Yoshiyuki Hanasawa shares his views on the Asia Pacific region’s need for a phased approach to decarbonisation, and why partnerships with countries and cross-sectoral stakeholders is pivotal to accelerating the global energy transition. He also outlines some of the MHI Group's key initiatives in developing an innovative solutions ecosystem to realise a carbon neutral future.
Asia Pacific consumes nearly half of the world’s primary energy, and is critical to the global energy transition. However, due to its diverse mix of geographies and economies, there is no one-size-fits-all approach for decarbonisation in the region.
A phased approach is necessary, and we are supporting this by building innovative solutions focused on decarbonising existing infrastructure and establishing robust hydrogen and CO2 ecosystems.
Countries in their first phase of the energy transition, like India, Indonesia, and most ASEAN nations, currently rely heavily on thermal power generated from oil and coal. Their current focus should be on improving energy efficiency and commencing the switch from coal to gas – particularly liquefied natural gas (LNG), which produces roughly 40% less greenhouse gas emissions compared to black coal. Renewable resource rich countries with an abundance of geothermal resources, like Indonesia and the Philippines, should leverage this for greater integration of renewables into their energy mix.
Countries which are in the second phase of transition to gas, like Singapore and Malaysia, should and are setting aggressive targets to integrate more renewable energy sources like wind and solar, as well as alternative fuels like hydrogen and ammonia, into their energy mix. Carbon capture, utilisation, and storage (CCUS) technologies should also be part of these countries’ low carbon strategies, as they are critical for the region to reach its Paris Agreement temperature targets.
As for countries advanced in the energy transition, like Australia, they should aim to become a major exporter of green energy to assist other nations in their respective decarbonisation agendas.
Our task, as I see it, is to partner closely with each country – regardless of which phase of the energy transition it is in – and provide technical and financial support to accelerate efforts to help realise a carbon neutral future, improve the quality of life, and ensure a safer world.
MHI Group is building an innovative solutions ecosystem to realise a carbon neutral future, and robust hydrogen and ammonia ecosystems are core to this. We are working closely with stakeholders across Asia Pacific to accelerate the adoption of such alternative fuels to power the region’s energy transition.
To support the green expansion of Singapore’s digital economy, we are exploring a hydrogen-powered tri-generation plant concept for data centres with Keppel Data Centres. In South Australia, we are investing in H2U Investments to support its green energy and ammonia initiatives, which include the Front-End Engineering and Design (FEED) study for H2U's Eyre Peninsula Gateway project which plans to commence commercial production of green hydrogen and ammonia towards the end of 2022.
Additionally, Mitsubishi Power, one of our subsidiaries, is partnering Indonesia’s Bandung Institute of Technology (ITB) for research into new fuel technologies using ammonia and hydrogen to reduce greenhouse gas emissions, and to use AI and big data analysis to improve power plant performance. In April this year, Mitsubishi Power also inaugurated the operation of Southeast Asia’s first M701 JAC gas turbine, which can reduce carbon emissions by up to 65% compared to coal-fired plants, at a power plant in Choburi, Thailand. All of Mitsubishi Power’s heavy-duty gas turbines will also ship with hydrogen capability for deeper decarbonisation in the future.
We also recognise the region’s need for hybrid microgrid solutions in remote communities, whether in the Philippines or Indonesia, where connecting to a traditional grid is either impossible or uneconomical, or in advanced economies like Singapore, where big industrial users may wish to install microgrids as a back-up. Mitsubishi Heavy Industries Engine & Turbocharger is developing a microgrid system called EBLOX, to overcome such challenges through a mix of solar panels, battery storage and a diesel or gas engine – three components that work together to provide stable power while reducing carbon emissions.
Facing energy transition challenges head on, in collaboration with all stakeholders, is the only way to achieve decarbonisation.
As mentioned by the International Energy Agency (IEA), governments should significantly strengthen and successfully implement energy and climate policies that are cost-effective and people-centric, while allowing for an orderly transition to a sustainable energy future. Innovations and investments in research and development (R&D), demonstration and deployment should also be at the core of such policies.
Private sector organisations, including academia and technological solutions providers like MHI Group, will need to collaborate closely with the public sector to find innovative and integrated ways to support the energy transition. More cross-border cooperation is necessary to ensure that emerging countries have the financing and technologies to reach net zero in time. This is particularly so in Asia Pacific, as coal continues to play a significant role in the energy mix of many countries. To ensure that clean energy solutions can scale rapidly, countries need to partner one another to support cross-border technology transfer, sharing of know-how, and capacity building.
MHI Group takes a long-term view of partnerships with cross-sectoral stakeholders in the region as we continue to support countries through every step of their unique energy transition journeys.
Hydrogen can enable greater use of renewable electricity as an alternative fuel. In addition to our projects with Keppel Data Centres in Singapore, H2U in Australia and ITB in Indonesia, as well as Mitsubishi Power’s hydrogen-ready heavy duty gas turbines, we also have a wide range of projects around the world.
We are partnering with Vattenfall, Shell and Waerme Hamburg to develop a Green Hydrogen Hub in Hamburg, Germany to explore the use of existing infrastructure to produce green hydrogen from wind and solar for industrial applications.
In the United States, Mitsubishi Power is working with Magnum Development on a US$1 billion Advanced Clean Energy Storage (ACES) project in Utah. This project aims to build a storage facility for 1000 MW of clean power – partly by putting hydrogen into underground salt caverns – to help address the issue of renewable intermittency.
Mitsubishi Power also launched the world’s first standard packages – the Hydaptive package and the Hystore package – to cut through the complexity encountered by power generators and grid operators during green hydrogen integration, and accelerate the path towards 100% carbon-free power generation.
This year’s theme, Advancing the Energy Transition, strongly resonates with our focus at MHI Group. I am honoured to participate in the critical conversations at SIEW that will help drive the sectoral and country partnerships we need for a sustainable future.
I look forward to exchanging insights with industry leaders around Asia Pacific’s unique opportunity to advance its energy transition agenda as the region continues to recover from the pandemic. I also hope to dive deeper into how global leaders like MHI and countries in the region, can continue to collaborate for a collective, stable, and accessible shift towards decarbonisation.
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HANASAWA Yoshiyuki is Executive Vice President, Chief Regional Officer for Asia Pacific and India at Mitsubishi Heavy Industries (MHI) and Managing Director of Mitsubishi Heavy Industries Asia Pacific (MHI-AP). With nearly 40 years of experience in the industry, Hanasawa has developed expertise in business development and managing large complex organisations, as well as in-depth knowledge in power systems and marine machinery. Now based in Singapore, he oversees MHI-AP and MHII’s businesses across eight key markets in Asia Pacific, which are focused on providing cross-industry solutions to support the sustainable growth of the region.