Last month, John Crane traveled to Tokyo for the Japan Energy Summit and Exhibition 2024 — a hallmark event in a country pivotal to the energy transition. The gathering brought together leaders on energy transition topics beyond LNG, which had historically been the event’s focus. Rene Leven, John Crane’s Segment Leader, Hydrogen and CCUS, addressed these complex dynamics, including the urgency of decarbonization, as a speaker on the ClimateTech Programme’s Policy and Investment Panel.
From decarbonization and bridge fuels to hydrogen and electrification, the event highlighted Japan’s increasingly dynamic role in the new energy landscape. Yet as the country shifts its focus to accelerating decarbonization, one thing remains constant: its pragmatic approach to ensuring talk doesn’t outweigh action.
Japan’s Current Progress in the Energy Transition
The International Energy Agency (IEA) describes Japan’s energy policy as being “guided by principles of energy security, economic efficiency, environmental sustainability and safety.” Generally speaking, Japan is already a relatively energy-efficient nation; its total energy supply per unit of economic output, one measure of overall energy efficiency, has trended down 33% since 2000. But although significant, energy efficiency is only one facet of the energy transition. Another mission-critical element is reducing emissions to achieve the IEA’s Net Zero Emissions (NZE) by 2050 scenario.
Over the last decade, Japan has steadily diversified its energy mix. Through the adoption of renewables and the restart of some nuclear power facilities, it has also lowered its emissions below 2009 levels. Yet despite representing just 3% of global emissions in 2021, Japan is still the world’s fifth-largest CO2 emitter. To achieve net zero emissions targets, Japan — like the rest of the world — must accelerate its decarbonization initiatives. Its government has pledged to reduce emissions by 46% by 2030, a benchmark that significantly outpaces the 13% decrease that Japan achieved between 2000 and 2021.
The IEA cites numerous initiatives that can help Japan fuel decarbonization, including the increased deployment of low-carbon technologies, the removal of various regulatory barriers and new measures to boost competition across its energy markets. Carbon pricing policies, for example, have the potential to make decarbonization more cost-effective as Japan balances economics against emissions progress.
Watch a clip of Rene Leven - John Crane’s Segment Leader, Hydrogen and CCUS at the Japan Energy Summit and Exhibition 2024.
The role of policy and investment was a critical theme at the Japan Energy Summit and Exhibition 2024. While LNG remains a key pillar of the energy mix in Japan and Asia more broadly, policymakers and industry experts agree that decarbonization is critical. Yet challenges remain in balancing these efforts with the economic realities in Japan and the wider region. The Association of Southeast Asian Nations (ASEAN) region — which includes Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam — has a relatively young fossil power plant fleet, which makes it economically challenging to retire existing assets short-term in favor of lower-emissions options. Still, there is an increasing commitment to decarbonization, including carbon capture and ammonia co-firing at those young assets that cannot be shut down economically in the short-term. This is just one example of the complex dynamics that Japan and the region must navigate on the path to zero emissions.
In a country known for its pragmatic approach, there are clear signs of progress. Last month, the Japanese government announced the development of a new national strategy for decarbonization and industrial policy that targets the year 2040. The conference’s presenters highlighted numerous green or low-carbon hydrogen and ammonia projects in the region, as well as increasingly progressive legislation including the ambitious contract for difference on imported or domestically produced green hydrogen or ammonia, which have made Japan one of the world’s most important hydrogen markets. Japan is also home to numerous CCUS initiatives, which are a key lever of progress for hard-to-abate sectors. Last year, its government selected the first seven CCUS projects as part of its concerted effort to achieve net zero goals.
How John Crane Can Support the APAC Region’s Decarbonization and New Energy Initiatives
With a century-long legacy of powering sustainability, John Crane helps customers around the world accelerate their net zero progress. Our market-ready new energy solutions support a wide range of energy transition initiatives, from enhancing efficiency and decarbonizing existing operations to scaling up new markets in hydrogen and carbon capture.
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Emissions Reduction: John Crane has been a leader in greenhouse gas (GHG) emission abatement for decades. Our advanced mechanical sealing technologies have prevented millions of tons of GHG, including methane and CO2, from being released into the atmosphere. We’re continuing this legacy in the new energy era.
We believe that the most effective route to curbing GHG emissions lies in identifying the sources of emissions and providing cost-effective solutions that reduce or eliminate emissions while maximizing efficiency. We are committed to helping the oil and gas sector significantly reduce its emissions by leveraging this proven approach.
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Hydrogen: With more than 40 years of experience in hydrogen sealing and filtration, John Crane is a leader in market-ready decarbonization technologies. More than 5,000 John Crane mechanical seals, filters, couplings and systems are in use today, enabling some of the world’s most innovative clean hydrogen facilities. We believe it is essential to deploy all sources of low-carbon hydrogen, including hydrogen produced through renewable- or nuclear-powered electrolysis and traditional natural gas reforming technologies retrofitted with carbon capture solutions.
Explore our hydrogen solutions and our hydrogen generation guide.
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CCUS: John Crane is working alongside oil and gas leaders and OEM partners to accelerate the deployment of scalable CCUS initiatives while enabling some of the most innovative carbon capture projects around the world. Approximately 80% of the CO2 injected underground in existing CCUS sites uses John Crane’s dry gas seals. Since our first CCUS application three decades ago, we’ve had more than 1,100 references in CO2 sealing and related applications, including supercritical fluid conditions.
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John Crane has a proven track record for supporting complex energy transition initiatives around the globe, including in Japan and across the APAC region, where we have extensive field experience and unmatched end-to-end service capabilities. Among our many projects in the region, one highlight includes our recent partnership to supply technologies for Malaysia’s largest offshore CCUS facility.
John Crane is a proven leader in mechanical sealing solutions for the energy transition. However, in today’s fast-evolving energy transition, a static approach won’t suffice; that’s why John Crane is investing now in the mechanical sealing and filtration solutions of the future. Our investment includes technologies that accelerate biofuel adoption, strengthen the electrification value chain and remove key barriers to hydrogen and CCUS scalability — without ever sacrificing reliability.
No matter your stage in the energy transition, John Crane is ready to help you power sustainability. Let’s talk about how our market-ready new energy solutions and unmatched APAC service capabilities can accelerate your net zero progress.