Cautious optimism for agrivoltaics; 100% renewables for offshore data center; Putting perovskites to the test; IHI bullish on ammonia; MHI bullish on gas
Japan Energy Currents
Hey Power Japan readers,
This week, my inbox was filled with lots of industry news pushing new technologies forward. There are a slew of experiments, like the floating, solar-powered data center in Yokohama, perovskite solar cells facing coastal stress tests; and ammonia tankers and turbines with an eye toward commercialization in 2030. But there are also areas of inertia — notably in agrivoltaics, where policy support remains more rhetorical than real, and in shipping, where LNG continues to be framed as the “realistic” transitional fuel despite long-term decarbonization ambitions.
I bring you six stories that caught my attention.
1. Agrivoltaics gets a shoutout — but no guarantees (IT Media | in Japanese)
Japan's newly approved 7th Strategic Energy Plan and Global Warming Countermeasure nod to solar sharing (more commonly known as “agrivoltaics” in English — installing solar arrays on farmland and fisheries), encouraging local governments and public research bodies to support well-managed dual-use projects. But concrete incentives remain vague.
While the author sees potential for stronger uptake if new subsidy schemes (like initial investment aid) materialize, they caution that existing financial hurdles and lukewarm interest from agriculture policymakers could stall momentum.
With the Agriculture Ministry’s upcoming rural policy plan showing little sign of prioritizing energy self-sufficiency, the outlook for solar sharing hinges on whether cross-ministerial coordination and local push can fill the gap.
2. Offshore data center in Yokohama to run on 100% renewables (IT Media | in Japanese)
Eurus Energy, NYK Line, NTT Facilities, MUFG Bank, and Yokohama City have teamed up to test a floating, solar-powered data center off Osanbashi Pier, aiming for 100% renewable energy operation starting fall 2025.
The pilot tackles salt damage and system stability, while hinting at a scalable model that could integrate smoothly with future offshore wind — freeing data infrastructure from land and grid constraints.
If successful, the concept could help Japan sidestep land shortages and long construction lead times while positioning ports like Yokohama as hubs for clean, ocean-based digital infrastructure.
3. Sekisui Chemical is testing perovskite solar cells (Nikkei GX | in Japanese)
Sekisui Chemical Co. began demonstration projects on perovskite solar cells in Shizuoka Prefecture. Fourteen solar panels were installed on the roofs of outdoor coastal facilities to test their resistance to salt damage and wind. The pilot is set to last one year and the company is eyeing commercialization in FY2025.
This initiative is part of the prefecture’s project to encourage local companies to enter into related businesses and to support the adoption of perovskite solar cells.
4. Mitsui O.S.K. Lines chief defends LNG as “realistic path” for shipping (Nikkei GX | in Japanese)
The International Maritime Organization’s (IMO) new Net-Zero Framework aims to make international shipping GHG-free by around 2050, with enforceable rules coming by 2026 and implementation from 2028. Ships over 5,000 gross tons that exceed GHG caps will pay into a fund, while low-emission vessels will earn rewards.
MOL CEO Takeshi Hashimoto welcomed the global agreement, calling it a vital step toward decarbonizing shipping. He emphasized fuel choices should match vessel types, routes, and timelines — highlighting the need for flexible pathways, not a one-size-fits-all solution.
Hashimoto defended LNG as a “realistic” and immediate emissions-cutting option, noting that it reduces lifecycle GHG emissions by 19% compared to heavy fuel oil and already has fueling infrastructure at major ports.
Regarding criticism that LNG use could cause carbon lock-in, he argued LNG has room to evolve. Technologies like e-LNG (produced with green hydrogen and carbon capture) could transform it into a near-zero emissions fuel.
Hashimoto urged industry-wide pragmatism over perfection: true zero-emission fuels like green ammonia and hydrogen are still far from scale. For now, he says, “all hands on deck” (excuse the pun) means deploying every workable option — including LNG — to cut shipping emissions today.
5. IHI Says Japan's Ammonia Demand Will Blow Past 2030 Targets (Nikkei GX | in Japanese)
IHI exec Kensuke Yamamoto believes Japan's domestic ammonia demand will easily exceed the government's 2030 forecast of 3 million tons, with power, manufacturing, and maritime sectors nearing technological readiness. What’s left is for bigger government largesse to help drive down ammonia cost to about half of current levels for these off-takers.
The company is banking on cost-saving retrofits — repurposing existing LNG and LPG tanks — to slash ammonia costs by half, and sees rising overseas demand in Southeast Asia, Eastern Europe, and Singapore’s bunkering hub.
IHI will continue pushing hard on commercializing ammonia-ready gas turbines by 2030 and scaling up exports, betting that global decarbonization and energy insecurity will accelerate cross-border ammonia trade.
6. Mitsubishi Heavy Industries to capitalize on gas-fired power boom (Nikkei Asia)
Global power generation capacity from gas-fired plants is expected to rise by as much as 20% by 2030, with Asia leading the growth.
Energy demand from the AI boom is the main driver. Geopolitical risks, prompting countries to prioritize economic growth and energy security, is another contributing factor.
Rising demand in gas-fired power plants is a boon for Mitsubishi Heavy Industries (MHI). In 2023, MHI captured 36% of the global gas turbine market share, making it the leader for the 2nd year in a row. The Japanese company is investing ~¥50 billion ($350 million) to boost its output of blades and other components. MHI is planning to increase gas turbine production capacity by 30% and grow its workforce by 10% by early 2027.
MHI is one of the top 3 gas turbine competitors. The other two are GE Vernova in the US and German company Siemens Energy.
That’s it for the Japan Energy Currents this week. Questions, comments, or recommendations? Leave them in the comments or in the subscriber chat.
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