Idemitsu Carbon Offset Fuel (ICOF)

Idemitsu Kosan has launched Idemitsu Carbon Offset Fuel (ICOF), a product that allows users to offset the CO₂ emissions generated when using conventional fuels by combining them with carbon credits. While the development of next-generation energy sources is progressing, there are still various constraints, and immediate large-scale implementation in society is not always possible. ICOF enables customers to offset unavoidable CO₂ emissions generated during fuel use by utilizing carbon credits.

It is said that for petroleum refining and marketing companies, the CO₂ emissions generated by customers through the use of their products far exceed the emissions from their own business operations. While the fuels supplied by Idemitsu Kosan support society, their use inevitably leads to CO₂ emissions. Because we are on the supply side, we recognize it as our responsibility to face this reality and offer solutions.

Although Idemitsu Kosan continues to pursue the development of next-generation energy sources, some CO₂ emissions remain unavoidable. ICOF fills this “gap” in CO₂ reduction efforts. For customers who have already implemented every possible CO₂ reduction measure, have yet to define specific environmental strategies, or are unable to make large-scale capital investments, ICOF provides a practical next step. Supplying such a product is part of our responsibility, alongside advancing the development and implementation of next-generation energy.

Carbon credits are a mechanism that assigns economic value to CO₂ absorption or reduction achieved through projects such as forest conservation, reforestation, renewable energy adoption, and energy efficiency improvements carried out by companies or municipalities. These credits can be traded between companies. Credit purchasers can apply them toward achieving their own CO₂ reduction goals, corporate social responsibility (CSR) activities, or compliance with public frameworks such as Japan’s Global Warming Countermeasures Act. ICOF is a conventional fuel, such as gasoline, combined with these carbon credits. In other words, it is a high-value-added fuel that allows users to continue using fuel as usual while offsetting the CO₂ emissions through the reduction or absorption effects represented by the carbon credits.

ICOF can be applied to any type of fuel—gasoline, diesel, heavy oil, or kerosene. Currently, we offer four ICOF plans: three “voluntary credit” options providing 100%, 50%, and 10% offsets, and the ICOF J, which uses J-Credits and can be applied for reporting under the Global Warming Countermeasures Act. Each plan is proposed together with the most suitable delivery method to meet customer needs. All products are accompanied by a certified supply certificate issued by a third-party organization.

Since its launch in 2023, ICOF has been widely supported as a relatively affordable carbon-neutral fuel that maintains the same quality as conventional fuels. In May 2025, we began offering fuel sales to members of our corporate and sole proprietor credit card program, “apollostation BUSINESS,” at our nationwide network of affiliated service stations, “apollostation.”　This marks the first initiative among domestic oil suppliers in Japan to sell fuel oil with carbon credits attached, using credit card transactions at service stations.

Idemitsu Kosan will continue to expand the ICOF business as a realistic option for offsetting current CO₂ emissions, alongside the ongoing development and social implementation of next-generation energy sources.

Staff Interview: Flexible thinking and unyielding passion bring carbon offset fuel to society as a realistic option for decarbonization. (Published July 1, 2025)

If you would like further details about our products, please reach out to us through the  Inquiry Form (Business Inquiries) and select “Fuel Oil” as the inquiry category.