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29th October, 2012 Tokyo Gas Co., Ltd.

Tokyo Gas R&D Activities for Natural Gas Utilisation

1

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

1

2

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

2

3

The outline of Japanese gas industry

Natural Gas WellNatural Gas Well Liquefying PlantLiquefying Plant

LNG TankerLNG Tanker

Business/Industrial

Customers

Business/Industrial

Customers

LNG Terminal LNG Terminal

Residential CustomersResidential Customers

PipelinePipeline

Power PlantPower Plant

Japanese gas industry still keeps conventional vertically

integrated value chain.

4

The outline of Tokyo Gas The largest gas utility company in Japan.

The geographical business area is Tokyo metropolitan area and

its surroundings.

• Founded October 1, 1885

• Capital $ 1.57 Billion

• Net sales $ 16.1 Billion

• # of Employees 7,579

• P/L network 57,158 km (Consolidated)

• Gas sales volume 14 billion m3

• # of customers 10 million

(as of March 31, 2009. Non-consolidated)

(1$=\90)

5

Organization of Technology Development Division

Technology Development

Division

Technology Planning Dept.

Fundamental Technology Dept.

Product Development Dept.

6

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

6

7

Goals of the Gas Industry in a Low Carbon Society

Stable energy supply Combating global warming Energy security through

diversified supply sources

and the optimum energy

mix.

Natural gas, as a low

carbon fuel, and highly

efficient systems will play

a key role to a low carbon

society.

Distributed energy

systems

Hydrogen-driven society

Advanced use of

natural gas

Renewable energy sources

Contribution to low carbon society

8

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

8

9

High Efficiency Appliance for Residential Use (Research & Development and Deployment)

Ｃ Energy Savings：13% CO2 Reduction：13%

Condensing Boiler (Instantaneous Water Heater)

・This will become de facto standard in 2012. ・All water heater will be replace with condensing boiler by 2030.

PEFC (Commercialized in 2009)

Polymer Electrolyte Fuel Cell

SOFC (Higher Efficiency)

Solid Oxide Fuel Cell

Generation Efficiency Residential：45% Industrial：67%

Demonstration Project is ongoing under government subsidy.

Generation Efficiency ：40% Energy Savings：35% CO2 Reduction：48%

・ENEFARM is a common name for all types of fuels. ・Rapid market inroad, and enhancement of performance and market acceptance.

10

Residential m-CHP Market H

ot

Wate

r D

em

an

d

Electric Power Demand

11

・Generating Capacity 1 – 0.3 kW

・Hot Water Storage 200 litters

< Manufactured by Panasonic > FEATURES…..

・37 LHV% Generating Efficiency

・50 LHV% Thermal Efficiency

・87 LHV% Overall Efficiency

・33% Primary Energy Saving

・45% CO2 Reduction Common TM for City Gas/LPG/Oil Models

Innovation of High Efficient Appliance

Residential Fuel Cell (ENE・FARM)

11

Hot water tank

PEMFC stack

Air

Hot water

Hot water

Recovered

heat

Natural gas

Fuel processor

H2 gas

DC electricity

DC/AC Converter

AC electricity

Backup gas

water heaterAir

Hot water tank

PEMFC stack

Air

Hot water

Hot water

Recovered

heat

Natural gas

Fuel processor

H2 gas

DC electricity

DC/AC Converter

AC electricity

Backup gas

water heaterAir

12 12

Commercialization started for PEFC in 2009

- Listed Price :$31,000-$33,000 (excluding installation cost)

-Government subsidy: $13,000 (FY2010)

- 5,000 units targeted nationwide(FY2010)

Stationary Fuel Cell Large-Scale

Demonstration Project (2005 - 2008)

⇒ 3,300 units installed nationwide

SOFC Demonstration Research Project (2007- )

⇒ Following PEFC initiatives, this marks the

start of demonstration research aiming at

development of practical applications.

Polymer Electrolyte Fuel Cell (PEFC) Solid Oxide Fuel Cell (SOFC)

(LHV)

Generating efficiency: 37% Generating Efficiency: 45%

Manufacturers

Panasonic, Toshiba,

ENEOS Celltech

Residential Fuel Cell Options

(LHV)

Manufacturers

Kyocera/Toyota/Aisin,

TOTO, NGK Spark Plug,

Nippon Oil

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Running Cost Merit of “ENE･FARM”

0

5

10

15

20

25

30

従来ＴＥＳ エネファーム

Expense （JP

Y/y

ear)

Gas

140,000JPY

Elec.

136,000JPY Elec. 57,000JPY

従来ガス給湯器 エネファーム

100,000

200,000

300,000

Conventional

system ENE-FARM

Gas

165,000JPY

-54,000JPY

23.7JPY/kWh

11.1JPY/kWh 9.3JPY/kWh

26.7JPY/kWh

14

Development Scheme of New Appliances

Gas Company Cu

sto

me

rs

Manufacturers

LNG Terminal Pipelines Appliances & Systems

R&D & Business Policy

based on customer’s needs Supply of

Appliances & Systems

Feed Back

15

Prospect of Stationary PEM FC CHP Market by Tokyo Gas

Introduction

phase

Penetration

phase

Fully

commercialization

Limited market entry

Large scale demonstration

project

Market penetration

Subsidy from government

2005～ 2009～

Expansion

phase

2013～

Cu

mu

lative

nu

mb

er

of in

sta

llation

s

( th

ou

sa

nd

s u

nits)

Amount of CO2 reduction

Cumulative number of installations

42 thousands units

63 thousands ton

2 thousands units

2009 2010 2011 2012 2013

Medium-term management plan of Tokyo Gas

2.5 million units

2020 2030

1.4 million units

Load Map of PEM FC in Japan

16

2007～2010 SOFC Demonstration Research Program

2007 2008 2009 2010

Gastar-Rinnai 700 2

Kyocera, Toyota-Aisin 700 3 2 4 11

Osaka Gas 700 20 25 35 41

TOTO 700 2

700 2 3 5 6

NTK 700 2

Nippon Oil Nippon Oil （LPG） 700 1 2 14 27

Nippon Oil （Kerosene） 700 1 1 1 1

TOTO

TOTO 700 2 6 10

TOTO 2kW （2007） 8kW （2008）

2 1

計 29 36 67 101

Output (W) Numbers of SOFC

Tokyo Gas

Other Gas & Electrics

Operator Manufacturer

Kyocera-Toyota-Aisin

Kyocera, Toyota-Aisin

TOTO 700 1

17

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

17

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(1) Instantaneous water heater + solar water heater(balcony rail installation)

(2) Fuel cell + PV

Solar heat collectors on

condo balconies

Hot water storage tank

Hot water supply

Natural gas water heater provides backup for solar water heater which has an unstable hot water supply

The best mixture; Fuel cells compensate the output instability of PV cells.

Natural gas

Integration with Renewables

Fuel cell

Natural gas

Grid power

PV generation

Electricity

Heat

Sales achievement:50 systems Sales achievement:800 systems（FY2010）

19

19

Various types of biomass can be gasified by fermentation or partial combustion. And produced energy is consumed in the smart energy network.

(2) Thermo chemical reforming

(1) Biological reforming

Methane and ethanol fermentation using seaweed or food wastes

Partial combustion gasification for sewage sludge or mushroom beds

Ethanol

Bio gas

Fermentation tank Partial combustion gasification

Biomass

Mushroom bed

Seaweed

Biomass

Seaweed, Food wastes

sewage sludge, mushroom beds

Bio gas

Development of Biomass Technologies

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(2) Urban Biomass Energy through Dry Methane Fermentation

(1) Biogas Input into Gas Pipelines

Utilization of Biomass Technologies

Tokyo Gas participates in Japan's first test for biogas input into city gas pipelines.

Conduct experimental study on urban energy system through dry methane fermentation using kitchen waste and paper

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Commercialization Scenario for FCVs and H2 Stations

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・ Hydrogen production system with membrane separation technology ・ Simpler, more efficient than conventional reforming technologies（SMR+PSA）

・ CO2 reduction by efficiency improvement

・ Downsizing of hydrogen production system

JHFC Senju Hydrogen station 40 Nm3/h-class MRF system

Membrane reformer enables…

Tokyo Gas / Mitsubishi Heavy Industries

・ CO2 capture easier than the conventional technologies

Hydrogen station

23

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

23

24

Conceptual Scheme of the Smart Energy Network

Solar PV

Solar Thermal Solar PV ＆ Thermal

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Bio Gas from Food

Waste

Solar Thermal

Solar PV

1. Energy Network in Condominium

Common use energy equipment incorporates renewables and interchanges heat and electricity in a condominium.

Solar PV

City Gas Grid Power

Bio Gas

Heat

Solar Thermal

Fuel Cell

2. Energy Network in Residential Household

Utilize renewables with fuel cell and battery to optimize use of heat and electricity in a house.

Solar PV

Battery

Fuel Cell

ﾎｰﾒｴﾈﾙｷﾞｰﾏﾈｼﾞﾒﾝﾄ

Smart Meter

3. Area-based Energy Network in Urban Commercial District

Common use energy equipment for optimum district energy network

4. Area-based Energy Network Using Urban Wasted Heat

Heat from waste incineration is combined with CHP to be supplied to customers in the vicinity.

Waste Incineration Plant

Heat

Electricity

Area-based Energy Network

Solar PV

Bio Gas

City Gas CHP

Classification of the Smart Energy Network

26

Outline of Tokyo Gas

Vision of the Gas Industry to a Low Carbon Society

Challenge 1 - High Efficient Appliances Fuel Cells

Challenge 2 – Renewable and Hydrogen

Challenge 3 - Smart Energy Network

Conclusions

Contents

26

27

Supporting 60-80% CO2 reduction by expanding the advanced use of natural gas

2010 2020 2030 2040 2050

Further efforts toward a low carbon society

Post-Kyoto Period The First Commitment Period

Red

uctio

ns ta

rg

et

1. Expanded use of natural gas

2. Advanced use of natural gas (e.g. highly efficient appliances)

3. Maximum introduction of renewables

Em

issio

n

volu

me

CO2 emission volume

Reducing CO2 emissions from other types of fossil fuels such as oil Reducing CO2 emissions from fossil-fired power stations, etc

5. Configuration of local hydrogen networks

4. Deployment of area-based energy network

Mid-to-long Term Scenario of Gas Industry

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Natural gas must play a significant role in a low carbon society through advanced utilization technologies such as fuel cells.

Hydrogen energy chain including the local hydrogen network with CO2 capturing is a potential option of for the sustainable gas utility business.

Need to expand the scope of our activities not only single device but also integrated energy systems to create the smart energy network.

Conclusions

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Thank you for your kind attention !!

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ENEFARM needs electric power from the power grid system to drive water circulating pump, fuel gas control blower, etc., and generates electric power while referring the voltage and frequency of the grid power

The battery is optionally coupled with ENEFARM. When power is out, the battery enables ENEFARM to continuously operate.

＜normal＞ ＜blackout＞

ENEFARM continues its operation at power outages

• A new battery for use with ENEFARM will be released on this February

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Specification of battery

Launch date February, 2012 (scheduled)

Battery type Compact control valve type of Lead

battery

Total capacity of battery 6.6kWh

Battery discharged capasity

4.6kWh or 3.3kWh

Dimensions (mm) W:1,205 H:1,370 D:300

Weight approx. 450 kg

System protection Protection for individual operation

Equipment protection Over current, Overload protection

Battery protection Over current, Voltage drop protection

Price \ 1.68 M