Note: The following is an English translation of the Japanese-language original[Press Release]

July 19, 2023
Japan Petroleum Exploration Co., Ltd.
Idemitsu Kosan Co.,Ltd.
Hokkaido Electric Power Co., Inc.

JAPEX, Idemitsu, and HEPCO Commission a CCS Study in Tomakomai Area
as the “Business Feasibility Study on Japanese Advanced CCS Project” in FY2023
Japan Petroleum Exploration Co., Ltd. (JAPEX), Idemitsu Kosan Co.,Ltd. (Idemitsu), and Hokkaido
Electric Power Co., Inc. (HEPCO) (hereinafter the “Three Study Companies” for the three companies together)signed a contract with Japan Organization for Metals and Energy Security (JOGMEC) for a feasibility studyof CCS(*1) in the Tomakomai area (hereinafter the “Study”), which is one of the public solicitation regarding
the Request for Proposal on the “Business Feasibility Study on Japanese Advanced CCS Project” in the fiscal
2023 (hereinafter the “Public Solicitation”).
The public solicitation is held by JOGMEC, based on the policy of the Japanese Government to support
advanced projects as role models for developing the business environment toward the launch of CCS projects
by 2030 stated in the “Basic Policy for Realization of GX(*2).” As a result of the examination, the sevenfeasibility studies, including the Study, have been selected by JOGMEC in June as the candidates to be rolemodels of the “Japanese Advanced CCS Projects,” (*4) which are making efforts to expand business scale andreduce costs with the Hubs & Clusters(*3) concept for spreading and expansion of CCS.
The Three Study Companies will proceed with specific studies of CO2 separation, capture, transportation,and storage, as part of the joint feasibility study of CCUS(*5) in the Tomakomai area, announced in January2023(*6). The CO2 separation and capture part, mainly its scale and specification of required facilities, will beconsidered by Idemitsu for its Hokkaido Refinery and HEPCO for its Tomato-Atsuma Power Station. The CO2storage part will be worked by JAPEX to select locations for suitable storage sites within the Tomakomai area
and required injection and monitoring facilities for an annual storage capacity of 1.5 million tons in 2030. The
CO2 transportation part will also be led by JAPEX to examine pipeline routes for connecting these points andits required facilities. The results of the Study will be compiled, including estimated costs for theimplementation, and will be reported to JOGMEC within this fiscal year.
The Three Study Companies aim to launch the CCS project by 2030 through the Study, and we will also
consider the possibility of CO2 utilization as part of the joint feasibility study of CCUS, linking with the Study.
Furthermore, aiming to contribute to realizing “carbon neutrality in 2050”, we will have dialogues with local
governments and companies around the Tomakomai area and make efforts to obtain further understandingof CCS/CCUS from local residences.
Notes)*1: Carbon dioxide Capture and Storage.
*2: “Basic Policy for Realization of GX” as the cabinet decision of Japanese government on February 10, 2023.
*3: A business model to reduce more emission by covering multiple emitting sites, and capture and store CO2.
*4: “First Step to Launch Japanese CCS Project -JOGMEC selected 7 projects, starting CO2 storage by FY2030-” released by JOGMEC on June 13, 2023.
*5: Carbon dioxide Capture, Utilization, and Storage.
*6: “Idemitsu, HEPCO, and JAPEX Start a Joint Study for CCUS Implementation in the Tomakomai Area of Hokkaido” released on January 26, 2023.

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