Initiatives for Climate Change Action / Carbon Neutrality

Basic Stance

We aim to contribute to the realization of a carbon-neutral and circular society by demonstrating our own Group’s strength in social implementation and fulfilling our “responsibility to support people and their daily lives” and our “responsibility to protect the global environment now and in the future.”

In our efforts to achieve the above, we will continue to strengthen our disclosure of information on initiatives to respond to climate change in a manner in line with the framework of the TCFD recommendations, which we endorsed in 2020, and accelerate our related initiatives with the understanding and cooperation of our stakeholders.

Becoming a TCFD signatory by declaring our support for its guidelines

On February 14, 2020, we declared support for recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) and became a TCFD signatory.

Climate change-related disclosures within this site

The pages of each TCFD Framework item in this site are provided in the table below.

Area TCFD recommendations Idemitsu’s disclosure
Governance 1. Describe the board’s oversight of climate-related risks and opportunities
2. Describe management’s role in assessing and managing climate-related risks and opportunities
Strategy 1. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term
2. Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning
3. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario
1. Describe the organization’s processes for identifying and assessing climate-related risks
2. Describe the organization’s processes for managing climate-related risks
3. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management
and Targets
1. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process
2. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG (greenhouse gas) emissions, and the related risks
3. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets
(Supplementary items)
Area TCFD recommendations Idemitsu’s disclosure
Amount of greenhouse gases emitted Absolute emissions and emissions intensity for Scopes1, 2, and 3
Transition risks Amount and scope of assets or business activities vulnerable to transition risks
Physical risk Amount and scope of assets or business activities vulnerable to physical risks
Climate-related opportunities Ratio of revenues, assets, and business activities that lead to climate-related opportunities
Deployment of capital Capital expenditures, fundraising, and total amount deployed for climate-related risk and opportunities
ICP Price per ton of CO2 emissions used within the organization (Internal carbon pricing)
Compensation Ratio of compensation for executives linked to climate considerations
出光興産, DFF Inc.


An overview of our corporate governance structure is here , with the following supplemental information regarding the Company’s response to climate change.

Board of Directors

For the Company, whose main business is fossil fuel sales, addressing climate change is one of the most important management issues, involving a major business portfolio transition over the medium to long-term time frame.

The Board of Directors is tasked with the role of establishing management policies based on a multidimensional view of this issue from various perspectives, and overseeing the prompt and steady implementation of actions based on these policies.

In order to fulfill the above roles, the 11 directors who make up the Board of Directors are knowledgeable and competent in a variety of fields, with a majority of six directors having strengths in the areas of environment, society, resource circulation, regional revitalization, and energy policy.

Details of the Skill Matrix are here

After major climate change-related proposals are submitted to the Management Committee, the highest deliberative body for business activities, the most significant of these proposals are reported to the Board of Directors, which is able to oversee the steady execution of business activities based on the company-wide policy.

Business execution

Since climate change-related initiatives are company-wide and cover a wide range of themes and we recognize the need to accelerate drafting and executing company-wide strategies toward realizing a carbon neutral (CN) society, in July 2021, the Technology & CNX* Strategy Department was established (reorganized as the Carbon Neutral Transformation Department in the April 2022 reorganization) to lead the company-wide CN strategy planning, GHG reduction target setting, and CNX human resources development in cooperation with related in-house departments.

Each business department also drafts and implements CN strategies for each individual business department based on company-wide policies. These major responses to climate-related issues initiated by in-house departments are submitted to the Management Committee, a deliberative body that facilitates smooth and appropriate decision-making for important business execution, for deliberation in accordance with company-wide policies. The membership of the Management Committee is primarily comprising individuals specializing in and/or supervising diverse business fields. This ensures that these committees are able to engage in comprehensive and effective discussions when addressing cross-sectional issues and risks.

  • * CNX: Carbon Neutral Transformation
  • *1 Supervises the implementation of actions based on policies established for management policies in light of climate change issues
  • *2 Deliberates the major climate-related agenda items
  • *3 Scenario analysis
    Formulates and manages company-wide investment & finance policies
  • *4 Drafts the company-wide CN strategy Sets GHG reduction targets
    Monitors the progress of each department’s strategy
  • *5 Monitors and captures GHG emissions
  • *6 Drafts and implements CN strategies by business department
Link between climate change response and executive compensation

The compensation structure for our Directors (excluding part-time Directors and Outside Directors) and Executive Officers at Senior Executive Officer level or above consists of (1) fixed compensation, (2) performance-linked bonuses and (3) performance-linked stock compensation. The item of (3) performance-linked stock compensation also includes a CO2 reduction indicator essential to realize a carbon neutral and recycling-orientated society.

Click here for details of Compensation for Executives

出光興産, DFF Inc.

Scenario Analysis

Long-term energy business environment scenarios toward 2050

Specific studies to respond to climate change are conducted by drafting long-term business environment scenarios targeting the period up to 2050, identifying risks and opportunities based on the output of the scenarios, and proceeding to the drafting of specific strategies.

Since the external disclosure of our first business environment scenarios in 2019, we have been continually updating scenarios in response to environmental changes in society, and in reviewing this Medium-term Management Plan (FY2023 to FY2025), three scenarios were assumed, with a strong awareness on the “Azure+”scenario, similar to the IEA’s net zero scenario, which is the most advanced in terms of decarbonization.

In the “Azure+” scenario, national governments are rapidly pushing to achieve the 1.5°C target, and the social implementation of various decarbonization technologies is being carried out at a very rapid pace, envisioning a world in which the 2050 CN is achieved. In this scenario, various decarbonization technologies are introduced in addition to renewable energy in order to achieve the goals of the Paris Agreement in an all-out effort. These technologies include nuclear power, hydrogen and ammonia-fired power generation, thermal power with Carbon Capture and Storage (CCS), synthetic fuel, and negative emissions. Regarding the demand for oil within the Asian Pacific region, it is expected to peak out in 2025 and Japan’s domestic oil demand, compared to 2019, can be expected to decrease 30% by 2030, 60% by 2040, and 80% by 2050.

  • * The three business environment scenarios are unique to Idemitsu. Other organizations’ projections that are similar to each scenario are as follows.
    • “Cloud”: IEA, Stated Policy Scenario
    • “Prism”: IEA, lies between the Stated Policy Scenario and Sustainable Development Scenario
    • “Azure+”: IEA, Net Zero Emissions by 2050 Scenario
Long-term energy demand forecast
(Asia pacific region)
Risks and opportunities

Based on the long-term business environment scenario toward 2050, we have identified risks and opportunities related to climate change. We have compiled the following table showing the anticipated time frame, level of financial impact, and the Company’s response to climate change in each area, and in accordance with the contents, we are promoting specific initiatives.

Category Matters to be evaluated Time frame Financial impact*1 Our responses
by 2025 by 2030 by 2050 Level
Reduced domestic demand for fossil fuel    
  • Expanded supply of fossil alternative fuels and reviewed domestic supply system (CNX Center conversion, Smart Yorozuya conversion)
Decline in energy and resource prices in line with technological innovation      
  • Strengthening of the competitiveness of the entire supply chain
Full-scale implementation of carbon pricing by the government      
  • Close monitoring of the trend in government policies and implementation and operation of an internal carbon price
Regulation of fossil resources extraction projects, careful investment and financing stance of financial institutions      
  • Reduced scale of coal mine production
Deterioration in the brand image of corporations handling carbon intensive businesses      
  • Continued and strengthened dialog with stakeholders
Damage incurred by business sites located in coastal areas due to natural disasters and sea-level rise, and the resulting impact on their operations      
  • Systematic reinforcement of equipment maintenance, the relocation of control rooms, and the implementation of other measures to mitigate the impact
Impact on land and marine transportation due to abnormal precipitation and frequent typhoons, etc.      
  • Strengthening of supply chains to maintain supply
Opportunities Expanding demand for alternative fossil fuels (solid fuels)      
  • Expanding production and supply of Idemitsu Green Energy Pellets
Expanding demand for alternative fossil fuels (Gaseous fuels)        
  • Establishment of an ammonia and hydrogen supply chain
Expanding demand for alternative fossil fuels (Liquid fuels)      
  • Establishment of a SAF manufacturing and supply system, Establishment of a biodiesel production and supply system
Expanding importance of low-carbon fuel/feedstock supply base      
  • CNX Center Concept for domestic refineries and complexes, Establishment of a biochemical product manufacturing and supply system
Expanding demand for products and materials supporting CN society realization      
  • Development of next-generation materials*2
Expanding demand for next-generation storage batteries        
  • Commercialization of lithium solid electrolytes
Full-scale expansion of recycling toward the realization of a circular society      
  • Establishment of a recycling business (used plastics / solar panels / lithium batteries)
Stable energy supply to regional communities    
  • The conversion to “Smart Yorozuya” and the utilization of service station network
Expanding popularity of electric vehicles    
  • Entry into the ultra-compact EV market and the development of lubricants for EVs. EV recharging / maintenance.
Expanding demand for renewable energy    
  • Development of diverse renewable energy sources at home and abroad
Promotion of distributed energy resource systems and increase in demand    
  • Development of and entry into VPP (virtual power plant) control services
  • *1 Financial impacts over a long-time horizon
    Level 1: Up to 5 billion yen, Level 2: 5 billion yen to 50 billion yen, Level 3: 50 billion yen or more
  • *2 Super engineering plastics, oxide semiconductors, high-performance asphalts, environment-friendly agriculture and livestock materials, etc.

In response to the risks and opportunities, we plan to invest 270 billion yen as of 2030, 110 billion yen more than our FY2022 forecast on an operating income + equity income basis, by promoting revenue and capital efficiency in current businesses, creating new businesses through investments in business structure reforms, and business portfolio transition.

出光興産, DFF Inc.

CN Transition Strategy

Social implementation themes

Among the Company’s responses to the risks and opportunities described above, the major ones have been selected as themes to be addressed for social implementation by 2030, and related efforts are in progress.

Details of social implementation themes are here

Decision-making system

Of the social implementation themes to be implemented by 2030, those themes for which the business departments in charge are clear will be promoted as initiatives under the leadership of each business department as its own CN projects, while for other projects, management decision-making will be rapid and flexible as a Cross-organizational Project (2030 Implementation Themes) directly under the control of management. We will strive for early social implementation by distributing resources in a balanced manner in consideration of profitability.

  • * Themes will be reviewed as appropriate according to the external environment and the state of progress of the review.
Investment policies

Regarding investments aimed at expanding new businesses that contribute to CN, we plan to invest 290 billion yen by FY2025, the final fiscal year of the Medium-term Management Plan (FY2023 to FY2025), and a cumulative amount of 1 trillion yen by 2030.

Since the social implementation status of each proposal that contributes to CN may change significantly depending on trends in technological progress going forward, we will run various options concurrently and rigorously select investment projects through screening based on the social value and investment efficiency of each project during the period of the Medium-term Management Plan.

  • * Actual size of investments will be determined based on the status of earnings, cash balance, etc.

Furthermore, for investments in new projects, we perform a sensitivity analysis using an internal carbon pricing (Internal carbon pricing, $100/t-CO2) after confirming the changes in the amount emitted for Scopes 1, 2, and 3 and the avoided emissions of others before and after the project, and these are used as a reference when evaluating investments.

Our transition strategy has been adopted as a model case study for Climate Transition Finance, an initiative of the Ministry of Economy, Trade and Industry.

出光興産, DFF Inc.

Metrics and Targets

Management indicators

When we consider the reduction in the amount of greenhouse gas (GHG) emissions, we believe it is important to promote related activities while having a positive impact not only on the environment but also on society and the economy.

Given this understanding, as shown in the diagram below, the Company has established a system to evaluate and manage our CO2 reduction efforts based on three indicators (target values and monitoring indicators). These are environmental contribution focused solely on reducing CO2 emissions, contribution to society and the environment by simultaneously reducing CO2 emission amounts while providing energy, and contribution to the environment and the economy by simultaneously increasing profits while reducing CO2 emissions.

Indicator1Target value … Contributing to the Environment

Reduction of CO2 emissions in our own operations (Scope 1+2)

Indicator2Monitoring indicator … Contributing to Society

Reduction of CO2 emissions per unit of energy supplied, including Scope 3

Indicator3Monitoring indicator … Contributing to the Economy

Revenue level per unit of CO2 emitted, including Scope 3

Target (Scope1, 2), Performance against targets
Indicator 1CO2 Reduction target (Scope 1+2)

In light of the Japanese government’s declaration of achieving carbon neutrality by 2050, Idemitsu aims to achieve carbon neutrality (net zero CO2 emissions) for emissions from its own operations (Scope 1+2) by 2050. We have set the target -46% vs. 2013 of CO2 reduction target by 2030 as a waypoint to encompass. Dealing mainly with fossil fuels, Idemitsu recognizes CO2 reduction as a priority with ensuring a stable supply of energy and will continue striving to achieve its targets.

CO2 emission / elimination vol
2030 target: -46% (vs. 2013) Scope: Idemitsu and consolidated group companies
2022 result: -10.5% (vs. 2013)
CO2 emissions (Scope 1+2)
Fiscal year 2013 2020 2021 2022
CO2 emissions* (thousand tCO2) 15,870 13,968 14,182 14,207
  • *Scope1+2
Monitoring indicator (Scopes 1, 2 and 3)
Indicator 2Low carbon level of supplied energy

(Indicator of the extent to which an energy company can reduce the “CO2 emissions per unit of energy” supplied to society)

Calculation formula
Indicator 3Degree of carbon exit from corporate earnings

(Indicator of how the “Revenue level per unit of CO2 emitted by the Company as a whole is being raised)

Calculation formula
  • *1 Scope3 emissions refer to those classified as the “Category 11: Use of Sold Products”
  • *2 CO2 reduction contribution throughout the entire value chain

We use above two indicators for internal monitoring indicator.

出光興産, DFF Inc.

Concept on Climate Change Adaptation

With an increasing frequency of ever more severe natural disasters, it is extremely important to identify possible disaster risks via the development of diverse scenarios. We assume earthquakes, flooding, high tides and other emergencies so that we can minimize damage to our refineries and complexes and ensure that operations at these facilities can be promptly restored. To strengthen our ability to ensure safety, we will therefore direct capital expenditure to upgrade facilities, while enhancing operational procedures and human resource capabilities, to mitigate damage even in the event of a disaster with unprecedented severity. By doing so, we will continue to fulfill our mission as an energy supplier. 

In recent years, a growing number of typhoons have passed through a large part of the Japanese archipelago while remaining at full strength. This phenomenon is believed to be due in part to climate change. As these typhoons often induce high tides, our refineries and complexes located in coastal areas are facing a growing risk of flooding. In response, we have conducted risk analysis associated with the impact of flooding due to high tides based on the simulation of typhoons of the largest-possible scale taking courses that directly cross these facilities’ sites. Based on the results of this analysis, we are considering the reinforcement of facility structures via, for example, the installation of flood walls to safeguard seawater pump rooms in addition to the enhancement of disaster response manuals and other procedures designed to provide our staff with guidance on how to mitigate disaster damage.

The courses of typhoons assumed to provide a basis for the estimation of storm surge damage to refineries
Illustration of damage from high tides
出光興産, DFF Inc.

Reducing CO₂ Emissions Throughout the Value Chain

Reducing CO2 emissions throughout the entire supply chain

Our principal business is fossil fuel, which results in extremely large amounts of CO2 emissions when customers use our products (Scope 3), compared to CO2 emissions associated with our own operations (Scope 1 + 2).

For this reason, in order to realize a carbon neutral society, we consider it important to contribute to the reduction of CO2 emissions on a global level, including the reduction of Scope 3 emissions, in parallel with the reduction of Scope 1 + 2 emissions.

In an effort to achieve a carbon neutral society by 2050, we aim to achieve carbon neutrality in emissions from our own operations (Scope 1 + 2) and pursue carbon neutrality in emission for the entire supply chain (Scope 3) by providing solutions to businesses and consumers.

We will also work to quantify not only our own Scope1, 2, and 3 emissions but also CO2 avoided emissions aiming to contribute to the reduction of CO2 emissions in society as a whole on a global level through our business activities.

  • * Idemitsu’s emissions in the value chain
CO2 emissions results in FY2021 (thousand t-CO2)
Scope1+2 13,105
Scope3 (category11) 107,179
  • * Scope of Reporting : Idemitsu, consolidated refining companies (TOA Oil Co., Ltd., Showa Yokkaichi Sekiyu Co., Ltd.) and major consolidated group companies

“CNX Center” concept

Establish hydrogen, ammonia supply chain

One specific measure taken by public and private initiatives following the Japanese government’s declaration of its intention to realize carbon neutrality by 2050, was the acceleration of efforts to build a hydrogen carrier supply chain encompassing hydrogen and ammonia.

In fiscal 2020, Idemitsu considered alliances with other companies to procure blue and green ammonia from overseas and pursued studies into building a hydrogen and ammonia supply chain. For example, the Tokuyama Complex and Group refineries participated in the Ministry of Land, Infrastructure, Transport and Tourism’s Carbon Neutral Support Review Meeting. The Tokuyama Complex suspended crude oil refining facilities in 2014 and has quickly completed the conversion from an oil refining business site producing petrochemical raw materials. In February 2021, the complex began operating highly efficient naphtha crackers that can achieve energy savings of around 30% compared with conventional crackers. At the same time, we are accelerating decarbonization initiatives, for example, we are building a biomass power plant slated to begin operations in 2022. Under these initiatives, we are efficiently achieving our goals by using the infrastructure already in place in the oil refining business.

In addition, Idemitsu is working with IHI Corporation on a study into building an ammonia supply chain at the Tokuyama Complex. We are studying how the complex’s existing facilities, such as its storage facilities and petrochemical equipment, can be converted into an ammonia import terminal and are conducting pilot tests of mixed ammonia combustion with output from existing naphtha crackers. Going forward, we will explore the possibility of importing blue and green ammonia from overseas and supplying said ammonia to other neighboring complexes. The two companies will continue contributing to the realization of a carbon-neutral society by leveraging their strengths to quickly realize an advanced ammonia supply chain.

Overview of the Hydrogen and Ammonia Supply Chain

Establish ammonia supply chain

Initiatives to stimulate local communities by turning CO2 into a resource, in particular, sustainable aviation fuel (SAF)

In cooperation with Toshiba Energy Systems & Solutions Corporation, Toyo Engineering Corporation, Toshiba Corporation, Japan CCS Co., Ltd, and All Nippon Airways Co., Ltd., Idemitsu has been studying a P2C*1 carbon-recycling business model for producing sustainable aviation fuel (SAF).*2 This initiative was commissioned by the Ministry of the Environment, and, going forward, the six companies will work to realize local carbon recycling leveraging the local infrastructure and markets and will study how best to promote decarbonization and regional revitalization. Specifically, we will leverage the expertise, knowledge, and related plant facilities possessed by each company to study processes ranging from CO2 separation and absorption to SAF production and consumption. We will reflect the data and insights gained in local carbon-recycling society models and evaluate business feasibility. Through this study and the operation of a pilot business, the six companies will contribute to the commercialization of the SAF supply chain based on carbon recycling and help stimulate local communities. Idemitsu’s role is to certify and grade the SAF, operate the SAF mixing equipment, and create basic quality assurance plans.

  • *1 P2C: Power to Chemicals (P2C) is a CCU/carbon-recycling technology. It uses renewable energy and renewable hydrogen to recycle CO2 into a valuable material with high environmental value. It not only reduces CO2 emissions, it also greatly contributes to the widespread adoption of renewable energy.
  • *2 SAF: Jet fuel made from sustainable sources with low CO2 emissions from the production and collection of raw materials to their combustion.
Carbon (CO2) recycling business model overview

Establish Low-Carbon Petroleum

出光興産, DFF Inc.

Promoting Energy Conservation and Zero - Emission Electric Power

Modification of resid hydrodesulfurization unit raises efficiency

In May 2020, the Chiba Complex modified its resid hydrodesulfurization unit to raise its efficiency. This project was intended to secure our responsiveness to regulations enforced by the International Maritime Organization (IMO) with regard to the limitation of sulfur content in marine vessel fuel.

Start of commercial operations of a highly efficient naphtha cracker

We installed a highly efficient naphtha cracker in the Tokuyama Complex and began commercial operations in February 2021. The highly efficient naphtha cracker enhances heating efficiency and ethylene yield by thermally cracking raw material naphtha in a shorter amount of time. As a result, we achieve about a 30% energy conservation effect compared to ethylene production using conventional crackers, contributing to about a 16,000-ton reduction of CO2 for the year.
Naphtha is a petroleum product also referred to as natural gasoline. Thermally cracking naphtha produces ethylene, propylene, and other basic raw materials for petrochemicals.
At the Tokuyama Complex, we produce around 620,000 tons of ethylene per year that is provided mainly to the Shunan Complex in Shunan City, Yamaguchi Prefecture. The complex’s previous two oldstyle naphtha crackers used to produce ethylene have been replaced with a single new highly efficient naphtha cracker.

Expanded use of electric power generated by renewable energy

At 17 oil depots in Japan, we decided to use CO2-free electric power (contract electric power 3,732kW) provided by
the Group’s Idemitsu Green Power K.K. from fiscal 2020.

Initiating development of floating offshore wind power turbines that directly connect to oil and gas production facilities

Idemitsu equity-method affiliate INPEX Norway Co., Ltd. has received permission from the Norwegian government for its development project to install floating offshore wind power turbines at the Snorre Oilfield, in which it owns a stake, through its local subsidiary INPEX Idemitsu Norge AS. In May 2023, the company began transmitting power to the Snorre Oilfield using floating offshore wind power turbines. The world’s first project of its kind, this development project is aimed at establishing a large-scale offshore wind farm (the Hywind Tampen floating wind farm) approximately 200 kilometers off the coast of Bergen City, the western part of Norway, and directly feeding its output to oil and gas production facilities. The completed wind farm will consist of 11 turbines, each with a rated power output of 8,000 kW, or a combined total of 88,000 kW.
Looking ahead, our company will proactively incorporate advanced technologies to advocate for the reduction of environmental burden in the course of our resource business.

出光興産, DFF Inc.

Provision of Eco - Friendly Products and Services

Sale of ULTY-V plus™ coal boiler control optimization system

We developed the ULTY-V plus™ coal boiler control optimization system in tandem with the NYK Group. Once introduced, this system enables our customers to reduce coal consumption approximately 1%, thus helping them improve economic efficiency and reduce CO2 emissions. In March 2019, we also established NYK IDEMITSU Green Solutions Co., Ltd., a fifty-fifty joint venture, in tandem with the NYK Group. The new company focuses on solution proposals aimed at marketing the system. In FY2021, Hokuriku Electric Power Company ordered four systems and expects to reduce CO2 emissions by around 100,000 tons per year after their installation. Going forward, we will continue promoting sales in Japan and overseas.
In addition, we developed the BAIOMIX™ system that calculates the optimal co-firing ratio for biomass fuels in coal boilers and launched sales of the system in August 2021. Installing the BAIOMIX™ system in the ULTY-V-plus system enables the optimal and automatic control of biomass co-firing in coal boilers.

To expand biomass co-firing at coal-fired power plants, Idemitsu developed Idemitsu Green Energy Pellets made of semi-carbonized wood with excellent crushability and heat generation that are nearly equivalent to coal in terms of function. This is one way we are working to reduce CO2 emissions using existing coal-fired power generation equipment.
The recently developed BAIOMIX™ system calculates the economic burden as well as the impact on equipment and the power generation rate of biomass co-firing, including that using Idemitsu Green Energy Pellets, and the artificial intelligence (AI) uses historical co-firing rate data to calculate the optimal co-firing rate.
Furthermore, the system is compatible with various combustion modes, such as that involving co-firing biomass fuel supplied via a specialized line with coal or that involving mixing coal and biomass fuel together for combustion using existing equipment.


We also promote the development of environmentally friendly products in growth business fields, including those listed below.

  • Products compatible with EVs (high-performance lubricants and grease)
  • Development of all-solid-state lithium-ion battery materials
  • Next-next-generation high-performance (e.g., ultra-high-efficiency) solar panels
  • Advenced greases (the utilization of cellulose nanofiber, a biodegradable and safe material derived from wood pulp for use in food processing machinery)
出光興産, DFF Inc.

Expansion of Renewable Energy Power Generation

Tokuyama biomass power generation project initiatives

The Idemitsu Group is engaged in the biomass power generation business as an initiative to reduce CO2 emissions through the use of renewable energy and to contribute to local production for local consumption of energy. To date, we have invested in Tosa Green Power K.K. in Kochi Prefecture and Fukui Green Power Co., Ltd. in Fukui Prefecture, and developed the Keihin Biomass Power Plant using the site of a former oil refinery.

In January 2023, the Tokuyama Biomass Power Plant, the Group’s fourth site, started commercial operation. The power plant utilizes part of the former site of the Tokuyama Refinery (currently Tokuyama Complex), which closed in 2014, as well as our existing infrastructure.

Approximately 70% of Japan’s land area (37.8 million hectares) is forest, and the utilization of thinned wood and othermaterials left unused there has been a longstanding issue. For thetime being, we will use* imported wood pellets and Palm Kernel Shell (PKS)*, but in the medium to long term, by using domestically produced thinned wood and lumber scraps, we willcontribute to sustainable forestation and forestry promotion in consideration of environmental conservation, and recycling of domestic forest resources.

We also participated as a member in the Wood Biomass Use Promotion Council since its establishment in January 2021 by Shunan City in Yamaguchi Prefecture. Taking advantage of the region’s wealth of forestry resources and biomass power generation facilities, we will work together with local governments to promote the use of domestic woody biomass materials and contribute to the construction and development of a circular economy through local production for local consumption of energy and promotion of the forestry industry.

  • * For both wood pellets and PKS, third-party certification has been obtained from the supplier to ensure sustainability and traceability in production and manufacturing processes, and to use materials that are recognized as being friendly to the global environment, biodiversity, and the labor environment.
Image of the recycling of forest resources (prepared by Idemitsu based on a chart in the Annual Report on Forest and Forestry in Japan (FY2021), Forestry Agency)
Construction of a geothermal power plant in Yuzawa City, Akita Prefecture

As part of the expansion of our geothermal business, we have decided to advance to the construction phase of a geothermal power plant (name: Katatsumuri Yama Power Plant, output:15,000 kW) in Yuzawa City, Akita Prefecture, in collaboration with INPEX Corporation and TEPCO Renewable Power, Inc. The power plant will be built on Katatsumuri Yama. Three companies will invest in the project, it will be operated by Oyasu Geothermal Co., Ltd., and is scheduled to begin operations in March 2027.

The results of the blowout test (testing to evaluate production capacity) conducted in 2021 have shown that stable production of geothermal fluid (steam and hot water) equivalentto an output of approximately 15,000 kW is expected to be possible on a long-term basis, and the electricity generated will becertified under the FIT (Feed-in Tariff) system for renewable energy. Katatsumuri Yama Power Plant will also be designedwith environmental and landscape considerations in mind, and the construction and operation of the power plant will contribute to the local community.

Geothermal power generation, in contrast to solar energy and other renewable energies, has become increasingly attractive in recent years as a source of energy that can offer a consistent supply of electricity regardless of weather conditions. We will continue to actively encourage the use and expansion of renewable energy sources and make a positive impact on the development of a low-carbon society and energy security in Japan.

Commercialization verification of pumped storage hydroelectric power generation at the post-mining Muswellbrook coal mine site

By utilizing our business foundation in Australia, we are examining the potential for using post-mining sites as a base for various renewable energy sources. Together with AGL Energy Ltd., an Australian energy corporation, we have begun feasibility studies for a pumped-storage electricity project using the post-mining Muswellbrook Coal Mine Ltd. site in Australia, which is nearing the end of its lifespan in 2022.

Given Australia’s favorable wind, sunlight, and other meteorological conditions, as well as its vast landmass and considerable renewable energy potential, the Australian government is also promoting an energy transition toward decarbonization. In particular,it is anticipated that energy storage via pumped-storage electricity will contribute to the stabilization of the power system and act as a crucial regulator for switching to renewable energy sources. In addition to helping Australian transition to a low-carbon economy, we will continue to proactively develop low-carbon and decarbon businesses.

出光興産, DFF Inc.

Expansion of Biomass Fuel Supply

Even as we strive to promote renewable energy generation projects, we are engaged in biomass fuel-related operations as part of our efforts to supply energy from sources with lower carbon footprints. Specifically, we are developing black pellets, a biomass fuel that can be co-fired with coal at coal-fired power stations to reduce CO2 emissions. Black pellets are made by pulverizing, drying, and roasting wood to semi-carbonize it.
Compared with conventional white pellets, black pellets boast superior properties, including water resistance, and are easier to crush. Along with these features, they can be handled in the same way as coal. This makes it possible to reduce coal consumption without modifying existing power generation facilities while increasing the use of renewable energy sources in the form of black pellets.
In fiscal 2021, having conducted a co-firing test with coal at the Tokuyama Complex, we did the same at boilers at the Chiba Complex as well. We are currently preparing to begin commercial production in fiscal 2022. (The product name for our black pellets is Idemitsu Green Energy Pellets.)
We aim to supply 2.0 million tons of Idemitsu Green Energy Pellets in 2030 and plan to continue working to expand production sites, especially in Southeast Asia, including Vietnam, Malaysia, Indonesia, and Thailand.

出光興産, DFF Inc.

Collaboration With Other Companies to Expand Renewable Energy

Pilot test of EV charging services using dynamic pricing

Idemitsu and Solar Frontier are working with Nissan Motors Co., Ltd. on a pilot test project for electric vehicle (EV) charging services using unique dynamic pricing.*1
The three companies are undertaking this project with the purpose of reducing and leveling off the electric power burden in the lead up to a future in which EVs and plug-in hybrid vehicles (PHVs) are more widely adopted. We aim to help achieve carbon neutrality and realize a sustainable electric power infrastructure by effectively using renewable energy for EV charging in this project and verifying a mechanism that enables charging outside of times with increased electric power demand.

  • *1 Dynamic pricing is a pricing system that varies based on the demand and supply situation
出光興産, DFF Inc.

Development and Social Implementation of Innovative Technologies

Participation in “Challenge Zero,” Keidanren initiative

We are a participant in “Challenge Zero,” an initiative sponsored by the Keidanren (Japan Business Federation) in collaboration with the Japanese government, with the aim of contributing to the realization of a decarbonized society, the long-term goal defined by the Paris Agreement—an international framework for climate change countermeasures. To this end, participants in “Challenge Zero” are acting as strong advocates of decarbonization efforts at home and abroad, as well as encouraging other businesses and organizations to take action and tackle the challenge of achieving innovation.

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Cooperation in the CCS demonstration project

We have been cooperating in a CCS demonstration project run by Japan CCS Co., Ltd. The project is being executed in Tomakomai, Hokkaido Prefecture and is commissioned by the Ministry of Economy, Trade and Industry (METI) and New Energy and Industrial Technology Development Organization (NEDO). In this case, CCS refers to a technology that absorbs CO2 from gaseous power plant emissions before it can be released into the atmosphere, pumping it deep underground to sequester it. Since April 2016, our role in the project has been to supply the gas containing CO2 from the Hokkaido Refinery for use in the demonstration project. As of November 22, 2019, the project achieved a cumulative total of 300,000 tons of CO2 sequestration, meeting the initial target. Having ceased sequestration, the project is currently in the monitoring phase to confirm whether there are any leaks or other abnormalities.

Participation in the Working Group on the Roadmap for Carbon Recycling Technologies

We participated in the Working Group on the Roadmap for Carbon Recycling Technologies established by the METI. The Working Group was established to promote an effective and rapid development of carbon recycling technologies. The roadmap was compiled in June 2019.

Cooperation in the hydrogen supply chain demonstration project

We have been cooperating in the world’s first international hydrogen supply chain demonstration project promoted by the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD) supported by NEDO. This project will contribute to the utilization of hydrogen, which does not emit CO2 during combustion, in large-scale power generation. In this project, hydrogen is separated from liquid (methylcyclohexane), which is transported from Brunei Darussalam, by a demonstration plant newly constructed by AHEAD on the premises of Keihin Refinery of TOA Oil Co., Ltd., an Idemitsu Group company. The plant was brought on line at the Keihin Refinery in April 2020 and is supplying hydrogen for use by TOA Oil’s thermal power generators as fuel and other applications. In addition to cooperating in plant construction, we are assisting this project from the aspect of demonstration testing. Specifically, we dispatch human resources and carry out other project-related tasks while assuming the role of a hydrogen consumer.

Participation in the “Hydrogen Utilization Study Group in Chubu”

In tandem with nine other private-sector companies that are taking on the challenge of promoting hydrogen utilization, we launched a study group aimed at discussing the possibility of hydrogen utilization on an industrial scale. The study group is looking to build a hydrogen supply chain in the Chubu area to help stimulate demand growth and ensure stable utilization, to this end engaging in a feasibility study aimed at assessing such factors as the potential of hydrogen energy as well as the costs arising from its introduction.

出光興産, DFF Inc.