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.
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.