An Analysis on the Projects Structure to Expand Renewable Energy – A Case Study of the Maniwa Biomass Project in Japan by Checking from the viewpoint of PPP (Public Private Partnership) –
Yoshiki Ogawa Toyo University The 15th IAEE European Conference September 5, 2017, Vienna, Austria Contents of presentation
1. Purpose of this study 2. Location of Maniwa City in Japan 3. Historical progresses on the Maniwa projects 4. Players’ structure of recent projects 5. Changes in Maniwa City during 24 years 6. Concluding remarks
2 Purpose of this study After the adoption of UNFCCC in 1992, the expansion of renewable energies has been pursued through various regional development projects in Japan. In the past 25 years, we have experienced so many happenings and troubles through these projects. In May 2016, Japanese Government has authorized the new target of GHGs reduction to achieve 26% reduction from the level in 2013 up to 2030 based on the Paris agreement. Japan also need to strengthen GHGs reduction measures, because she already committed 50% (or 80%) reduction of GHGs in 2050 in the long-run. The expansion of renewable energies related to regional development projects will be one of important options to achieve GHGs reductions in Japan. In this paper, we made a case study on the Maniwa regional development project, because this project has continued during past 24 years step by step and we can definitely say this project is one of successful examples in Japan. 3 Location of Maniwa City in Japan Maniwa City was started from the Maniwa City end of March, 2005 by the merger of 9 towns and villages Katsuyama, Ochiai, Yuhara, Kuze and Hokubou Towns and Miama, Kawakami, Yatsutsuka, and Chuka Villages Rural mountain region Area: about 828 km2 Okayama Pref. Population: 46,714 (Aug. 2017)
Japan Time Event 1993.04 “Maniwa Circle for the 21st century” (Private organization) was started. Prep. 1997.10 A symposium on environmental-friendly town developments was held. Stage 1998 The eco-friendly power generation using biofuels was started. 2001.03 The industrial cluster plans using woody resources were made. 1st 2002 Wood chip cement and cat litter were commercialized. Stage 2002.11 “Maniwa Circle for the 21st century” got a NPO legal personality. 2003.02 “The Maniwa forum” was held. 2005 Maniwa city started by the merger, NEDO demonstration project was started. 2006.04 The Maniwa city biomass town plan was announced. 2006.12 “Biomass tours Maniwa” were started. 2nd 2007.10 The next-generation energy park plan was authorized. Stage 2009.04 Maniwa biomass gathering station was constructed. 2009.06 Maniwa biomass project was selected as 100 greatest new energies. 2011 The utilization of domestic credits system was started. 2013.03 The guideline for Maniwa city woody biomass energies utilization was made. 2013 The Maniwa biomass industrial forests and city plan was made. 3rd Stage 2015.04 The large-scale Maniwa biomass power generation plant was started. Recent Stage of Forest resources Maniwa Project
Energy ~Biomass industrial uses Main stream forests and city plan~ Rice farming Crude wood Farmhouse market Pooling/Processing The third stage of Stable supply regional development Factory Gathering/Conversion
Fertilizer/Resources Public building projects started from Sawmill # Forest off cuts
Gathering # Timber wastes 2013 # Wood chips # Bark # Wood shavings Home # Sawdust BDF refining Composting (1) Biomass power center generation project
Generation (2) Biomass refinery Maniwa Biomass Lab Product market Builder etc. project (1) Edible oil waste Foodl waste Venture companies etc. Industrial tours / (3) Agriculture network Material uses Related industries promotion project (2) (4) Other projects Players’ Structure (1) Biomass Power Generation Project
Sector Player Public # Maniwa city government Private # Meiken Kogyo Co. # Tsuyama integrated wood Unused woods Timbers market Co. (Tinned woods, Forest (Timber off cuts etc.) # Sanin Maruwa forestry Co. off cuts etc.) # Maniwa wood city sale Co. Chipping of internal and external Others # Maniwa biomass wood resources (NPO generation project etc.) promotion joint council # Maniwa forest owner’s cooperative # Okayama forest cooperative association # Maniwa wood industry Maniwa biomass power gen. Co. cooperative New company composed of regional organization Generation capacity: 10,000 kW Supply to 22,000 households Players’ Structure (2) Woody Biomass Refinery Project
Water and Fine Chemical pro- Woody biomass Cellulose heat treatment grinding ducts such as reyon, nylon Vitalization etc. Grinding treatment Public # Maniwa city government Wood powder Lignin Hemicellulose High reactive cellulose # Okayama Pref. government
Thermal cracking Saccarification Saccarification Private # Maniwa Bioenergy Co. and gasification by enzyme by enzyme # Maniwa Biochemical Co. Saccarides such Synthesis by Synthesis by Glucose C1 catalyst catalyst as pentose # Mori Machinery Co. Fermentation Chemical conversion # FONTEC R&D Co. Synthetic gasoline Methanol such as ethylene Chemical pro- Others # Maniwa biomass refinery ducts such as Biofuels etc. Ethanol polyester etc. (NPO project promotion joint etc.) council # Maniwa forest owner’s cooperative # Maniwa wood industry cooperative # NPO Maniwa circle for the 21st century # Okayama University Maniwa Biomass Lab Players’ Structure (3) Agriculture Network Project
Maniwa City
Direct sales Delivery depot Consumers in Maniwa City Public # Maniwa city government Farm Direct sales Direct sales depot depot Local delivery and gathering by the formation of network Sales Private # JA Maniwa Marketing information Information: common POS system Distribution: Truck transportation # All Maniwa Co. Delivery Road side Road side station station # Roadside station “Kaze no Farm Consumers in Metro- ie” Marketing information Marketing Tourism polis Transportation information Exchange # Roadside station “Daigo no
# Farm products sato” Maniwa Market # PR of City # Information Sales (Takatsuki City, Osaka Pref.) transmission City promotion Others # Maniwa agri- network (NPO association etc.) #Maniwa farmer’s cooperative #Bihoku farmer’s cooperative #Hiruzen dairyman’s and Direct Sales farmer’s cooperative Depot in #Maniwa Highschool Takatsuki City, Osaka Pref. Indicators for Checking of Healthy Status of Local Government Finance The following five indicators were selected in order to check the healthy status of local govern- ment finance from June, 2007 The ratio of actual balance calculated only a deficit case The ratio of linked actual balance calculated only a deficit case The ratio of actual debt The ratio of future burden The ratio of fund shortage calculated only a shortage case Changes in Indicators for Healthy Status of Maniwa City Government Finance (B Yen) (%) 6 180 Actual balance Linked actual balance 160 Actual debt ratio 5 140 Future burden ratio
4 120
100 3 80
2 60
40 1 20
0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Actual balance) (Debt ratio and burden ratio) Changes in Decreasing Rate of Population
Decreasing rate of population (%) 0.0
-0.5
-1.0
-1.5
-2.0 Maniwa, Okayama Niimi, Okayama Takahashi, Okayama -2.5 Oga, Akita Muroto, Kochi -3.0 65/60 70/65 75/70 80/75 85/80 90/85 95/90 00/95 05/00 10/05 15/10 Concluding Remarks (1)
First, the regional development projects in Japan were often organized under the leadership of the central govern- ment, but they were not always successful. Based on the successful example in Maniwa city, the participation of local players from the public, private and other sectors and the linkage of these local players would be crucial. Second, the searches and pursuits of specific local needs would be a quite important task for the regional develop- ments. In the case of Maniwa city, this role has been covered by NPO “Maniwa circle for the 21st century” from the beginning. The function for local opinion exchanges would be also crucial. 16 Concluding Remarks (2)
Third, the participation of powerful local companies would be essential to continue and accomplish the projects. In the case of Maniwa city, this role has been played by Meiken Kogyo Co., one of local leading company in the wood sector. Forth, the continuous piling up of various projects step by step over the long period would be required for the successful developments. Because of this, the role of local governments such as Maniwa city government and the connection between local and central governments would be also a key factor.
16 Thank you very much for your kind attentions.
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