Central Research Institute of Electric Power Industry

Geothermal EIA and Efforts Toward Coexistence with Stakeholders in Japan

Environmental Chemistry Sector

JOGMEC – GNS Geothermal Workshop 201720th Nov, 2017, Taupo, NZ

Dr. Hiromi KUBOTAhiromi-n@criepi.denken.or.jp

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Outline

About EIA - Outline, procedure etc. -

New Rule - Within natural parks -

Case Study - Coexistence with local stakeholders -

Summary - Future Challenges -

GeothermalEnergy Bottlenecks

Policy Support

Local Acceptance

Regulation in Natural Parks

Cost and Lead Time

< Incentives by METI, JOGMEC, & NEDO >

Subsidy for promoting understanding and compensation

Loan guaranteesCapital injection EIAspeed up

Subsidy for surveyand drilling

R & D subsidies

2 years 3-4 years3 years 3-4 years

Surface survey Exploration EIA Well

drillingConstructionLocal

consentDecision-making

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Low Progress Rate to Each Development Phase

FIT

Project delay and suspension risks

> 1 years

Drilling survey

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Stage of Primary Environmental Impact Consideration

Japan：Complex layers of developmental regulationsNZ：Streamlined and integrated legal system for resource management by RMA

Exploration EIA Welldrilling

ConstructionLocal consent

Early Planning StageFramework

Planning Stage of the Project

Detailed Planning Stage of

the Project

Project Implementation

Drilling permission

Hot springs monitoring (before and after drilling, during the operation)

Drilling permission

Policy Making Stage

SEA EIA

Japan

NZNational &

Regional Policy Statement /

Regional Plan

Surface survey

Drilling survey

RMA

A best practice process is required for the development in national parks

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EIA in Japan

Ref: MOE, https://www.env.go.jp/en/policy/assess/pamph.pdf

Ref: MOE, https://www.env.go.jp/en/focus/docs/files/20120501-04.pdf

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Comparison of Geothermal Development Scales

Power PlantScale

Small (dozens to hundreds kW) Medium (thousands kW) Large (tens of thousands kW)

EIA and otherrules

・Regulation by local government ・Regulation by local government・EIA law: ≧(7500-)10,000 kW

Geothermal Power Operators

・Hot spring owner・Local government・Renewable energy company

・Large company (ex. oil/gas/mining/electric power etc.)

・Renewable energy company

Bottlenecks ・Development cost・Conditions of hot springs・Connection with power grids

・Development cost and risk・Local acceptance・Connection with power grids

Coexistence FIT, geothermal direct use Mutual understanding

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The Range of Environmental Factors Subject to EIA

Ref: METI, http://www.enecho.meti.go.jp/category/resources_and_fuel/geothermal/explanation/mechanism/plant/japan/007/

Air (H2S, NOx, GHG, etc.)Noise, VibrationWater (river, groundwater, hot springs etc.)Soil, geography, geologyWasteFlora, Fauna, EcosystemLandscape etc.

Ref: JOGMEC website

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EIA procedure detail in Japan

Ref: MOE, http://www.aecen.org/sites/default/files/5_overview_of_the_eia_implementation_in_japan_.pdf

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Streamlining EIA Procedures: Target of Streamlining

Ref: MOE, 2014: http://www.aecen.org/sites/default/files/5_overview_of_the_eia_implementation_in_japan_.pdf

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EIA Shorten Methodology Ex. : “A Numerical Model”

The numerical model predicting atmospheric dispersion of H2S emitted from geothermal power plants can be applicable for the EIA as an alternative to wind tunnel experiments.

Ref: http://criepi.denken.or.jp/research/news/pdf/den482.pdf

Cut the lead time and the cost in halfRef: Sato,2014, http://geothermal.jogmec.go.jp/report/file/13.pdf

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Deregulation Status for Geothermal Development

Ref: MOE website and https://www.asiabiomass.jp/english/topics/1511_01.html

MOE established the Review Committee for Facilitating the Creation of Best Practices related to Geothermal Development in National and Quasi-National Parks and began investigating this in March 2015.

Outside national parks

Inside national parks

Land classification for national/ quasi-national parks

Geothermal potential (MW)

Oct. 2015 deregulation

Special protection zones 7,000(30%)

☓

Class 1 special zones 2,600(11%)

△(due to directional drilling)

Class 2 and 3 special zones 7,700(33%)

〇(fulfil the best practice conditions)

Ordinary zones 1,100(5%)

〇

Notes 5,000 MW (21%):Outside national parks

Lifting of the height restrictions on buildings housing power generating equipment

Ref: http://www.mmc.co.jp/corporate/ja/csr/special/geo.html

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Landscape Methodology Ex. : An Aesthetic Design Facility

Ref: http://www8.cao.go.jp/kisei-kaikaku/kaigi/meeting/2013/wg3/toushi/150424/item3-1.pdf

A mountain lodge-style facility Ecological Landscape

Ref: JOGMEC website

An Ecological Landscape Method is a tool for consensus building with stakeholders.It makes the most of local environments and helping to preserve and create environments that are specific to the sites.

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Subsidy for Promoting Understanding of Geothermal Development

METI FY 2013-2016 FY 2017 FY 2018

Objective Subsidy to support local projects for promoting understanding of geothermal development (METI → Local government, private association etc. )

Subsidy rate 10/10： All projects（1 million-180 million Yen）

10/10： Workshop, Seminar, excursion etc. （≧100kW）2/3： Facilities for geothermal use （≧5000kW）1/2： Facilities for geothermal use （100kW～5000kW）

Compensation 10/10： Hot spring well drilling fee is compensated when hot spring discharge extremely decrease. (FY 2016～：≧5000kW)

Goal 30%： The progress rate to exploratory or construction phase (the number/year)

Ref: http://www.town.yakumo.lg.jp/modules/sangyou/content0008.html

Ref: http://www.nanao-cci.or.jp/p774.html Ref: https://new-energy-guide.jp/activity-example/38

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Ref.：Matsuzaki town HP: http://www.matsuzaki-chinetsu.com/

local municipals

Residents

Developers

Experts(university)

Qualitative Effects

- Better understanding(geothermal power, hot springs, local energy resources)

- Mutual understanding among stakeholders- Awareness of residents’ needs

→ Promoting the regional activation by the direct use of geothermal energy

Secondary Successful Effects

Ex. 1 : Tsuchiyu Hot Springs in the Bandai Asahi National Park

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The binary geothermal power plant (Ormat): FIT (Nov. 2015-, 400kW → 440kW) The private company by local hot spring owners developed geothermal and hydro power plant.The total project cost of the plant was 700 million yen.The company received a subsidy of 100 million yen from METI and received a loan guarantee on the remaining 600 million yen from JOGMEC.They also received METI subsidies for seminar, excursion, aquafarming, and snow melting facilities.

Ref: Genki Up Tsuchiyu Company

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Ex. 2 : Obama Hot Springs in Nagasaki Prefecture

The binary geothermal power plant system (Kobelco): FIT (Sep. 2015-, 125kW)MOE Project (FY 2011-2013) → A Private Company (June 2014 -)Local stakeholders and Nagasaki University have supported this project.They received METI subsidies for seminar, excursion, feasibility study for business etc.

Large scale geothermal development plans had been canceled by low local acceptance.→ The small scale power plant was developed.

Ref: http://www.koyoelec.com/

Ref: https://ja-jp.facebook.com/obamaonsenenergy

12/25/2013

Wire Android“Scale-ton”6/23/2013

7/8/2013

8/5/201310/1/2013

10/30/201311/30/2013

9/2/2013

1/17/201417

Growing Record of "Scale-ton" by Bathing in Hot Spring

http://www.isep.or.jp/wp-content/uploads/2014/09/140928Sando.pdf

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The Ripple Effects of Obama Hot Springs Area

Ø Rising media coverage of the projectØ 2,547 visitors participated the facility tours from April 2013 to March

2014.Ø The number of visitors of nearby a foot bath facility increased of more

than 50,000 over the previous year.・Contribution of regional promotion and sightseeing tour・The community are planning to increase the number of the multipurpose direct utilizations for the town development Ref: MOE report (2014)

Ref: https://www.travel.co.jp/guide/article/23551/

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Trust building&

Mutual understanding

Local Acceptance

<High>Direct use of hot springs (commercially viable

operation)

<Low>

<Low>

Geothermal Potential<High>

Local Acceptance Issues to Be Solved

The optimization and reaction according to the local situation are needed to be solved and to minimize business risk.

Policy SupportZoning & Coexistent

Hot springs

Powerplants

Ref: Kubota and Maruyama (2016) CRIEPI report

Success Cases : High Potential + High Local Acceptance

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Area PastDevelopment

YuzawaCity ・28.8 MW ・42 MW (under construction)

・some sites (large) ・Local government・Past experiences

and success・Local cooperation・FIT

KokonoeTown

・112 MW・27.5 MW・12.5 MW・0.99 MW

・5 MW・some sites (small)

Contribution to energy mix ＋ Local development = Benefit maximization derived from geothermal energy

Ref: Kubota (2016) EPRC6

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Outreach Activities: METI and JOGMEC【For local governments】・ Liaison meeting (METI)・ Geothermal resource development advisory committee (JOGMEC)【for local residents】・ Renewable- Energy Concierge (METI)

(Consulting services and commercialization support services)【for public】・ E-mail newsletter service (METI) ・ Events (symposium, lecture, exhibition, education etc.) (METI & JOGMEC) ・ Video, brochure, miniature model for demonstration etc. (JOGMEC)

Ref: JOGMEC website

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Mutual Understanding and Create a Vision

Technology & Environmental Data

Economic Effects & Business Risks

Local Needs

Assessment ResultsSafety Management

Concern, Anxiety & ComplaintQuestion & Constructive Advice

Employmentlocal Consumption & Production

Continuous Information SharingRegional Activation

Landscape, Environment

UndergroundEnvironment

Developers Local Residents

Local Government

Experts

A shared visionFor the local community

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Lesson Learned

Strategic measures and public engagement to maximize public interest are needed to encourage efficient resource use in high geothermal potential area.

To meet local needs

To achieve energy policy objectives