July 25, 2023

Regarding dissolution of collaboration in Malaysian business with TG2® GmbH

Idemitsu Kosan Co., Ltd., Ltd. (Head office: Chiyoda-ku, Tokyo; President and CEO: Shunichi Kito; hereinafter "Idemitsu Kosan") has been working on a project to produce biomass fuel from empty palm fruit bunches (hereinafter "EFB") in Malaysia with TG2® GmbH (hereinafter "TG2"), a European venture company, and its affiliates. However, Idemitsu Kosan has now terminated its collaboration with TG2 and its affiliates.

Furthermore, we will continue to consider the production and use of biomass fuel using EFB in Malaysia. Malaysia is the world's second largest producer of palm oil, and it is estimated that approximately 20 million tons of EFB are emitted as waste annually from Malaysian plantations. Most of it is also dumped, causing methane gas generation that pollutes the environment and has a significant greenhouse effect. We will contribute to the achievement of sustainable development goals by promoting the effective use of agricultural residues such as EFB, which are dumped in large quantities in Southeast Asian countries.

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