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Hitachi

Featured customer case

Lumada customer case code: UC-01956S

Our consulting service provides a solution to problems faced by business organizations striving to achieve carbon neutrality (2/2)

Formulating CO2 reduction measures and roadmaps to meet the needs of customer businesses

2023-06-07

Visualizing the effects and costs of reducing CO2 emissions related to electricity

Formulating a highly accurate roadmap based on appropriate planning

Companies wishing to implement carbon neutrality measures must have a high level of environmental awareness, examine the impact of those measures on their business activities, and consider whether those measures will contribute to business growth.

Formulating a roadmap based on estimates provided by tools

Hitachi consultants use tools to estimate and visualize four factors (see below), examine the external environment and the customer’s internal environment, and formulate a plan to implement measures. They formulate a flexible roadmap that enables customers to figure out the most appropriate measures that take into account future change in environments, so the customer can efficiently implement highly feasible carbon neutrality measures.

Understanding the current situation

Hitachi consultants can examine the usage of facilities and the amount of consumed electricity and create a portfolio of the sources and amounts of current CO2 emissions.

Potential of introducing renewable energy

By estimating the amount of electricity generated by solar power panels that can be installed on land owned by the customer company or on roofs of company buildings, Hitachi consultants can identify the amount of generated electricity to be consumed by the company.

Changes in costs

Hitachi consultants estimate the cost of introducing and implementing measures from a macro perspective, taking into account the possibility of future cost‑related changes (for example, a rise in electricity costs and in introduction of a carbon pricing scheme).

Benefits of carbon neutrality measures

Hitachi consultants can simultaneously assess multiple business sites and check various aspects (such as financial aspects) related to “self‑consignment” of electricity, in which electric power generated at one company site is sent to another site. The consultants can then compare and verify the costs and benefits of different CO2 emission reduction methods: such as replacing conventional vehicles by electric vehicles, or introducing a solar power generation system, or a combination of such methods.

Term explanation: “Self consignment” makes the best use of surplus electricity without wasting it

What is surplus electricity?
If a solar power generation system is introduced in multiple business sites, the amount of generated electricity is likely to exceed the amount of consumed electricity during specific periods or at specific business sites that need to use only a small amount of the generated electricity.
Generated electricity that is not consumed is referred to as surplus electricity.

Usage example of surplus electricity—Self consignment
Self consignment refers to the process in which an organization transmits electricity that they generate on their own to their business sites or facilities in remote locations over a power grid network.
By taking advantage of this process, business sites can share surplus electricity when enables business organizations to make the best use of surplus electricity without wasting it. This process provides them with benefits such as the following:
  • Reduced electricity costs
    Organizations can reduce the amount of electricity that they purchase, because they can use electricity that they generate on their own.
  • Reduced CO2 emissions
    Reduction in CO2 emissions can be expected because a business site can take advantage of renewable energy even if that site does not have any space for installing solar power panels and cannot install power generation facilities.

Example of applying the solution

We will now describe a case example of TS Network (hereinafter abbreviated as TSN)*1. In efforts to decarbonize their logistics business, this company introduced electrified vehicles to their distribution centers and is examining whether to install a solar power generation system.

TSN is engaged in the logistics business of the Japan Tobacco Group (hereinafter referred to as the JT Group). Aiming to achieve the goals of the JT Group Environment Plan 2030*2, TSN has been promoting decarbonization of energy used by their trucks and 38 distribution centers in Japan since September 2022. Their initiatives include the following:

  • Conducting trial runs of electric trucks
    TSN is conducting data visualization, analysis, and simulation of how the remaining battery life changes as the distance travelled increases.
    This information will provide TSN with a number of benefits. For example, they will be able to identify the number of gasoline‑powered vehicles that can be replaced by electric trucks, develop delivery and battery charging operations, and optimize placement of battery chargers.
  • Investigating solar power generation
    TSN is investigating available space in distribution centers, methods of installing panels, the load capacity of roofs, and other factors. This information will enable them to calculate the optimum number of solar panels that can be installed. TSN can also use the information to decide whether they should connect their system to the power grid operator or install rechargeable batteries to utilize any generated surplus electricity. TSN can also verify the effects of their measures in preparation for decarbonization at business sites and can explore PDCA (Plan, Do, Check, Act) processes for their business to be able to achieve their goals.

After completion of these measures, TSN and Hitachi will identify the potential for logistics decarbonization, formulate a roadmap, and continue their decarbonization efforts in a phased‑in manner. TSN is planning to introduce a solar power generation system and electric trucks to distribution centers in FY 2023 or later. TSN is also planning to connect the distribution centers and accelerate decarbonization in FY 2030.

*1
TS Network and Hitachi launches co‑creation for logistics decarbonization (Japanese)
*2
JT Group Environment Plan 2030 (Japanese)

For details on the related technologies, please read the following articles:

Omika Green Network
Co‑creation for decarbonization that makes growth possible
To achieve carbon neutrality throughout the entire value chain, Omika Works acts as a hub for the building of a network.
We aim to develop business activities and also to reduce the burden on the environment.
Hitachi launches a multi‑site energy management service to facilitate reduction of CO2 emissions through the use of renewable energy power generation facilities and a self consignment system
As a pilot model, Hitachi launched a project involving two of their business sites. Hitachi is aiming to make the best use of renewable energy and achieving highly cost‑effective operations.
Energy & Equipment Management Service
Centralized control and transparent energy supply and consumption result in energy and cost savings.

Summary

Setting goals that take future changes into account and formulating a roadmap along with information about the expected effects and costs
Hitachi will examine data provided by customers and provide estimates and data visualization of the amount and the costs of the CO2 reductions achieved by implementing carbon neutrality measures. With the aim of overall optimization, our consulting service provides comprehensive support for planning strategies and for introducing and using equipment and solutions.
Formulating a highly accurate roadmap based on appropriate planning
Hitachi will formulate a roadmap that takes a variety of factors into account, including environmental awareness, impact of measures on business activities, and potential for business growth. Customers can efficiently implement highly feasible carbon neutrality measures while taking into consideration the impact of external environments and restrictions (for example, electricity cost increases and a carbon pricing scheme).
Is there any large amount of data that is left unused at your workplace?
Is there any workplace in your organization where data is generated every day and where the data can be leveraged to achieve carbon neutrality?
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Key points of this article

  • Based on concrete numeric data, our consulting service helps customers resolve their problems.
  • The service provides comprehensive support for formulation of plans, examination of measures, and deployment and management of equipment and solutions.
  • The service leverages data and provides data visualization of both the current amount of CO2 emissions and the results of implementing carbon neutrality measures.

Digest:

By generating hypotheses and performing calculations based on data, customers can examine and come up with highly feasible measures. Goals can be set and modified while Hitachi verifies the environments, both the external environment and the customer’s internal environment. Before equipment or solutions are introduced into a company, Hitachi considers both the initial costs and the running costs, formulates a carbon neutrality roadmap, and offers comprehensive support for formulating and implementing measures.

*
The service (or solution) specifications are subject to change without prior notice due to reasons such as continual improvements.