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Japan Temporarily Boosts Coal Power

(MENAFN) Japan has chosen to temporarily increase coal-fired power generation for a period of one year to tackle worries over crude oil and liquefied natural gas (LNG) availability, triggered by the ongoing US-Israeli conflict with Iran, according to a report by a news agency on Friday.

A panel within Japan’s Ministry of Economy, Trade and Industry sanctioned a plan on Friday to relax operational limits on older, less efficient coal-fired plants for one year starting in April.

This decision represents a temporary retreat from Japan’s previous strategy of gradually phasing out inefficient coal power and promoting decarbonization.

The timing follows attacks on Iran by the US and Israel in late February, which have pushed oil prices higher and disrupted supply chains due to the effective closure of the Strait of Hormuz, a crucial corridor for energy shipments.

Japan relies heavily on oil imports from the Middle East, whereas coal imports from nations like Australia and Indonesia are considered less vulnerable to the conflict.

Approximately 4 million tons of Japan’s yearly LNG imports traverse the Strait of Hormuz. Officials estimate that the increased use of coal could cut LNG consumption by around 500,000 tons annually.

“In order to ensure stable (power) supplies, we will take proactive measures,” a ministry official said, according to the news agency.

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