Joint Study Agreement for a Feasibility Assessment on BECCS in South Sumatra, Indonesia

Marubeni Corporation (hereinafter, "Marubeni") and Japan Petroleum Exploration Co., Ltd. (hereinafter, "JAPEX") have entered into a joint study agreement with PT Pertamina (Persero) (hereinafter, "PT Pertamina"), an Indonesian state-owned enterprise engaged in integrated energy, and its subsidiary PT Pertamina Hulu Energi (hereinafter, "PHE") to conduct a feasibility assessment on BECCS*¹ at a pulp mill and nearby oil field area in South Sumatra Province, Indonesia (hereinafter, the "Study").

The Study will evaluate the feasibility of implementing BECCS by capturing CO₂ emitted from biomass-fueled boilers for self-power generation at the pulp mill operated by PT. Tanjungenim Lestari Pulp and Paper (hereinafter, "TEL"), a Marubeni subsidiary in Indonesia. The captured CO₂ would be injected and stored into synclinal aquifers*² in the northern Limau oil field, operated by the Pertamina group near the TEL factory. Through this Study, the parties aim to commence operations by 2030.

BECCS is one of the key negative emission technologies (technologies that can achieve net negative CO₂ emissions) crucial for realizing carbon neutrality. It is particularly expected to be an effective option for offsetting CO₂ from hard-to-abate industries where complete decarbonization is challenging. Currently, BECCS technology is progressing from the demonstration stage to pilot commercialization, and if a commercial scale BECCS project is realized as a result of this Study, it would present a pioneering initiative in the field.

Marubeni has formulated its long-term vision on climate change in March 2021, and in its Mid-Term Management Strategy "GC2024," green strategy is positioned as one of the basic policies for enhancing corporate value. CCS business represents a business opportunity to create a positive impact on climate change. Through the creation of new businesses via this Study, Marubeni aims to contribute to sustainable economic development in Indonesia.

JAPEX continues to pursue initiatives aiming to realize carbon-neutral or carbon-negative projects both in Japan and internationally, including this Study. The company aims to grow as a "comprehensive energy company" adapted to the times and further enhance its corporate value.