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Demand for Gas Cogeneration Catching Fire in Japan

Posted on: Saturday, 3 September 2005, 18:00 CDT

Tokyo, Sept. 3 (Jiji Press)--The use of gas cogeneration is spreading in Japan, prompted by increased awareness about the need to reduce greenhouse gas emissions because of the Kyoto Protocol and the rising oil price.

Gas cogeneration, which generates heat and electricity by burning natural gas, has been drawing growing interest since the effectuation in February this year of the Kyoto Protocol, an official of Tokyo Electric Power Co. said. The Kyoto Protocol puts restrictions on emissions of greenhouse gases such as carbon dioxide, and Japan is required to cut its emissions by 6 pct from the 1990 level by 2012.

The amount of carbon dioxide emitted when natural gas is burnt is 30 pct less than the output from burnt oil.

In addition, the recent surge in the crude oil price has made gas cogeneration more attractive in cost terms. Between April 2004 and June this year, the crude oil price imported to Japan climbed 54 pct, while the price of liquefied natural gas posted a much more modest rise of 17 pct.

At the end of fiscal 2004 to last March, the total power generation capacity at gas cogeneration facilities in Japan stood at 3.13 million kilowatts, up about 30 pct from a year before, according to the Japan Gas Association.

Previously, gas cogeneration was used mainly at manufacturing plants, but it has recently become popular at commercial facilities such as supermarket stores. Ito-Yokado Co. , for example, introduced gas cogeneration at three supermarket stores, encouraged by its environment friendly nature, according to company officials.

Gas cogeneration is set to find more new users as large-scale public baths, which usually rely on fuel oil, are beginning to show interest in it, an Osaka Gas Co. official said.

Amid the rising demand for gas cogeneration, even major oil companies like Nippon Oil Corp. seems to be unable to sit idle. Nippon Oil has clinched an order from Fuji Photo Film Co. to operate gas cogeneration facilities at three Fuji Photo plants.

Nippon Oil is the first oil company to engage in gas cogeneration in Japan.END

Source: Jiji Press English News Service

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