1. SUETOSHI Tetsui 末利 銕意 President TES Research Co. Ltd. P.E. (Chemistry & C.T. Management) 1968-2003: Engineer & Manager at Osaka Gas Company Researcher: Catalyst to remove NOx Pipe repair methods Corrosion protection Method Manager : Singapore Office Corporate Planning Dept. JICA Expert : Planning of natural gas business in Indonesia 2000: Certification of Professional Engineer 2003: Certification of Environment Counselor 2005: Establishment of TES Research Co., Ltd.

2. Deregulation in Japanese Energy Sector and its Technology Trends 1) Tri-lemma “ Energy, Ecology, Economy” 2) Economic Solution “Deregulation” 3) Technical Solutions ”New Energies” 4) Energy Scenario in the Future Mr. Tetsui Suetoshi 末利銕 意

3. World Energy Demand

4. World Energy Resources

5. COP 3 Kyoto Protocol

6. Background of deregulation - Mrs. Thatcher started implementing deregulation policy in national enterprises including coal mining, telephone & telegram and energy sectors in order to revitalize industries in the UK. - National Electric and Gas Co. were both privatized and the markets were opened. - The deregulation trend spread to the whole world.

7. Deregulation in Japanese Electricity and Gas Sector

8. Results of Deregulation Intensification of competition （ Reduction in prices) M & A among energy sectors Diversification into new businesses Lack of long term business plan （ Cut investment cost for new facilities)

9. Mutual Penetration of Electricity and Gas Companies

10. ESCO Business Structure

11. Bankruptcy of PG&E in western USA Return of PG&E as a public enterprise Prolonged blackout and power cuts in northeastern US and eastern Canada Negative Effect of Deregulation

12. Direction of Deregulation

13. Technical Solutions New Energy Utilization to be Developed Dispersed Energy System (Cogeneration ) Fuel Cell New Energy Resources to be Developed Solar Wind Biomass

14. Target of New Energy Utilization to be Developed

15. Target of New Energies to be developed

16. Image of Cogeneration System ( Annual Report 2002 of Osaka Gas Co., ltd.)

17. コージェネレーションライン アップ Lineup of Gas Turbine and Engine Cogeneration Miller Cycle Engine M Micro Turbine Turbine Engine Miller Cycle Engine JB Lean Burn Engine Output KW % Micro E.

18. Gas Engine Cogeneration (Annual repot 2002 of Osaka Gas Co., Ltd.)

19. Micro Gas Cogeneration （ 9. ８ kw ）

20. 1 kw Cogeneration (Eco-will) (Eco-will Life issued by Osaka Gas)

21. Cumulative Volume of Gas Cogen. (Data from Japan Gas Association) Cumulative MW Cumulative number

22. Comparison of Fuel Cells

23. Tests in Japan Gas Association

24. Test Sites of PEFC Tokyo test site Nagoya test site Osaka test site

25. Demonstration of PEFC (1KW)

26. Solar Power Generation

27. Wind Power Generation

28. Biomas Cogeneration Process

29. Economic Analysis of Bio- cogen. Methane gas ：２４０ｍ 3 ／ ton of garbage Power generation ： 590kwh （ self consumption280kwh ） Electricity tariff sold ： 310kwh×\16/kwh=\5,000 Benefit ： Elec. tariff sold ＋ reduced cost(incineration) \5,000 + \19,200 = \24,200/ton of garbage (US$ 220/ton of garbage) * Garbage treatment cost ： \60,800 /ton of garbage （ collect\37,400 incinerate\19,200 reclaim\4,200 ）

30. Energy Scenario in the Future Natural gas pipeline in Northeast Asia Methane Hydrate and its reserve Hydrogen society

31. 北東アジア天然ガスパイプラ イン構想 Natural Gas Pipeline Plan

32. メタンハイドレート Burning Methane Hydrate

33. 世界のメタンハイドレート分 布 Potential Reserves of Methane Hydrate Distribution Around Japan By Mr. Mikio Sato METI JAPN

34. 海底メタンハイドレート層か らガスを生産する仕組みイ メージ Image of natural gas production from a off-shore rig ③ Gathering methane ① Injecting steam ② Gasified by steam Methane hydrate Free methane

35. Iceland Aiming a Hydrogen Society Producing hydrogen using abundant geothermal and hydraulic power Under development of a hydrogen driven ship and boat Replacing 40% of oil to hydrogen in 2050

36. Conclusion Deregulation in energy sector should go step by step with careful preparation. New technologies including cogeneration, fuel cell, solar, wind and bio-mass power are being commercialized. Hydrogen society is emerging. Thank you for your attention