logistics, and energy conservation that meet the needs of third-country development
plans in civilian environments. The Chinese and Japanese governments provide
policy support, such as tax incentives, and simplification of inspections. Furthermore, Japan, China, and third countries share the economic benefits generated by
third-country market cooperation. Specifically, Japan and China share the environmental benefits of carbon dioxide reduction, and the third countries enjoy the
environmental benefits of SO x and NO x reduction and other benefits.
20.5 Quantitative Analysis of Japan-China Cooperation
in a Third-Country Market
20.5.1 Introduction of Case Study in India
As a case study, we analyzed high-efficiency coal-fired power generation businesses
developed by Japan in India. In 2012, Toshiba of Japan provided two 660 MW
supercritical thermal power generation facilities to a primary coal-fired power plant
of the Indian Thermal Power Corporation (hereafter NTPC) for an order price of 3.15
billion USD. Commercial operation began in 2016. The main form of power
generation in India is subcritical coal-fired power generation, which has a thermal
efficiency of 32% and a carbon dioxide emission coefficient of 1.32 kg/kWh. In
comparison, the thermal efficiency of the supercritical pressure power generation
facilities provided by Japan is 38%, and the carbon dioxide emission coefficient is
1.06 kg/kWh, rendering it better for the environment.
We analyzed the profits generated by a high-efficiency coal-fired power generation business when Japan and China cooperate and the benefits of remodeling India’s
coal-fired power plants. Although it is not currently in the framework of the Clean
Development Mechanism (CDM) of the Kyoto Protocol, it is possible to save carbon
dioxide by introducing supercritical coal-fired power generation equipment rather
than replacing the original subcritical equipment. The environmental benefits calculated under the CDM framework allow trading of CO 2 reduction as credits (Ren et al.
2011).
Expected profit in the case of cooperation between Japan and China in India’s
market is estimated based on the schematic diagram shown in Fig. 20.7. In this
example of third-country market cooperation, a 660 MW supercritical pressure coalfired power generation facility is installed in an Indian power plant, replacing the
original 660 MW subcritical pressure coal-fired power generation facility. Both
Japan and China will enter into India’s market, and the equipment will be locally
produced. While China will produce the EPC and raise part of the funds, Japan will
provide technology and materials for the equipment and raise another part of the
funds. India will locally produce the equipment. Quantitative analysis determines the
total provision of land, personnel, electricity, and funds by India. Then, the economic profit of selling electricity and the environmental profit of carbon dioxide
20 Potential for Technical Cooperation Between Japan and China in a Third-Country. . .
373
plans in civilian environments. The Chinese and Japanese governments provide
policy support, such as tax incentives, and simplification of inspections. Furthermore, Japan, China, and third countries share the economic benefits generated by
third-country market cooperation. Specifically, Japan and China share the environmental benefits of carbon dioxide reduction, and the third countries enjoy the
environmental benefits of SO x and NO x reduction and other benefits.
20.5 Quantitative Analysis of Japan-China Cooperation
in a Third-Country Market
20.5.1 Introduction of Case Study in India
As a case study, we analyzed high-efficiency coal-fired power generation businesses
developed by Japan in India. In 2012, Toshiba of Japan provided two 660 MW
supercritical thermal power generation facilities to a primary coal-fired power plant
of the Indian Thermal Power Corporation (hereafter NTPC) for an order price of 3.15
billion USD. Commercial operation began in 2016. The main form of power
generation in India is subcritical coal-fired power generation, which has a thermal
efficiency of 32% and a carbon dioxide emission coefficient of 1.32 kg/kWh. In
comparison, the thermal efficiency of the supercritical pressure power generation
facilities provided by Japan is 38%, and the carbon dioxide emission coefficient is
1.06 kg/kWh, rendering it better for the environment.
We analyzed the profits generated by a high-efficiency coal-fired power generation business when Japan and China cooperate and the benefits of remodeling India’s
coal-fired power plants. Although it is not currently in the framework of the Clean
Development Mechanism (CDM) of the Kyoto Protocol, it is possible to save carbon
dioxide by introducing supercritical coal-fired power generation equipment rather
than replacing the original subcritical equipment. The environmental benefits calculated under the CDM framework allow trading of CO 2 reduction as credits (Ren et al.
2011).
Expected profit in the case of cooperation between Japan and China in India’s
market is estimated based on the schematic diagram shown in Fig. 20.7. In this
example of third-country market cooperation, a 660 MW supercritical pressure coalfired power generation facility is installed in an Indian power plant, replacing the
original 660 MW subcritical pressure coal-fired power generation facility. Both
Japan and China will enter into India’s market, and the equipment will be locally
produced. While China will produce the EPC and raise part of the funds, Japan will
provide technology and materials for the equipment and raise another part of the
funds. India will locally produce the equipment. Quantitative analysis determines the
total provision of land, personnel, electricity, and funds by India. Then, the economic profit of selling electricity and the environmental profit of carbon dioxide
20 Potential for Technical Cooperation Between Japan and China in a Third-Country. . .
373