Tohoku Electric Power

Along with starting new coal and LNG units, Tohoku Electric Power decommissioned several old and inefficient thermal plants in 2019 and 2020, which resulted in a reduction in its emissions intensity by about 10% since 2015. However, the rate of reduction was half the rate required by company’s 1.5°C pathway.
Projected annual decrease in emissions intensity is 2%, while required annual decrease is 8%. Locked-in emissions from Tohoku Electric Power’s current and pipeline assets exceed the budget attributed to the company by its 1.5°C pathway by 46% by 2035.

Tohoku is aiming to become carbon neutral by 2050 and commits to reduce its absolute scope 1 emissions by 50% by 2030 compared to 2013 and to reduce its emissions intensity by 37% within the same timeframe. This is an improvement since the last assessment. However, the company could further improve its goal by aiming to be carbon neutral by 2035 as this is the expectation for electricity generation companies with assets in advanced economies. Additionally, the company could set regularly spaced intermediate targets at gaps of no more than 5 year between the reporting year and its longest target endpoint to incentivize near-term action on its longer-term goals.

Tohoku’s plans rely heavily on coal and gas, therefore, it’s not clear how the company is planning to achieve its carbon neutrality goal. The company acknowledges that the use of coal requires initiatives to combat climate change, supports CCS research and an intention to participate in feasibility studies on carbon capture and storage (CCS) is mentioned in the company’s reporting. That said, there is no published information regarding associated investments or CCS research projects which the company is undertaking.

Tohoku Electric Power’s climate governance has improved since the last assessment. The company has implemented board-level oversight of climate-related aspects and started assessing climate-related risks and adaptation measures. Scenarios considered are 4°C and 2°C, looking at the period starting in 2050. The company has also started considering the implications of a 1.5°C scenario to inform its objectives. The company can improve by developing a consistent low-carbon transition plan which will include quantitative measures of success, financial content, and specific results of the scenario analysis, such as value-at-risk or risk of stranded assets.

Tohoku is aiming to become carbon neutral by 2050 and commits to reduce its absolute scope 1 emissions by 50% by 2030 compared to 2013 and to reduce its emissions intensity by 37% within the same timeframe.

Tohoku is planning to develop 2 GW of new renewable capacity by 2030 by investing 10-20 billion yen (almost USD 9 million) a year, mainly focusing on wind generation. A restart of nuclear stations will also allow the company to reduce its emissions intensity.

Tohoku EPCO is engaged in 22 renewable power projects, including five offshore wind power projects. The company is making efforts to restart two of its nuclear power stations and planning to begin operation of a new LNG-powered Joetsu Unit in 2023.

In 2020, the company began commercial operation of a new coal-fired unit at the Noshiro Thermal Power plant. Some older, less economically efficient power stations powered by heavy crude oil have been closed by the company in 2019 and 2020.

Overall, the company’s actions are not very consistent, the company makes efforts towards transitioning to low-carbon economy, but at the same time is investing in new fossil fuels-based generation.