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.

The Innovation Center, established in July 2025, forms the core of our operations, with Advanced Technology Research Laboratories and the research institutes in each department handling specialized research and development. The Innovation Center integrates technology strategy planning with intellectual property and commercialization considerations, functioning as the company's innovation hub. In addition, a company-wide Research & Development Committee has been established to not only consider direction and strategy but also strengthen collaboration between research institutes and improve technological capabilities.

Our company has been engaged in various technological developments and has expanded into a wide range of high value-added markets. Towards realizing our Vision for 2050, we aim to create business opportunities that drive sustainable growth by grasping medium- to long-term social challenges and the trends of change, and by implementing a company-wide innovation strategy that transcends the boundaries of our existing businesses.

Our company aims to create business opportunities that drive sustainable growth by identifying medium- to long-term social challenges and the trends of change related to them, and by implementing a company-wide innovation strategy that transcends the boundaries of existing businesses.
One of our areas of focus is the "electrification/electricization/ICT integration field." With the advancement of IoT and AI, a "constantly connected society" is on the horizon, demanding faster data processing, more advanced devices, and lower power consumption. Our company is commercializing key materials essential for the next generation of society, such as solid electrolytes for all-solid lithium battery, next-generation display materials, solar cells for space applications, cooling oils for servers, and materials for electronic devices.
Furthermore, addressing climate change and transitioning to a Resources recycling society are also important strategic areas. Although market formation involves uncertainty, we are taking the lead in developing technologies that support low-carbonization/decarbonization and Resources recycling, and focusing on building a technological foundation that will lead to future business creation while carefully considering economic rationality and the timeline for provide for society.
Furthermore, concerns about food supply due to global population growth and climate change are also important social issues. Leveraging the knowledge we have cultivated in our agribiotechnology business and through co-creation with external partners, we are promoting the development of solutions that balance reducing environmental impact with improving the productivity of agricultural, forestry, and fishery products.

● Overview of the Mid-Term Innovation Strategy

Under our group's medium- to long-term vision, Idemitsu CVC makes strategic investments aimed at creating growth businesses, achieving carbon neutrality (CN), and contributing to energy security. We have established an investment framework of 10 billion yen for fiscal years 2024-2026, and are promoting strategic investment in Medium-term Management Plan with innovative technologies and co-creation of businesses in the areas of "GROWTH" (creation of growth businesses) such as electrification and ICT, and "CNX" (low/decarbonized solutions) including renewable energy, hydrogen/ammonia, and synthetic fuel, as outlined in our medium-term management plan.
We prioritize co-creating new businesses by leveraging our research and development capabilities, supply chain, and domestic and international networks, accelerating provide for society of new business models and products. In addition to our two overseas bases in Switzerland and the United States, we are strengthening our access to promising technologies and businesses worldwide through a comprehensive system from sourcing to post-investment follow-up, utilizing our partnership with Emerald Technology Ventures, a global VC working to solve issues such as climate change and Resources recycling.
Moving forward, Idemitsu CVC will continue to leverage the innovative technologies and business models possessed by startups around the world to create new value, and aims to realize a sustainable society through innovation that will support the future.

●Outline of Idemitsu CVC's Initiatives

● CVC investment track record

As social challenges become more complex and technological innovation accelerates, it is becoming increasingly difficult for a single company to create innovation on its own. Our company is working to realize the "Innovation Center Concept," which aims to create new value by promoting the "fusion of knowledge" that transcends the boundaries of companies and technological fields.
To accelerate the realization of this goal, we plan to complete the Integrated Research Institute (tentative name) in March 2028. This institute will consolidate research and development and production technology functions that were previously dispersed across multiple locations, establishing a cross-business structure and promoting everything from research and development to commercialization and production in an integrated manner.
Furthermore, under this concept, we will promote co-creation with the world's best partners, including academia, startups, and corporations. We have already been engaged in joint research with universities, collaboration with research centers, investment in and cooperation with cutting-edge technologies through our corporate venture capital (CVC), and partnerships with government agencies. By consolidating these networks into an integrated research institute and bringing together knowledge from around the world, we aim to create new business opportunities.
Furthermore, we will evolve our advanced MI/AX environment, cultivate highly skilled digital talent through MI/AX training and reskilling, and strengthen our talent pool to lead from research to provide for society. Through this strengthening of our talent base, we aim to improve our organizational capabilities that support co-creation both inside and outside the company.
Through the promotion of the Innovation Center concept, we will create innovation in a wide range of fields, including energy, materials, information and communication, and food and agriculture, in growth areas that capture medium- to long-term environmental changes, thereby contributing to the resolution of social issues and achieving transformation of our business portfolio and sustainable enhancement of corporate value.

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.

Theme creation through cross-departmental initiatives

The Business Story Dojo, a program for generating medium- to long-term new business themes, is now in its sixth year and continues to operate, bringing together the wisdom of over 80 people.

Academia collaboration

In the initial stages of research and development, such as exploration and surveys, which are key to creating new businesses, we are actively pursuing open innovation by collaborating with external partners.
Through the activities of the "Idemitsu Kosan Next-Generation Materials Creation Collaborative Research Center," established at Tokyo Institute of Technology (now Tokyo University of Science) in 2020, we are advancing the acquisition of technologies in key areas of advanced materials and CNX solutions in collaboration with Tokyo University of Science. We are also conducting academic collaborations with institutions such as the University of California, Santa Barbara.
To develop next-generation technologies in the carbon-neutral domain, we have entered into a comprehensive cooperation agreement (2024) with the Research Center for Advanced Science and Technology and the Institute of Industrial Science at the University of Tokyo, and are engaged in joint research.

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

Development of a greenhouse gas fixation plant using purple photosynthetic bacteria

As a result of our new business creation activities, we began investigating a technology for fixing CO₂ and N₂ using purple photosynthetic bacteria, and are now working to commercialize it in collaboration with Symbiobe, a startup company spun off from Kyoto University.
By combining Symbiobe's photosynthetic microorganism technology with our process technology for scale-up, we aim to provide for society of greenhouse gas fixation such as CO₂ and the production of green biomaterials ^*.

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

Development of solar cells for space

In our Medium-term Management Plan, we have positioned electrification/electricity and ICT integration as growth areas and are promoting the commercialization of radiation-resistant, lightweight CIGS solar cells for space use. This initiative has been selected for JAXA's Space Strategy Fund, and we will construct a bench plant within Advanced Technology Research Laboratories to demonstrate mass production technology. To date, we have conducted space demonstrations on JAXA's new HTV-X1 resupply vehicle and Chiba Institute of Technology's microsatellite BOTAN, and have also promoted collaboration with overseas companies and market development through our US base. Through this initiative, we will contribute to the development of space infrastructure and sustainable space development.

Developing innovative semiconductors that combine high performance, low cost, and low power consumption to meet the demand for lower power consumption caused by advances in high-speed communications and digital technology

Based on our accumulated inorganic material design technology, we have developed the polycrystalline oxide*1 semiconductor material IGO (Indium Gallium Oxide). Compared to conventional amorphous oxide semiconductor materials, IGO is characterized by its high electron mobility and excellent stability. Display backplanes*2 using IGO are expected to achieve both high performance and low manufacturing costs, as well as contribute to reducing power consumption.
This will support further improvements in display performance and the development of related industries, while also contributing to the realization of a low-carbon society through energy conservation in the use of display products.