5 Net Zero Businesses
INPEX is developing its oil and gas business and its net zero businesses. In the oil and gas business, which is our core business, we will continue to fulfill our responsibilities to develop and supply stable energy by promoting a more resilient and cleaner business. At the same time, in the 5 net zero businesses, we will expand each business at an accelerated pace and secure our position as a major and trusted player.
Hydrogen and Ammonia Business
The hydrogen and ammonia business entails the production and supply of hydrogen and ammonia, energy sources that do not emit CO2 when combusted. Among these, the blue hydrogen project is a business that markets hydrogen produced from oil and natural gas, and stores the CO2 emitted in the production process in the ground by CCS/CCUS. The ammonia business converts hydrogen into ammonia for transportation and marketing. Ammonia is easier to liquefy than hydrogen and has established transportation technology, making it promising as an energy carrier for hydrogen, and demand is also expected for its direct use as a fuel, including for co-combustion with other fuels at thermal power plants.
We will commercialize 3 or more projects by around 2030 and aim to produce and supply 100 thousand tons or more of hydrogen and ammonia per year. Then, we will aim to expand our supply capacity to achieve approximately a 10% share of domestic demand by 2050.
Integrated demonstration of hydrogen and ammonia production and usage in Kashiwazaki City, Niigata Prefecture, Japan
We aim to construct a blue hydrogen*1 and ammonia production and usage demonstration plant and start operations by 2024.
Commercialization of blue hydrogen project in Niigata Prefecture, Japan
Based on the results of the demonstration in Kashiwazaki City, we aim to construct a blue hydrogen production plant utilizing INPEX natural gas fields and existing infrastructure and produce blue hydrogen on a commercial scale by around 2030 (100-thousand-ton scale*2).
Clean ammonia project in Abu Dhabi
Based on the results of the feasibility study on clean ammonia production in Abu Dhabi, jointly conducted with ADNOC*3, JERA, and JOGMEC, we aim to construct a clean ammonia production plant in Abu Dhabi and supply clean ammonia from the late 2020s.
Clean hydrogen projects overseas (Australia, Abu Dhabi, Indonesia, etc.)
We will promote business expansion through feasibility studies and collaboration, aiming to develop large-scale projects overseas. Also, we have been pursuing opportunities in the hydrogen production, liquefaction and shipping business.
- *1Hydrogen that is produced by reforming natural resources such as natural gas, where CO2 generated at the same time is captured and stored by CCUS
- *2Project basis
- *3Abu Dhabi National Oil Company
Reduction of CO2 emissions from oil and gas operations (CCUS)
In the CCS business, CO2 is separated and captured, placed in stable geological formations deep underground, and stored for a long period of time. In addition to CCS, in the CCUS business the captured CO2 is used to improve oil and natural gas recovery rates or to convert CO2 into new products or energy.
We aim to become a leading company in the CCS and CCUS business by targeting an annual CO2 injection volume of 2.5 million tons or more in around 2030 and promoting technical development and commercialization. Then, we will aim to establish a CCUS business and generate profit from it by 2050.
CO2EOR*1 demonstration at Minami-aga oil field, Niigata Prefecture, Japan
We aim to commence CO2 injection tests by 2023 and establish CO2EOR efficiency improvement technology*2 that is currently under development to expand CCUS technology in Japan and deploy CO2EOR technology at oil fields overseas.
CO2EOR scale up in Abu Dhabi
We will pursue technical evaluations to increase the CCUS capacity of ADNOC Onshore CO2EOR activities from the current 0.8 million tons per year with ADNOC.
CCS*3 implementation at Ichthys LNG Project (Australia)
We will introduce CCS to Ichthys in the late 2020s and begin injecting 2 million tons or more*4 of CO2 per year as a first step. Also, we will play a leading role towards the realization of a CCS hub project in Darwin, Australia.
Promotion of CCS/CCUS business development in Japan and overseas
We aim to commercialize the CCS business by investigating suitable locations and developing technology based on our experience, knowledge, and assets in the oil and gas business.
- *1Enhanced Oil Recovery
- *2CO2 foam EOR Technology
- *3Carbon Capture and Storage
- *4Project basis (INPEX equity equivalent: 1.3 million tons per year)
Renewable Energy Business
The renewable energy business generates electricity using natural energy sources such as the wind, sun, and geothermal heat. Renewable energy emits significantly less CO2 than thermal power generated by coal, oil, or LNG.
We aim to secure 1-2 gigawatts of installed capacity, mainly in the offshore wind and geothermal power generation business and become a key player by accelerating business expansion using assets acquired through M&A and other means as a platform. We also aim to produce green hydrogen*1 using renewable energy by 2050.
Floating offshore wind power business
We have acquired shares of the Luchterduinen and Borssele III/IV offshore wind power generation projects in the Netherlands. We will join leading wind power generation businesses in Europe and other prospective areas and secure assets such as human resources to position Europe as a platform of the company's renewable energy business.
A consortium including INPEX was selected to operate a floating offshore wind power project off Goto City, Nagasaki Prefecture, Japan in June 2021. We will promote the project as the first offshore wind power project in Japan with a goal to commence operations in 2024. It is our particular aim to become a key player in the floating offshore wind power generation sector.
Geothermal power business
We will promote geothermal energy development in Indonesia and are considering further development of the Muara Laboh Geothermal Power Project, which the company joined in December 2021. We have decided to enter into the construction phase of the Oyasu Geothermal Power Project (Akita Prefecture) and will continue development toward start up in March 2027. We are pursuing new projects in Japan and Indonesia in addition to continuing geothermal surveys at Amemasudake (Hokkaido)
- *1Green hydrogen: hydrogen produced through the electrolysis of water using renewable energy such as wind power
Carbon recycling and new business opportunities
Carbon recycling refers to the reuse of CO2 as a valuable resource using methanation, artificial photosynthesis and other technologies. Methanation is a technology for synthesizing methane from CO2 and hydrogen, which means it can produce methane as an energy source without increasing CO2 emissions. As for new business opportunities, we are engaged in research and development for the use of drones in facility inspections.
We will promote the adoption of methanation in society and aim to supply about 60 thousand tons*1 of synthetic methane per year through INPEX's natural gas trunk pipeline network by 2030 while pursuing further development. Then, we will aim to expand production capacity to 60 thousand Nm3/h by around 2035.
We plan to construct a larger scale plant of 400 Nm3/h in Nagaoka City, Niigata Prefecture, using the results from a past demonstration project*2 and commence production of synthetic methane in 2025 to be supplied to customers through INPEX's gas pipelines. In pursuit of further development, we will construct a 10 thousand Nm3/h scale demonstration facility in Australia and aim to ship synthetic methane to Japan for supply to customers via INPEX's gas pipelines in around 2030.
We are participating in the "Japan Technological Research Association of Artificial Photosynthetic Chemical Process (ARPChem)" of NEDO*3 and oversee the technical development for production of solar hydrogen through catalytic reaction. We will steadily implement R&D with the aim to ultimately achieve 10% solar energy conversion efficiency and plan to evaluate practical application. We also conducted performance validation in Darwin, Australia, the location of the Ichthys onshore plant.
We conduct R&D studies for future commercialization.
In cooperation with Terra Drone Corp., a startup that we have invested in, we will promote R&D to utilize drones for inspection of our facilities to achieve the "INPEX-Terra Drone Intelligent Drone Plan," a plan that aims to realize various initiatives including the automation of equipment inspection utilizing air mobility.
- *1Equivalent to approx. 200 thousand households
- *2Built and operated an 8Nm3/h scale technology demonstration plant
- *3The New Energy and Industrial Technology Development Organization
Forest conservation refers to projects that reduce CO2 emissions or absorb CO2 through forest conservation and afforestation. In addition, these projects are expected to have synergistic side benefits such as the preservation of precious biodiversity and water resources, reduction of soil erosion, alleviation of poverty and improvement of the livelihoods of local communities and will broadly contribute to the SDGs advocated by the United Nations.
Target business participation in forest conservation projects
We aim to participate in projects in addition to acquiring credits from forest conservation projects mainly based on the leading REDD+ concept by leveraging INPEX's track record in carbon credit acquisition, which includes supporting the Rimba Raya Biodiversity Reserve REDD+ Project and afforestation and savanna fire management at Ichthys.
Strengthening of efforts to achieve net zero and Scope 3 reductions
We have given importance to CO2 absorption through forest conservation and afforestation to complement initiatives towards net zero targets such as making the oil and natural gas business cleaner, implementing a natural gas shift, promoting CCUS, and pursuing renewable energy solutions.
We aim to stably acquire about 2 million tons of carbon credits per year in around 2030. Also, we will reduce Scope 3 emissions by marketing carbon-neutral LNG and gas to customers.