Japan Emissions Rise for First Time in Three Years

---

Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--For the first time in three years, Japan's greenhouse gas emissions are on the rise, though not initially due to this year's decline in nuclear energy usage. The increase in emissions began during fiscal year 2010, which ended in March of this year, due to an increase in thermal power usage, particularly liquefied natural gas (LNG) sources. Other reasons include technical issues with several nuclear power stations, including Kashiwazaki-Kariwa power station, owned and operated by Tokyo Electric Power Company Incorporated (TYO:9501) (TEPCO) (Tokyo).

So far, emissions have increased more than 4%, though fiscal year 2010's 1.2 billion metric tons of carbon dioxide are still below 1990's levels. This year however, thermal power usage rose nearly 40% in October year-over-year (y/y) directly due to a decline in domestic nuclear energy usage following the Fukushima Daiichi nuclear accident.

LNG imports, as well as imports of coal and oil, began increasing last year due to extreme temperatures during the summer and winter peak seasons. The import situation became compounded as technical issues at several of Japan's nuclear power stations cropped up. LNG imports alone are expected to reach nearly 80 million metric tons by the end of the year, a 13% increase from last year, while thermal-coal imports rose nearly 8% in August y/y.

Coal imports have fallen since August, but LNG imports remain high. Japan is the world's largest importer of LNG and is currently boosting domestic gas-fired capacity mainly through unit additions and repowers, according to Industrial Info. Gas-fired capacity became the country's largest emergency power support following the Great East Japan Earthquake Disaster as electrical generation companies, particularly TEPCO and Tohoku Electric Power Company Incorporated (TYO:9506) (Tokuden) (Sendai, Japan), struggled to maintain capacity.

The Kyoto Protocol is set to expire in March of 2013 and now Japan is unsure if it can meet its goals for emissions reduction. Japan is currently reviewing a new emissions trading scheme that will permit trading with other countries, particularly with those of Southeast Asia.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.