Universal Regains Control of Okada Manila

Akihabara News (Tokyo) — Tokyo-based Universal Entertainment Corporation won a round against its founder Kazuo Okada when the Philippine Amusement and Gaming Corporation (PAGCOR), backed by the Philippine National Police, seized back control of the major casino resort, Okada Manila.

The event was nearly as dramatic as those from May, when Kazuo Okada’s allies, led by Antonio “Tony Boy” Cojuangco, forcefully took control of the property. Dozens of red-capped assailants, representing Universal Entertainment’s interests, scuffled with a similar number of hotel security officers. It was reported that the Cojuangco group also attempted to disable the elevators and shredded documents in a hotel room.

These dramatic scenes were teed up by a decision from the Philippine Department of Justice that the April 27 Supreme Court ruling, which called for a return to the status quo ante of 2017 before Kazuo Okada had been ousted from his leadership role, was not intended to provide him full control of Okada Manila, but rather that he should be restored to the board of directors.

In line with the Department of Justice decision, PAGCOR ordered the Cojuangco-led board– including Dindo Espeleta, Maximo Modesto Joel Flores, Tetsuya Yokota, and Hiroshi Kawamura–to “cease and desist from discharging their functions in connection with Okada Manila’s casino operations.”

In the wake of the raid, a new board representing Universal Entertainment’s interests and led by Byron Yip has taken over day-to-day management of the casino resort.

While Universal Entertainment has clearly regained the upper hand, the battle is not over. Kazuo Okada is back on the board of directors and the Philippine courts still need to untangle the corporate ownership and management status on a permanent basis.

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Hong Kong Firm Buys Huis Ten Bosch

Akihabara News (Tokyo) — Huis Ten Bosch, the Dutch-style theme park in Sasebo, Nagasaki, is to be sold to PAG, a Hong Kong-based private asset management firm, throwing a new twist into plans to build a major casino resort at the same location.

Until now, the theme park has been owned by a consortium of Japanese interests led by the travel company H.I.S. The sales price is ¥66.7 billion (US$480 million).

The once-troubled Huis Ten Bosch prospered for a decade in the hands of H.I.S. Having opened originally in 1992, the cost of construction and weak visitation landed the theme park in bankruptcy in 2003. But when H.I.S. took over in 2010, it soon became the largest tourist attraction on the island of Kyushu.

Without the backing of one of Japan’s largest tourism companies, presumably the plan is to rev up visitation from Hong Kong and China once international tourists are free to return to Japan.

It is unclear how the sale of Huis Ten Bosch might affect the licensing process for the Integrated Resort (IR) including a casino. The Hong Kong investors will not have any direct stake–at least initially–in the Casinos Austria-run facility, but naturally the two businesses will share a lot of common interests should the IR be built.

The sale does suggest that if there is a Nagasaki IR, its prosperity will be tightly connected to its draw of Chinese visitors.

As for H.I.S., its leader Hideo Sawada had long signaled his doubts that a Nagasaki IR would produce profits that would justify the multi-billion dollar costs of building the casino wonderland. With the additional financial hit stemming from the pandemic, he apparently decided that this was the opportune time to withdraw from the Dutch-style theme park which he had transformed into a major tourist attraction in western Japan.

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Tesla Installs Powerwalls in Okinawa

Akihabara News (Tokyo) — Tesla has installed a virtual power plant (VPP) on the island of Miyakojima, Okinawa Prefecture. This set of rechargeable lithium-ion batteries is known as a Powerwall; it is one of many similar projects Tesla has been rolling out across the globe.

Although the project has only just been revealed to the public, Tesla began development last year. Local homeowners received monetary incentives to install Powerwalls connected to rooftop solar panels on their homes. This has evidently been successful, since 300 Powerwalls have already been installed on the island.

As part of the agreement, the local utility, Miyakojima Mirai Energy, can use the solar power generated by the rooftop panels as part of the Tesla VPP. This reduces reliance on the grid by storing excess energy from households and making it readily available when required.

Powerwalls facilitate the use of renewable energy and serve as a backup power source in the case of emergency. Miyakojima will thus have greater grid security and stability.

Tesla intends to expand use of Powerwalls in Japan with a goal of installing 600 by 2023.

Toyota recently unveiled its O-Uchi Kyuden System, which will be a direct competitor in the Japanese market to Powerwalls.

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Creating Traffic Safety Maps

Akihabara News (Tokyo) — LayerX, a startup promoting digital transformation in various industries, and Aioi Nissei Dowa Insurance, part of the MS&AD Insurance Group, began offering data analytics services in July 2022 intended to contribute to traffic safety.

Anonify, which is a technology developed by LayerX, is utilized in connection with car driving data gathered by Aioi Nissei Dowa Insurance.

The service is an example of “telematics,” a word combining the terms telecommunications and informatics. Telematics is an interdisciplinary field encompassing telecommunications, vehicular technologies, electrical engineering, and computer science.

In this case, the telematics service aims to reduce the number–or entirely prevent–car accidents. This stands in contrast to ordinary car insurance which focuses on payments after accidents have happened.

Using Anonify, Aioi Nissei Dowa Insurance has created traffic safety maps based on car driving data collected from public organizations on accidents at various locations. It even carries data that highlights higher risks due to factors such as the time of day and people’s ages.

Anonify empowers the traffic safety map with a combination of the extensive original data and Artificial Intelligence projections.

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Japan’s Approach to Offshore Wind Energy

Akihabara News (Tokyo) — In a bid to increase its use of renewable energy sources, Japan is focusing on enhancing offshore wind power through the establishment of a national centralized system, and the Renewable Energy Institute (REI) has offered some suggestions in a new report.

With a long coastline, Japan has significant offshore wind power potential. Many analysts believe that offshore wind could emerge as one of the most effective renewable energy resources.

According to REI, approximately 21GW of offshore wind power was installed globally last year.

In this context, REI has provided suggestions for how the Japanese government might improve its harnessing of offshore wind power.

Specifically, REI emphasizes the importance of creating a centralized system in Japan in order to control the costs and efficiency of offshore wind power development, though noting that it is important to construct the system carefully.

According to the report, a lack of control over data collection is one of the potential pitfalls of the system which the national government has proposed. If this flaw is left unaddressed, it could lead to inaccuracies and redundant studies by multiple developers of the same offshore zones.

There are also unclear guidelines as to who will be responsible for managing grid security and the installation of necessary power lines in designated areas, which itself could place unnecessary burdens on local communities and the environment.

Further ambiguity arises from the lack of concrete start dates and the parameters of the zones which the new system will cover.

REI therefore recommends that the national government take direct responsibility for leading and implementing preliminary site investigations, grid security, and the establishment of development timelines.

REI emphasizes the importance of the national government conducting adequate investigations as early as possible and making its findings available to all potential developers, rather than allowing them to work independently with local governments and conducting their own assessments.

Above and beyond the foregoing, REI recommends that there should be a strong focus on improving the lines of communication between developers, local fishery cooperatives, local governments, and the national government so that they can work together more effectively.

REI predicts that 2025 is the earliest feasible time that the system could be implemented.

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One Pilot Flying Multiple Drones

Akihabara News (Tokyo) — KDDI Corporation and Japan Airlines (JAL) have announced that they are working on a project that will allow a single pilot to simultaneously operate multiple drones.

This initiative, formally known as “Developing Basic Technologies for Airframes and Systems That Will Realize ‘One-to-Many’ Drone Operations,” was launched on August 9 with the backing of the governmental New Energy and Industrial Technology Development Organization (NEDO). The initiative comes under the auspices of the Realization of Advanced Air Mobility Project (ReAMo).

The two companies explained in their joint release: “With the lifting of the ban on beyond visual line of sight flights in inhabited areas (Level 4) scheduled to come into effect in December 2022, drones will be used by companies more frequently in situations such as logistics, inspections, security, and disaster response. It is expected that they will be used as a new kind of aerial infrastructure by both businesses and local governments.”

The plan calls for the development of a flight control system that can effectively and safely carry out “one-to-many” drone operations, as well as to demonstrate its viability through multiple practical tests. Envisioned use cases include drone delivery, security operations, and disaster response.

The firms will also study the economic impact of such a system for private businesses.

Additionally, the companies note that the development of this system for drone flights will have important future applications to the eVTOL industry.

KDDI and JAL first unveiled their intention to work in partnership on drone system development in February.

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Timber High-Rise to Go Up in Tokyo

SNA (Tokyo) — An innovative high-rise built partly of timber will soon go up in central Tokyo. Tokio Marine Holdings, a multi-national insurance giant, has recently revealed the eyebrow-raising designs for its new head office.

The timber-based high-rise will become home to the company’s wholly-owned subsidiary, Tokio Marine & Nichido Fire Insurance. As of now, both firms have temporarily relocated to another building in preparation for FY2028, when the new building is expected to be ready.

Construction of the timber high-rise is scheduled to commence in December 2024.

It is anticipated that this project will become the largest wooden hybrid structure in the world at the time of its completion, consisting of 23 floors and standing approximately 100 meters in height.

Located in the Marunouchi district between Tokyo Station and the Imperial Palace, its natural aesthetic is intended to compliment the area’s prestige and elegance.

There will be a rooftop garden, decorative greenery, and a glass cube surrounding the building which changes its appearance with each season.

Italian architect Renzo Piano created the designs. Some of his firm’s previous projects include The Shard in London, a prominent glass-clad pyramidal tower, and the New York Times Building in New York.

With a goal to “use as much wood as possible,” Tokio Marine and its subsidiary have pledged to use a large amount of domestically-sourced, fire-resistant timber. This means that the wood-based building will not only possess disaster-resilient features, but also support the local timber industry.

As highlighted by the 2020 Global Status Report for Buildings and Construction, 38% of the world’s total energy-related carbon emissions can be attributed to the construction sector. Homegrown wood will aid in combatting this reality as an eco-friendly alternative to more detrimental materials such as steel, according to the company.

In fact, in its press release, Tokio Marine claims that by “utilizing domestic timber… it is estimated that this wooden structure and other [carbon] reduction measures can reduce the embodied [carbon] of the building by approximately 30% compared to regular construction.”

Although not on this scale, this project is not the first in Japan to venture into the utilization of timber.

As of April, the Ministry of Agriculture, Forestry and Fisheries recorded 29 planned or completed wooden buildings over six stories tall. This includes a seventeen-story office tower to be built in Tokyo’s Nihonbashi district by Mitsui Fudosan and Takenaka Corporation.

Japanese architectural firm UENOA has also created an origami-style wooden office with no walls. Although not a high-rise, this is another striking example of the increasing popularity of timber construction in an urban setting.

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Small Modular Nuclear Reactors’ Radioactive Waste

Akihabara News (Tokyo) — As the government promotes nuclear power as an alternative to fossil fuel energy sources, small modular nuclear reactors (SMRs) have met a divided response as a possible way forward.

The International Atomic Energy Agency (IAEA) defines small modular nuclear reactors as those that produce around 300MW of electricity. The reactors are “modular” because they can be assembled and transported as whole units to their intended locations for relatively fast installation.

These reactors have been praised by some analysts as being environmentally friendly as well as efficient, safe, and economically advantageous.

NuScale Power, a US company that specializes in the designing and marketing of small modular reactors, reported in 2020 that “the global [small modular reactor] market is estimated to be more than US$100 billion by 2035, based on best-case estimates by the Nuclear Energy Agency.”

According to the World Nuclear Association, the reactors require fewer safety systems than their larger counterparts due to their small and compact build. The size and modularity of small modular reactors further means that their manufacturing can follow higher quality standards while still allowing for lower costs and faster construction.

Locating such structures underground or underwater is also possible. Indeed, the reactors have the potential for better protection from natural or manmade disasters, such as tsunamis and aircraft crashes.

The IAEA explains that small modular reactors have reduced fuel requirements. Refueling is needed only once every three-seven years, rather than every one-two years, as is standard for larger power plants.

Some critics, however, argue that the claims of these proponents are entirely wrong.

For example, the Energy and Climate Intelligence Unit, an independent advisory organization in the United Kingdom, argues that the economic advantages of increasing size and output is precisely what led to large nuclear reactors achieving much of their commercial success. As such, “[small modular reactor] economics should overall be worse than those of large reactors.”

Michael Barnard, strategist at Agora Energy Technologies, further disputes the claim that small modular reactors are less costly than traditional nuclear plants. Barnard notes that “decommissioning a nuclear reactor is a billion dollar, 100-year venture.”

Some research has also concluded that small modular reactors may produce more radioactive waste than most conventional nuclear power plants.

According to an article published by three researchers in the Proceedings of the National Academy of Sciences, small modular reactors “will produce more voluminous and chemically / physically reactive waste than [conventional reactors].” They add that “water-, molten salt-, and sodium-cooled… designs will increase the volume of nuclear waste in need of management and disposal by factors of two to thirty.”

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Japan’s Emerging Sports Betting Lobby

Akihabara News (Tokyo) — Out of the public eye, a coalition of forces aiming for the legalization of private-sector sports betting has become active in Japan.

There are multiple factors driving some policymakers towards seriously considering overturning what has long been a taboo in Japan.

One factor is the example of the United States, which Japan often looks towards as representative of cutting edge trends. The US Supreme Court ruled in 2018 that a law banning sports betting was unconstitutional, and this has unleashed a rapidly expanding sports betting industry in the country, pouring tax revenues into public coffers.

Indeed, even now it is estimated that up to ¥6 trillion (US$44 billion) worth of bets are being placed on Japanese sports via overseas companies, providing no benefit to Japan’s public finances.

Japan is the only G7 nation which has banned private-sector sports betting, although most Asian nations share Tokyo’s wariness about legalization.

A second factor is that some technology companies are pushing the government towards legalized sports betting, with Rakuten and Mixi being the most outspoken.

Reports have been submitted to the Ministry of Economy, Trade and Industry (METI) by the Japan Association of New Economy and possibly others advising that private-sector sports betting should be allowed.

In early June, then-METI Minister Koichi Hagiuda (who was also a key promoter of casino resort legislation) acknowledged that legalization of private-sector sports betting was under consideration by his ministry, although he took pains to note that no such initiative would be launched in the immediate future.

Finally, there is the fact that sports betting is already expanding and digitizing through public-sector parimutuel betting such as horse, motorcycle, bicycle, and speedboat racing. In FY2020, proceeds from these events totaled ¥6.8 trillion (US$50 billion), up 17% from the previous year. There are also the public-sector lotteries.

For most of this century racing events were in decline as old stadiums fell into disrepair and fewer people showed up at the tracks, but their fortunes have revived in more recent years, particularly with the rise of new online betting options. The economic turnaround has been sharp in some cases.

Despite these factors in favor of private-sector sports betting, it is widely understood that much of the Japanese public–possibly a majority–will strongly oppose legalization, much as they have opposed casino resort legalization.

There have already been major gambling-related scandals in the Japanese sports world, including in Nippon Professional Baseball and in the Japan Sumo Association. Yakuza organized crime syndicates have been involved in match-fixing. Perhaps the most notorious episode was the “Black Mist Scandal” in the baseball world in 1969-1971. There have been others.

Japanese citizen groups can also be expected to argue that the wholesome nature of Japanese sports, so integral to the education of young people, should not be ensnared by private-sector betting schemes. It is an invitation for the moral corruption of the young.

Concerns about the further spread of gambling addiction are also likely to be cited.

Nevertheless, some observers argue that its only a matter of time before gambling industries–including casino resorts, online gambling, and sports betting–are given the green light by the Japanese government, if for no other reason that the internet age has already unleashed a tsunami of gambling within Japanese society, but with much of that money flowing out of the country rather than benefiting public finances.

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Asian Countries Preorder the EHang 216 eVTOL

Akihabara News (Tokyo) — Since the beginning of this year there have been preorders for 210 units of the China-made EHang 216 eVTOL, all of them from Asian nations.

The process kicked off in January when Japanese air mobility digital platform company AirX put in a preorder for 50 units of the EHang 216, aiming to have them delivered in time for the 2025 World Expo in Osaka.

Since then, EHang has added preorders of 60 units from Aerotree Flight Services of Malaysia, and then its largest-ever preorder, 100 units from Prestige Aviation of Indonesia.

In addition, EHang formed a strategic partnership in May with Charoen Pokphand Group, one of the largest conglomerates in Thailand, aiming to establish an eVTOL joint venture in the country.

In an investor earnings call conducted this week, Chief Operating Officer Fang Xin specified that these “preorders in Asia are expected to be delivered in about three years, subject to customer needs.” The precise timing also depends on when each country’s regulators approve the EHang 216 to begin passenger flights.

Company executives confirmed that five units of the EHang 216 have already been delivered to its Chinese customer Tianxingjian Cultural Tourism Investment and Development in connection with the scenic flight project at the Aizhai Wonder Tourist Area in Jishou city, Hunan Province, and that trial operations have begun at that location. This customer plans to buy additional 25 units as the project progresses.

Guangzhou-based EHang was the first eVTOL company to list on a stock market, the Nasdaq in New York.

In its April-June quarterly financial report, issued this week, the company recorded total revenues of US$2.2 million and an operating loss of US$11.1 million.

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Web3 Momentum Grows

Akihabara News (Tokyo) — The way the world works, shares, and conducts business is changing as the adoption of Web3 technology shows little signs of slowing.

California Governor Gavin Newsom signed an executive order earlier this year compelling the state’s businesses and government bodies to use blockchain technology, whose peer-to-peer caches of data are the cornerstone of Web3 philosophy and infrastructure.

Web3 is a collective term for a new era of the World Wide Web in which it will be built on decentralized technologies such as blockchain and cryptocurrency, and including other developments such as Artificial Intelligence (AI) and Virtual Reality (VR). It aims to be the successor to–and near antithesis of–the existing social media revolution in which vast quantities of information and power flow towards a handful of tech giants like Facebook and Google.

Proponents claim that Web3 will allow for a more secure, transparent, and intuitively-connected network that gives users full control of their online presence and data by storing it on the blockchain.

Other governments are quickly following California’s example.

Among them is Japan. The Ministry of Economy, Trade and Industry has created a Web3 Policy Office to aid domestic development of the technology. Their main aim is to prevent a loss of skilled labor as talented Japanese software developers go overseas.

Venture capital investment in various blockchain enterprises has been rising sharply–US$33 billion in 2021.

IT consultancy firm Accenture found that over half of all wealthy private investors in Asia are holding the Web3 medium of exchange–cryptocurrency–making it the fifth-largest asset class in the region. This figure is expected to grow rapidly.

Meta (Facebook) is among those investing heavily in the evolution of the online ecosystem. Of course, even the new name of the company reflects its goal of leading the tech industry into the “metaverse.”

The metaverse, which is often considered a synonym or closely adjacent to Web3, is a catchall term for a world in which users immerse themselves in the web through VR avatars.

Despite their ambitious pitch, the transition has been a difficult one for Meta. The company lost US$10 billion in 2021. Even still, CEO Mark Zuckerberg remains fully committed to the metaverse model.

Competitors, like Microsoft, have also begun work on similar projects.

According to Accenture, the burden of early adoption has also given the majority of traditional wealth managers and financial advisors in Asia cause for reticence about Web3 technology. Currently, these investors are keeping their client’s money away from such projects due to a poor understanding of the technology and volatility in the cryptocurrency market.

Nevertheless, most of the largest investment banks in the world now consider cryptocurrencies and Non-Fungible Tokens (NFTs), digital items stored and traded on the blockchain, as legitimate assets for investment.

JP Morgan, in a financial review of Web3 and metaverse opportunities, identified them as a potentially US$1 trillion per year ecosystem. The bank’s advice to businesses investigating Web3 is that “the asymmetrical risk of being left behind is worth the incremental investment needed to get started.”

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Japan Casino Resorts in Limbo

Akihabara News (Tokyo) — The hottest summer in Japanese history has so far proven to be stone cold when it comes to major news developments regarding the prospective casino resort industry.

At the end of April, two prefectures—Osaka and Nagasaki—submitted applications to the central government to have their respective Integrated Resort (IR) projects licensed for operations under the terms of the 2018 IR Implementation Act.

Since then, not a whole lot has happened—at least not much that is within public view.

Basically, all there is to do for the local governments and the two IR operator hopefuls is to wait for the central government to determine whether or not these projects will be given a license.

This decision is primarily in the hands of the Ministry of Land, Infrastructure, Transport and Tourism headed by the government’s only Komeito party minister, Tetsuo Saito.

The verdict is believed likely to be announced either in the autumn or winter of this year.

Some industry analysts—notably Bay City Ventures Managing Director Joji Kokuryo—suggest the possibility that some kind of policy curveball could be in the offing. Rather than simply giving a thumbs up or thumbs down to the two applications, Kokuryo suggests, the central government might grant conditional licenses or even scrap the current process altogether and fully reopen bidding to local jurisdictions and casino firms with a new deadline, presumably a couple years in the future.

For now, all remains speculation. Local governments and IR operators just have to wait.

The only side which has continued to be active are the citizen anti-casino forces which continue to chip away at the political will of those few leaders still willing to advocate publicly in favor of casino legalization.

At the end of July, the Osaka Prefectural Assembly voted down a proposal for a popular referendum on the IR project at Yumeshima. Citizen activists submitted more than 190,000 resident signatures, but the pro-IR Osaka Restoration Association determined that the people should not be given a say in the matter—just as had previously occurred in the cities of Yokohama and Wakayama.

Throughout the IR process, it has continued to be a “no democracy zone” in which many conservative political leaders and parts of the business community have repeatedly defied the popular will.

At any rate, the ball is very much in the court of the national government at this juncture, and all interested parties are waiting to see what they do.

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Sora-iina Expands Drone Delivery in Goto Islands

Akihabara News (Tokyo) — Sora-iina, a wholly-owned subsidiary of general trading company Toyota Tsusho, has been expanding its drone delivery program for medical goods in the Goto Islands, Nagasaki Prefecture.

The genesis of the project goes back to June 2018 when Toyota Tsusho made an investment in California-based drone startup Zipline and began collaborating with the firm’s drone delivery operations in Africa.

In March 2021, the two firms agreed to bring their partnership to Japan, promising to focus on delivery of medical supplies to underserved rural areas of the country. The press release noted that it was Zipline’s “first-ever strategic operational partnership, and represents a new model for scaling its on-demand delivery service.”

Practical operations launched this April under the auspices of the subsidiary, Sora-iina, which had been created for the purpose of handling the drone delivery initiative. The inaugural president and CEO is Michelle Mika Matsuyama. The company’s base is located in Goto city, Fukue Island, Nagasaki Prefecture.

As of the beginning of this month, over 150 drone flights have been conducted, with the main route running between Fukue Island and Naru Island. However, as of June 10, a new route between Fukue Island and the most distant of the main Goto Islands, Nakadori Island, also began to be tested–a roundtrip of about 140 kilometers.

Other routes to smaller, even less populated islands are also planned.

The Zipline drones have fixed wings with a wingspan of about 3.3 meters. They are launched into the air via a special catapult. When they return to base a hook on the tail of the aircraft snags onto an outstretched wire, leaving it suspended motionless in the air until the recovery team attends to it.

The payload, which can have a weight of up to 1.8 kilograms, is carried inside the aircraft during the flight, protecting it from the elements. These drones are relatively durable, even in conditions of moderate winds and rain. They fly at a maximum speed of about 130 kilometers per hour. Cellular networks and installed SD cards provide for automated navigation. Delivery is accomplished by the opening of a hatch at a predetermined height, sending the payload dropping to the ground with a small parachute to cushion the impact.

Sora-iina is negotiating with government regulators to allow them to conduct several flights simultaneously. The firm aims to achieve the operational rate of about twenty to thirty flights per day.

When the Japanese government allows Level 4 drone flights–something which is expected to occur later this year–current routes can be shortened, since the drones will then be permitted to fly more directly to their objectives over populated areas.

Sora-iina hopes that its drone delivery service will strengthen overall logistics in the Goto Islands. In particular, since medicine deliveries currently rely on ships with fixed schedules, drones may be able to make emergency deliveries to local hospitals and other facilities on much shorter notice.

It’s also possible that Sora-iina might face a competitor. In March 2021 All Nippon Airways (ANA) and Germany-based drone firm Wingcopter conducted medicine delivery tests in the same area, running flights between Fukue Island and Hisaka Island.

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Nomura Provides Loan to Vertical Aerospace

Akihabara News (Tokyo) — Vertical Aerospace revealed in its latest financial statement that Nomura Securities offered the UK-based eVTOL-maker a loan of up to US$100 million to allow Vertical to retain a large share of its ownership.

Like all eVTOL companies, Vertical is currently spending a lot of money on research, development, and production of its new aircraft (during the first half of 2022 it reported a net operating loss of about US$47 million) and it will not begin making substantial income until its aircraft is licensed to carry passengers–a prospect which is probably still several years away.

In this context, Vertical also announced that it has finished building the first full-scale prototype of its VX4, a five-seat eVTOL model expected to ferry passengers through the skies as well as take on cargo delivery and other missions.

Stephen Fitzpatrick, Vertical Founder and CEO, stated, “I am delighted to share that we have reached a critical engineering milestone by completing the build of our full-scale VX4 prototype, and we have now begun putting it through its paces for an intensive, multi-month flight test program.”

Nomura’s loan is not Vertical Aerospace’s first connection with Japan. Last autumn, two separate partnerships were announced.

Last September, it was revealed that Marubeni Corporation signed a conditional preorder for up to two hundred VX4 aircraft, with an eye towards operating an air taxi service that might, for example, carry passengers from Narita Airport to Tokyo Station.

Less than a month later, it was announced that Japan Airlines (JAL) might buy or lease up to a hundred VX4 aircraft through Avolon, a Dublin-based global aircraft leasing company.

Globally, Vertical says that it now has preorders for up to 1,400 units of its VX4 aircraft.

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Inpex Explores Australia Green Hydrogen Hubs

Akihabara News (Tokyo) — Japan oil and gas firm Inpex Corporation is participating in feasibility studies to create green hydrogen hubs in two Australian states. In both cases, Inpex’s main local partner is the utility firm AGL Energy.

In the latest agreement announced this week, the feasibility study concerns AGL’s Hunter Energy Hub in the state of New South Wales, which envisages both the production of green hydrogen and its export abroad.

The feasibility study will center on AGL’s Liddell Power Station in the Hunter Valley region, eyeing the Port of Newcastle as a potential offloading location.

AGL Chief Operating Officer Markus Brokhof stated that “early estimates suggest the site can support a hydrogen facility of up to 2GW in scale, but we will also test critical inputs including renewable energy costs, firming requirements, electrolyzer capital costs, logistics, and utilization.”

If the project is realized, at least some of the hydrogen produced will be exported to Japan.

Fortescue Future Industries and Osaka Gas Australia are also participating in the Hunter Valley project.

In June, a similar feasibility study involving the consortium of Inpex, AGL, Osaka Gas, and South Korea’s SK Group was unveiled in connection with a potential green hydrogen hub at Torrens Island, South Australia.

In this case, the site of the study is AGL’s Torrens Island Power Station.

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Japan’s Green Transformation

Akihabara News (Tokyo) — The first meeting of the Ministry of Economy, Trade and Industry (METI) Green Transformation panel was held recently, with the aim of establishing a ten-year roadmap to meet the country’s carbon neutrality goals.

The METI minister–at that time Koichi Hagiuda–was provided the additional ministerial portfolio of Green Transformation Minister. Deputy Chief Cabinet Secretary Seiji Kihara explained that his new task was “to manage administrative processes to realize the transformation of Japan’s economy, society, and industrial structure based on clean energy.”

With yesterday’s Cabinet reshuffle, this task now falls to Yasutoshi Nishimura.

In May, Prime Minister Fumio Kishida announced that the government plans to provide approximately ¥20 trillion (US$150 billion), raised via “green economy transformation bonds,” to facilitate the clean energy projects.

Kishida also said that an additional ¥150 trillion (US$1.1 trillion) will be needed for other public and private investments over the next decade.

As part of these efforts, Kishida revealed his intention to authorize the restart of at least nine nuclear reactors by the end of this year as a measure to quickly reduce carbon emissions. The government is also expected to discuss the construction of new nuclear plants.

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Drone Delivery of Fertilized Cow Eggs

Akihabara News (Tokyo) — Aeronext has announced the successful delivery of fertilized cow eggs in an experiment which aims to make drones integral to the raising of livestock in Japan.

The experiments are taking place in Kamishihoro town, Hokkaido, one of the first bases for the firm’s Next Delivery drone transportation service.

In this instance, fertilized cow eggs collected at the JA Zenno Embryo Transfer Research Institute were delivered smoothly and safely via drone to a farm.

The AirTruck delivery drone is being used in these experiments, which Aeronext codeveloped with domestic drone-maker ACSL. It is designed to carry and deliver fragile payloads, and therefore it is believed that AirTruck may be an appropriate vehicle for the eggs.

Fertilized cow eggs have higher rate of conception if there is no need for them to be frozen and if transportation is speedy and smooth.

Shigetoshi Ogura, president of JA Kamishihoro Town, commented, “The shorter the transportation time and the less vibration, the higher the conception rate. I would like to track the results of these experiments and observe the quality of the wagyu beef and the meat of the fertilized eggs transported in this way.”

Hajime Kumagai, the owner of the ranch where the first fertilized eggs were delivered, added, “Right now, it takes more than fifteen minutes each way to pick up fertilized eggs from the local facility. Drone delivery enables fast and safe transportation.”

Aeronext speculates that drone delivery will also be helpful in addressing issues related to manpower shortages in Japanese rural areas as the nation faces demographic crisis.

Kamishihoro town has a population of about 5,000 people and an administrative area of ​​about 700 square kilometers, which is larger than the 23 wards of Tokyo.

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Tokyo Launches Three-Year eVTOL Project

Akihabara News (Tokyo) — The Tokyo Metropolitan Government has selected several companies to implement a three-year project aimed at preparing the Japanese capital for its first eVTOL taxi services.

The companies selected by the metropolitan government are Mitsubishi Estate, Japan Airlines (JAL), and Kanematsu Corporation.

These firms have received the mandate to develop a practical business model for the launch of eVTOL taxi services in Tokyo, as well as to identify the key hurdles to implementation. This includes cost estimates and other economic dimensions related to air taxi services.

Mitsubishi Estate, which owns most of the Marunouchi financial district adjoining Tokyo Station and the Imperial Palace, will be the primary project manager, offering its property to host experiments. JAL will take charge of feasibility studies and the planning of demonstration flights. Kanematsu will provide information on overseas technologies and regulatory trends, as well as work on vertiport development.

Between April 2023 and March 2024, the consortium plans to begin demonstration experiments using helicopters within the metropolitan area. Thereafter it will switch to eVTOLs–though the make and model is undecided.

When the three-year project ends in March 2025, the commercial eVTOL taxi industry is expected to begin soon thereafter, and any additional public funding from the Tokyo Metropolitan Government will be reconsidered at that time.

It has been the Osaka Prefectural Government which has been most proactive about the development of Japan’s eVTOL industry. The 2025 World Expo in Osaka is expected to become the stage for the birth of domestic eVTOL taxi services. The expo is scheduled to open on April 13, 2025, and continue for about six months.

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Toyota Shocks the Powerwall

Akihabara News (Tokyo) — Rooftop solar power installations are becoming more popular for Japanese households, particularly due to the many natural disasters which can lead to power outages on the grid. The need for a more decentralized and resilient power system is apparent.

As part of the answer to this need, Toyota Motor Corporation recently entered the power market by releasing a new product called O-Uchi Kyuden System. This is a household storage battery similar to the Tesla Powerwall.

Toyota offers several plans depending on user needs. The batteries can remain fully charged by rooftop solar panels, or they can power the household on a daily basis, or else some of the electricity can be sold to utility firms.

The O-Uchi Kyuden System directly completes against the more established Tesla Powerwall, which was first introduced in 2015 and has been installed in about 250,000 households globally.

The functionality of the O-Uchi Kyuden System is quite similar to that of the Powerwall. For example, both offer mobile phone apps for users to monitor how much electricity is generated, consumed, and other key data.

However, one unique function of the O-Uchi Kyuden System is that, using a special plug, an electric vehicle can also provide an extra charge to the household battery, suggesting that Toyota is particularly focused on providing energy resilience at the time of disasters.

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Sumitomo and Kanematsu to Lift Singapore eVTOLs

Akihabara News (Tokyo) — Both Sumitomo Corporation and Kanematsu Corporation have made large investments in UK-based Skyports, which is already developing drone delivery operations in Singapore and seems to be edging toward eVTOL operations as well.

In the latest news, Skyports announced that its Series B fundraising exceeded US$26 million. Sumitomo and Kanematsu are major contributors.

This comes on top of an alliance unveiled in February between Sumitomo, Skyports, and ST Engineering to provide drone services for shore-to-ship parcel delivery in the port area of Singapore.

Their stated goal is to create a drone delivery network capable of carrying parcel payloads of up to 10 kilograms.

Ichiro Tatara, general manager of the Commercial Aviation Department at Sumitomo, stated that “unmanned aircraft systems are a potential infrastructure-enabling sustainable transportation. We are very excited to launch a pilot program for shore-to-ship parcel delivery together with ST Engineering and Skyports, and we believe this partnering is a great team and provides sustainable and efficient service to vessels in Singapore.”

Skyports, best known for its vertiport development, also has multiple ongoing projects in Japan.

In April last year, Skyports and Kanematsu unveiled an alliance to develop infrastructure for both the drone delivery and eVTOL sectors.

Last May, Skyports began working with the prefectural government on the Osaka Prefecture Super City, a project launched in 2020 to pioneer “the city life of the future.”

By this February Skyports was also offering its expertise to the Japan Civil Aviation Bureau regarding eVTOL infrastructure development.

Most recently, in May, Skyports and Kanematsu–joined by Park24 and Aioi Nissay Dowa Insurance Company–announced a four-company agreement to construct a vertiport in the Kansai region, perhaps followed by additional projects.

This web of business alliances around Skyports appears likely to link several Japanese firms–particularly Sumitomo and Kanematsu–with the birth of eVTOL services in Singapore as well as in Japan.

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