Japan’s energy history has undergone major changes due to six trends: (1) the shift from domestic coal to oil (1960s); (2) two oil shocks (1970s); (3) energy liberalization and global warming (1990s); and (4) the Great East Japan Earthquake and the nuclear incident (2011- ), (5) the Paris Agreement held in 2015, and (6) the 2050 Declaration. The flow can be described as Coal phase-out → Ending oil dependence → Decarbonization.

Then, in the Paris Agreement held in 2015, Japan set a goal to reduce greenhouse gas emissions by 26 % from the 2013 levels by 2030. Ranging from revising the Energy Conservation Act in 2018 to the 2050 Declaration made by former Prime Minister Suga at the extraordinary Diet session in October 2020, the Japanese government has promoted various CO₂ reduction efforts, including promotion of energy mix through the introduction of renewable energy and efficient energy management.

Due to the drop in crude oil prices caused by the shale gas revolution in the United States, electricity rates in Japan had been on a downward trend. However, coupled with the rise in crude oil prices since fiscal year 2016 (FY2016) and the increase in the domestic renewable energy surcharge, electricity rates began to rise in FY2017. Furthermore, the International Energy Agency (IEA) predicts that crude oil prices will exceed $100 per barrel between 2030 and 2040 due to rising energy demands mainly in emerging countries. In this context, the global energy demand trend is about to reach a major turning point. The IEA predicts that the shift to gas will accelerate in developed countries, and Japan’s low-carbon and decarbonization technologies are garnering attention.

In line with the growing trend of decarbonization, hydrogen has attracted increasing attention in recent years. In the 2014 Basic Energy Plan, the Japanese government adopted a policy to utilize hydrogen as a new energy source. Even now, hydrogen is being used in more places, including domestic fuel cells (ENE-FARM) and hydrogen vehicles. Additionally, experiments are being conducted on the practical application of a technology called methanation, which synthesizes methane from hydrogen and CO₂. Gas can be decarbonized by replacing natural gas, the current raw material for city gas, with this synthetic methane. Many challenges remain, such as developing infrastructure for hydrogen supply and reducing costs. However, if this technology becomes widespread, the achievement of a carbon-neutral society will be much more attainable.

In the future, it is predicted that companies will find it increasingly difficult to use energy in a cost-effective and CO₂-efficient manner. Efforts toward energy conservation and conversion to renewable energy will be critical. Robust procedures and plans for decarbonization must be devised and implemented. Among these efforts, energy conservation is said to be the most important. The Japanese government has announced a decarbonization policy that prioritizes: (1) Energy conservation; (2) Renewable energy; and (3) Environmental values, and further energy management activities will be required in the future.

Yanmar Energy System aims to resolve the energy challenges faced by society and our customers by providing energy-efficient equipment and services, including gas-engine heat pumps (GHP), energy management systems, and biomass power generation, which produces new energy from wastes and unused biomass.

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