Efforts toward the Realization of
Hydrogen-utilized Society in Japan
February 17, 2020

Maehara Kazumi
Hydrogen Technology Development Group
Hydrogen Business Promotion Department
JXTG Nippon Oil & Energy Corporation

１．About JXTG Nippon Oil & Energy Corporation
２．Hydrogen Business in Japan
３．Efforts for CO2-free Hydrogen Society2１．About JXTG Nippon Oil & Energy Corporation
２．Hydrogen Business in Japan
３．Efforts for CO2-free Hydrogen Society3Introduction of JXTG➢ JXTG Nippon Oil & Energy is one of the core company in JXTG Holdings.

Domestic fuel oil sales share50％

Crude oil and natural gasequity-entitled production volume

110 thousand barrels/day*Crude oil equivalent (FY2018 results)* FY2018 results

Paraxylene external salescapacity

3.62 million tons/year*FY2018 results

Propylene supply capacity

1.70 million tons/year

Equity-entitled copper mine production

200 thousand tons/year*Amount of copper contained in copper
concentrate (FY2018 results)

Refined copper production capacity

920 thousand tons/year*Equity basis as of March 2019 ※1*FY2018 results

4Our Energy Businesses➢ JXTG is “Comprehensive Energy Company” that handles not onlypetroleum but also various energy such as coal, gas and electricity.
➢ In addition, we are now working on hydrogen business as next energy.
Upstream
Downstream
JX Nippon Oil &Gas Exploration

JXTG Nippon Oil & Energy
Oil refining
and production

Sales

Petrochemical products(Paraxylene)

Crude oil andnatural gas
development

Coal

Natural GasElectricity

Hydrogen5１．About JXTG Nippon Oil & Energy Corporation
２．Hydrogen Business in Japan
３．Efforts for CO2-free Hydrogen Society

6

HRS Locations in Japan➢ At present, hydrogen fuel is supplied to FCV mainly at HRS. And refueling to FC bus has
been started in Tokyo area.
➢ In Japan, there are 112 HRS in operation. [As of end of December, 2019]
Among them, JXTG operates 41 hydrogen stations.
➢ Almost of HRS are located in Tokyo, Nagoya, Osaka, and Fukuoka metropolitan areas, andwe are planning to gradually expand the supply area.
[ HRS Location in Japan ]Nagoya Area
Osaka Area

Tokyo Area

Fukuoka Area
30111443

Other Area : 147

Lineup of HRS➢ Thereare 3 type of HRS mainly, integrated type, standalone type and mobile type.
■ガソリンスタンド一体型➢ JXTG is promoting the integrated type, because it could improve customer’s convenience andsatisfaction.

■Integrated

Installed in gas station■Standalone（Tokyo Meguro Hydrogen Refueling Station）

Dr. Drive self-service Ebina Chuo Service Station inKanagawa■Mobile（Yokohama Osanbashi Hydrogen Refueling Station）

Dr. Drive self-service Shiomikouen Service Station inTokyo8

“Strategic Road Map for Hydrogen and Fuel Cells” by METI
METI : Ministry of Economy, Trade and Industry➢ The targets are 900 HRSs and 800,000 FCVs in 2030.
➢ At present there are still 112 HRSs and 3,500 FCVs, but in the next 5 years the number of HRS will
be more than doubled and FCV more than two orders of magnitude.

800900
Number of HRSs

800,000

Challenging Target!

Number of FCVs

600

in the next 5-10 years …

400

HRS : more than doubled
FCV : more than two ordersof magnitude200
0112 Approx.
present

600,000

800,000
400,000

320

200,000

160
40,000

3,500

2020

1,000,000

Number of FCVs

Number of HRSs

1,000

200,000

02025

2030

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Issues for HRS and FCV➢ Government and private sectors are working together to solve the issues to promote FCVand HRS.

HRS’s issues

FCV’s issues• Cost reduction(CAPEX/OPEX)• Area expansion= How to improve customer
convenience is the most important• Cost reduction• Expanding vehicle model andmanufacturers= How to improve theattractiveness as product is themost important.

Common issues• Promoting public understanding of the safety and significance• Regulatory review
10HRS Related Costs➢ CAPEX/OPEX of HRS are 4 to 5 times the cost of conventional gas stations, so hydrogenbusiness is not to be profitable at present.
➢ To make the HRS business profitable, it is necessary to reduce CAPEX/OPEX to about
half of the present.

CAPEX breakdown
Total:
360 M yen/site

OPEX breakdown

unit: Myen
approx.10kUSD

Civil Engineering
120

Others40

Total:
Others40 M yen Electricity 42/site/yunit: Myen
approx.10k USD
Employment
11Compressor
110

Accumulator
Pre-cooler 40

Maintenance23

Dispenser 2030

※Average of 2015 subsidy (Off site type:300Nm3 / h)※Excluded non-subsidized equipment costs (barriers, canopy etc.)※ Average of 2015 subsidy (Off site type:300Nm3 / h)※ Excluded expenses not covered by subsidy (land fee etc.)

Source: METI “The 8th Hydrogen and Fuel Cell Strategy Council” Material (March 2017)11

Efforts to CAPEX Reduction➢ The next generation package-type station realizes integration of all components through“downsizing" and "standardization“ of equipment and piping.
➢ Many manufacturers and operators are jointly discussing standards and promoting common module
design. ＜NEDO Project＞➢ In addition, innovative refueling protocol and dual refueling system, supplying to two nozzles
with one compressor, are also core technologies. ＜NEDO Project＞
NEDO：New Energy and Industrial Technology Development Organization
Conventional STrefrigerator

Package-type System • Down sizing
Accumulator

Pipe & fitting• Standardization of design• Dual refueling system• Innovative refueling protocol

Compressor

Dispenser
Refrigerator
compressor

accumulator
12Prospects for CAPEX Reduction➢ As shown in this graph, we prospect that CAPEX of less than half can be realized withthese efforts.

CAPEX per lane(Myen)

600

510
500
400
300
200
100

Equipment

340(220）

Package

Others

（25）

（100）

（70）
• Unified standards
Package design
CivilEngineering • Regulatory review（220） • othersConventionalST

Added lane cost

（60）

195

• Dual refueling• Innovative refuelingprotocol（170） • others

(50)
(30)

（90）

Next-generation
package ST

Next-generation
package ST(1 lane)(2 lane)13

Regulatory Review : Regulatory System in Japan➢ The High-Pressure Gas Safety Act was originally designed for large-scale plants
and has room for optimization for HRS.
[ Law ]High Pressure Gas Safety Act[ Ministerial Ordinance ]Security Regulation for General High Pressure Gas⇒ Maximum operating pressure is 82MPa

The barrier for High pressure equip.

Illustrative criteria

Security Regulation for Specific equipment
Illustrative criteria⇒ Maximum Allowable Stress Values (Design factor is 4, 3.5)
Regulation on Safety of Containers82

pressure (MPa)⇒ Barrier for high pressure equipment⇒ Applicable materials for high pressure equipment

Ni eq.
≧28.5

20-45

Ni eq.
≧27.4

Ni eq.
≧26.3

25-10
Temperature (deg.C)

250

Req. of Ni equivalent in materials

14Regulatory Review : Optimization of regulations➢ Regulatory review has been conducted under public-private cooperation to achieve an appropriate
safety level for HRS.
Regulation of Location• Setting standard to city and urbanization control area
• Expansion of H2 storage limit

Regulation of Distances• Installation standard to gas station• Measures to shorten the separation distance withsurrounding facilities / equipment / public road
• Optimization of barrier structure criteria

OthersRegulation of Materials• Use of Carbon composite accumulator (Type Ⅱ／Ⅲ）
• Application of overseas standard materials• Optimization of pressure design safety factor• Use of general stainless steel

Regulation of Transportation• Establishment of transport container standards
Upper limit optimization of pressure (35 → 45MPa)
Maximum temperature optimization (40 to 65 ° C)
Optimization of loading and fixed standards• Upper limit optimization of refueling pressure (35→70MPa)• Permission of self-refueling (with staff)• Easing standards on operation(Unmanned operation, Extension of security inspection period)

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Started Supplying Hydrogen to FC Bus➢ In October 2019, we have started a hydrogen supply for FC buses to reduce carbon
emissions in public transportation systems in Yokohama City .
➢ At the Yokohama South HRS, the hydrogen refueling protocol that can be used for FC buswas applied.
Area of Minato-Mirai in Yokohama

State of the FC bus acceptedYokohama South HRS

Departing Ceremony
16Started Supplying Hydrogen to FC Bus➢ We are trying to apply new design HRS to improve the hydrogen refueling to FC bus.
[ Conventional HRS for FCV ]FC busH2

Hydrogen Trailer

Compressor
30kg/h82MPa

Accumulator
82MPa
300L x 3vessels

FCV
Dispenser[New designed HRS for FC bus ]H2Hydrogen Trailer

Booster
30-50kg/h
82MPa

Accumulator
82MPa
300L x 6vessels

Dispenser

FC busFCV17

１．About JXTG Nippon Oil & Energy Corporation
２．Hydrogen Business in Japan
３．Efforts for CO2-free Hydrogen Society18

Summary of the “Basic Strategy of Hydrogen ” (by METI in December, 2017)➢ The final goal is to use so-called “CO2 free hydrogen", made from renewable energy or unused
resources with CCS.
➢ To achieve this, it is necessary to establish not only domestic but also large-scale internationalhydrogen supply chain.

MobilityPower
Generation

Use

SupplyPresent2030

Fossil fuel-basedhydrogenFuture target✓ Building internationalhydrogen supply chains(by-product hydrogen, naturalgas reformation)

CO2-free hydrogen✓ Developing domestic Powerto-Gas for renewable hydrogen
supply(Unused resources with CCS*,utilizing renewable energy)

Scale-up
Substantial cost cuts

※CCS（Carbon dioxide Capture and Storage）

Commercial stage

R&D stage“Roadmap” targets
HRSs(locations)FCVs(units)(Present） (2025)

112

320

3.5k

200k

FCV/HRSs

becoming
Self-sustaining*latter half ofthe 2020s(2030)

900

Replacing gas
power generation

Replacing gas stations
Replacing
800k
conventional gasoline
mobility
19
Source: Prepared based on the “Basic Hydrogen Strategy.”

Activities towards CO2-free Hydrogen Society➢ In order to realize a CO2-free hydrogen society, it is essential to establish a supply chain thatconnects large-scale demand and CO2-free hydrogen sources.
➢ For commercialization of supply chain, we collaborate with some leading companies.
Production

Use

Transportation/distribution

Fossil FuelCity gas

pipeline

LPG

Reforming

Cogeneration(FC)Reforming

FutureFutureDomesticMobility
Waterelectrolysis

Solar, Wind power

H2 refueling stations

Overseas
Brown coal
Renewable energy

Decentralization
power

gasification

CCS

Water
electrolysis

Marine transportation

Hydrogen pipeline
・・・PresentHydrogen Powergeneration

Powergeneration

Industrial useOthers・・・Future

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HySTRA (CO2-free Hydrogen Energy Supply-chain Technology Research Association)➢ We participated in HySTRA in August 2019.
➢ HySTRA is the association working towards creating a CO2 free hydrogen supply chain
comprised of liquefied hydrogen production effectively utilizing brown coal,transportation, storage and utilization of hydrogen, and establishing and demonstrating thetechnologies to commercialize the supply chain around 2030.

【AUSTRALIA】 Hydrogen Production and Loading
Unused energy, etc.
Brown Coal

CareerConversion

Hydrogen Production
Gasification

Gas Refining

H2 Liquefaction

MarineTransportation

Storageand Loading
Liquefied H2Loading

Unloading and Storage
Liquefied H2
Unloading

Liquefied Hydrogen
CCS

Members (6 companies)【JAPAN】
Recieving

Usein
JAPAN

CO2-free H2 Business Model in the Future➢ Refineries use the largest amount of hydrogen throughout industry.
➢ Refinery has also port and pier where large tankers can land. So we could use the refinery as a receiving basewhen importing a large amount of CO2-free hydrogen from overseas.
➢ As a large-scale customer, we will be able to procure a large amount of CO2 -free hydrogen, and supply it tochemical plants, power plants and mobility use around refineries effectively.
＜Demand Potential＞
Renewable
EnergyRefinery 1M tons

①Desulfurization and purification of oil②Power generation
Hydrogen Production

60,000 tons
@ 2012

HydrogenPower Plant
By the CO2-free hydrogen business in this way, we would
contribute to create sustainable society. This is our vision.

Carrier Conversion

ChemicalComplex

Liquefied Hydrogen
Methylcyclohexane

Ammonia

300,000 tons
@2030

Mobility
80,000 tons
@ 2030※Source: Journal of the Japan Society of Mechanical Engineers Vol. 82, No. 836, 2016

Thank for your kind attention

Enegori-kun (The mascot of JXTG)

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