Formulation of “JAPEX2050” for the Realization of a Carbon-Neutral Society in 2050

Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby announced that it has formulated "JAPEX2050: Toward a Carbon-Neutral Society" (hereinafter "JAPEX2050"), which sets forth JAPEX's direction as a comprehensive energy company in light of the government's "Realizing Carbon-Neutral Society in 2050" initiative.

JAPEX's mission is to provide a stable supply of energy, and to complement its longstanding core business of E&P (Exploration and Production) and supply of oil and natural gas. On top of this, it is working to transform its business structure to grow as a "comprehensive energy company" in light of worldwide calls for a decarbonized society. To date, JAPEX has participated in demonstration tests aimed at the practical application of carbon dioxide (CO₂) capture and storage technologies, strengthened its renewable energy business organization, and commenced operation of a natural gas power plant in which it is the lead participant, in addition to promote fuel conversion to natural gas with lower environmental impact compared to the other fossil fuels.

JAPEX2050 provides a fresh outline of the responsibilities and challenges that JAPEX must take on in order to achieve the goal of net-zero CO₂ emissions by 2050 worldwide, and presents a clearer direction for JAPEX's future actions and business development. By steadily implementing JAPEX2050, JAPEX will pursue new possibilities for the stable supply of energy in the carbon-neutral society, while aiming for further growth as a comprehensive energy company.

Below is a summary of JAPEX2050. For more details, please refer to the presentation material.

Outline of "JAPEX2050: Toward a Carbon-Neutral Society"

GHG emission reduction target

• Achieve net-zero emissions (Scope1 + Scope2) from JAPEX operations in 2050
  • As a first step, reduce the CO₂ emission intensity of JAPEX operations by 40% in FY2030 compared to FY2019.

• Strengthen line of business that contribute to the reduction of our supply chain emissions (Scope3)
  • Contribute to establish new technologies and energy supply with lower environmental impact, for reducing CO₂ emissions in our supply chain.

Focused efforts to realize a carbon-neutral society

1. Turn carbon neutral into a profitable business based on CO₂ injection and storage technology

• Aim to achieve the early implementation and commercialization of CCS (Carbon dioxide Capture and Storage)/CCUS (Carbon dioxide Capture, Utilization, and Storage) as a pioneer in Japan.
  • Make the most of JAPEX strengths accumulated through oil and natural gas E&P in exploring and selecting candidate deep saline aquifers* for implementations, drilling injection wells, and monitoring stored CO₂.
  • Make contributions to CO₂ transportation by leveraging our experience and expertise in natural gas and LNG (liquefied natural gas) supply.
• Strive to collaborate and enter into carbon-neutral businesses areas, where synergies with CCS and CCUS can be expected.
  • Focus on BECCS (Bio-energy with Carbon Capture and Storage) and natural gas-fired power plants with CCS as assumed areas of collaboration
  • Consider entering into business areas of carbon-recycling, including blue hydrogen and methanation.

2. Expand participation in renewable energy projects

• Aim to increase renewable energy projects in which JAPEX participates while utilizing knowledge and experience in conventional businesses.
  • Increase the business opportunities and examine commercialization, mainly in biomass power generation leveraging experiences in natural gas power generation business and offshore wind power generation which have an affinity with knowledge and experience of E&P.

3. Stable supply of oil and natural gas

• Recognizing that oil and natural gas will remain as one of the major energy sources worldwide, continue to meet the demand for them.
• As a comprehensive energy company, aim to achieve a carbon-neutral society through the use of CCS/CCUS and other decarbonization technologies, rather than through a complete shift away from oil and natural gas.
  • Participate in natural gas development projects and consider employing CCS/CCUS in them.
  • Horizontally deploy various supply methods for natural gas and LNG to meet demand for fuel switching from coal and heavy oil.

Appendix: Presentation of "JAPEX2050: Toward a Carbon-Neutral Society"