Idemitsu Kosan and JERA jointly consider building a hydrogen supply chain in the Ise Bay area

Against the backdrop of the need for decarbonization, hydrogen, which does not emit CO2 when burned, is expected to be used in large quantities in power plants, industrial areas, etc. as a next-generation fuel to replace fossil fuels. Therefore, it is essential to establish large-scale reception and supply bases near hydrogen demand areas.

The Ise Bay area, where many industries are concentrated, has the potential to become a large-scale hydrogen receiving and supplying base in the future. In this area, Idemitsu Kosan is engaged in the business of receiving and refining crude oil and supplying petroleum products. JERA also owns multiple LNG receiving terminals and thermal power plants in the same area, and is working to provide a stable supply of electricity to the Chubu area.
This memorandum stipulates that the two companies, which operate in the Ise Bay area, will jointly consider the following items with a view to building a hydrogen supply chain in the area.

• Developing hydrogen reception, storage, processing, and discharging bases
• Technical and economical analysis of transportation methods used for the Ise Bay area
• Building a hydrogen supply network

The two companies aim to utilize the technology, knowledge, and equipment they have cultivated over the years to quickly establish a stable and economical hydrogen supply chain in order to achieve carbon neutrality. We will also collaborate with the Chubu Area Hydrogen Utilization Council, which works to build cross-industry hydrogen utilization and supply chains throughout the region.

Idemitsu Kosan has set forth the ``CNX ^* Center Concept'' to transform existing manufacturing bases into new low-carbon, Resources-recycling energy hubs. While fulfilling our responsibility to provide a stable supply of energy, we aim to build a supply chain that supplies CO2-free energy by leveraging the characteristics of each base owned by the group.

JERA has set forth "JERA Zero Emission 2050" and is striving to achieve net zero CO2 emissions from domestic and overseas operations by 2050. Regarding thermal power generation, we are promoting the introduction of cleaner fuels and pursuing zero-emission thermal power that does not emit CO2 during power generation. We will continue to contribute to the decarbonization of energy by proactively developing decarbonization technology and making repeated efforts to ensure economic rationality.

^* CNX: Carbon Neutral Transformation