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R&D and Social Implementation Plan Formulated for "Development of Technology for Producing Fuel Using CO2, etc." Projects

January 20, 2022

The Ministry of Economy, Trade and Industry (METI) has formulated an R&D and Social Implementation Plan that summarizes the content of "Development of Technology for Producing Fuel Using CO2, etc." projects that will be implemented using the Green Innovation Fund.

1. Background and purpose

Toward the goal of achieving carbon neutrality by 2050, METI has established a Green Innovation Fund at a level of 2 trillion yen under the FY2020 Tertiary Supplementary Budget and decided to assign the New Energy and Industrial Technology Development Organization (NEDO) to its operation. Based on specific goals shared by the public and private sectors, the government will provide continuous support over the next ten years to companies and other organizations committed to taking on challenges toward achieving the ambitious goals as one of the most critical business issues. The support will assist efforts ranging from research and development (R&D) through demonstrations to social implementation of the outcomes.

In order to ensure proper and efficient execution of the fund, the Green Innovation Project Committee under the Industrial Structure Council finalized the Fund Allocation Policy for Each Field. Based on this policy, field-specific working groups established under the Committee deliberate on issues such as the priority and appropriateness of the amount to be implemented by the fund for each project. Then, the divisions and offices in charge of the project at the responsible ministries and agencies formulate the content of each project as an "R&D and Social Implementation Plan," and start calls for applicants.

Today, METI formulated an R&D and Social Implementation Plan for "Development of Technology for Producing Fuel Using CO2, etc." projects based on discussions by the Working Group on the Field of Energy Structure Transformation.

2. Main content of the R&D and Social Implementation Plan for "Development of Technology for Producing Fuel Using CO2, etc." projects

In order to promote the development of technology for decarbonized fuel as one of the various options for realizing a decarbonized society, this project will develop technology and conduct demonstrations toward the social implementation of (1) synthetic fuels, (2) sustainable aviation fuel (SAF), (3) synthetic methane, and (4) green LPG.

  1. Develop a process to convert CO2 and hydrogen to liquid fuel on a large scale with high efficiency using reverse water-gas shift reactions (which converts CO2 into CO), Fischer-Tropsch synthesis (which causes CO and hydrogen to react), technologies that combine them.
  2. Establish ATJ (Alcohol to JET) technology to produce SAF from ethanol which will allow large production volumes (hundreds of thousands of kiloliters).
  3. Establish technology for methanation, a process that efficiently synthesizes methane using hydrogen produced from renewable energy sources etc., and CO2 captured from power plants etc.
  4. Establish technology for synthesizing LP gas (green LPG), which is not made from fossil fuels, but synthesized from hydrogen and carbon monoxide using methanol and dimethyl ether.

3. Future schedule

NEDO starts a call for applicants for the "Development of Technology for Producing Fuel Using CO2, etc." projects today. For more information, please see METI's press release "Call for Applicants Starts for 'Development of Technology for Producing Fuel Using CO2, etc.' Projects."

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