(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T01017R000606030001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: January 12, 2017
• Document Release Date: March 4, 2011
• Sequence Number: 1
• Publication Date: May 14, 1986
• Content Type: MEMO

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FILE
DATE $ /Sb(.
DOC N?O S(V"aooS9
OCR
P&PD
Central Intelligence Agency
DIRECTORATE OF INTELLIGENCE
14 May 1986
Japan: Energy Research Efforts
Summary
The Japanese Government, in a quest to reduce its dependence on
imported crude oil, is funding a wide variety of research into alternative
energy technologies. Among the areas being explored by Tokyo are
fuel-cell technology, coal liquefaction and use of ceramics in power
generation.
Fuel-Cell Technology: Although Japan did not invest much time or money in
fuel-cell technology until 1983, a broad-based and active research effort is now under
way. The Japanese Government has spent about $50 million over the past five years on
this technology to reduce Japan's dependence on fossil fuels. Although Japan still lags
the United States by several years in fuel-cell development, press reports indicate
Japanese companies believe the technology will be commercialized by the early 1990s.
Japanese utilities are likely to be the primary producers and consumers of fuel cells,
which produce electricity through a chemical reaction involving hydrogen and oxygen.
Japan's poor resource endowment and dense population make the high efficiency and
low pollution levels of electric power plants using fuel cells very attractive. Tokyo
This memorandum was prepared byl (Office of East Asian 25X1
Analysis. Information available as of 14 May was used in its preparation.
Comments and queries are welcome and may be directed to the Chief, Japan Branch,
Northeast Asia, OEA, 25X1
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Electric Power--which supplies over 30 percent of Japan's electricity needs--plans to
replace obsolete thermal power plants with fuel-cell plants, according to Embassy
Tokyo. In addition to utility companies, many Japanese machinery firms plan to market
fuel-cell power generators.
Ceramics Research and Development: Although fine ceramics are currently used
primarily for electric and electronic parts, Japanese firms are conducting extensive
research on alternative applications. They hope eventually to market ceramic parts of
use to industries such as biotechnology, steel and auto production, and energy
generation. Although MITI plans to spend about $60 million between 1980 and 1990 for
ceramics research, private companies are underwriting most development costs because
of the bright future predicted for the industry. 25X1
the ceramics market in Japan, currently about $2.5 25X1
billion per year, is expected to grow to well over $4 billion by 1990 and to continue to
experience rapid development throughout the next decade. 25X6
25X6
Coal Liquefaction: As part of its effort to reduce Japan's dependence on
imported oil, MITI is sponsoring two programs to establish viable coal liquefaction
technology, which produces a synthetic fuel that could be used instead of crude.
? MITI's New Energy Development Organization (NEDO) started a bituminous coal
liquefaction project in 1984, designed to liquefy 250 tons of coal a day when the
pilot plant is completed around 1990. The plant will cost an estimated 100 billion
yen (about $625 million at 160 yen/dollar), with NEDO providing 85 percent of the
costs and participating companies supplying the remainder.
? The Nippon Brown Coal Liquefaction (NBCL) project is a joint venture with
Australia, begun in 1980 and wholly funded by the Japanese Government.
First-stage construction of the 50-ton-per-day pilot plant, was completed in
March 1985, and NEDO introduced coal into the plant in late 1985. Integrated
operation will begin upon completion of the second-stage construction.
the period of slack oil demand during mid-1
little effect on Japanese liquefaction efforts
However, the current low oil prices
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are reducing s oil tax revenues, which finance alternative energy programs, and this
may eventually force a cutback in the liquefaction projects. In addition, Japanese
officials fear the low price will hinder corporate incentives to participate in these
programs. Indeed, NEDO officials say the 25X1
liquefaction process would not be economically viable unless the price of oil reached
$40 per barrel. 25X1
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Emissions-Control Technology for Fossil Fuels: We know little of Japanese
emissions-control technology per se. However, Japan strictly enforces the world's most
stringent emissions standards. Coal-fired power plants that started operations in 1983
and 1984, for example, devoted approximately 20 percent of the total construction cost
for environmental protection. Local environmental regulations in the more densely
populated areas of the country tend to be even stricter than national requirements.
Standards in all sectors are set toward the top end of technically attainable ranges and
are periodically adjusted as technical progress makes higher standards economically
feasible. Tokyo provides funding for research and development in key areas of overlap
between energy use and environmental concerns, including ash disposal, the handling of
waste products from coal combustion, and processes for flue gas desulpherisation.
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SUBJECT: Japan: Energy Research Efforts
1 - Jerry Mays, Department of Energy, Intelligence Liaison Office
Central Intelligence Agency
1 - Office of Legislative Liasion, 7B-14
1 - NIO/EA, 7E-62
1 - NIO/Economics
1 - C/PPWDQ (130 1)
1 - C/EA 5E-18
1 - OGI/SR/EM, 3G-31
1 - OGI/FSIC/Pl
1 - OEA/NEA/Korea Branch
1 - OEA/NEA/STI Branch
1 - OEA/NEA Division
1 - OEA/China Division
1 - OEA/SEA Division
1 - D/OEA, 4F-18
1 - C/Production Officer/OEA
1 - FBIS Analysis Group
1 - DDI, 7E-44
1 - Senior Review Panel, 5G-00
1 - PDB Staff, 7F-30
1 - C/PES, 7F-24
1 - CPAS/ILS, 7G-50
5 - CPAS/IMC/CB, 7G-07
1 - NIC/AG, 7E-47
1 - DDO/EA Division
1 - DDO/EA/n 5C-45
2 - Author
1 - Chrono
OEA/NAD/J,
4May86
25X1
25X1
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