company, so that both parties will jointly examine the possibilities for offshore wind power generation in Japan. We will contribute to promoting and spreading offshore wind power generation in Japan through joint examination while combining our knowledge in wind power generation in Japan and the Macquarie Group’s knowledge in wind power generation outside Japan. Moreover, Osaka Gas signed a memorandum of basic understanding with West Holdings Corporation on jointly exploring new added-value creation businesses in the field of renewable energy. In consideration of an expected further increase in environmental awareness, the two parties will jointly examine the possibilities for new businesses in the renewable energy field, such as the joint development of solar power generation for home consumption (based on PPA*) or megasolar power generation, as well as renewable energy transactions.
  • *Power purchase agreement, an electricity sales agreement between a power generator and a power consumer; solar power generation based on this kind of agreement is called PPA-model solar power generation.

The Establishment of the Green Power Fuel Corporation

Osaka Gas Co., Ltd. established Green Power Fuel Corporation in March 2019 as a joint venture with Seishin Shinrin Shigen Co., Ltd. and Nippon Paper Lumber Co., Ltd. to procure and sell domestically grown woody biomass for biomass power plants.

The Daigas Group is planning and operates a number of biomass power plants in Japan, including its participation in the Matsusaka Woody Biomass Power Plant, which is fueled 100% with locally available biomass. In cooperation with Seishin Shinrin Shigen, which has abundant knowledge about the wood industry, and Nippon Paper Lumber, which has a long track record in domestically grown woody biomass, Green Power Fuel will procure and transport leftover, unusable timber from domestic woodlands as fuel for biomass power generation to supply stably to multiple biomass power plants owned or developed by the Daigas Group over the long term.

The Daigas Group is studying the possibility of selling woody biomass to other power generators in the future, aiming to consistently expand the business by utilizing the three companies’ strengths.

TOPIC: Demonstrative Experiment for the Realization of Solar Power Forecasting Services on the Assumption of Independence from FIT

Osaka Gas conducted a demonstrative experiment on the forecast of solar power generation output in cooperation with Next Kraftwerke (hereafter, “NXK”), a German virtual power plant (VPP*1) operator.

The demonstrative experiment was started on October 1, 2019 at the Yura Solar Power Plant (south) owned by Yura Wind Development Co., Ltd., a wholly owned subsidiary of Gas and Power Co., Ltd., a Daigas Group company. The aim of the test was to achieve a highly accurate forecasting service for solar power generation output. Osaka Gas has so far striven to increase the accuracy of its short-range weather forecast technology, for example, by registering as a certified weather forecast provider in September 2018. Through this demonstrative experiment, we aim to achieve highly accurate forecasts of solar power generation output by making forecasts in a timely manner while taking into account weather changes occurring at least one hour before.

Germany, which is a leading country in introduction of renewable energy, adopted the FIT system in 2000, whereby power generated with renewable energy sources is purchased at a fixed price. In 2012, the country adopted a system whereby the purchase price of renewable power is determined by adding a premium charge*2 to the market price. This system, aimed at incorporating renewable energy into the electricity market, is called the FIP system.*3 Since this system was adopted, renewable energy companies have begun to carry out renewable energy forecasting. Therefore, many companies have begun to seek business opportunities in the accurate forecast of renewable power output, which fluctuates widely, and the service of carrying out the market transaction of power on behalf of renewable power suppliers. NXK is one of those companies and has produced remarkable business results. It currently manages solar power generation of 3,100 MW in Germany.

Meanwhile, Japan adopted the FIT system in 2012 to facilitate the introduction of renewable energy. The interim report of the national Subcommittee on Mass Introduction of Renewable Energy and Next-generation Electricity Network maintains that the country should become independent from the FIT system and incorporate renewable energy into the electricity market. It is expected that similar services to those available in Germany will be necessary in Japan too.

Since August 2018, Osaka Gas has conducted demonstrative experiments on the optimal operation and control of storage cells. The Company has thus implemented various measures to become able to provide DR*4/VPP operational services utilizing distributed energy resources efficiently. In this demonstrative experiment, in anticipation of system changes, we aim to become able to provide new services that help utilize renewable energy more efficiently.

  • *1 Virtual power plant, where business operators called “aggregators” use the supply capacity and adjustability provided by dispersed power sources in a bundle
  • *2 Money added to the market price and paid when renewable power is purchased
  • *3 Feed-in premium, a system whereby renewable power is purchased at the price calculated based on the market price and the premium price. Renewable energy companies are responsible for forecasting power generation output and covering the cost of imbalance between the projected output and the actual output.
  • *4 Demand response, which means the control of distributed energy resources by the resources’ owner or third parties, to change the pattern of demand for electricity

International power projects

  • Our international IPP business includes investment in fossil-based power plants and wind and solar power projects in North America and Australia. In 2017, we invested in the Shore Power Plant in New Jersey and the Fairview Power Plant in Pennsylvania in the U.S. (Commercial operation was started in December 2019.) In FY2019, we invested in the Kleen Energy Power Plant and Towantic Energy Center in Connecticut and the Michigan Power Plant in Michigan in the U.S. In FY2020, we Decemberided to invest in SolAmerica Energy, LLC, a U.S.-based distributed solar power generator. This is the Daigas Group’s first participation in a renewable energy business in the U.S.
  • Hallett 4 wind power project in the state of South Australia, Australia

    Hallett 4 wind power project in the state of South Australia, Australia

■ Power Generation Facilities Operated by the Daigas Group (International Facilities for Power Generation)

(As of March 31, 2020)

Name of project Location Operating capacity
(Daigas Group
share)
Power generation
method
When the project
began operating
Tenaska Gateway IPP Texas, USA 845,000 kW
(338,000 kW)
Natural gas, GTCC June 2004 *1
Osaka Gas Power
America
7 plants in USA 1,446,000 kW
(301,000 kW)
Natural gas December 2005*1
Energy Infrastructure
Investments*2
2 plants in Queensland,
Australia
59,000 kW
(18,000 kW)
Natural gas, Gas engine December 2008*1
Hallett 4 Project South Australia,
Australia
132,000 kW
(53,000 kW)
Wind power (2,100 kW × 63 units) June 2011
Shuweihat S2 power
generation and water
desalination project
(IWPP) *3
Abu Dhabi,
United Arab Emirates
1.51 million kW
(151,000 kW)
GTCC October 2011
Aurora-based solar
power generation
project
9 plants in Ontario,
Canada
101,000 kW*4
(51,000 kW)
Solar power February 2013 - March 2014
St. Charles Natural Gas
Power Generation
Project
Maryland, USA 725,000 kW
(181,000 kW)
Natural gas February 2017
Shore Natural Gas
Power Generation
Project
New Jersey, USA 725,000 kW
(145,000 kW)
Natural gas, GTCC March 2017*1
Kleen Energy Natural
Gas Power Generation
Project
Connecticut, USA 620,000 kW
(151,000 kW)
Natural gas May 2018*1
Michigan Power Natural
Gas Power Generation
Project
Michigan, USA 125,000 kW
(125,000 kW)
Natural gas, GTCC July 2018 *1
Towantic Energy Center (natural gas-fired power plant) Connecticut, USA 805,000 kW
(39,900 kW)
Natural gas December 2018*1
Fairview Natural
Gas Power Plant
Pennsylvania, USA 1,050,000 kW
(52,500 kW)
Natural gas December 2019
Total international power generation capacity for
electricity business
8,143,000 kW
(2,437,000 kW)
  • *1 Years and months listed indicate the time when a business license was obtained.
  • *2 Four gas pipelines, two gas-refining facilities, two power stations, two power transmission lines
  • *3 Water desalination capacity owned by Shuweihat S2: 10 million gallons / day
  • *4 Solar panel capacity

TOPIC: Establishing a Solar Power Generation Company in Thailand

Osaka Gas Singapore Pte. Ltd., a wholly owned subsidiary of Osaka Gas, and Energy Pro Corporation Ltd., a solar power generation company in Thailand, agreed on establishing a joint venture, OE Solar Co., Ltd. (hereinafter, “OE Solar”) in July 2019 to launch a solar power supply business in Thailand.

In Thailand, the government-approved power development plan for 2018 predicts that renewable energy will account for 20% of all power sources (excluding imported hydropower) by 2037. Public interest in renewable energy is growing in the country. Blessed with abundant sunshine, there is high demand for the introduction of solar power facilities at no initial cost.

To capture this new demand mainly among industrial and commercial customers, OE Solar will install solar power generation equipment on the roofs of buildings or in other spaces owned by such customers mainly in Bangkok. The company will continuously supply thus generated power for the customers for 15 to 20 years. By actively promoting the solar power supply business, we will contribute to reducing the environmental impact in Thailand.

■ Business scheme
Business scheme
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