A Focus on Technological Innovation

At Tokyo Gas reseach and development is positioned as a major corporate theme as a means of driving
growth in existing businesses and creating business opportunities. Our main goal is to ensure that Tokyo
Gas maintains its position as the preferred energy supplier. To this end, we must stay on top of a dynamically changing business environment, while placing emphasis on efficiency and profitability through selection and concentration of resources. Three areas have been singled out for R&D in line with this policy.

The Tokyo Gas R&D Organization

R&D DivisionTop Management

R&D Planning
Dept.

R&D Planning Section
Frontier Research InstituteTechnology Policy
Committee

Corporate
Planning Dept.

Technical Planning
Section

Others:Energy Systems
Engineering Dept.
Production Dept.
Information andCommunication
Systems Dept.
etc.

Urban Life Research InstituteIntellectual Property Office
Technology
Development Dept.

Strategic Management Group
Technical Research Institute
PEFC/Hydrogen Project Group

14Gas Appliance Technology Center
Energy Conversion Technology Center
Customer Service Technology Center
Pipeline Technology Center

Developing PEFC Cogeneration Systems
Polymer electrolyte fuel cell (PEFC) cogeneration systems for residential use are seen as a promising new application for
natural gas, but raising thermal efficiency has been a stumbling block. Now Tokyo Gas’ efforts have resulted in thedevelopment of a compact natural gas integrated fuel reformer (a key component of PEFC systems), which achieves
extremely high thermal efficiency of 90% (HHV base). This is the highest documented efficiency in the world. Tokyo
Gas is already supplying this type of reformer to PEFC system manufacturers.
Tokyo Gas is also working to develop technology that will make possible the supply of hydrogen for fuel-cell
powered vehicles of the future.

Handy Remote Methane Detector
Tokyo Gas has developed the world’s first remote methane gas detection equipment that uses supersensitive infraredabsorption spectrophotometry with a semiconductor laser light source. This sophisticated equipment was developed
to make the process of detecting gas leaks more efficient and to raise safety levels. Facilitating simple, instantaneous
inspection, this equipment can detect leaks in confined spaces, at high altitudes and in dark areas where detection
was previously problematic. Tokyo Gas put this detector into operation in the year ending March 2002.

TOKYO GAS Annual Report 2001

Fuel cell systems for residential use
Micro gas turbines technologies
High-performance, gas-fired air conditioning
Highly efficient cogeneration systems
Highly reliable, low-cost, space-saving gas appliances
Technologies with low environmental impact
High-value-added engineering technologies

R&D Targets and Themes

PromoteAdvanced Gas
Utilization

Enhance customer services by taking advantage of the latest
information and communications technologies to enable thedelivery of wide-ranging high-value-added services and gas
and electricity
Development of high-value-added technologies such as13
C-Methane and technologies that lead to the creation of newbusinesses such as hydrogen generators
Research into pioneering technologies that will drive expansion
within the Tokyo Gas Group, including new materials,
electronic devices and biotechnology

Increase Customer
Satisfaction andCreate Profitable
Businesses
Enhance theSupply andOperation
Infrastructure

Technologies to develop more efficient production, storage,transmission and distribution systems
Technologies to increase the safety of existing production anddistribution infrastructures and lower the cost of maintenanceTechnologies such as cutting-edge information technology (IT)that contribute to higher operational efficiency
Technologies for constructing efficient production and supplysystems to prepare for the possibility of using natural gas
sources other than LNG

Promote Advanced Natural Gas Utilization
Prevailing in an era of intensifying competition in the energy sector in Japan will require Tokyo Gas to bolster its engineering
abilities and technological development to assure the continued loyalty of our customers. This will involve developing technologies to make gas appliances increasingly efficient, compact and reliable, safer, less costly, and more environmentally friendly.

Enhance the Distribution and Operation Infrastructure
Meeting society’s demands for the increased use of natural gas as the primary source of energy and strengthening our customer base are our main priorities. To this end, we are developing essential technologies to construct an efficient production,storage, transportation and distribution system.

Increase Customer Satisfaction and Create Profitable New Businesses
In an era of mega-competition in the energy sector, ensuring that customers continue to choose Tokyo Gas as their energy
supplier is a key management goal. It is the driving force behind our push to develop essential technologies to make possible
the far-reaching delivery not just of electricity and gas but also of value-added services that both anticipate customer needs andsatisfy them quicker than other energy providers.

LEFT
Tokyo Gas is using Walk Map, a cutting-edge gas pipeline mapping
system. This system can be used with mobile information terminals.

RIGHT
Tokyo Gas is continuing basic research on methane hydrate as an
option for a future natural gas source.

Annual Report 2001 TOKYO GAS

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