Chugoku Electric Power Company

Chugoku has committed to become net zero company by 2050. It also set emissions intensity reduction by 35% target by 2030 compared to 2013. The company should increase its targeted scope 1 and 2 emissions reductions by a factor of 4 to align with its 1.5°C pathway. Additionally, the company has not implemented regular milestone targets at gaps of no more than 5 year to incentivise near-term action on its longer-term goals.

Chugoku decreased its emissions intensity between 2015 and 2020 by about 4% annually. The rate required by its 1.5°C pathway is about 7% decrease per year.
The company’s ongoing use of thermal fuels means that locked in emissions from its current and pipeline assets exceed the budget attributed to the company by its 1.5°C pathway by 46%. Company’s future scope 1 and 2 emissions intensity is projected to follow a business-as-usual pathway between 2021 and 2025. Chugoku should accelerate the emissions reduction and disclose its planned investments in low-carbon generation.

At its Osaki Power Station site, Chugoku has been testing innovative low-carbon coal-fired power generation which includes carbon dioxide separation and recovery technology. Carbon capture and separation is a technology that could play a significant role in the low-carbon transition. Additionally, Chugoku has an opportunity to develop a new profitable business model as a carbon capture and use operator. However, company does not disclose its investments into this business model as well as potential growth and deployment schedule.

In 2021 Chugoku committed to become net-zero by 2050. It has emissions intensity reduction by 35% target by 2030. The company is planning to increase its renewable electricity generation by 300-700 MW and to generate about 45% of electricity from low-carbon sources by 2030.

Chugoku is planning to start operation of units 2 and 3 at Shimane nuclear power station and is investing in new solar, wind, hydro and biomass power. The company is also replacing and improving its aging thermal power facilities.

In 2020, Chugoku focused its research and development efforts on innovative low-carbon coal-fired thermal power which includes carbon dioxide separation and capture technology. The company is also implementing new safety measures at its nuclear power stations.

Between 2015 and 2020, mainly driven by efficiency improvements, Chugoku’s scope 1 and 2 emissions intensity decreased approximately by 20%, representing about a half of the rate required by the company’s 1.5°C pathway.

Chugoku’s improved climate ambition is undermined by its continuous reliance on coal and gas-fired electricity generation. Committing to fossil fuels to a large extend means it will be challenging to decarbonise at the rate required.