Asia Sustainability News (17-23 Sep. 2023)

Low Carbon Transport

China's midtier cities vie for EV battery supremacy

18 September (Caixin via Nikkei)--A handful of things put the southwestern Chinese city of Yibin on the map.

There is Wuliangye, a popular brand of the fiery liquor?baijiu. The iconic Bamboo Sea, which was a key location for Ang Lee's 2000 martial arts hit "Crouching Tiger, Hidden Dragon," is also nearby. And there are the fuel rods the city pumps out as one of China's most important nuclear hubs, where enriched uranium is processed for plants around the country. https://s.nikkei.com/3PQ6Nwn

Japan's Ghibli Park to feature all-electric 'Catbus' made by Toyota

19 September (Nikkei Asia) NAGOYA, Japan -- Starting next spring, visitors to Japan's Ghibli Park will be able to hitch a ride in Toyota-made electric vehicles resembling the iconic Studio Ghibli character Catbus. https://s.nikkei.com/3ERxSZS

Hitachi Zosen to convert ship engines for green methanol

19 September (Nikkei Asia) OSAKA -- Japanese engineering company Hitachi Zosen plans to develop technology to convert ship engines to run on green methanol, aiming to tap into rising demand for cleaner shipping fuels driven by the industry's push for decarbonization. https://s.nikkei.com/48v8pTu

Singapore-Rotterdam green corridor aims for 30% GHG emission cuts by 2030

20 September (TrandeWinds) -- Singapore and the Port of Rotterdam aim to reduce Greenhouse Gas (GHG) emissions on their proposed green shipping corridor by an initial 20% to 30% by 2030,?according to a latest update on the?project. https://bit.ly/48sllJJ

Renewable Energy

Cow waste to be transformed into rocket fuel for space startup

18 September (Kyodo)--A Japanese chemical manufacturing company has been working on creating liquid biomethane from cow waste to be used as rocket fuel, potentially providing a solution for dairy farmers grappling with disposal challenges.

Air Water Inc. said it would begin conducting trials in the fall, with the fuel to be loaded on a rocket created by space startup firm Interstellar Technologies Inc. based in Japan's northernmost island of Hokkaido. https://bit.ly/3t4OB9x

Singapore energy appetite fuels ASEAN's renewable power grid

20 September (Nikkei Asia) HANOI -- A web of international renewable energy deals is spreading across Southeast Asia as the region works to transition away from fossil fuels, with electricity-hungry Singapore as a driving force. https://s.nikkei.com/3RxkAZW

Governments

Over $1b pledged to accelerate sustainability and social solutions in Asia

15 September (Strait Times) SINGAPORE –- More than $1 billion have been pledged under the newly launched Philanthropy Asia Alliance (PAA) towards the development of Asian solutions for global environmental and social challenges. (https://bit.ly/3Pwz9ud )

Global Green Growth Institute conducts workshop on Accelerating Sustainable Finance

19 September (Bizenglish) --Recognizing the private sector's pivotal role in facilitating NDC and SDG investments, a targeted capacity-building workshop was recently conducted to equip key stakeholders with the knowledge and tools fundamental to mobilizing sustainable finance.

The Accelerating Sustainable Finance Through Private Sector Participation workshop, jointly organized by the Central Bank of Sri Lanka, the Sustainable Development Council, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and the Global Green Growth Institute (GGGI), builds on the momentum of previous sustainable finance knowledge sessions held in Sri Lanka. https://bit.ly/453tLV9

Gov't seeks to boost greenhouse gas emission trading by introducing exchange-traded funds

20 September (Yonhap) SEOUL-- The government plans to permit the sale of exchange-traded funds tracking the greenhouse gas emission trading market beginning next year as part of efforts to activate the country's sluggish emission trading, officials said Wednesday. https://bit.ly/3FazCh7

Asia Weather and Crop Summary by USDA (Asia)

https://bit.ly/3PPGsxt

South Asia

A monsoon low tracked across central India during the course of the week. The storm system produced a deluge (in excess of 150 mm and approaching 450 mm) along its path that caused flooding in key western oilseed areas and contributed to one of the wettest starts to September in the last 30 years. Heavy showers were also recorded north of the storm’s path but amounts were more seasonable (25-100 mm), while rainfall tapered off quickly (less than 25 mm) to the south. Despite the localized flooding, the moisture was welcome for mid- season kharif crops following one of the driest Augusts on record. In addition, the wet weather helped bolster reservoir levels (dry season irrigation) which have been trending below average thus far. The southwest monsoon typically begins withdrawing in September with diminishing rainfall amounts through mid-October.

Eastern Asia

Showers continued across large sections of China, providing late-season moisture to immature summer crops. The highest rainfall amounts (25-100 mm, locally more) were confined to areas south of the Yangtze River, favoring reproductive late- crop rice and bolstering moisture conditions ahead of rapeseed and other winter crop sowing. Meanwhile, showers in the northeast were heaviest (over 25 mm) in Heilongjiang, with little if any rain extending southward onto the North China Plain. The northern-most rainfall provided some benefits to immature corn and soybeans, while the drier weather down to the North China Plain aided crop maturation. Elsewhere, periods of showers (up to 25 mm) in western China were unfavorable for the beginnings of the cotton harvest, though dry, warm weather aided harvest conditions in southern parts of Xinjiang.

Southeast Asia

Monsoon showers flared across Indochina and the Philippines, providing needed moisture at a critical time of rice development. Much of Thailand and environs recorded well in excess of 25 mm of rain, with some locales exceeding 150 mm. The moisture comes mid-season as rice enters into reproduction when yields can be highly affected by moisture conditions. In fact, heavy showers were also reported in northern Thailand where it has been one of the driest seasons on record, limiting reservoir recharge for irrigation. Similarly wet weather prevailed across the Philippines, maintaining adequate to abundant moisture for rice and corn in various stages of development. Meanwhile, the main oil palm harvest period (September-October) in Malaysia and Indonesia was underway, with favorably drier weather in western growing areas but untimely wetness (over 100 mm) slowing harvest progress in the east.

Australia

Widespread showers (5-25 mm) in Western Australia were timely for reproductive wheat, barley, and canola, helping to stabilize crop prospects in the north while increasing yield potential in the south. In contrast, dry weather prevailed across South Australia, northern Victoria, New South Wales, and southern Queensland. A combination of sunny skies and adequate soil moisture promoted winter grain and oilseed development in southern growing areas. Soil moisture continued to decline in northern production areas, however, further stressing wheat and other reproductive winter crops and likely trimming yield prospects. Although farmers may be dusting in summer crops in parts of eastern Australia, soaking rain would be welcome to trigger more widespread sowing. Temperatures averaged close to normal (within 2°C of normal) in southern Queensland and northern New South Wales. Minimum temperatures dropped below freezing (as low as -3°C) in parts of New South Wales, potentially causing local frost damage to reproductive winter crops. Elsewhere in the wheat belt, unseasonably warm weather (temperatures averaging 2-3°C above normal, locally more) hastened wheat, barley, and canola development and increased evaporative losses.

Middle East

Dry weather returned to Turkey and continued elsewhere. After the preceding week’s showers, sunny skies and below-normal temperatures (up to 4°C below normal) over central and eastern Turkey promoted summer crop harvesting and winter grain sowing. Dry but warm weather (up to 2°C above normal) in western and southern Turkey likewise favored summer crop drydown and harvesting. The rest of the Middle East was seasonably dry; cool-season precipitation typically returns in October or November from Syria into Iran.

Nikkei Article of the Week (Machine Translated)

Toyota Tsusho, a Giant of Renewable Energy Supporting Hokkaido

Toyota Tsusho Corporation, a general trading company, is leading the Toyota Motor Group's decarbonization strategy as a "renewable energy giant." In addition to making Japan's largest wind power generation company a wholly owned subsidiary, it is also taking on the challenge of developing one of Japan's largest wind farms in Hokkaido. Toyota Tsusho once pioneered Toyota Motor's car exports and helped globalize the company. Now it will become a "decarbonized trading company" and work hard to secure renewable energy sources that will determine the company's competitiveness.

White feathers spinning in the north wind "boom, boom, boom" on the green hillsides stretching as far as the eye can see. In May, 33 giant wind turbine units, with a maximum height of over 140 meters, equivalent to a skyscraper, began operating in Wakkanai City, Hokkaido, Japan's northernmost prefecture, and other cities. It is one of the largest onshore wind projects in Japan being promoted by Eurus Energy Holdings, a subsidiary of Toyota Tsusho and the largest wind power generation company in Japan, and others.

By April 2025, 127 units will be installed, with a total output of 540,000 kilowatts. If all of the wind power plants are operational, the amount of wind power installed in Hokkaido is expected to double, surpassing Aomori and Akita prefectures to become the nation's top wind power installation by prefecture.

The northern Hokkaido region, where strong winds blow throughout the year, is considered one of the most suitable sites for wind power generation in Japan, but development has not progressed sufficiently. "The small capacity of the transmission lines was the crying point" (Eurus Energy, President) with a small population.

To this end, a power transmission company funded by Eurus Energy and others has built a 78-kilometer transmission line from Nakagawacho in Hokkaido to Wakkanai City, establishing a system for transmitting renewable energy on its own. The funds invested in the development of this power grid and power storage facilities amounted to approximately 105 billion yen.

Rapidus, which aims to manufacture cutting-edge semiconductors on a contract basis, cited the abundance of renewable energy resources as the reason for choosing Chitose City, Hokkaido, as the site for its plant. Hokkaido aims to become a "semiconductor powerhouse" with a concentration of related industries, and Toyota Tsusho will play a major role in meeting the enormous demand for electricity.

Toyota Tsusho's business resources in renewable energies are also driving the decarbonization strategy of the Toyota Motor Group.

In May, Toyota Tsusho began construction of a large-scale solar power plant (mega solar) near Huntsville, Alabama State, in the southern United States. Adjacent to the plant is Toyota Motor's factory for manufacturing engines used in sport utility vehicles (SUVs) such as the "Corolla Cross."

After the plant goes on line in the summer of 2024, it will supply power to Toyota Motor, which will provide 70% of the plant's electricity consumption. It will reduce carbon dioxide (CO2) emissions by approximately 22,000 tons per year. Toshiyuki Ishiguro, chief operating officer (COO) of Toyota Tsusho's Machinery, Energy & Plant Project Division, emphasizes, "We want to contribute to the decarbonization of the Toyota Motor Group."

Toyota Motor announced in June 2021 that it will move up the date for achieving virtually zero CO2 emissions at its plants worldwide from the previous target of 2050 to 2035. In line with the spread of electric vehicles (EV) and other electric vehicles, the company plans to review painting and casting processes that emit large amounts of CO2 and increase the use of renewable energy electricity.

In the world, large companies such as Amazon and Apple are already working to surround themselves with renewable energy. If automakers cannot efficiently procure renewable electricity, this could lead to a decline in the competitiveness of EVs and other vehicles, as well as restrictions on trade.

Toyota Motor executives have indicated that "We need to think about how to utilize the power plants that Toyota Tsusho has" and Toyota Tsusho are part of their decarbonization strategy.

Toyota Tsusho will invest 1.6 trillion yen in decarbonization-related projects by 2030 to meet this growing global demand. Approximately 700 billion yen of this amount will be allocated to the renewable energy sector.

In August 2022, TEPCO Holdings will acquire 40% of Eurus shares held by TEPCO Holdings for 185 billion yen, making Eurus a wholly owned subsidiary. In April 2023, it acquired 85% of the shares of SB Energy, a subsidiary of SoftBank Group engaged in solar power generation, for 102 billion yen.

The plan is to increase the global installed capacity of renewable energy generation (on a gross basis) from the current 4.5 million kilowatts to 10 million kilowatts by 2030.

Toyota Tsusho has not disclosed the output of its share of the investment, but it is currently estimated to be around 2.5 million kilowatts. While not as large as Orix (3.9 million kW), it is comparable to Mitsubishi Corporation (2.84 million kW) and TEPCO Holdings (2.5 million kW).

Toyota Tsusho, as a general trading company of the Toyota Motor Group, has so far pioneered the export of cars. In the past, when Toyota Motor Corporation, which was known as the "Mikawa Monroe Principle" due to its strong local orientation, expanded overseas, I was in charge of selecting sites for suppliers and securing materials, and accompanied Toyota Motor Corporation in its rise to become one of the world's top automakers.

However, compared to the five major sogo shosha, the company faces the challenge of being highly dependent on automotive-related products.

Consolidated net profit for the fiscal year ended March 31, 2023, reached a record high of 284.1 billion yen, up 28% from the previous year, with about 70% of the increase coming from the automotive sector. In anticipation of further growth, seven new priority areas have been identified, including renewable energy, hydrogen, and alternative fuels. The key will be how well the investment strategy pays off.

Ichiro Kashitani, president of Toyota Tsusho, emphasizes, "If another trading company can provide the product at a lower price than we can, we should leave (that field) to them. Our company aims to 'Be the Right ONE' (the one and only) and pursue renewable energy business." At the turning point toward a decarbonized society, Toyota Tsusho once again takes up the challenge of pioneering. https://s.nikkei.com/464UySh

Other articles from Nikkei (Machine Translated)

Air Water will start?Hydrogen production for FCV

20 Sep Air Water will begin producing and selling hydrogen for fuel cell vehicles (FCVs) in the United States. The company plans to start operating a hydrogen production plant in the US in fiscal year 2027. As FCVs become more widespread, demand for hydrogen as a fuel is expected to increase. It aims to establish a hydrogen supply chain in the US, where demand is expected to grow for use as fuel for heavy-duty trucks and other vehicles.https://s.nikkei.com/3t6XEGW

The Sacred town of "80% recycling" creates new businesses

Kamikatsu Town, with a population of about 1,400, is located in the mountains of Tokushima Prefecture and is known for being the first town in Japan to declare its goal of "Zero Waste" in 2003. The entire town is making various efforts, such as sorting household garbage into 45 categories, and the national average recycling rate of 20% has reached 81% (in fiscal year 2020) in the town. A hotel will open in 2020 where many people can experience waste separation by visiting the site. In addition, at a beer workshop in the same town, malt dregs from the brewing process are converted into fertilizer to grow wheat, which is used to make beer. Efforts to utilize the spirit of "zero waste" for community revitalization are also spreading. https://s.nikkei.com/48uLrfa

Biomass Power Generation Spreading in Nagano

A food manufacturer in Nagano Prefecture is promoting an initiative to use waste from the manufacturing process for biomass power generation. A power plant in Mie Prefecture in 2025 that will be fueled by the already used culture medium supplied by major mushroom supplier Hokuto. Misuzu Corporation (Nagano City), which manufactures fried bean curd and dried tofu, will utilize gas generated from wastewater treatment. In addition to power generation, it is continuing its attempts to recycle the waste into fertilizer and other products. https://s.nikkei.com/46sIo5H