[Press Release] Welcoming J-POWER and Ube Industries’ decision to cancel coal power station in Yamaguchi, Japan: Other coal-fired power projects must stop, too (2021/4/16)

Press Release

Welcoming J-POWER and Ube Industries’ decision to cancel coal power station in Yamaguchi, Japan
~Other coal-fired power projects must stop, too~

April 16, 2021
Kiko Network
Mie Asaoka, President

On April 16, 2021, Electric Power Development Co., Ltd. (J-POWER) and Ube Industries announced the cancellation of construction plans for coal-fired Nishiokinoyama Power Plant (tentative name). Nishiokinoyama Power Plant was one of the few remaining new coal-fired power plants still being planned in Japan, even after a policy announcement to shut down the existing fleet of inefficient coal-fired power plants by Minister of Economy, Trade and Industry Kajiyama last June, and Prime Minister Suga’s declaration of Japan becoming carbon-neutral by 2050 in October. Plans were originally to build two 600MW plants utilizing ultra-supercritical (USC) technology, but after Osaka Gas decided to withdraw from the project, it was announced in April 2019 that the project would continue at a reduced scale of 600MW (one unit), and that integrated gasification combined cycle (IGCC) technology was being considered.

In today’s press release, J-POWER stated, “in the western Japan area where this plant would be located, electricity demand is expected to remain flat and the introduction of renewable energy is expanding. As a result of comprehensive judgment based on the business environment including these factors, the company has decided to cancel this plan.”[1] We have previously pointed out that the planned construction of Nishiokinoyama Power Plant would not only have a significant impact on the climate, but also on the corporate value of Ube Industries and J-POWER, and have called for its cancellation, both for the development of a carbon-free society in Japan and for the sustainable medium- to long-term growth of companies [2]. With the cancellation of this project, at least 3.6 million tons of CO2 emissions per year (0.3% of Japan's total greenhouse gas emissions) will be avoided (in the case of one 600MW unit). We welcome today’s decision announced by J-POWER and Ube Industries, which is in line with our request.

However, as shown in the table below, many companies are still planning and constructing coal-fired power plants, including Kanden Energy Solution Co., Ltd., Marubeni, Kobelco Power Kobe No. 2, and JERA.

In particular, Marubeni and Kanden Energy Solution’s Akita Port power plant (two 650MW units), the only other planned coal-fired power plant that has yet to begin construction, has not officially been cancelled, but development has remained halted since the completion of its environmental assessment. If plans for this project are also cancelled, its projected CO2 emissions combined with the emissions of one Nishiokinoyama Power Station unit, 12.26 million tons of emissions per year, will be avoided, equivalent to 1.1% of Japan's greenhouse gas (GHG) emissions. Additionally, if we include all pipeline coal-fired power projects under planning or under construction, estimated annual emissions will be more than 50 million tons, or 4% of Japan's total GHG emissions. Reviewing these construction plans will significantly contribute to raising Japan’s greenhouse gas emission reduction target for 2030, which is currently under consideration.

Kiko Network urges coal power developers to take seriously the issue of coal-fired power generation to realize a decarbonized society and to limit business risks, and cancel all plans for new coal-fired power plants. We request the government of Japan to promptly cancel all plans and steadily phase out existing coal-fired power plants with a clear end year.

Reference: Coal-fired power plants currently planned or under construction

* CO2 emissions are calculated using data from environmental assessment when available. Percentage is calculated using 2019 GHG emission data.

[1] Yamaguchi-Ube Power Generation Co., Ltd. Cancels Nishiokinoyama Power Plant (Tentative Name) Installation Plan
https://www.jpower.co.jp/english/news_release/pdf/news210416_1e.pdf

[2] [Press Release] J-POWER and Ube Industries should completely cancel the Nishi-Okinoyama coal-fired power project
https://www.kikonet.org/eng/press-release-en/2020-07-22/cancel-Nishi-Okinoyama

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[Press Release] Welcoming J-POWER and Ube Industries’ decision to cancel coal power station in Yamaguchi, Japan: Other coal-fired power projects must stop, too (PDF)

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