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CORPORATE SOCIAL RESPONSIBILITY

Climate Change

Basic Policy

INPEX recognizes that climate change is a critical management issue. Action is required on the part of all members of the international community to address this problem, and governmental policy measures, technology development, industry response and other long-term initiatives are particularly pertinent. We are committed to fulfilling our role in addressing climate change as a responsible member of the oil and natural gas industry. Furthermore, we will reduce greenhouse gas emissions and support government initiatives to form an effective, transparent international consensus to manage climate change risk. By promoting the use of natural gas, the cleanest fossil fuel, through means including the steady implementation of our two large scale LNG projects, the Ichthys and Abadi LNG Projects, we will address climate change risk while meeting domestic and overseas energy demand, and supporting industrial development. We will also engage in wide-ranging initiatives to improve energy efficiency in our own operating processes and in society’s use of energy.
In December 2015, we developed a Position Paper (revised in February 2017) to communicate to our stakeholders our basic stance on the issue of climate change, accompanied by concrete examples of initiatives.

Targets and Results

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Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
Promotion of
renewable energy
  • Ensure stable operation of solar power generation facilities
  • Start commercial operations of first unit of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia
  • Promote commercialization of geothermal power generation business in Japan
  • Promote R&D of new energy and renewable energy
  • Ensured stable operation of solar power generation facilities
  • Started commercial operations of first unit of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia in March 2017
  • Conducted drilling surveys in the Amemasudake area of Hokkaido, the Oyasu in Akita Prefecture, and the environs of the Bandaisan area in Fukushima Prefecture and shortterm fumarolic testing at a second well in the Amemasudake area
  • Promoted R&D of artificial photosynthesis, etc.
  • Ensure stable operation of solar power generation facilities
  • Start commercial operations of second and third units of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia
  • Promote commercialization of geothermal power generation business in Japan
  • Promote R&D of new energy and renewable energy
Promotion of
environmentally
friendly
natural gas
development
  • Promote natural gas development activities
  • Expand the gas pipeline network, including the opening of Toyama Line operations
  • Engage in proposal activities to promote natural gas use
  • Expanded the total length of the gas pipeline network to approximately 1,500km by starting operation of the Toyama Line
  • Started supply of natural gas in areas along the Toyama Line (to Nihonkai Gas Co., Ltd., Nissan Chemical Industries, Ltd. Toyama Plant, Asahi Soft Drinks Co., Ltd. Hokuriku Plant)
  • Continue a stable supply of natural gas through safe operation of domestic gas fields, the Naoetsu LNG Terminal, and the approximately 1,500km gas pipeline network and increase supply volume
  • Engage in proposal activities to promote natural gas use
Addressing
climate change
  • Undertake energy conservation and energy efficiency improvement at operating sites and offices
  • Review the Japan Business Federation’s Commitment to a Lower Carbon Society Plan *1 of the JPDA
  • Revised the Position Paper on Climate Change
  • Held GHG management workshops
  • Introduce and implement internal carbon pricing
  • Develop scenarios for a low-carbon society
  • Hold climate change strategy workshops

*1 Commitment to a Lower Carbon Society Plan : This is an action plan in which since FY2013, Japan Business Federation has called on various trade associations to participate and coordinated their GHG emissions reduction initiatives. The JPDA participates in the action plan and has set targets for GHG (excluding concomitant CO2) emissions from mining facilities in domestic oil and natural gas development projects.

Case Study

Sarulla Geothermal IPP Project

We defined “Reinforcing our renewable energy initiatives” as a growth target in our Medium- to Long-term Vision, which articulates a vision for the 2020s, and promote geothermal power generation.
Geothermal power generation is a power generation method that utilizes geothermal resources (geothermal reservoirs) existing deep underground (approximately 1,000 to 3,000 meters below ground) in volcanic geothermal areas that have been heated to high temperatures by heat from magma. High-temperature, high-pressure geothermal fluids extracted from geothermal reservoirs generate electricity by rotating turbines. Geothermal power generation is considered an effective green energy source and a global warming countermeasure because geothermal plants can stably generate electricity around the clock while operating for long periods of time, and because they release lower CO2 emissions than power generation plants that use fossil fuels (such as oil and coal).
The Sarulla Geothermal Independent Power Producer (IPP) Project, located in Indonesia’s North Sumatra, in which INPEX has participated since June 2015, is a project for providing electricity generated by a geothermal power plant. The plant has a maximum capacity of approximately 330MW, the highest in the world, and will sell electricity to Perusahaan Listrik Negara, Indonesia’s government-owned electricity company, for a period of thirty years. We began construction of the facility in 2014 and began commercial operation of the first unit (110MW) in March 2017. We are proceeding with construction work in preparation for the commissioning of the second and third units.
In this project, we are engaging in community contribution that meets the needs of the local community as part of the Group’s sustainability practices. This includes development of local infrastructure such as roads, bridges, and waterworks, introduction of an English course at local schools, and supporting the livelihoods of local residents.
The Sarulla geothermal project is expected to help meet electricity demand and contribute greatly to Indonesia’s economy, which is experiencing significant economic growth.

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