Japan's rapidly aging society is forecast to lead to shortfalls in young people, workers and tax revenues. But there’s also another shortage: crematoria.

The number of people dying annually¹ in Japan rose to 1.1 million in 2007, with nearly all of them cremated² in accordance with Buddhist³ practices, according to the Health and Welfare Ministry⁴.

However, the Nippon Foundation, a nonprofit philanthropic group, has come up with a unique idea: building "floating crematoria" ships that could incinerate remains⁵ at sea, bypassing the "not-in-my-backyard" syndrome⁶ and saving on real estate.

With the passing of the burgeoning⁷ elderly population, the annual number of deaths is projected to rise to 1.7 million by 2040, far beyond what Japan's 4,900 crematoria can handle.

"We're already running at full capacity," said Takahiro Yamada, an official in Nagoya, where only one crematorium serves a city of 2.2 million. "We desperately⁸ need a new crematorium."

The number of Japanese aged⁹ 65 or older hit a record 27 million in 2007, more than 21 percent of the population. That percentage will nearly double in the next 30 years.

Japan, however, faces significant barriers to expanding the number of crematoria: high land costs and cultural taboos¹⁰ against anything related to death, mean few Japanese would welcome a crematorium going up next door.

Nagoya, in central Japan, has faced typical difficulties. The Yagoto Cemetery¹¹ has been struggling since 1999 to build a second crematorium, but opposition¹² from nearby residents has so far blocked construction of a $167 million, 30-furnace facility.