Basic Concept for a Decarbonized Society
The Hitachi Construction Machinery Group identified “Product and technology development contributing to Climate Change Mitigation and Adaptation” as one of our materialities. Aiming to achieve net-zero carbon emissions throughout the entire value chain by 2050, we have formulated a roadmap for reduction measures to be undertaken with regard to the two aspects of product development and production processes.
With regard to product development, we have set and are promoting the goal of reducing CO2 emissions by 22% and 33% by fiscal 2025 and fiscal 2030, respectively, compared to fiscal 2010 (base year) (Diagram 1). This will serve as an indicator of our ability to provide our customers and society with environmentally friendly products that contribute to the reduction of CO2 emissions. To achieve this goal, we are promoting the development of an entire product range—from compact equipment to ultra-large mining machines. In addition to reducing fuel consumption, we are also working on the early market launch of electrified construction equipment and identifying hydrogen-fueled products from a technological perspective. Furthermore, we are striving to provide solutions that enable our customers to reduce CO2 while equipment is in use (Diagram 2).
Meanwhile, as for the production process, we have set and are promoting the goal of reducing CO2 emissions by 40% and 45% by fiscal 2025 and fiscal 2030, respectively, compared to fiscal 2010 (base year) (Diagram 3). Our methods for reducing CO2 emissions include energy conservation, conversion to renewable energy (in-house power generation through capital investment, introduction of renewable energy electricity), electrification, and fuel conversion (Diagram 4).
These initiatives aimed at realizing carbon neutrality throughout the entire value chain are also consistent with the spirit of “GX League,”*1 which will launch full-scale activities in Japan in fiscal 2023. Hitachi Construction Machinery became a member of “GX League” in May 2023. With our membership in this league helping us facilitate carbon neutrality initiatives, we will work in collaboration with other members and organizations while playing our part in the transition of Japan’s socio-economic system as a whole.
*1 Green Transformation (GX) League: An initiative established by Japan’s Ministry of Economy, Trade and Industry to provide a place for collaboration among business corporations, government agencies, financial institutions and universities to take on the challenges of GX and transform economic and social systems, with an eye to achieving carbon neutrality in 2050
Electrification Initiatives
Electrification of mining dump trucks
Major mining customers have set a goal of achieving net-zero emissions by 2050. As part of this effort, there is a particularly strong demand to reduce the emissions of dump trucks, of which there are a large number, to zero. To meet this demand, we are working with ABB of Switzerland to make our dump trucks fully electric, and aiming to achieve net zero emissions for the entire mining site. By replacing the engine of our current trolley-type dump trucks, which can run on electric power, with a battery, we will be able to use both the trolley electric supply and battery electric supply to achieve a fully electric machine. When our EH3500AC-3 rigid dump truck is fully electric, operating 20 hours a day will result in a reduction of 6.8 tons of CO2 emissions.
GHG reduction in production process
We are promoting reduction of CO2 emissions from the perspective of energy conservation, conversion to renewable energy (in-house power generation through capital investment, introduction of renewable energy electricity), electrification, and fuel conversion.
To further encourage investments in energy saving facilities and reduce CO2 emissions from production (Scope 1 & 2) by 45% compared to FY 2010 by FY 2030, we have been implementing an internal carbon pricing (ICP) framework since 2019. ICP, which was initially set at 5,000 yen, has been raised to 14,000 yen per ton in 2021 to adapt the increase of importance of facilities with low CO2 emissions and the introduction of carbon prices in the future. By introducing an energy visualization system and a solar power generation system, we invested in energy conservation and decarbonization, and were able to reduce CO2 emissions by 33% in FY2023.
In order to carry out continuous improvement in environmental performance, Hitachi Construction Machinery Group constructed its own aggregation system which visualizes our companies’ environmental footprint, and we manage our environmental impacts monthly. In the five plants in Ibaraki Prefecture, we have introduced the integrated energy & equipment management service utilizing advanced IoT technology from Hitachi, Ltd. to engage in initiatives such as power saving in production facilities and saving electricity in offices to lower peak electricity usage and reduce standby power consumption based on visualized data of power consumption and standby power usage. Such efforts received recognition in the form of the FY2018 “Prize of the Chairman of ECCJ” awarded by The Energy Conservation Center, Japan.
Since April 2021, we have been using “Hitachi Construction Machinery Energy Control System” to continuously reduce energy consumption at production bases.
Ongoing Initiatives
Electric machinery drive components are currently still expensive with major hurdles to cross in order to bring these to prices acceptable for customers, but there is still a need to expand the product line-up in readiness for a rapid expansion in the market. If future advances in cost-competitive electric drive component technologies in conjunction with the move to electric cars and trucks can be achieved, this will let us offer a wide range of electric products from mini- through to ultra-large excavators and loaders, allowing the group to fully demonstrate its strengths. At our production plants, we are working to improve the efficiency of production process and reduce CO2 emissions by introducing solar power generation systems, power visualization systems, cogeneration systems, and other energy-saving equipment.
Endorsement of Initiatives
As an official member of the Japan Construction Equipment Manufacturers Association (CEMA), Hitachi Construction Machinery agrees with the “Low-Carbon Society Action Plan” for the construction machinery industry proposed by the CEMA. In order to achieve it, we take part in the Energy-saving Technology Sub-committee and the Manufacturing Energy-saving Measures Sub-committee in the Engineering Manufacturing Committee, propose measures and hold exchanges of opinions regarding climate change. We work on climate change measures in line with the policy of “Low-Carbon Society Action Plan” by the CEMA.
