Current Status and Efforts for the Development of Geothermal Resources in Oita Prefecture

～ Full Use of Geothermal Energy in Oita

20 November 2017

Oita Prefecture1

Table of Contents

１ Introduction to Oita Prefecture

２ Oita Prefecture's Energy Policy

３ Efforts towards Geothermal Power in Oita Prefecture

４ Conclusion

2

Where is Oita Prefecture?

Oita PrefectureArea 6,340 ㎢ （about half of the Bay of Plenty Region’s 12,230 ㎢）

Population 1.15 million（about 1/4 of New Zealand’s

4.69 million）

9,374 km from New Zealand to Oita

12.5 hours by plane fromAuckland Airport to Oita Airport(Change at Narita)

Prefecture GDP 52 Bn New Zealand Dollars (2014)

Oita Prefecture is a municipality located in western Japan in northeastern Kyushu, a place known as “the eastern gateway to Asia.”

3

Sand bath

Cold spring

Carbonated spring

Oita, the Onsen(hot spring) Capital of Japan

4

● Located in the Ring of Fire along with Rotorua

● Highest number of onsen sources and yield of onsen water in Japan● A rich variety of onsen, including cold springs, carbonated springs,

sand baths, and mud baths.

Oita

Beppu

Yufuin

Nagayu

Kokonoe

Hita

Ajimu

Mud bath

●Many delicious things nurtured by our rich lands and seas

Barley distilled spirits

Sekiaji Blowfish

Toriten

Bungogyu

Full of Flavors

5Shiroshitakarei

Oita International Wheelchair Marathon

●In 1981, it began as the world's first international marathon event only for people in wheelchairs

●Athletes from New Zealand have been participating since the very first competition. Many foreign athletes also participate.

●Held in autumn in Oita every year

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●The first of its kind in the world

●New Zealand’s Rotorua City will participate

●25 – 27 May 2018 Held in Beppu City, Oita Prefecture

●Key figures from hot spring resorts around the world will gather and discuss further development of hot spring resorts

♨♨ ♨

♨

♨

♨

7

International ONSEN ♨ Summit - OITA Prefecture, JAPAN

RUGBY WORLD CUP 2019

●2 Oct 2019 New Zealand v Repechage Winner●Oita Stadium is the dome-shaped stadium with an

automatically opening and closing roof. It was used asa stadium during the 2002 Korea Japan FIFA World Cup.

8

RUGBY WORLD CUP 2019 in Oita●Five matches in Oita

● 2 Oct 2019 New Zealand v Repechage Winner● 5 Oct 2019 Australia v Americas 2● 9 Oct 2019 Wales v Fiji●19 Oct 2019 QF1:POOL C 1st v POOL D 2nd●20 Oct 2019 QF3:POOL D 1st v POOL C 2nd

●20 Sept. – 2 Nov., 2019 Held in Japan

●RUGBY WORLD CUP 2019 is coming to Asia for the first time!

Match schedule in Oita Stadium

Table of Contents

１ Introduction to Oita Prefecture

２ Oita Prefecture's Energy Policy

３ Efforts towards Geothermal Power in Oita Prefecture

４ Conclusion

9

Oita Prefecture Is #1 in Japan for Self-Sufficient Renewable Energy

0

5,000

10,000

15,000

20,000

25,000

30,000

北海道 愛知 茨城 長野 大分 鹿児島 静岡

○The most geothermal power generation in Japan

○The largest mega solar in Japan has been integrated into an industrial area

○Abundant agricultural canals

○Biomass power supply is 8th in Japan

Self-sufficiency rate of renewable energy(March 2016)（単位：％）

Renewable energy supply(March 2016)

（単位：TJ）

SmallHydropower Geo

power

WindSolar

Geo use

Oita

Solar

Solar

Solar SolarSolar

SolarUse

Biomass

Biomass

Solar heat ２．４％ Wind ０．６％

Geothermal power３６．１％

Solar３２．２％

Small hydropower１２．２％

Biomass ４．１％

Geothermal use

１２．５％

29,622 28,954

27,24026,107 25,980 25,922 25,751

First place in Japan with a self-sufficiency rate of renewable energy of 32.2%

Solar

Wind

Geo

32.2

24.9

22.5 21.8 20.5 19.7 19.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

大分 鹿児島 秋田 宮崎 富山 島根 群馬Ｏｉｔａ

10

Source: Chiba University Kurasaka Laboratory Sustainable Zone Research Group “Sustainable Zone 2016”

（Unit:TJ）（Unit:%）

Kagoshima Akita Miyazaki Toyama Shimane Gunma Hokkaido Aichi Ibaraki Nagano Kagoshima Shizuoka

Wind

SmallHydropower

SmallHydropower

Geo use

Breakdown of renewable energy supply in Oita prefecture

Oita Prefecture and the Ordinance for Promoting the Introduction of Eco Energy

Constructing a society that enables sustainable development with fewer burdens on the environment

●Enforced on 1 April 2003 ※3rd prefecture in the country to do so

●To actualize an Oita that is the leading prefecture in environmentalism, we...

・ Think on a global scale, act as a region・ Have international cooperation・ Collaborate with citizens, business owners, and

administration

Promoting the introduction of eco energy that uses the characteristics of local nature and industries

Regional promotion that uses environmentally friendly eco energy and the prevention of global warming

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Oita Prefecture New Energy Vision●Revised March 2016 (enacted March 2002)●Continues to follow the “Ordinance for Promoting the Introduction of Eco Energy” and the "Promotion of Energy Conservation"

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Expansion of the introduction of eco energy

Harmony with nature Various institutional reforms

Promoting growth of local companies

Demonstrations of practical applications of eco energy

Promotion of technological innovation

Recognition of the value of eco energy

Improvement of added value to industries

Ring of Industry promotion

Emergence of power generation businesses in the region

Secure new revenue sources

Local production of energy for local consumptionUtilization of ICT

Create new services

Ring of regional development

This will contribute to the creation of vitality of region and industryand make Oita “Japan’s leading prefecture for plentiful energy”

●Use the “Eco Energy Utilization Rate” as an index based off of both of the initiatives above

Eco energy utilization rate (%) ＝(Numerator) Amount of Eco Energy Introduced (TJ)

(Denominator) Energy consumption (TJ)

Utilization rate62％

Amount Introduced(Increasing the numerator)

・ Expansion of eco energy introduction

Consumption(Decreasing the denominator)

・ Promotion of energy conservation・ Utilization of hydrogen technology・ Formation of “smart communities,” etc.

２014 2024

●Promotion of eco energy introduction and energy saving efforts

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Oita Prefecture New Energy Vision

Utilization rate96％

Oita Prefectural Energy Industry Organization

Membership209 organizations(Companies: １９１ Universities：６ Gov’t Groups：１２ )

※As of 1 Nov 2017

Forming groups divided by field and providing thorough support from research and development to creating sales channels.

Working groups

Holding various seminars

Human resource development &Interactions between members

・Joint exhibition・Information dissemination by website and e-mail magazine

Develop sales channel

Major efforts (Image of a general meeting)

●We aim to develop the energy industry into a new driving industry for the prefecture’s economy

●Comprehensive efforts by industry, academia and government

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Oita Prefecture Environmental Impact Assessment Ordinance

●Since the introduction of the FIT system in July 2012, renewable energy projects have rapidly expanded（especially solar power）

●Enforced from January 2018

ClassificationLaw Ordinance

Type 1 Type 2 Type 1 Type 2Resident

procedures Performed Not performed Performed Not performedConsideration

procedure Required Voluntary Required Voluntary

Geothermal 10,000kW output or more 7,500kW output or more 7,500kW output or more 5,000kW output or more

Solar power Not subject to the above ※ －

※ Overall area of the site more than 20ha (Excluding industrial areas)

15（Tsukahara Plateau）

●Due to increased concern about environmental conservation, these projects are subject to environmental assessment beyond legal regulations

Table of Contents

１ Introduction to Oita Prefecture

２ Oita Prefecture's Energy Policy

３ Efforts towards Geothermal Power in Oita Prefecture

４ Conclusion

16

The birthplace of geothermal power generation in Japan

●1925 Third earliest in the world, after Italy and the United States●Uses the fumarolic hole on the north side of “Bouzu” Shaved Head Hell in Beppu City

●It is our duty to give our respect and gratitude to our predecessors' achievements and to develop geothermal energy

A photo of “Bouzu” Shaved Head Hell 17

Japan's largest geothermal power plant Hacchobaru Power Station

●110,000 kW output●Unit 1 was completed in 1977, and Unit 2 was completed in 1990●Hot water generated at the power plant is sent to ryokan and general households

●Number of visitors: 23,645 people in 2016; 40,420 people in 2015 ●Active as an environmental learning facility and tourist facilitiesin addition to generating power

18（Whole view） （Generator）

Binary power stations●Heating and evaporating a substitute medium, like freon, that has a boiling

point lower than that of water, and using the steam to turn the turbine

●No new drilling need take place because hot springs that already have water springing from them can be used

●It's "binary" because it uses two thermal cycles, the system from the heat source and the system from the medium

●Electricity can be generated even with relatively low temperature steam / hot water

19（YUFUIN-FORESTE-ENERGY） （Sugawara Binary Power Station）

Yukemuri power generation system●The world's first total flow power generation was born in Oita（Uses both hot water and steam）

●Developed with the support of the Oita Prefectural Energy Industry Organization

●The structure is simple and compact and can be placed anywhere

●Since cooling water is unnecessary, it can be installed even in areas without water

●It is possible to bathe with the hot water after power generation

20（Yukemuri power generation system）

A goal of having power stations that can coexist with the region

●Establishing "Binary" and "Yukemuri" as new geothermal power generation methods

●Increasing facilities mainly in Beppu city

●Stable supplies of electricity and measures against global warming via coexistence with the region

●Can coexist with hot springs

0

5

10

15

20

25

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1 2 3 4 5 6 7 8 9

合計出力（ｋW）

発電所数（累計）

20162008 2009 2010 2011 2012 2013 2014 2015

Total output（KW）

Number of power stations （ Cumulative number ）

Installation status of binary and Yukemuri in Oita Prefecture

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Number of power stations （ Cumulative number ）

Total output（KW）

Also available for cooking●Uses high temperature hot springs and the heat of the steam from

hot springs to cook at high temperatures and improve taste●Very clean as it does not use gas

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（Cooking in “Hell” steaming pots）

（”Hell” steaming pot） （Sea “Hell” and Hot spring eggs）

（Hot spring eggs）

（”Hell” steamed custard）

As part of our lives●Hot springs are also drawn in communal baths and everyday homes●Also used for heating, such as low tables recessed in the ground that are warmed by circulating steam from hot springs

Uses hot spring heat for heating

23

（Oita Communal Bath） （A hot spring drawn in the home） （A low “kotatsu” table recessed in the ground）

（Beauty salon using geothermal heating）

Also in agriculture and fisheries

24（ Bell pepper plant using geothermal power）

（Flower cultivation） （Jelly ear mushroom cultivation）

（Loach farms using geothermal energy）

●The goal is to have heating systems that circulate warm water heated by geothermal energy and do not rely on fossil fuels

●Cultivation with clean energy gives products higher added values

（Bell peppers）（In the bell pepper plant）

For sightseeing

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●Geothermal energy appears in various forms, including as a tourism resource

●There are many visitors to Beppu, where the energy is called “Hell”

（Blood Pond Hell）

（Shaved Head Hell） （Tornado Hell）

（Foot bath）

（Illumination using electricity from geothermal power generation）

Table of Contents

１ Introduction to Oita Prefecture

２ Oita Prefecture's Energy Policy

３ Efforts towards Geothermal Power in Oita Prefecture

４ Conclusion

26

The Paris Agreement●Adopted at COP 21 in December 2015（International framework since the Kyoto Protocol）

●Aims to make the rise in the average temperature from before the Industrial Revolution less than 2 degrees

●Aims to reduce the greenhouse gas emissions caused by human activities to zero by the latter half of this century

Maximize utilization of geothermal energy where possiblePhoto：Jiji Press

27

Challenges of geothermal use

●Understanding the region●Grid connection problems

Won’t the hot springs dry up?

I cannot connect evenif I generate electricity

●Regulatory issues（Most of the suitable land for geothermal use is in national parks）

What is the impacton nature?

No development in national parks

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Oita prefecture fully utilizes geothermal power!●With the understanding of the area and proper use of appropriate resources

Create new tourism resources

Popularizing geothermal-

based agriculture

●Full utilization of geothermal to create new vitality in Oita prefecture

29

AgricultureSightseeing

Industry

Installation of power plants by local companies

Thank you for your attention

Contact information： Environment and Energy SectionIndustry Promotion DivisionCommerce, Industry and Labor DepartmentOita Prefectural GovernmentTel：+81-97-506-3263e-mail：a14200@pref.oita.lg.jp

Web address ：http://oita-energy.jp/ 30

Oita, the Onsen Capital of Japan ♨ Full of flavors