Tokyo Gas, Kyushu Electric, and Idemitsu scrap 2GW coal plant in Japan

Companies are under pressure to sell or give up coal assets as Japan tries to meet its emissions targets.

Reuters reports that Japan’s Idemitsu Kosan, Kyushu Electric, and Tokyo Gas have decided to scrap a 2GW coal-fired power plant in Chiba, near Tokyo, citing that the project is not economically feasible.

Kyushu Electric and Tokyo Gas said instead they will consider building a gas-fired power plant, using liquefied natural gas (LNG), at the same site owned by Idemitsu.

The decision comes amidst pressure on companies to sell their coal assets due to environmental concerns.

Also read: Japanese financial firms are pulling out investments in coal

In 2017, Kouichi Yamamoto, Japan’s former environment minister, warned that the country may not achieve its carbon emissions target if local companies’ plans to build 41 new coal-fired power stations push ahead, underlining Tokyo’s struggle to meet globally agreed goals to halt climate change.

Read the full report here.