【Action Plan】
1. New initiatives in accordance with the amendment to the JOGMEC law(1) Providing equity capital and liability guarantees for the production and storage of
decarbonized fuels (hydrogen, ammonia, and synthetic fuel)We have begun to provide equity capital and liability guarantees for overseas production-/
liquidization-/ storage- facilities and domestic facilities for receiving-/ storage- and production- of
decarbonized fuels. The subjects that we will support are broadly expanded: we now support
decarbonization of fossil fuel-derived (blue) hydrogen and ammonia by CCS conducted as usual,and will now also offer financial and technical support to facilities for producing renewable energyderived (green) hydrogen and ammonia and synthetic fuel (which is a chemical compound of CO2
and H). Furthermore, we will promote the utilization of various energy sources including relatively
evenly distributed lignite-derived hydrogen and ammonia and we will conduct a social
implementation study of hydrogen production using geothermal energy.
(2) Providing equity capital/liability guarantees and geological/geophysical surveys for CO2
storage
We have begun to provide equity capital and liability guarantees for CCS projects both overseas
and around the coastal waters of Japan. We will support CCS projects that are accompanied byresource development as well as industrial hubs and clusters of CCS projects which are globallypromoted.
Simultaneously, in addition to existing oil- and natural gas-exploration, we will apply the
3D geophysical exploration vessel “TANSA”, which has been utilized only in Japan’s coastal waters
until now, to conduct geological and geophysical surveys that search for CCS-suitable sites bothoverseas and in Japan’s coastal waters. We will also conduct geological and geophysical surveys,
drilling, and evaluation of storage capacity. By implementing those surveys, we will conduct the
selection of CO2 injection sites and the estimation of storage capacity. Through these efforts wereduce subsurface risks, support operationalization of CCS projects with our technology and knowhow, and thus contribute to securing a sustainable energy supply for Japan.
(3) Providing equity capital and liability guarantees for domestic ore processing and smelting
business
We have begun providing equity capital and liability guarantees for domestic ore processing andsmelting such as minor metals, etc. Despite an expected increase in demand for minor metals (suchas rare-earth metals, lithium, cobalt, and nickel, which are necessary for renewable energy plants
and batteries for energy storage) and base metals (such as copper, which is vital for electricallyconductive materials), supply risks owing to a high dependence on specific countries for processing

and smelting are of concern for some metals. We contribute to resilience in the mineral resources
supply chain in Japan through strengthening financial support to the domestic ore processing andsmelting business.
(4) Providing equity capital for overseas geothermal exploration
We will begin to provide equity capital for overseas geothermal exploration in FY 2023. Domestic
experiences and actual achievements of major geothermal development are limited currently, but
major projects and examples of advanced exploration and drilling technologies exist abroad. To
fundamentally enlarge geothermal energy installations in Japan, we will support Japanesecompanies by providing equity capital to achieve technologies and know-how through participatingin major geothermal development projects overseas. Furthermore, we will contribute to promote
domestic projects by utilizing these technologies and know-how for domestic geothermal
development.
(5) Wind condition and geological surveys for domestic offshore wind development
We have begun conducting wind condition and geological surveys for offshore wind projects. So
far, several grid operators conducted initial surveys in potential areas, which led to inefficient
surveying and became a burden on the local communities. Considering this situation, Japanese
government empowered us to conduct the initial surveys by reference to the Centralized Model
implemented in Europe. As part of the governmental public bid process, we will provide grid
operators with wind condition data for wind energy evaluations and geological data for planning
turbine layouts and selecting suitable foundation designs, utilizing our knowledge about existing
offshore development. Through these efforts, we will help to promote project creation.

2.

Strengthening support measures for achieving carbon neutrality, promoting new initiatives(1) Promoting fossil fuel development and decarbonization to tackle climate change
Amid increasing geopolitical risks and escalating resource prices, the development of fossil fuels is
still important for a stable energy supply, and decarbonization measures such as CCS are required
more than ever for development of fossil fuels. We will strengthen the support to facilitate
decarbonization efforts in oil and gas fields and coal development.
Specific activities⮚

Financial support for upstream oil and natural gas development projects for
decarbonization initiatives
We will consider further strengthening support for climate change response efforts accompanied by
upstream oil and natural gas development projects, for example, by introducing new preferential
treatment in addition to reducing the liability guarantee fee rates (0.2%) for these projects.

➢

On-site technical support for decarbonization initiatives in coal mine development andoperation
Considering the importance of decarbonization in the entire process of utilizing coal resources from
exploration to rehabilitation, we will offer technical development and on-site support by further
strengthening cooperation with industry-academic-government and coal-producing countries andby conducting joint surveys to evaluate coal bed structure and properties suitable for CO2 storage.

➢

Implementation of surveys on biomass production, modification, and fuel conversion
technologies
We will consider efficient and appropriate utilization of biomass in coal-fired power plants and thesteel industry including by examination in actual equipment. We will also conduct surveys
contributing to the reduction of GHG in coal mines, such as by afforestation of non-operational andabandoned coal mines with the grass plant which can be used in biomass-combustion, is highly
efficient in land use, and grows rapidly.

(2) Securing a stable supply of LNG and promoting market expansion
With the lowest CO2 emissions among the fossil fuels and steadily advancing energy transitions, LNG
continues to play an important role as a power source for the conversion of other fossil fuels andregulated power supply for renewable energy. It is also an energy resource that is expected to face
increasing demands as a raw material for hydrogen and ammonia. LNG is an especially vital energy
resource for Asian countries where economic development is expected to dramatically increase infuture. JOGMEC will promote the securing of a stable LNG supply through financial support andstrengthening of information provision functions.
Specific activities➢

Financial support for gas development and project creation of LNG
In the changing landscape of gas supply, we provide support such as geological and geophysicalsurveys, equity capital for exploration prior to prospect extraction/ development/ asset acquisition,and liability guarantees to Japanese companies. We also act as a bridge between governmentalorganization/local companies in gas-producing-countries and Japanese companies, by hosting
seminars and conferences about specific LNG projects.

➢

Mid-downstream business support for expanding the LNG market in Asia (financial
support through equity capital and liability guarantees for storage and receiving terminal
construction)
Considering that expansion and growth of the LNG market in Asia is essential to maintain andimprove the energy security of Japan, we added investment and liability guarantee services related
to storage businesses such as LNG transshipment and acceptance conducted overseas by Japanesecompanies to strengthen support for the entire LNG supply chain in June 2020. We will further
utilize this business to strengthen cooperation with Japanese companies and LNG-demanding
countries, while actively promoting activities such as value chain survey proposals and encouraging
storage/receiving terminal construction through JOGMEC financial support.

➢

Strengthening information provision functions regarding the LNG market
We continue to strengthen the provision of information on the LNG market through the JOGMEC
website to improve information transparency and liquidity in the LNG market to strengthen LNG
security. Specifically, we will continuously conduct surveys on spot LNG prices, destination
flexibility for term contracts and LNG handling volume in cooperation with Japanese companies tounderstand the current status of the LNG market in Japan and provide timely information on the
LNG market. In these ways we will contribute to effective policy to enhance LNG security andmaintain Japan’s influence on the international LNG market.

(3) Further promotion of geothermal development
Geothermal energy is a clean and renewable energy source that emits almost no CO2 during power
generation. It is a base-load power source that can generate power in a stable manner regardless ofnatural conditions such as the weather. We will steadily proceed with projects under investigation,
exploration, and development, while accelerating the efforts and technological development forstarting new projects to achieve carbon neutrality by 2050.

Specific activities➢

Promoting domestic development of geothermal resources
We will strengthen efforts to promote geothermal development in natural parks where development
has not been advanced despite the existence of geothermal potential. Specifically, we accelerate theidentification of potential geothermal projects in natural parks through focusing surveys on
domestic geothermal potential. Based on the results of this activities, we lead project creation by
Japanese companies. In the surveys, we acquire and analyze data on subsurface geology andtemperature structure, to assess geothermal prospectivity in promising domestic areas.

➢

Promoting support for reducing financial risk
When applying the conditions of financial support of subsidy for high-risk initial surveys(geological, geophysical, and well-drilling surveys to confirm promising geothermal resources),
equity capital for exploration projects, and liability guarantees for development projects, we will be
flexible by reconsidering subsidy rates and examining standards of equity capital and liability
guarantees. This will encourage and strengthen support for accelerating surveys in natural parks andgeothermal developments.

➢

Expanding the potential for geothermal development
We will strengthen the development of geothermal reservoir exploration, drilling, andevaluation/management technologies to shorten the development period and reduce costs ofgeothermal development undertaken by Japanese companies. We will also steadily conduct
evaluation for the practical use of the Enhanced Geothermal Systems (EGS).

➢

Strengthening geothermal resource surveys overseas
We will work to improve geothermal survey technologies and promote the development of domestic
geothermal resources by providing accumulated knowledge from surveys in volcanic belts overseas(that are similar to Japan) to Japanese companies.

(4) Promotion and decarbonization of mineral resource development
Due to the promotion and demand for electric vehicles and renewable energy power plants, demandfor carbon-neutral-relevant minerals (hereafter “CN-relevant minerals”) is expected to increase. We
will actively provide financial support for the exploration and development of CN-relevant minerals,
and steadily conduct exploration overseas. We will also strengthen support for the development of
production technology and metal recycling of CN-relevant minerals.
Specific activities➢

Promoting financial support for carbon neutrality

After appropriate and sufficient risk assessment of a project, we provide equity capital up to a
maximum of 75% for high-risk minerals (rare-earth, cobalt, lithium, nickel and PGM) essential forbatteries (which are a key for electricity and greening). Doing this will lead to stable supply amid
recent dramatically escalating prices and increasing supply risks.
⮚

Support for the development of metal recycling technology
Demand for lithium is expected to increase due to the uptake of electric vehicles. We will promote
domestic recycling businesses contributing to decarbonization by supporting the development ofefficient and economical technology for recovery of high-purity lithium from used lithium-ion
batteries.

➢

Promoting production technology development for CN-relevant minerals
We will work on utilizing unused resources with the objective of diversifying the supply sources ofCN-relevant minerals, and developing lower cost and more efficient production technology with theobjective of strengthening the supply chain for crucial minerals which rely heavily on specificproducing countries.

⮚

Promoting exploration of overseas mineral resources
We will secure potential resources by organizing new exploration projects that focus on rare-earth
elements, nickel, and cobalt, contributing to carbon neutrality and economic security. We will keepon transferring the exploration results to Japanese companies to develop while continuing to explore
for new deposits.

⮚

Investigation of mineral-specific activities based on material flow and supply chain
analysis
We will analyze the supply chain issues faced by each of the CN-relevant minerals and identify
issues to be resolved, to secure a stable resource/raw material supply and strengthen the international
competitiveness of the Japanese industry. We will determine not only the minerals (primaryresource) from mines but also the material flow of the recycled raw materials (secondary resource)in these analyses and extraction of issues. This provides information and data that will contribute to
the investigation of the construction of a recycling-oriented society.

⮚Support for CO2 reduction efforts in projects related to mine pollution prevention forabandoned mines
To reduce CO2 in abandoned mines, we will further promote the spread of passive treatment
technologies (technologies for mine drainage treatment utilizing natural energies to a maximum
extent, such as gravity and microbiological processes) which we have been working on.
Furthermore, we will promote joint surveys of development of low-carbon neutralization reagentsused in the treatment of drainage from abandoned mines and CO2 mineralization using waste rockfrom abandoned mines. In doing so, we will progress towards a low-carbon society while also
controlling mine pollution.

(5) Support for hydrogen and ammonia production etc.
Hydrogen and ammonia must be supplied in a stable and affordable manner like other energy resources
such as oil and natural gas in order to build a hydrogen and ammonia supply system for achievingcarbon neutrality by 2050. Furthermore, to achieve stable supply and decarbonization, it is important
to make consistent efforts in the entire value chain, from production, storage, and shipping toutilization. In this regard, we will conduct a feasibility study of the hydrogen and ammonia value chain
and support a feasibility study of a lignite-derived hydrogen and ammonia production project,contributing to reducing production costs.
Specific activities➢

Support for feasibility evaluations through value chain surveys on hydrogen andammonia and others
We will support feasibility evaluations by conducting commercialization surveys of international
value chains that produce hydrogen and ammonia etc. overseas and import and store them in Japan.
Finding solutions to technical and institutional challenges are necessary for the construction of aninternational value chain. We will develop a favorable business environment for Japanesecompanies operating internationally by having dialogues about technical cooperation with local
companies and about institution/support measures with government/local government, thus
applying our relationships cultivated so far with oil-, gas- and coal-producing countries. In doing
so, we will support the launch of hydrogen and ammonia etc. projects by Japanese companies.

➢

Support for feasibility evaluations of hydrogenation of unused resources, including
ligniteWe will focus on utilizing unused resources, such as lignite, which is an affordable energy
resource, towards establishing low-cost hydrogen utilization and support the evaluation of thefeasibility of unused resources-derived hydrogen projects. We will conduct surveys identifying
potential areas of lignite-derived hydrogen and ammonia production in Asia, including Japan, in
addition to a CCS project that is part of a lignite-derived hydrogen production project in the stateof Victoria, Australia.
Furthermore, considering the ammonia supply to existing coal-fired power plants, we will
evaluate the feasibility of the value chain of lignite-derived ammonia from mines to thermal power
plants in Japan.

➢

Efforts to apply existing tanks for storage of decarbonization fuels
We will support the development of storage of decarbonization fuels in refineries and the importbase of crude oil and LPG (liquified petroleum gas) in Japan by formulating technical guidebook

for storage of methylcyclohexane (MCH) and ammonia in existing floating-roof crude oil tanks andlow-temperature LPG tanks.

(6) Comprehensive support for CCS
Utilizing CCS technology and securing suitable sites for CCS are the issues faced while building ahydrogen/ammonia supply system and decarbonizing thermal power generation to achieve carbon
neutrality in 2050. JOGMEC will strengthen initiatives such as accumulating and strengthening
technical knowledge and examination abilities relating to CCS, evaluating the feasibility of CCS
projects that are integrated with research and development and resource development, andcollaborating with domestic and overseas organizations. Additionally, we will strengthen joint researchand technical studies of CCS projects and support CCS-suitable site surveys.
Specific activities➢

Implementing joint research and technical studies for CCS business feasibility
evaluations
We will promote the enhancement of subsurface evaluations and facility-related elemental
technologies that contribute to the commercialization of CCS, such as improvement of CO2
behavior simulation technologies and development of CO2 sequestration and storage technology.
We will also promote commercialization of CCS for specific fields, such as the development ofhigh-concentration CO2-containing gas fields in Southeast Asia using CCS.

➢

Strengthening cooperation with oil- and gas-producing countries and Asia
We will strengthen relationships with oil- and gas-producing countries through implementing a
training programme for energy transition and zero-emission for these countries where there exist
potential CCS-suitable sites, and from where the supply of blue/green hydrogen and ammonia is
expected. Specifically, this training programme is intended to deepen understanding of the need forfossil-fuel transition/decarbonization and knowledge of new fuels through knowing the latest trends
in technology, the JOGMEC method of CCS institution/CO2 reduction evaluation, market trends ofhydrogen and ammonia, and site excursions to cutting-edge plants producing hydrogen andammonia. We will strengthen and expand relationships with resource countries and conduct training
projects with an expectation of future involvement in specific projects operating with Japanesecompanies and institutional design by people who participated in the training programme.
Furthermore, we will strengthen relationships with Asian countries that have increased
demand for hydrogen/ammonia and a need for CCS. Specifically, we will contribute to achieving
zero-emissions in Asia through an evaluation of CO2 reduction amount in a CCS project and asystem development for business implementation, and promoting development of human resources
to take crucial roles in the hydrogen/ammonia market. Regarding evaluation of CO 2 reduction, we
will contribute to establishing a common methodology in Asia by utilizing JOGMEC’s guidelines(see below for details), published in May 2022, to a maximum extent. Furthermore, using therelationships cultivated by these efforts we will promote the application of our equity capital andliability guarantees support to new projects by technical and feasibility evaluation through the entire
supply chain including blue and green ammonia production in Asia.
➢

Active involvement in and contribution to the construction of evaluation methods,
methodologies, and certification frameworks for CO2 reduction
Verifying the long-term stability of stored CO2 and improving its reliability are required for CCS
commercialization. It is also important to quantitatively show improvement in the environment by
evaluating the amount of CO2 reduction through CCS and carbon intensity, such as LNG, hydrogen,and ammonia.
We formulated and published a “CCS guideline” and a “GHG/CI guideline” in May 2022.
We will utilize these guidelines in our business. Furthermore, we will evaluate CCS projects andthe amounts of CO2 emissions reduction in a way that conforms to reality by advancing informationexchange with related organizations. We continue to work on further improvement of the guidelines
in terms of function and accuracy by enlarging the scopes (for example, inclusion of synthetic
methane) and by considering the CO2 storage amount calculations by CO2-EOR.
We will also investigate methane, whose greenhouse effect is greater than CO2, and actively
participate in and contribute to the construction of decarbonization systems using an assessment
method for carbon pricing systems such as credit systems.

(7) Miscellaneous➢

Reduction of CO2 emissions in stockpiling bases
We will consider further reduction of CO2 emissions from JOGMEC control-facilities. Specifically,
we promote efforts such as surveys of the possibility of utilizing hydrogen in stockpiling bases.