The Great Yokai War (2005) on Netflix

Plot summary

Tadashi Ino, a boy whose parents have divorced, comes to a small town. A festival there selects him as that year's Kirin Rider, a title that refers to the Qilin, the legendary Chinese chimera and a protector of good. The title is literal: Yasunori Katō appears, a demon enraged by the annihilation of Japan's local tribes and set on vengeance against the modern Japanese. He allies with a yōkai named Agi and summons Yomotsumono, a fiery spirit formed from the resentment of discarded things, and feeds yōkai into its flames.