1. The Role of Business in Developing and Disseminating Low-Carbon Technology
May 9, 2017
Hiroyuki Tezuka
Chairman of Global Environment Strategy WG,
Committee on Environment and Safety,
Keidanren

2. (1) Our Basic Concept

3. Viewpoint on Climate Protection Measures Carbon Intensity to Energy
Technology is a key to reconcile economic growth and emission reduction.
Energy Demand Side
Energy Supply Side
Energy Efficiency
Carbon Intensity to Energy
CO2
Emission
Energy Consumption ＝
CO2 emission × ×
GDP
Energy
Consumption
GDP
Technological innovation and dissemination 1

4. Image of achieving dramatic reductions by technologies
By developing and disseminating low-carbon technologies, we can reduce global GHG emissions dramatically in the long-run. 2

5. (2) Keidanren's Efforts

6. KEIDANREN’s Commitment to a Low Carbon Society
Participating industries and companies set their own targets.
The plan consists of 4 pillars (shown bellow).
60 industries made their plans as for the Phase Ⅰ toward 2020.
Endeavor to expand our efforts for the Phase Ⅱ toward 2030.
Phase Ⅰ
toward 2020
Phase Ⅱ
toward 2030
Reduction from Domestic Business Operations
Conventional climate protection measures mainly focuses on this field.
1st Pillar
Emission Reduction from Domestic Business Operation
Targets for 2020
Targets for 2030
Reducing GHG emissions
globally
2nd
Pillar
Contribution through low carbon products
　　Enhance efforts
3rd
Pillar
International Contribution
　　Enhance efforts
4th
Pillar
Development of Innovative Technology
　　Enhance efforts
Both an international framework and conventional domestic measures do not cover enough these fields. 3

7. (3) Iron & Steel Industry Case

8. Crude Steel production in Japan
After rapid expansion during the post war economic growth in s, the Steel demand in Japan stopped growing when the first oil crisis occurred in 1973.
Since then, annual crude steel production has remained at about 100 million tons.
Crude Steel Supply and Demand
Source: JISF 4

9. 5 Steel Production Process and Energy Saving Technologies BFG Fuel
Coal moisture control equipment
Coke dry quenching equipment
SCOPE21
Reuse of waste plastics
OG boiler
Kalina cycle power generation
Exhaust heat recovery
Recovery of main and cooler exhaust heat
Input of hot slab
Direct rolling
Coking coal
Iron ore
Coke oven
BFG
Pulverized coal input
Top pressure recovery turbine HS
(Dry/low-pressure loss furnace top pressure recovery turbine (TRT))
Fuel
Electric power plant
Oxygen
Pulverized coal
Torpedo car
Pellet plant
LD converter ○
Continuous casting line
Bloom
Slab
Hot rolling mill
Electricity
Cold rolling mill
Heating furnace
Continuous electroplating equipment
More LDG recovery by expanding sources
Control of OG-IDF rotation speed
Temperature retention on billet transport line
Cut electricity consumption by dust collectors
Suitable volume for cooling pumps (smaller and lower lifting)
Automation of coke oven combustion control
High-efficiency power generation
ACC USC
Prevention of air leakage
More efficient main exhaust blowers
Suitable size for dust collection blowers
Control of electric motor speed
Blast furnace
Input equipment for different granule sizes
Equalization gas recovery equipment
Suitable capacity for blowers
Localized dust collection for casting
Prevention of pressure loss for input/exhaust
Thermal insulation for blower pipes
Construction of high recovery rate plants
More efficient raw material air compressors
(For entire steel mill)
Use less power for lights
(use sodium lamps, separate power supplies, etc.)
Measures to reduce drain in steam piping
Start using CDCM
Cut use of power for auxiliary machinery
(control no. of compressors, etc.)
Suitable volume for cooling pumps (smaller and lower lifting power)
More efficient cooling water system
Use plunger pumps, smaller and lower lifting power, control speed of heating oven blowers and cooling water pumps, less power for auxiliary machinery (less power for wasted mill motor operation, auto stop for table rolls, etc.)
Slab yard temperature retention measures
More efficient recuperator
Modify ovens (increase length, use partitions to improve heat transmission, increase oven thermal insulation, better seals for input/output doors)
Improve thermal insulation for skid pipes
Improve heat pattern
Measures for low-temperature billet output (temperature retention on transport table, etc.)
Blower
Efficient continuous annealing
Fuel heavy oil
Byproduct gas
LD converter gas
Recovery of latent heat and sensible heat
Heating furnace with regenerative burner
LDG
COG 5

10. History of Energy Saving of Steel Industry in Japan
Eco Process
History of Energy Saving of Steel Industry in Japan
Japanese steel industry reduced gross consumption by process improvements
Energy recovery is contributing to reduce net consumption in recent years
Source: The Japan Iron and Steel Federation 6

11. Energy Saving Investment
Eco Process
Energy Saving Investment
After the two oil crises in the 1970’s, Japanese steel industry improved the energy efficiency by promoting investment for R&D and implementation of energy saving technologies
1971~1989
Energy Saving: 20%
Investment: \3 trillion
1990~2012
Energy Saving: 12%
Investment: \1.8trillion
(\trillion)
Second Oil Crisis
Accumulative Investment for energy saving and environmental technologies
First Oil Crisis
(FY)
Source: Ministry, Economy and Trade, Japan 7

12. As a result : Best Performance in the World
Eco Process
As a result : Best Performance in the World
Japanese steel industry achieves the lowest energy intensity (unit energy consumption per ton of crude steel) among the world’s major steel producing countries.
Index (Japan=100)
Year: 2010
Energy intensity of Integrated steel mills
Energy intensity of EAF
Source: Research Institute of Innovative Technology for the Earth (RITE) 8

13. The public and private collaborative meeting
between Indian and Japanese iron and steel industry (1/2)
Cooperative Approach
Purpose
To encourage technology transfer from Japanese to Indian steel industry and thereby contribute to the energy saving in India and in the world.
Public and Private Partnership
Members – Public and Private sectors of India and Japan
India
Public members and observers
Ministry of Steel
Bureau of Energy Efficiency etc.
Private members and observers
Indian steel companies
(SAIL, RINL, Tata, JSW, Bhushan, BPSL, Essar, Jindal etc.)
Japan
Public members and observers
Ministry of Economy, Trade and Industry/ NEDO / JBIC / JETRO
Private members and observers
The Japan Iron and Steel Federation
(Nippon Steel & Sumitomo Metal, JFE steel, Kobe steel, Nisshin Steel etc.) 9

14. Cooperative Approach The public and private collaborative meeting
between Indian and Japanese iron and steel industry (2/2)
Cooperative Approach
Meetings – since 2011
2011
2012
2013
2014
2015
2016
1st meeting
(Nov. 2011, New Delhi)
2nd meeting
(Nov. 2012, New Delhi)
3rd meeting
(Feb. 2013, Tokyo)
4th meeting
(Feb. 2014, Tokyo)
5th meeting
(Mar. 2015, New Delhi)
6th meeting
(Feb. 2016, Tokyo)
Three pillars of the energy management in the steel plant
ISO14404
Technologies Customized List
Energy Management System
Steel Plant Diagnosis using ISO14404
( )
Technology reference of energy saving technologies suitable for each country/region
Help steel plants to establish a framework to plan, do, check and act for the energy saving activities 10

15. CDQ (Coke Dry Quenching) TRT (Top Pressure Recovery Turbine)
Emission Reduction by Technology Transfer to India
Cooperative Approach
CDQ (Coke Dry Quenching)
TRT (Top Pressure Recovery Turbine)
10 CDQs have been installed by Japanese engineering companies to India triggered by NEDO model project
5 TRTs have been installed
by Japanese engineering companies to India
With Japanese energy saving technologies,
Indian steel industry will be able to reduce CO2 emission
by 13 Mt / year. 11

16. Automotive and industrial machinery parts
ECO Products: Energy/CO2 Saving Products
Product Contribution
Airplane components Strong and durable jet engine shafts further boost maximum thrust = Longer range, better fuel efficiency
Motors for HV/EV cars
High-efficiency non-oriented electrical sheets for higher fuel efficiency, more power, smaller size and lower weight
Automotive and industrial machinery parts
Strong gear steel increases gears and reduces size and weight – higher fuel efficiency
Boiler tubes
Steel tubes that resist high temperatures and corrosion make power generation more efficient
Suspension springs
Higher strength steel for valve and suspension springs used in punishing applications makes vehicles lighter and lowers fuel consumption
Generator parts
Steel for high-efficiency power plant turbines can withstand high temperatures and high rotation speeds 12 16 16

17. Power generation boilers Power generation boilers
ECO Products: CO2 Saving Calculations - LCA
Product Contribution
CO2 Emission Reductions by the five major types of high-performance steel (FY2015)
1. Domestic
2. Export
Transformers
Transformers
Ships
Ships
Trains
Automobiles
Automobiles
Power generation boilers
Power generation boilers
CO2 Emission Reductions: million tons CO2 in total (7.24 million tons of high-performance steel)
Source: The Institute of Energy Economics, Japan
*The five categories are automotive sheets, oriented electrical sheets, heavy plates for shipbuilding, boiler tubes and stainless steel sheets. In FY2015, use of the five categories of steel products in Japan was million tons and exports were 3.544million tons for a total of million tons.
*Assessments in Japan started in FY1990 and for exports assessments started in FY2003 for automobiles and shipbuilding, in FY1998 for boiler tubes, and in FY1996 for electrical sheets. 13

18. 14 COURSE50 : Innovative Iron/Steel making Process
technology for using hydrogen for the reduction of iron ore
revolutionary CO2 separation and collection technology
The goal is to use these technologies for low-carbon steelmaking that cuts CO2 emissions by about 30%. (a project for NEDO aiming at 2030 for industrialization)
Chemical absorption method
Physical adsorption method
Iron ore
Hydrogen reduction coke production technology
Less coke is needed
Hydrogen amplification
Blast furnace gas
Coke
CO2 storage technology
Shaft oven, etc.
COG modification unit
Coke oven
Blast furnace
Regeneration tower
Absorption tower
Hydrogen
Reboiler
Hydrogen
Strong and highly reactive coke
Iron ore preliminary reduction technology
(a separate project)
Hydrogen production (COG modification) technology for hydrogen reduction
Blast furnace hydrogen reduction technology
CO2 separation and storage technology
Slag sensible heat recovery technology (one example)
Exhaust heat recovery boiler
Steam
Hot air
Slag
Cool air
Kalina cycle power generation, etc.
Electricity
Technology for effective use of unused exhaust heat
Pig iron
Development schedule 年
* Assumes establishment of economic basis for a CO2 storage infrastructure and creation of a practical unit using these processes.
Basic technology development
Phase 1, Step 1
Comprehensive technology development
Phase 1, Step 2
実用化開発
Development of practical use
Phase 2
実用化※・普及
Actual use* and increase in use
All blast furnaces are to be switched to this technology by 2050 as blast furnace facilities are updated and replaced.
ﾌｪｰｽﾞ1 Step1
(2008～12）
ﾌｪｰｽﾞ1 Step2
(2013～17）
ﾌｪｰｽﾞ2 14

19. Construction of Experimental Blast Furnace
In Phase 1, Step 2, a 103 blast furnace for testing will be constructed at the Kimitsu Works, which has a trial CO2 separation and collection system (CAT1, CAT30) that can be used for tests with this blast furnace.
Construction of testing furnace is completed in September 2015 and test operation is ongoing towards the experiment in 2016.
Volume of 103 meters
CAT1 （1t-CO2/d）
CAT30 （30t-CO2/d）
Construction and operation of trial blast furnace
Kimitsu Works CO2 separation and collection system 15

20. (4) KFS & Policy Supports

21. To promote technology development
Promote sound domestic/peer competition for better performance by visualizing efforts and providing incentives.
Provide tax incentives for promoting private R&D investment.
Governments should clearly indicate a numerical target of raising public investment in R&D programs, and make steady efforts to realize it.
Build an international framework where contribution and efforts to develop innovative technologies would receive higher evaluation. 16

22. Efforts by Japanese Government to Promote Innovation
ICEF (Innovation for Cool Earth Forum)
ICEF is aimed at addressing climate change through innovation, and held in Tokyo every year (from 2013) by METI.
ICEF investigates via discussion in the forum what innovative measures should be developed, how the innovation should be promoted, and how cooperation should be enhanced among the stakeholders.
ACE 2.0 (Actions for Cool Earth 2.0 )
Japan has released the ACE 2.0 on November 26th, This is a reinforcement of Japan's contribution to climate change actions which was presented as "ACE" in 2013.
One of the major components of ACE 2.0 is innovation. Japan will formulate the "Energy and Environment Innovation Strategy" by next spring. Prospective focused areas will be identified and research and development on them will be strengthened. 17

23. Thank you