Latest news with #7thStrategicEnergyPlan
Yomiuri Shimbun
31-07-2025
- Business
- Yomiuri Shimbun
Hopes Rise for More Nuclear Power in Japan after Hokkaido Reactor Passes Safety Screening
The No. 3 reactor at the Tomari nuclear power plant in Hokkaido could be restarted as early as 2027 if local governments approve, according to Hokkaido Electric Power Co. (HEPCO). The company's reactor passed a safety screening on Wednesday. The restart would significantly expand the power supply and help meet the rapidly growing demand for electricity in Hokkaido, particularly from data centers and semiconductor factories. The question is whether this will lead to the rebooting of other nuclear power plants across the country. 'We need to make the most of decarbonized power sources so that we can achieve economic growth and decarbonize at the same time,' said Yutaka Fujii, chairman of the Hokkaido Economic Federation, on Wednesday. He had high praise for the Nuclear Regulation Authority's approval of the reactor's safety at the Tomari plant. 'This is also extremely important for ensuring there is a stable power supply,' he said. The Tomari Nos. 1-3 plants accounted for nearly 50% of HEPCO's power supply mix in fiscal 2010 before the 2011 Great East Japan Earthquake. Since the quake, Hokkaido has relied entirely on non-nuclear sources of power, and primarily on thermal power generation. However, the earthquake that hit southern Hokkaido in 2018 damaged thermal plants, leading to a massive power outage across nearly the entire prefecture and highlighting the difficulty of ensuring a stable energy supply. SoftBank Corp. is constructing the country's largest data center in the prefecture's city of Tomakomai, and hopes to get it up and running by fiscal 2026. In April, chipmaker Rapidus Corp. launched a pilot line at its advanced semiconductor plant in Chitose, and it projects a demand of 100,000 kilowatts for mass production, which could start in 2027. Nationwide, power demand by 2050 is expected to reach as much as 1.25 trillion kilowatt-hours, about 1.4 times more than before the COVID-19 pandemic. Even if the restart of nuclear power plants proceeds smoothly, there will still be a shortage of over 23 million kilowatt — equal to the output of 23 nuclear plants. Japan currently has 36 nuclear power plants, including those under construction but excluding the 24 that are set to be decommissioned. Of these, only 14 have resumed operations since the 2011 earthquake. The government, in its 7th Strategic Energy Plan, which was approved in February by the Cabinet, has said it would 'maximize the use of decarbonized power sources such as renewables and nuclear power.' Work to expand nuclear plants, which halted after the earthquake, has also seen a resurgence. Kansai Electric Power Co. announced on July 22 that it would resume topographical and geological surveys in Mihama, Fukui Prefecture, as part of its plan to build a new reactor to replace Unit 1 at its Mihama nuclear power station. Kyushu Electric Power Co. is considering whether to develop innovative, next-generation reactors.
Yomiuri Shimbun
19-07-2025
- Business
- Yomiuri Shimbun
KEPCO Eyes Building, Replacing Nuclear Reactors in Japan; 1st Time Geological Surveys to Be Resumed Since Fukushima Accident
Kansai Electric Power Co. has formulated its policy of resuming geological surveys to build a nuclear reactor and replace existing ones at the Mihama nuclear power plant in Fukui Prefecture, it has been learned. The surveys had been suspended following the 2011 Great East Japan Earthquake. If realized, it would be the first step toward building and replacing new nuclear reactors, which the government considers to be a part of decarbonization efforts. KEPCO started its geological surveys to construct a new reactor at the Mihama nuclear plant in 2010 but suspended them after the nuclear accident at Tokyo Electric Power Company Holdings, Inc.'s Fukushima No. 1 nuclear power plant. After resuming the surveys, KEPCO plans to compile a basic design and submit applications for approval to the Nuclear Regulation Authority. If approved, KEPCO will proceed with construction. The company envisions building next-generation reactors, including advanced light-water reactors, which are considered to be very safe. According to sources, KEPCO plans to explain its policy to local governments and other concerned parties in the near No. 3 reactor at the Mihama nuclear plant is currently in operation, while Nos. 1 and 2 will be decommissioned. To ensure a stable supply of electricity, KEPCO believes it is necessary to accelerate such moves as replacing existing reactors. KEPCO President Nozomu Mori has made it clear the company will 'proceed with looking into the construction of a new nuclear reactor.' The operation of all nuclear power plants was suspended in Japan following the accident at the Fukushima No. 1 nuclear power plant. However, the process of restarting operations has been underway at KEPCO and other power companies, including Kyushu Electric Power Co. and Chugoku Electric Power Co. In October 2024, Tohoku Electric Power Co.'s Onagawa No. 2 reactor in Miyagi Prefecture was the first nuclear reactor to resume operations in eastern Japan since 2011. Kyushu Electric has also started to consider building a new reactor. The 7th Strategic Energy Plan, approved by the Cabinet in February this year, states it is necessary to maximize the use of decarbonized power sources, including nuclear power. The plan also eased the requirements for replacing existing reactors and states a target of having nuclear power generate 20% of the total electricity in fiscal 2040. Due to artificial intelligence becoming more widely used, data centers that consume large amounts of electricity are being constructed in various parts of the country, and demand for electricity is expected to increase. As nuclear reactors deteriorate with age, the government is said to have decided it is necessary to develop stable power sources as soon as possible. However, building a new nuclear reactor requires an investment of \500 billion to \1 trillion. As it creates a large financial burden on privately run electric companies, discussions on securing funds and building a support framework may accelerate in the future. 'We believe it is time to start seriously considering building a new reactor and replacing existing ones, taking into account the government's policies,' said a KEPCO representative. 'But we haven't made any decisions about specific plans at this point.'
Observer
19-06-2025
- Business
- Observer
Japan returns to long-term LNG deals on AI boom, national energy plan
TOKYO/SINGAPORE: Japan is back in the spotlight for liquefied natural gas (LNG) producers as the boom in artificial intelligence, rising costs for cleaner energy, and a new national energy plan drive appetite for long-term LNG deals. While imports by China, the world's biggest LNG importer, are expected to fall this year, buyers in number two Japan are securing long-term supply deals again, including a potential landmark deal with Qatar. Japan's LNG imports had fallen for a decade as nuclear power plants, idled after the Fukushima disaster, restarted and as renewable energy sources increased. Data centres are expected to use enormous amounts of power to sustain the AI boom, while Japan's 7th Strategic Energy Plan in February identified gas as a realistic transition fuel for the nation's goal of zero net carbon emissions by 2050. 'We had expected that electricity demand in Japan would decline, but the growth of data centres is bending that curve,' said Yukio Kani, global CEO of JERA, the country's top power generator and LNG buyer. 'If we want quick solutions for data centres, Japan needs LNG.' Rising costs have also dimmed prospects for alternative fuels like hydrogen and ammonia. 'Until two or three years ago, we expected faster development of ammonia, but now we have to pause,' Kani said. 'So we've been shifting back to LNG.' Japan's Ministry of Economy, Trade and Industry (METI) forecast annual LNG demand would fall to 53–61 million tons in 2040 if it meets its emissions target, down from 66 million tons in 2024. But in a risk scenario, demand could rise to 74 million tons. The new plan makes it easier for buyers to commit to long-term contracts. Japan has also been auctioning new gas-fired capacity to replace aging coal plants, awarding 7 GW in the past two years. LNG-fired capacity is projected to rise to 85.75 GW by 2034 from 79.98 GW in 2024. Morgan Stanley sees Japan's LNG imports rising to 78 million tons in 2030 as gas-fired generation grows. Osaka Gas signed a 15-year deal with Abu Dhabi's ADNOC. Kyushu Electric is set to sign its first long-term US deal. JERA signed four 20-year deals with US suppliers. 'Uncertainty remains,' said Tokyo Gas Chairman Takashi Uchida. 'The government presents multiple scenarios—there's no single outlook.' — Reuters
Mint
19-06-2025
- Business
- Mint
Japan returns to long-term LNG deals on AI boom, national energy plan
Japan 2040 LNG demand may rise if decarbonisation tech lags -METI More deals to come as utilities face expiring volumes, says analyst Buyers to enhance trading ops, seek flexible deals to hedge demand uncertainty By Yuka Obayashi and Emily Chow TOKYO/SINGORE, - Japan is back in the spotlight for liquefied natural gas producers as the boom in artificial intelligence, rising costs for cleaner energy and a new national energy plan drive appetite for long-term LNG deals. While imports by China, the world's biggest LNG importer, are expected to fall this year, buyers in number two Japan are securing long-term supply deals again, including a potential landmark deal with Qatar. Japan's LNG imports had fallen for a decade as nuclear power plants, idled after the Fukushima disaster, restarted and as renewable energy sources increased. Data centres are expected to use enormous amounts of power to sustain the AI boom, while Japan's 7th Strategic Energy Plan in February identified gas as a realistic transition fuel for the nation's goal of zero net carbon emissions by 2050 and "an important energy source even after carbon neutrality". "We had expected that electricity demand in Japan would decline, but the growth of data centres is bending that curve," Yukio Kani, global CEO of JERA, the country's top power generator and LNG buyer, told Reuters. "If we want quick solutions for data centres, Japan needs LNG. That is one external change." Rising costs have also dimmed prospects for alternative fuels like hydrogen and ammonia, Kani said. "Until two or three years ago, we expected faster development of ammonia, but now we have to pause," he said. "So we've been shifting back to LNG over the past year or so." In Japan's energy plan, the Ministry of Economy, Trade and Industry forecast annual LNG demand would fall to between 53 million and 61 million tons in 2040 if it met its emissions reductions target, from 66 million tons last year. But in a risk scenario where decarbonisation technologies lag, METI forecast demand could instead rise to 74 million tons. The plan calls for public-private cooperation to secure long-term contracts for the super-chilled fuel, given price volatility and supply disruption risks. Under Japan's previous decarbonisation-focussed energy plan, gas importers had hesitated to sign long-term contracts. The new plan makes it easier for buyers to commit to long-term contracts, said Takashi Uchida, chairman of the Japan Gas Association and top city gas provider Tokyo Gas. "It's very clear that LNG has a role to play as a transition fuel, and it's now firmly still in the mix for this investment cycle," said Lachlan Clancy, energy partner at law firm Herbert Smith Freehills Kramer. Japan has also been auctioning new gas-fired power capacity mainly to replace aging coal power plants, awarding 7 gigawatts over the past two years, according to the Organization for Cross-regional Coordination of Transmission Operators, Japan. In March the organisation projected LNG-fired capacity would rise to 85.75 GW by 2034 from 79.98 GW in 2024. Japan's energy plan projects power generation will increase by between 12% and 22% from 2023 levels to between 1,100 and 1,200 terawatt-hours in 2040. Consumption by Japan's data centres will soar 80%, or about 15 TWh, by 2030, the International Energy Agency forecasts. To feed this growth, Morgan Stanley sees Japan's LNG imports rising to 78 million tons in 2030 as gas-fired power generation rises amid high costs for generating solar and wind power. Among the spate of deals since METI released the energy plan, Osaka Gas signed a 15-year pact with Abu Dhabi National Oil Company, Kyushu Electric Power said it would sign a deal with Energy Transfer, its first long-term deal with a U.S. supplier, and JERA inked four 20-year deals with U.S. suppliers NextDecade, Sempra Infrastructure, Cheniere Marketing and Commonwealth LNG. By comparison, from late 2022 to early this year, Japanese buyers had announced only three deals longer than 10 years. More deals are likely soon, Rystad Energy analyst Masanori Odaka predicts, as some utilities seek to replace expiring volumes for supply security and meet seasonal demand. JERA and Mitsui & Co are in talks for long-term supply from QatarEnergy's North Field expansion project, Reuters reported last month. Uncertainty persists, however, over Japan's demand for LNG, tied to questions over its ability to meet its carbon neutrality targets and its pace of nuclear plant restarts. To address this, importers are enhancing trading operations and pursuing flexible-term contracts. "With the government presenting multiple future scenarios, it is no longer possible to provide a definitive outlook for energy supply and demand - highlighting the uncertainty ahead," said Tokyo Gas' Uchida.
Yahoo
19-06-2025
- Business
- Yahoo
Analysis-Japan returns to long-term LNG deals on AI boom, national energy plan
By Yuka Obayashi and Emily Chow TOKYO/SINGAPORE (Reuters) -Japan is back in the spotlight for liquefied natural gas producers as the boom in artificial intelligence, rising costs for cleaner energy and a new national energy plan drive appetite for long-term LNG deals. While imports by China, the world's biggest LNG importer, are expected to fall this year, buyers in number two Japan are securing long-term supply deals again, including a potential landmark deal with Qatar. Japan's LNG imports had fallen for a decade as nuclear power plants, idled after the Fukushima disaster, restarted and as renewable energy sources increased. Data centres are expected to use enormous amounts of power to sustain the AI boom, while Japan's 7th Strategic Energy Plan in February identified gas as a realistic transition fuel for the nation's goal of zero net carbon emissions by 2050 and "an important energy source even after carbon neutrality". "We had expected that electricity demand in Japan would decline, but the growth of data centres is bending that curve," Yukio Kani, global CEO of JERA, the country's top power generator and LNG buyer, told Reuters. "If we want quick solutions for data centres, Japan needs LNG. That is one external change." Rising costs have also dimmed prospects for alternative fuels like hydrogen and ammonia, Kani said. "Until two or three years ago, we expected faster development of ammonia, but now we have to pause," he said. "So we've been shifting back to LNG over the past year or so." 'STILL IN THE MIX' In Japan's energy plan, the Ministry of Economy, Trade and Industry forecast annual LNG demand would fall to between 53 million and 61 million tons in 2040 if it met its emissions reductions target, from 66 million tons last year. But in a risk scenario where decarbonisation technologies lag, METI forecast demand could instead rise to 74 million tons. The plan calls for public-private cooperation to secure long-term contracts for the super-chilled fuel, given price volatility and supply disruption risks. Under Japan's previous decarbonisation-focussed energy plan, gas importers had hesitated to sign long-term contracts. The new plan makes it easier for buyers to commit to long-term contracts, said Takashi Uchida, chairman of the Japan Gas Association and top city gas provider Tokyo Gas. "It's very clear that LNG has a role to play as a transition fuel, and it's now firmly still in the mix for this investment cycle," said Lachlan Clancy, energy partner at law firm Herbert Smith Freehills Kramer. Japan has also been auctioning new gas-fired power capacity mainly to replace aging coal power plants, awarding 7 gigawatts (GW) over the past two years, according to the Organization for Cross-regional Coordination of Transmission Operators, Japan. In March the organisation projected LNG-fired capacity would rise to 85.75 GW by 2034 from 79.98 GW in 2024. Japan's energy plan projects power generation will increase by between 12% and 22% from 2023 levels to between 1,100 and 1,200 terawatt-hours in 2040. Consumption by Japan's data centres will soar 80%, or about 15 TWh, by 2030, the International Energy Agency forecasts. To feed this growth, Morgan Stanley sees Japan's LNG imports rising to 78 million tons in 2030 as gas-fired power generation rises amid high costs for generating solar and wind power. 'UNCERTAINTY AHEAD' Among the spate of deals since METI released the energy plan, Osaka Gas signed a 15-year pact with Abu Dhabi National Oil Company, Kyushu Electric Power said it would sign a deal with Energy Transfer, its first long-term deal with a U.S. supplier, and JERA inked four 20-year deals with U.S. suppliers NextDecade, Sempra Infrastructure, Cheniere Marketing and Commonwealth LNG. By comparison, from late 2022 to early this year, Japanese buyers had announced only three deals longer than 10 years. More deals are likely soon, Rystad Energy analyst Masanori Odaka predicts, as some utilities seek to replace expiring volumes for supply security and meet seasonal demand. JERA and Mitsui & Co are in talks for long-term supply from QatarEnergy's North Field expansion project, Reuters reported last month. Uncertainty persists, however, over Japan's demand for LNG, tied to questions over its ability to meet its carbon neutrality targets and its pace of nuclear plant restarts. To address this, importers are enhancing trading operations and pursuing flexible-term contracts. "With the government presenting multiple future scenarios, it is no longer possible to provide a definitive outlook for energy supply and demand - highlighting the uncertainty ahead," said Tokyo Gas' Uchida.
