JAPEX Started On-site PPA Supply of Renewable Electricity to a Group Company

Japan Petroleum Exploration Co., Ltd. (JAPEX) has installed a photovoltaic (PV) power generation power plant named "Mitsuke PV Power Plant" (hereinafter the "PV Plant") in the site of our Mitsuke Production Facility at Mitsuke City, Niigata, with the generation capacity of 250kW and started its operation today. Electricity generated by the PV Plant is supplied to the Mitsuke Gas and Chemical Plant of JAPEX SKS Corporation (hereinafter the "SKS Plant"), which is a wholly-owned subsidiary, in our Mitsuke Production Facility site, using the on-site PPA^(*1) scheme. Through this renewable electricity supply, SKS Plant will be expected to reduce CO₂ emissions by 176 tons per year.

JAPEX has formulated our group's direction for carbon neutrality "JAPEX2050: Toward a Carbon-Neutral Society" in May 2021. This direction sets our targets to achieve net zero of our own operations in 2050 and, for the achievement in 2050, to reduce 40% of Scope1+2 GHG emission intensity by 2030, compared to fiscal 2019. In this direction, we also commit to creating and expanding our businesses in the fields that contribute to net zero society, such as renewable energy and CCS/CCUS^(*2).

Particularly in the renewable energy field, the supply of electricity from non-FIT^(*3) PV power plants is gaining momentum in the market, and there is an urgent need to strengthen ability to respond to new schemes and systems. This PV electricity supply from the PV Plant to the SKS Plant is our first PPA project based on those backgrounds. Please refer to the appendix for the outline of the PV Plant.

Based on the viewpoints of the utilization of our group's idle lands and the response to GHG emissions reduction, we will proceed to implement more PV power generation plants for the JAPEX group and to expand the electricity supply from renewable energy sources to our group's operation site, including by off-site self-delivery. Furthermore, we will consider utilizing accumulated expertise through these efforts for horizontal expansion to the external off-site corporate PPA businesses.

JAPEX, cooperating with each group company, will aim to contribute towards carbon neutrality in 2050 through supply and its expansion of low-carbon electricity from renewable energy sources.