Yamanashi Prefecture and JERA Promote Regional Hydrogen Utilization for a Carbon-Free Future!

A Powerful Partnership Unlocking the Potential for a Hydrogen Society.

On November 22, 2023, despite being in the season of "Shosetsu" (early snowfall) according to the calendar, Kofu City in Yamanashi Prefecture experienced a warm day with a high temperature of 18.4°C. On this day, Yamanashi Prefecture and JERA signed the "Basic Agreement on Building the Hydrogen Energy Society of the Future."

Yamanashi Governor Kotaro Nagasaki expressed his stating, "While the basic agreement itself is simple, we have great expectations for the significant potential hidden within it."

Left: Kotaro Nagasaki, Yamanashi Governor Right: Hisahide Okuda, President, Director, CEO and COO of JERA

This collaboration aligns with Yamanashi's vision of "Yamanashi where each citizen of the prefecture can feel the richness," aiming to be left behind and "sustainable Yamanashi," and JERA's goal to scale up its clean energy platform of renewables and low greenhouse gas thermal power, sparking sustainable development in Asia and around the world. The collaboration leverages the strengths of both parties to work towards realizing a hydrogen society.

Specifically, the partnership focuses on establishing a "Regional Hydrogen Value Chain" by integrating Yamanashi's "Yamanashi Model Power-to-Gas (P2G) System*" and JERA's global green fuel value chain. This aims to achieve the stable production and supply of carbon-free electricity and hydrogen-based fuels while ensuring economic viability.

*P2G System is a system for producing green hydrogen using cutting-edge polymer electrolyte membrane (PEM) water electrolysis equipment. P2G enables the production, storage, and utilization of gas fuels, such as hydrogen, using surplus power from renewable sources.

Yamanashi Leading the Way in Hydrogen Energy Development.

Among various regions, why did JERA choose to partner with Yamanashi Prefecture? Yamanashi is renowned for "fruits," "wine," and "Mt. Fuji," but in the energy sector, it has become a leading municipality in hydrogen energy development, earning the title "When you think of hydrogen in Japan, think of Yamanashi."

The next question is, "Why is Yamanashi Prefecture focusing on hydrogen?" The answer lies in clear reasons. According to national sunlight data from the Japan Meteorological Agency, Yamanashi Prefecture consistently ranks high in sunlight hours, securing the 3rd place in 2022, 1st place in 2021, and 2nd place in 2020. The topography plays a crucial role, with the Kofu Basin surrounded by mountains preventing cloud intrusion, resulting in frequent clear skies and extended sunlight hours. Capitalizing on these favorable sunlight conditions, Yamanashi Prefecture turned its attention to "solar power generation."

Solar power generation facility installed by Yamanashi Prefecture at Mt.Komekura

In 2012, a solar power generation facility was initiated on Mt. Komekura in the southern part of Kofu City. Since then, Yamanashi Prefecture has been promoting the use of locally produced clean energy. However, solar power generation is heavily influenced by weather conditions, making it challenging to adjust power generation levels. As electricity cannot be stored, surplus power during favorable weather conditions goes to waste. Hydrogen became the key solution to effectively utilize surplus power. By using excess electricity to electrolyze water and produce hydrogen, it can be converted into a long-term storable energy resource.

P2G Verification Research Building and electrolysis equipment inside the building, integrated with the solar power generation facility

Green hydrogen, produced without emitting CO₂ during combustion and utilizing renewable energy such as solar power, is considered the "ultimate clean energy" and a "decarbonization solution." Recognizing its future potential early on, Yamanashi Prefecture has been actively involved in hydrogen energy development. In collaboration with universities and private enterprises, the prefecture initiated technical development and inaugurated the "Komekurayama Next-Generation Energy System Research Village" (commonly known as "Nesrad") on March 30, 2023. Yamanashi aims to become a hub for research and development in next-generation energy systems, similar to Silicon Valley but focused on hydrogen and fuel cells.

Hence, JERA decided to take the first step in building a regional hydrogen value chain with Yamanashi Prefecture. Governor Nagasaki also expressed, "We expect knowledge related to next-generation energy to accumulate even more at Mt. Komekura in the future. We want to further develop Mt. Komekura as an innovation hub in collaboration with JERA."

Research and development hub for hydrogen, "Nesrad," where nine companies and organizations are already located

Aiming for 24/7 Carbon-Free Power Supply.

JERA, responsible for generating approximately 30% of the domestic electricity and boasting one of the world's largest LNG (liquefied natural gas) handling capacity, is embracing the challenge of achieving a new energy supply model through the "JERA Zero CO₂ Emission 2050" initiative. This initiative combines "renewable energy" with " Zero CO₂ Emission Thermal Power Generation " to address the dual challenge of ensuring stable energy supply and advancing decarbonization.

Historically, thermal power generation relied on burning fossil fuels such as coal and LNG. However, achieving zero CO₂ emissions while continuing to use fossil fuels presents a significant challenge. Therefore, JERA has steered its course towards a policy of switching the fuel for thermal power generation to hydrogen and ammonia, which do not emit CO₂ when burned. JERA refers to this CO₂-free thermal power generation as "Zero CO₂ Emission Thermal Power Generation."

However, challenges persist. To realize "Zero CO₂ Emission Thermal Power Generation," an enormous quantity of hydrogen-based fuels is required. Hisahide Okuda, President, Director, CEO and COO of JERA, states, "The amount needed is far beyond what Japan alone can provide. Therefore, it is necessary to establish a global supply chain for hydrogen-based fuels, producing large quantities worldwide and transporting them." Leveraging JERA's expertise as a first mover aiming for a global hydrogen-based fuel supply chain, the partnership between JERA and Yamanashi Prefecture was formed to contribute to the regional hydrogen value chain construction.

In the future, JERA plans to install hydrogen power generation facilities at Mt. Komekura and conduct demonstration testing to supply electricity to companies that are headquartered or have business facilities in Yamanashi Prefecture. During these tests, electricity generated from Mt. Komekura solar power facilities will be combined with hydrogen-based power generation. This means establishing a system capable of supplying "24/7 carbon-free power※," utilizing solar power on sunny days and hydrogen-based generation on cloudy or nighttime occasions.

The new hydrogen power generation facilities are expected to be operational as early as 2025. Considering the preferences of businesses utilizing "24/7 carbon-free power," JERA will explore the optimal system, including options like fuel cells, alongside hydrogen-based power generation. Mr.Okuda expresses, "We want to work together to create a new regional hydrogen value chain by fully utilizing local resources. We are eagerly looking forward to the upcoming verification tests."