Innovation management (research and development)

Idemitsu Kosan has positioned "contribution to a carbon neutral, circular society" and "contribution to local communities (energy & mobility)" as key challenges, and is developing a strategy that brings together the technologies of the entire company while also utilizing external technologies.

Our group's research and development system consists of Advanced Technology Research Laboratories and the research laboratories of each division, which are responsible for specialized development. We have also established a company-wide Research & Development Committee that not only considers direction and strategy, but also strengthens cooperation between research laboratories and improves our technological capabilities.

We have contributed to society by bringing a wide range of products to the market, which is the result of our extensive technological development.
We will implement measures, including research and development systems, to further promote the organic fusion of technologies we have built up over the years. Of the three business areas of provide for society contributions toward Vision for 2050, research and development will particularly contribute to the realization of "Energy one step ahead" and "Diverse resource conservation / circulation solutions." In addition, the integrated research and development base "Innovation Center (tentative name)" will promote the fusion of technologies within the company, as well as speed up the creation of new businesses through open innovation, improve efficiency, and acquire new technologies, aiming to create new value and businesses.

The Group is engaged in research and development into Petroleum, Functional materials, Resources, and even new business creation. Under the R&D structure, we work closely together to carry out R&D activities.

● Actual research and development investment amount for fiscal 2023 (unit: million yen)

In the early stages of research and development, such as exploration and research, which are the key to creating new business, we not only engage in cross-internal activities that utilize our own technology and knowledge, but also actively collaborate with outside parties to promote openness. With innovation at the center of our efforts, we are working to accelerate the creation of new businesses to transform our business portfolio.

Promoting open innovation

We are promoting collaboration with domestic and international startup companies by utilizing venture capital ^*1 management funds. For example, in the bio-life solutions field, we invested in Bacchus Bioinnovation in April 2023 and began working on smart cell development.
Through the activities of the "Idemitsu Kosan Next-Generation Materials Creation Collaborative Research Center" established at Tokyo University of Science in fiscal year 2020, we have been working with Tokyo Institute of Technology to acquire technologies in the areas of advanced materials and CNX ^*2 solutions, and have achieved the results of five patent applications and four academic presentations in fiscal year 2022. In order to further expand business creation, we are establishing a joint research department with Kobe University in 2023 and collaborating with academia such as the University of California, Santa Barbara.
Additionally, we have signed a comprehensive collaborative research agreement with the University of Tokyo's Research Center for Advanced Science and Technology and the Institute of Industrial Science and have begun joint research with the aim of developing next-generation technologies in the carbon-neutral field.

*1 Universal Materials Incubator (Headquarters: Japan), Emerald Technology Ventures (Headquarters: Switzerland), Azimuth Capital Management (Headquarters: Canada), Hatch Blue (Headquarters: Ireland)
*2 CNX: Carbon Neutral Transformation

Theme creation through cross-departmental initiatives

Our activities to create medium- to long-term new business themes (advanced materials project) are in their third year, and we continue to mobilize the wisdom of a total of 30 people. The themes created through these initiatives are not limited to internal consideration, but are also promoted through collaboration with universities and startups to materialize business plans. Through these initiatives, we are also continuing to develop co-creative innovation human resources.

●Activities aimed at creating new business

We are working to accelerate research and development through MI (Materials Informatics) and strengthen DX promotion.

We are also building RAG (Retrieval Augmented Generation), which combines in-house data with generative AI.

Ammonia is expected to be a next-generation fuel for coal-fired power plants and ships because it does not emit CO₂ when burned. Currently, ammonia is produced by the Haber-Bosch process (HB process), which involves reacting nitrogen with hydrogen derived from fossil fuels under high temperature and pressure, resulting in the emission of a large amount of CO₂ during production. We have participated in a NEDO ^* project and conducted research, and have found that ammonia can be produced by continuous electrolytic synthesis from nitrogen, water, and renewable energy even at room temperature and pressure using a reducing agent developed based on the Mo catalyst developed by Professor Nishibayashi of the University of Tokyo and others, achieving the world's highest ammonia production speed. Furthermore, we are promoting development toward practical application, aiming to establish a groundbreaking technology to replace the HB process.

*NEDO: New Energy and Industrial Technology Development Organization

In order to strengthen development and expand business in the advanced materials field, it is important to not only commercialize themes under consideration as soon as possible, but also to continuously create new themes. Therefore, in 2022, we launched the "Advanced Materials Project" as a project activity for theme exploration. By bringing together the wisdom of each business division of Advanced Materials Company and thinking outside the box of existing business areas, we will create new businesses in the advanced materials field by repeatedly generating ideas, formulating commercialization plans, and verifying them in a short period of time. Furthermore, by cultivating co-creative innovation human resources through this project, we will spread the circle of change throughout the entire Advanced Materials Company.

In 2006, we started developing the polycrystalline oxide ^*1 semiconductor material IGO (Indium Gallium Oxide). The IGO we developed is characterized by its high mobility, which is on the same level as low-temperature polysilicon (LTPS) ^*2, which was not possible with conventional oxide semiconductor materials. In addition, it is suitable for processes in large-scale lines for 8th generation and above, making it possible to manufacture large-area backplanes ^*3.
Backplanes using IGO combine all the advantages of existing technologies (high performance, low-cost manufacturing, and low power consumption), and are therefore expected to contribute to the evolution of display performance, the development of the display industry, and the realization of a low-carbon society through reduced power consumption for displays.

*1 Polycrystalline oxide: A thin polycrystalline film composed of metal elements and oxygen.
*2 Low-temperature polysilicon (LTPS): Polycrystalline silicon formed on a glass substrate at low temperatures. High electron mobility.
*3 Backplane: A circuit board on which minute semiconductor elements that form the basis of a flat-panel display are mounted.
*4 Poly-OS: Polycrystalline oxide semiconductor

Fats and oils are widely used as raw materials for biodiesel oil, but in recent years they are also expected to be used as raw materials for SAF (sustainable aviation fuel) such as biojet fuel and bioplastics. On the other hand, competition with food use and the destruction of tropical rainforests due to palm plantations are becoming issues. The use of waste cooking oil, which is said to have a low environmental impact, is progressing, but there are issues with its availability. Therefore, we are developing a process to produce fats and oils using the power of microorganisms from lignocellulose ^*, the most abundant biomass on Earth. We are finding microorganisms in nature that produce the world's highest level of fats and oils, and are developing technologies to further improve production efficiency. By commercializing fats and oils production using microorganisms, we aim to supply fuel and chemical raw materials with low environmental impact.

*Lignocellulose: Main component of plant cell walls

As a result of our new business creation activities, we began working with Symbiobe, a Kyoto University startup, to commercialize a technology for fixing CO₂ and N₂ that uses purple photosynthetic bacteria.
By combining Symbiobe's photosynthetic microorganism technology with our process technology for scale-up, we aim to implement the fixation of greenhouse gases such as CO₂ and the production of green biomaterials^* in provide for society.
By combining superior external technologies with our own technologies, we will be able to speed up and accelerate the implementation of ideas in provide for society, promote new research and development and business creation that is not limited by conventional methods, and improve their quality. We will also continue to develop human resources who can work together to innovate.

* Products related to food and the environment that are produced using the metabolic activity of microorganisms

The space industry market is expected to reach $1 trillion by 2040 and is expanding rapidly. We are taking on the challenge of developing solar cells for space by utilizing the solar cell technology we have cultivated thus far.
Existing solar cells have the problem of deteriorating in the radiation environment of space, but the CIGS solar cells we are developing have been proven to have high radiation resistance. We are working with our partners to implement this groundbreaking technology.