www.EUbusinessinJapan.eu The Market for Biogas Plants in Ja- pan and Opportunities for EU Com- panies January 29, 2021 EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - Head office in Japan EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - OFFICE in the EU Shirokane-Takanawa Station bldg 4F Rue Marie de Bourgogne, 52/2 1-27-6 Shirokane, Minato-ku, Tokyo 108-0072, JAPAN B-1000 Brussels, BELGIUM Tel: +81 3 6408 0281 - Fax: +81 3 6408 0283 - [email protected] Tel : +32 2 282 0040 –Fax : +32 2 282 0045 - [email protected] http://www.eu-japan.eu / http://www.EUbusinessinJapan.eu / http://www.een-japan.eu This report has been prepared by ECOS GmbH P. Beck Westerbreite 7 49084 Osnabrueck Germany Tel.: ++49 (0) 541 911 909 90 E-Mail: [email protected] www.ecos.eu EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - Head office in Japan EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - OFFICE in the EU Shirokane-Takanawa Station bldg 4F Rue Marie de Bourgogne, 52/2 1-27-6 Shirokane, Minato-ku, Tokyo 108-0072, JAPAN B-1000 Brussels, BELGIUM Tel: +81 3 6408 0281 - Fax: +81 3 6408 0283 - [email protected] Tel : +32 2 282 0040 –Fax : +32 2 282 0045 - [email protected] http://www.eu-japan.eu / http://www.EUbusinessinJapan.eu / http://www.een-japan.eu www.EUbusinessinJapan.eu Contents 1. Executive Summary .................................................................................................................................................. 6 2. Scope of the Report .................................................................................................................................................. 9 3. Market Framework Conditions ............................................................................................................................... 10 a. Role of Biogas in Energy Mix .............................................................................................................................. 10 b. Political Strategy and Subsidies .......................................................................................................................... 11 c. Obstacles for biogas utilization .......................................................................................................................... 15 i. Obstacles in planning and grid access ............................................................................................................ 15 ii. Other obstacles ............................................................................................................................................... 16 4. Market Situation ..................................................................................................................................................... 17 a. Volume................................................................................................................................................................ 17 b. Market Developments and Trends ..................................................................................................................... 18 i. Main Applications in Japan ............................................................................................................................. 18 ii. Main Processes in Japan ................................................................................................................................. 20 iii. Plant examples ............................................................................................................................................... 21 5. Market Access......................................................................................................................................................... 23 a. Market access conditions ................................................................................................................................... 23 b. Distribution channels .......................................................................................................................................... 25 c. Regulations & Standards .................................................................................................................................... 26 i. Regulations ..................................................................................................................................................... 26 ii. Standards ........................................................................................................................................................ 28 6. Major players .......................................................................................................................................................... 30 a. Competitors ........................................................................................................................................................ 30 i. Japanese planners and manufacturers of Biogas plants (selected) ............................................................... 30 ii. Foreign planners and manufacturers of Biogas plants (examples) ................................................................ 32 b. Suppliers ............................................................................................................................................................. 34 i. Trading companies ......................................................................................................................................... 34 ii. Manufacturers of fermentation tanks ............................................................................................................ 35 iii. Manufacturers of dryers ................................................................................................................................. 36 EU-Japan Centre for Industrial Cooperation 3 www.EUbusinessinJapan.eu iv. Manufacturers of CHP systems ...................................................................................................................... 36 v. Manufacturers of Microturbines .................................................................................................................... 37 c. Customers ........................................................................................................................................................... 37 i. Municipalities ................................................................................................................................................. 37 ii. Food industries ............................................................................................................................................... 37 iii. Farmers ........................................................................................................................................................... 38 d. Associations & Research Institutes ..................................................................................................................... 38 i. Associations .................................................................................................................................................... 38 ii. National Institutes .......................................................................................................................................... 39 iii. Universities ..................................................................................................................................................... 39 e. Installers/Operators ........................................................................................................................................... 39 f. Service and maintenance ................................................................................................................................... 40 7. Market Potentials and Recommendations ............................................................................................................. 40 a. Potentials ............................................................................................................................................................ 40 b. Challenges ........................................................................................................................................................... 41 c. Recommendations .............................................................................................................................................. 42 i. General recommendations for a market entry: ............................................................................................. 42 ii. Systemic considerations and recommendations ............................................................................................ 43 8. References .............................................................................................................................................................. 45 EU-Japan Centre for Industrial Cooperation 4 www.EUbusinessinJapan.eu List of Abbreviations ANRE Agency for Natural Resources and Energy BOD Biochemical oxygen demand CHP Combined Heat and Power DS Dry Substance FIP Feed-in Premium FIT Feed-in Tariff GW Gigawatts ICT Information and Communication Technology JORA Japan Organic Recycling Association kWh Kilowatt-hours MAFF Ministry of Agriculture, Forestry and Fisheries METI Ministry for Economy, Trade and Industry MoEJ Ministry of the Environment, Japan MoF Ministry of Finance MSW Municipal Solid Waste MW Megawatts