MOEJ selected 2 companies to participate in the Sector Coupling Demonstration Project to integrate the Development of EVs with Replaceable Batteries and the Utilization of Renewable Energy

(September 9, 2021, Tokyo) The Ministry of the Environment, Japan (MOEJ), selected 2 companies to participate in "the Sector Coupling Demonstration Project to integrate the Development of Electric Vehicles (EVs) with Replaceable Batteries and the Utilization of Renewable Energy." This project aims to achieve the decarbonization of the transportation sector toward a decarbonized society.

From June 7, 2021 to July 7, MOEJ called for companies' applications to participate in this project, and received 5 applications. Upon comprehensive consideration from the external Evaluation Committee, consisted of experts, MOEJ selected the following 2 companies.

The selected 2 companies and outline of the projects:

FOMM Corporation

Development of EVs with Replaceable Batteries
Verification system for battery-sharing swapping stations powered by renewable energy

ITOCHU Corporation

Development of EVs with Replaceable Batteries
Building a decarbonized logistical system that contributes to the local community by using renewable energy and battery stations

IIDA Hirobumi, Director, Environmental Transport Division, Environmental Management Bureau, declared:

The decarbonization of the transportation sector, which accounts for approximately 40% of CO2 emissions, is essential to achieve carbon neutrality by 2050. The selected 2 companies will develop EVs with replaceable batteries using renewable energy. They are extremely innovative projects, and MOEJ will continue to strive toward decarbonization with the private sector.

EVs are currently limited by their driving distance, charging time, charging infrastructure, and price. In addition, to achieve decarbonization, it is necessary to maximize the utilization of renewable energy, but its widespread use has been limited due to the high cost of its energy storage device. On the other hand, in light of the frequent natural disasters that have occurred in recent years, emergency power sources are essential for local disaster prevention facilities. However a significant obstacle is the low utilization rate and low cost-effectiveness.

Based on this background, MOEJ called for project applications proposing to solve these issues simultaneously by coupling the two sectors of EVs and renewable energy. MOEJ will aim to build a sustainable, community-oriented, decarbonized transportation model that maximizes the use of local renewable energy.

MOEJ selected 2 companies upon consideration from the external Evaluation Committee, consisted of experts. The main review points were as follows:

Relevance of technical issues
Technological and policy implications
Implementation system and plan
Prospects for commercialization and diffusion of the technology

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