Allow me to begin today's briefing. Here are the topics that I will cover. I will start by outlining MISSION NET ZERO and MHI's vision of carbon neutrality. I will then discuss our investment plans and the development status of the solutions that will make it happen. Finally, I would like to speak about business development. First off is MISSION NET ZERO . MHI Group announced MISSION NET ZERO last October. Achieving a carbon neutral world is a global challenge. As a proven leader in the area of decarbonization, we believe we have a responsibility to lead the way in addressing climate change. We will contribute to the achievement of Net Zero with a wide range of products, technologies, and services, which help reduce CO2 emissions. Specifically, we aim to achieve a 50% reduction by 2030 and net zero by 2040.
The following is a roadmap towards completion of MISSION NET ZERO. For Scope 1 and 2 emissions, we have already made considerable reductions in the past. Going forward, we will adopt our own technologies at our factories to achieve net zero by 2040. We will reduce Scope 3 emissions on a scale that exceeds Japan's total CO2 emissions. We will contribute to global implementation by establishing decarbonization technologies, including energy transition initiatives at an early stage. We aim to achieve carbon neutrality within MHI Group by 2040 and actively deploy the results of our efforts to society at large to achieve carbon neutrality. Today, I would like to share with you our thinking on carbon neutrality, which has not been adequately expressed in the introduction of individual products or press releases to date. First, I would like to talk about MHI Group's vision of a carbon neutral world.
We have thought nonstop about the three E's of energy for more than 20 years now, and since 2014, we have considered what we in Japan call the three E's plus S. A sustainable increase in environmental value is predicated on a stable energy supply, economic efficiency, safety, and security. We cannot achieve a sustainable carbon neutral world if we only consider environmental value. We believe that a sustainable carbon neutral society is one where people coexist in diversity. We also need a carbon neutrality solutions ecosystem that ensures the three E's plus S. An ecosystem is a system that connects and leverages diverse value chains. However, it is not just a value chain. In other words, it is a system that creates both environmental and economic value by linking a wide variety of industries.
Our goal is to quickly commercialize these solutions with MHI Group's wide range of products and services. The mechanisms needed to achieve this are represented by these six keywords. Utilize, separate, consolidate, exchange, circulate, and synthesize. Let me explain these one by one. The first example of such an ecosystem is our approach to Net Zero at our factories. Scope 1 is CO2 emissions from fuel use, and Scope 2 is emissions from electricity use. First, we calculate theoretical minimum energy requirements and consider any energy use above this as a target for reduction. We will streamline manufacturing processes utilizing existing equipment and facilities. Heat that is discarded in the manufacturing process will be reused to the fullest extent. Our heat pumps are effective in this regard. In this way, non-fossil fuel energy will replace other energy sources and approach the theoretical minimum value.
As the streamlining of manufacturing processes progresses, waste will be eliminated and manufacturing costs will go down. In other words, environmental value and economic efficiency can be realized simultaneously. We will promote carbon neutrality at our machinery works and then commercialize these technologies and techniques as new businesses. Here is the carbon neutrality ecosystem as it relates to Scope 3. First, let me describe the hydrogen solutions ecosystem. Infrastructure is currently being developed for global hydrogen procurement. This is an example of a value chain in which hydrogen is produced by a natural gas supplier, liquefied, transported, stored, and then used in a hydrogen gas turbine to generate electricity. However, there is a lot of existing gas-fired power generation infrastructure in Japan and around the world. Let's consider the first of the keywords I mentioned at the beginning, utilize. For clarity, existing infrastructure is indicated in orange.
Existing infrastructure can be used for hydrogen with minimal modification. Specifically, water electrolysis units will be added to produce hydrogen using carbon neutral electricity from the existing power grid. Similarly, natural gas delivered by an existing gas pipeline can be pyrolyzed to produce hydrogen. This is called turquoise hydrogen. The important thing to remember here is that you do not have to invest in equipment all at once. Little by little, we can increase the production of hydrogen and mix it with natural gas to be fired in a gas turbine. No modifications to a gas turbine are required for 30% mixed firing. Even 100% hydrogen firing can be achieved by simply replacing the combustor. The most economic method of hydrogen power generation can be achieved by locally producing and consuming hydrogen. To validate these technologies, we are working to build our new Takasago Hydrogen Park facility.
The plant will begin generating power from hydrogen in fiscal 2023. Local production and local consumption of hydrogen includes the second keyword, separate. In this case, natural gas is separated into hydrogen and solid carbon. This solid carbon can be used as a raw material by manufacturers of materials such as chemicals and steel. This is one example of how value chains from different industries can coexist. Next is the third keyword, exchange. This is indicated in pink. In the hydrogen gas turbine example, heat that the gas turbine would normally exhaust is sent to a natural gas pyrolysis unit, which returns the resulting hydrogen to the gas turbine to be used as a fuel. If a material manufacturer were built next to the power plant, there could be an exchange of heat for raw materials.
Next, we will consider an example of the steelmaking industry as a CO2 solutions ecosystem. The steelmaking process uses iron ore as a raw material and emits CO2 as blast furnace gas. Let us examine CO2 recycling in steelmaking. The fourth keyword is circulate, which we have indicated in green. CO2 from the blast furnace gas is captured by a CO2 capture system. We are currently developing technologies to efficiently convert CO2 to CO. CO2 is converted to CO and returned to the reduction process. This will greatly reduce the amount of coal and natural gas needed to make steel. By recycling carbon throughout the process, we not only reduce CO2 emissions, but we also reduce the consumption of raw materials and fuel. This is another example of combining environmental value with economic efficiency.
The hydrogen production section from the hydrogen gas turbine page has been added to the left in blue. Coal and natural gas can be replaced with solid carbon and hydrogen. Carbon neutral steel products can be used in a variety of products. This is a great example of carbon recycling between different industries. The following is the case of a waste to energy boiler. It emits CO2. This brings us to the fifth keyword, synthesize. It is indicated in brown. CO2 and heat generated from waste to energy boilers can be effectively utilized. MHI is currently developing technology to convert CO2 into CO using carbon neutral electricity. By adding hydrogen to CO2, syngas, a mixture of CO and hydrogen, is obtained. Syngas is a raw material for oil and chemical products. A biomass gasifier, which produces CO, has been added to the right side of this slide.
This is also an MHI Group product. Similar to the previous slide, chemical products can be synthesized by combining CO with hydrogen. The fourth keyword, circulate, has been added to the left side in green. At the MHI Research and Innovation Center, we are currently validating a methane fermentation system which breaks down food waste and generates methane. This methane can be mixed with natural gas. In this way, the natural gas industry will also join the CO2 solutions ecosystem. In addition, plastic waste can be separated out and recycled, which reduces the total amount of waste. This is another form of carbon recycling. Let's look at the next keyword, circulate, from the perspective of plastics. A large cycle has been indicated in green. This is the cycle of plastic waste recycling. Let's return to the topic of oil synthesis. Now, the right side has been highlighted in green.
Oil that was originally food waste or biomass can be used as sustainable aviation fuel, SAF. Normally, CO2 from aircraft is emitted into the atmosphere, but by performing direct air capture, that CO2 can be captured, and a CO2 recycling chain can be created on the right side. DAC can be achieved using MHI's CO2 capture equipment. Renewable diesel fuel, shown at the bottom right, can be produced in the same way as SAF, so this is truly a mobility-focused CO2 recycling chain. This has all become a bit complicated. To summarize, by incorporating MHI's existing products, as well as new technologies under development into existing waste incineration facilities, we can create three major carbon recycling chains. Value chains in different industrial sectors will become increasingly connected. All value chains will be characterized by satisfying environmental value while also being highly economical through the use of byproducts.
This is exactly the carbon neutrality solutions ecosystem MHI Group is aiming for. By the way, have you noticed that there are multiple CO2 capture points in these three cycles? We have highlighted them in red on this slide. Multiple collection points exist at disparate locations. This is where the last keyword, consolidate, comes in. I will explain this on the next page. MHI has a 70% market share in large-scale CO2 capture equipment for use in chemical and power plants. We have recently launched a lineup of small modular CO2 capture systems as well. Modular CO2 capture systems are available for all industrial sectors. Existing infrastructure in all industries can be utilized without modification, and CO2 capture equipment can be installed according to its scale. Heat required for CO2 capture is generated at low cost by our heat pumps.
These small amounts of CO2 can then be collected at volume by consolidation, making the synthesis of oil and other materials more efficient and less expensive. We are also considering providing CO2 absorbent supply and collection services, as well as remote operation of CO2 capture equipment for thousands or tens of thousands of facilities. So far, I have introduced some of the examples of the carbon neutrality solutions ecosystem that MHI Group is aiming for, namely the coexistence and success of a wide variety of industries. Here are some examples of individual products and technologies that will make this possible. First, let me lay out our investment plan. The ratio of R&D and investment will be significantly increased to an accumulated total of JPY 2 trillion through 2030.
We will also double the percentage of investment in carbon neutral products from 40% to 80% to accelerate the development of our technology and product areas. Now I will briefly discuss the readiness of individual products as it pertains to carbon neutrality. First off, here is an energy management system which is required for all industrial sectors in the ecosystem. We will validate carbon neutral solutions management technology by installing solar panels, battery storage equipment, and a data center at Yokohama Hardtech Hub, and also by linking with external fluctuating clean energy sources. We will begin validation operations in fiscal 2022, and after decarbonizing our factories, we will commercialize the system. Heat pumps are key to decarbonizing factories. By increasing the lineup in the high temperature range above 100 degrees Celsius and replacing existing factory boilers, we will contribute to decarbonization in many industries.
We will complete the design and production of a prototype in fiscal 2022 and begin operation at our machinery works in fiscal 2023. This is the new Mihara Carbon Neutral Factory initiative. Solar panels equivalent to the electricity consumption of Mihara Machinery Works will be constructed at the plant site. We will decarbonize the power we use and also utilize the facility as a proving ground for the development of other technologies. The new Takasago Hydrogen Park will add hydrogen production and storage equipment to the existing GTCC demonstration plant at Takasago Machinery Works. This will enable validation testing of an integrated process from next generation hydrogen production technology to power generation using hydrogen gas turbines. After validating the system using water electrolysis, we plan to produce turquoise hydrogen by pyrolyzing methane into hydrogen and solid carbon, among other initiatives.
Operation is scheduled to begin in fiscal 2023. Here is the status of hydrogen gas turbine development. For small and mid-sized gas turbines, we plan to validate 100% hydrogen firing at Takasago Hydrogen Park in 2024. This technology is EU Taxonomy compliant. The development of 30% mixed firing has been completed for heavy-duty gas turbines, and validation will start in 2023. The development of 50% mixed firing and 100% hydrogen firing will be completed in 2024 and 2030 respectively, both of which are before the EU Taxonomy standards come into effect. Nuclear power does not emit CO2 during operation, is not affected by weather conditions, and is a stable power supply. This makes it essential for realizing a carbon neutral society that satisfies the three E's plus S criteria.
We will contribute to the stable production of hydrogen using high temperature gas-cooled reactors, while making steady progress in restarting operations, completing the nuclear fuel cycle, and developing next generation light water reactors. This is a gasifier that produces sustainable aviation fuel, which I explained during the section on waste treatment. We have already developed technology to produce SAF through the gasification of biomass under contract from NEDO. In 2021, MHI and our partners supplied SAF to the world's first regularly scheduled airline flight powered by SAF. Since aviation fuels need to be adapted to the characteristics of each region, we will promote the establishment of a process from CO2 capture, including DAC, to SAF production. This slide explains small modular CO2 capture systems. MHI Group has approximately a 70% market share in CO2 capture equipment on a capacity basis.
We are expanding our equipment lineup and can contribute to decarbonization in all industries. We will also introduce remote monitoring and O&M services to minimize customer labor and costs, and CO2 capture as a service to supply, collect, and renew absorbent for use in carbon capture systems. MHI will become a key player in the CO2 solutions ecosystem across diverse industrial sectors. This is the development roadmap for individual products and technologies. In the current fiscal year, which is the first year of the 2021 medium-term business plan. We have already begun development of many new technologies and products, and new ideas are being generated every day. Most of these will be core technologies in the solutions ecosystems introduced today. They will enable value chains from diverse industries to balance environmental value with economics.
Prototype production and validation testing will be conducted sequentially, and we will commercialize new products as they become ready. In this way, MHI Group will achieve a 50% reduction in Scope 1 and 2 emissions by 2030, and net zero by 2040. Allow me to summarize today's presentation. This slide shows revenue levels from energy transition-related businesses in green. Through carbon neutrality, we will create business opportunities and transform our business models. We will develop CO2 and hydrogen solutions ecosystems, carbon recycling, and factory decarbonization. The solutions ecosystems I mentioned today will connect various industries, and we expect that they will expand very rapidly. Our philosophy and vision for achieving a carbon-free world is in harmony with MHI's principles. Through MISSION NET ZERO , we aim to enable coexistence among diverse industries with MHI Group's wide range of products and services.
By combining not only environmental value, but also economic value, we will realize a sustainable carbon neutral world. Finally, we will continue to actively pursue climate-related disclosures. In April, we will disclose two climate change scenarios in accordance with the TCFD framework. Additionally, we will accelerate our initiatives by utilizing ESG finance, including transition bonds, green bonds, and positive impact finance. Thank you for your attention.