Sustainability Report 2024

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Sustainability Report 2024

Energy Transition

To achieve net zero emissions by 2050, INPEX is advancing lower-carbon solutions through carbon capture and storage (CCS) and hydrogen technologies. Additionally, the company is exploring new ventures in power-related business fields.

CCS and Hydrogen

In the transition toward net zero emissions, it is important to select appropriate methods according to the circumstances and transition stage of each region. Besides the introduction of renewable energy, the introduction of CCS for existing oil and gas facilities, the use of hydrogen or ammonia, and other such efforts are also realistic transition pathways. As an energy company, we seek to have a stable supply of oil and natural gas. At the same time, to achieve net zero emissions by 2050, CCS and hydrogen projects are important. They allow us to meet the needs of society by bringing together our technologies and rich experience in underground resource exploration to provide methods for greenhouse gas (GHG) emission reductions.

To promote CCS and hydrogen projects, we stated in the INPEX Vision 2035 our target of creating new revenue streams by 2035. We will do so through reducing GHG emissions by integrating CCS into our natural gas and LNG projects. Additionally, we will offer GHG emission reduction solutions to third parties by leveraging CCS and hydrogen technologies.

To achieve this target, we have undertaken specific efforts in our CCS projects. These include conducting reservoir assessments and acquiring and processing new 3D seismic data at the GHG assessment block in Australia. We are also advancing research towards practical application. In Japan, we completed a business feasibility study for adoption of the Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Initiative Project, in which we participate, under the 2023 Survey on Implementation of Advanced CCS Projects commissioned by Japan Organization for Metals and Energy Security (JOGMEC). The Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Initiative Project have been adopted under the 2024 Engineering Design Work for Advanced CCS Projects, and we are planning and studying various projects.

For our hydrogen and ammonia projects, the construction of aboveground facilities for integrated demonstration testing of hydrogen and ammonia production and usage in Kashiwazaki City, Niigata Prefecture, Japan, is progressing as planned. We have also completed a feasibility study for producing blue hydrogen using our natural gas fields and existing infrastructure in Niigata Prefecture. Preparations for the basic design towards commercialization have begun.

In the United States, we have completed the initial design for a large-scale, low-carbon ammonia production project at the Port of Houston in Texas in collaboration with Air Liquide Group, LSB Industries, Inc., and Vopak Exolum Houston LLC. Additionally, we have signed a joint study agreement with Green Hydrogen International Corp.(GHI) for a green hydrogen project in southern Texas and completed the feasibility study.

We will continue to see the provision of clean energy and GHG emission reduction solutions as business opportunities and strive to transition toward a net zero society.

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Blue ammonia project at the Port of Houston
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Blue hydrogen/ammonia production and usage demonstration testing in Kashiwazaki City (Hirai Blue Hydrogen project).

Renewable Energy and Power Solution Business

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Ceremony for signing a memorandum of understanding on a joint geothermal study with PLN Indonesia Power.

We plan to enhance profitability and expand renewable energy – a major effort in our power business – by focusing on core business regions and fields where we can leverage our technical capabilities. We will also maximize the value of our power asset portfolio by optimizing the combination of renewable energy and balancing power sources (battery and gas-fired power).

In FY2024, we reached a final investment decision in May 2024 on the Quorn Park photovoltaic and battery energy storage system project in Australia through Potentia Energy Pty Ltd. Construction is underway, with commercial operations expected to commence in FY2026. In June and July 2024, we began work on exploratory drilling for geothermal energy projects at two locations in Japan: Okuhida Onsengo district of Takayama City in Gifu Prefecture and Shibetsu Town in Hokkaido. In December 2024, we signed a memorandum of understanding with PT PLN Indonesia Power for a joint geothermal study in Indonesia, continuing our efforts to promote geothermal development in the country.

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Ceremony for signing a memorandum of understanding on a joint geothermal study with PLN Indonesia Power.

We have renewable energy sources in Japan and overseas that exceed a total capacity of 600 megawatts. This includes offshore wind power generation in Europe, geothermal energy generation in Indonesia, and solar and onshore wind power generation in Australia. Moving forwards to gain revenue across the entire power value chain, we will establish a stable power source portfolio, enhance value through our efforts in power solutions, and create synergy with our existing businesses (such as gas, hydrogen, ammonia, and CCS) to help achieve net zero emissions by 2050.