Sales of Residential Fuel Cell ENE-FARM Surpass 100,000 Units Cumulative sales of ENE-FARM, which became the world's first residential fuel cell when it was released in Japan in May 2009, surpassed 100,000 units in September 2014. ENE-FARM is a new energy cogeneration system which simultaneously produces electricity and hot water at home as a distributed power source. The heat produced during power generation can be used for water heating, so energy is used very efficiently. What is more, as a distributed energy system, while cutting CO2 emissions and achieving high energy savings, ENE-FARM also boosts energy security, which is an increasingly important social need, and contributes to reducing peak power demand. Since being placed on sale in May 2009, the ENE-FARM line has been expanded to including models using SOFCs (Solid Oxide Fuel Cells) which have higher generation efficiency than those using PEFCs (Polymer Electrolyte Fuel Cells), stand-alone units that continue operating during power outages, and models that can be installed in apartment building pipe shafts. ENE-FARM is also a frontrunner in the hydrogen energy society which Japan is aiming for in the future because it generates power using city gas modified with hydrogen. In this way, ENE-FARM has been recognized as a world-class technology which contributes to energy conservation and CO2 emissions reductions. The "Strategic Energy Plan" adopted as a Cabinet resolution this April sets targets for promoting ENE-FARM of 1.4 million units by 2020 and 5.3 million units (10% of all households) by 2030. Toward achieving these goals, Japan's gas industry will join together with ENE-FARM manufacturers, the housing industry and the energy industry in working for the further expansion of ENE-FARM.

JGA participates in GASEX2014 (The 13th Gas Information Exchange in the Western Pacific Area) GASEX2014, one of the leading forums for the regions' city gas industry, was held for three days November 18-20, 2014 on the Asia World Expo in Hong Kong. Since the first GASEX conference in Tokyo in 1990, this international conference has been held every two years in one of the 15 economies of western Pacific to promote the healthy development of the gas industry through debate and information sharing among participants. The theme of this year's GASEX was "Advancing the Gas Value Chain". A total of 550 participants took part from 15 economies, including 48 participants from Japan. The conference program included 10 keynote speeches, member economy reports by 12 countries and economies, 3 panel discussions, and 8 breakout sessions, and exhibition of booth and poster. Keynote Speech by Hiroshi Ozaki Member Economy Report by Ryu Nishida In the keynote speech presented by JGA chairman Mr. Ozaki Hiroshi titled "Natural Gas and Japanese Energy Market - opportunities and challenges -", he discussed the changes in Japan's energy policy, the efforts to grow demand in the opportunity of future full liberalization, the efforts in lowering LNG price, and new efforts to develop unconventional gas such as methane hydrate. During the member economy reports, JGA International Relations Department General Manager Ryu Nishida reported on Japan's overall energy and economic trends based on the latest statistical data. He also discussed the position of natural gas in the Japanese energy policy referring to 4th Strategic Energy Plan and possible gas market liberalization in the future, the spread of distributed energy systems, and the development of smart energy network. During the panel discussions, 10 business representatives and government officials shared their views on the three themes of "Advancing the Gas Market Frontier - Global & Regional ", "The Gas Value Chain - Improvement Opportunities", and "Conventional & Unconventional Gas - Development & Challenges". The breakout sessions covered 8 themes, and saw 29 presentations. The themes were: "Gas Supply & Demand", "Innovation Technology", "Investment & Asset Management", "LNG", "Sustainability: The Role of Gas for Power Generation", "Smart Applications", "Utilization & Service Excellence", and "Young Person's Paper Competition Final". 5 speakers from Japanese city gas utilities made presentations. Additionally, in the poster presentation, 19 posters were displayed in the exhibition hall. Among them 13 posters were presented from Japan. The Young Person's Paper Competition started at GASEX2014. A total of 61 papers were submitted and 6 papers went forward to the final round at breakout session 8. The session chairman announced the final result at the closing ceremony and Mr. Aoki from Tokyo Gas who made a presentation titled "Improvement of low-pressure pipeline construction in urban areas" won the second prize. The next GASEX will be held in Beijing in September 2016. Please find Chairman Ozaki's keynote speech and the Japanese Member Economy Report below. >>> Keynote Speech by Hiroshi Ozaki >>> Member Economy Report by Ryu Nishida

IGRC2014 IGRC2014 was held in Copenhagen, Denmark, for three days from September 17 to 19. IGRC (International Gas Union (IGU) Research Conference) is the world's largest research-oriented conference of the gas industry, hosted by the IGU to promote discussion and information exchanges among people worldwide involved in the development of gas technologies. Since the first conference in 1980, IGRC has usually been held every three years. Under the theme "Gas Innovation Inspiring Clean Energy", the conference gathered about 750 participants from 45 countries this year. Around 70 participants joined the event from Japan, with presentations by 6 participants in the oral presentation session and 4 participants in the workshop. Further, in the poster session, 58 out of a total of 293 presentations were made by participants from Japan. The Japan Gas Association exhibited the booth as a group with Tokyo Gas, Osaka Gas, and Toho Gas. Within the booth we displayed panels explaining CHP, residential fuel cell, smart energy network, and efforts for realizing a hydrogen society. Moreover, with the cooperation with Panasonic and Viessmann, a Germany boiler manufacturer, we displayed a mockup of residential fuel cell. Visitors of our booth showed high interest in fuel cell and hydrogen society. The next IGRC will be held in 2017 in Rio, Brazil.

Operation Results of City Gas Cogeneration Systems for FY2013 (Total Installed Capacity) The Japan Gas Association has compiled a report on the operational results of city gas cogeneration systems for FY2013 based on a survey of 209 city gas utilities nationwide. The total installed capacity of cogeneration systems (excluding steam turbines) using city gas as of the end of FY2013 (end of March 2014) was 4,912 MW, a 93MW (1.9%) increase from FY2012. The total installed base was 191,104 units, up 34,546 systems (22.1%). Of these, the total installed base for commercial and industrial use was 6,921 units, up 265 units (4.0%) from FY2012, and 184,183 units for residential use (gas engine and fuel cell systems), up 34,281 units (22.9%). The JGA and Japan's city gas industry will continue to promote city gas cogeneration systems, which are a distributed energy system with outstanding environmental and energy properties. ∗ GE: Gas Engine, GT: Gas Turbine, FC: Fuel Cell ∗ Numbers are rounded off to the nearest whole number, and may not match. ∗ Source: Hand book of electric power industry (2013 editions)

City Gas Sales in the First Half of FY 2014 (April to September) Total gas sales by general gas utilities (207 companies nationwide) in the first half of FY2014 totaled 17,067 million m3 (41.8605 MJ/m3 equivalent), a 2.1% increase from the same period a year before. By sector: - Gas sales in the residential sector rose by 0.8% from the first half of the previous fiscal year to 3,561 million m3, reflecting lower temperatures nationwide between July and September which drove up demand for gas for water heating. - Gas sales in the commercial sector totaled 2,117 million m3, a decrease of 4.7% from the first half of the previous fiscal year. The lower temperature from July to September drove down demands for air conditioning. - Gas sales in the industrial sector rose by 5.2% from the previous year to 10,025million m3 due primarily to developing new demands. - Gas sales in the other sectors (hospitals, public facilities, etc.) declined by 4.5% from the previous year to 1,363 million m3, reflecting a warmer temperatures dulling July to September which drove up gas demand for air conditioning. By region: - Regional gas sales grew or fell by following percentages from the first half of the previous fiscal year: -1.7% in Hokkaido, -2.7% in Tohoku, +6.0% in Kanto-Koshinetsu, -0.6% in Chubu-Hokuriku, -3.1% in Kinki, -1.3% in Chugoku, +1.8% in Shikoku, and +0.7% in Kyushu-Okinawa.

Announcements ◇We have updated the Gas Facts in Japan >>> Gas Facts in Japan 2014

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