The 32nd Clean Coal Day International Symposium (2023)
Featured Speech II

Towards Balancing Energy Security
and the Environment~J-POWER’s Initiative: BLUE MISSION 2050~

September 5, 2023
J-POWERJapan's Vision for 2050

Image of Achieving Carbon Neutrality in 2050
(Ministry of Economy, Trade and Industry (METI)) Achieving carbon neutrality by 2050 requires decarbonization of the non-electricity sector, including electrification, inaddition to decarbonization of the electricity sector.
 However, the electrification is difficult for many utilization form in the current non-electricity sector, and the introductionof carbon-neutral fuels and the utilization of carbon recycling are critical.
1.03 billion tons
Consumer
110 million
tons

Non-electricity
Electricity
CarbonremovalIndustry
280 million
tonsTransport
200 million
tonsElectricity
440 million
tons*Figures are for energyderived CO2(Overall GHG emissions: -46%
compared to 2013)*We will continue to challenge ourselvesto achieve a higher level of -50%

 Consistent promotion of energy
conservation through a
combination of regulatory andsupportive measures

Consumer Drastic strengthening of efforts
to realize a hydrogen society

Industry Electrification with decarbonizedelectricity
 Pursuit of new options such ashydrogen, ammonia,
CCUS/carbon recycling Ultimately, carbon removal
technologies such as plantation,
DACCS and BECCS are applied
to sectors wheredecarbonization is difficult

Transport

 Efforts to make renewable energy
the main source of electricity
 Restructuring of nuclear energy
policy Reducing the ratio of thermal
power generation based on thepremise of stable supply
 Utilization of hydrogen andammonia power generation

Electricity

Emission reduction + Removals:
Net zero (- 100%)

 Maximum introduction ofrenewable energy
 Utilization of nuclear energy
 Pursue new options such ashydrogen, ammonia,
CCUS/carbon recycling

Source: “Green Growth Strategy Through Achieving Carbon Neutrality in 2050” METI, June 18, 2021

Electrification

Hydrogen
Synthetic
fuels
Methanation
Biomass

Decarbonizedelectric
sources

Plantation
DACCS
etc.

1

Japan's Vision for 2050

(Non-electricity Sector) Changes in Electrification Rate in Japan
 Current electrification rate in Japan’s non-electricity sector is around 30%, and it is only 46% according
to the government's forecast for 2050.
 In sectors where electrification is difficult, it is important to promote the introduction of carbon neutral
fuels such as CO2 -free hydrogen and CCU.
Approx. 46%(Electrification rate)

Japan
FranceReference values for 2050
presented by the government
Base rate of electrification

・50 to 60%: Renewable energy
UK・Approx 10% : Hydrogen ammonia
Germany ・30 to 40% : Nuclear power andthermal power with CCS

2050
Source: Created by referencing Document 1 from The 53rd Strategic Policy Committee (June 28, 2023), andDocument 1 from The 45th Strategic Policy Committee (July 13, 2021)

2

Japan's Vision for 2050

(Electricity Sector) Trend of Natural Gas Price (1/2)
 The supply-demand balance for fossil resources has been severely disrupted by the unexpected world trends,
such as the crisis in Ukraine.
 As a result, natural gas prices have fluctuated widely worldwide.
Dollar/Barrel

Dollar/MMBtu
JKM (LNG spot price in Asia)[TTF]
August 26, 2022
$99.48*Highest ever

JLC (Japan’s import price)
NBP (U.K. natural gas price index)
HH (U.S. natural gas price index)[JKM]
March 7, 2022
$84.76*Highest ever

TTF (Dutch natural gas price index)
Brent crude oil (right axis)[NBP]
August 26, 2022
$70.44*Highest everJapan's LNG import price*

2016

2017

2018

2019

[HH]
August 26, 2022
$9.30

2020

Source: Document 1 from The 53rd Strategic Policy Committee (June 28, 2023)

2021

2022

2023
3

Japan's Vision for 2050

(Electricity Sector) Trend of Coal Price (2/2)
 Similarly, prices of steaming coal and coking coal have fluctuated widely.
 The important point in energy security is to retain various fossil resources as available options, rather thanrelying on specific resources.
Dollar/ ton

Steamingcoal

Coking coal
Coking coal

Steaming coal

Source: Document 1 from The 53rd Strategic Policy Committee (June 28, 2023)

4

Japan's Vision for 2050

(Electricity Sector) Amount of Power Generated
and Power Composition in Japan Japan is largely dependent on imported fossil resources.
 Power demand is expected to increase in response to increased electrification and telecommunication
capacity, the fulfilment of data centers, and other factors. Therefore, it is necessary to promote efforts todecarbonize fossil resources as well as the expansion of renewable energy in parallel.
Approx. 1,400 TWh(TWh)Hydrogen andammonia
Nuclear1,038.2 TWh
1,000power

934 TWh＋thermal

LNG

power withLNG
Petroleum

Petroleum

500

Coal

CCS

Coal
Nuclearpower
Renewable

Nuclear power
Renewable

Renewableenergyenergyenergy(Fiscal year)

Source: Created by referencing The 6th Strategic Energy Plan, Document 1 from The 45th Strategic Policy Committee (July 13, 2021), andDocument 1 from The 53rd Strategic Policy Committee (June 28, 2023)

5

Japan's Vision for 2050

Approaches toward Carbon Neutrality<WORLD TRENDS>
Division of the world

Climate change
Pandemic

Progress of DX

Fluctuations in resource prices<JAPAN’S TRENDS>
Decarbonization of the non-electricity sector

Decarbonization of power sources
Utilization of nuclear
power, renewable energy,hydrogen, and more

Promotion of electrification
Decarbonization offossil resources

CCS

Utilization of hydrogenfuel, synthetic fuels,
and more

To achieve carbon neutrality by 2050, it is important to take a diverse approachcombining various resources and technologies

J-POWER contributes to the realization of a Carbon-neutral society throughdecarbonization of the non-electricity sector by producing CO2-free hydrogen from fossil
resources, and through power generation using the produced hydrogen.

6J-POWER Group’s Vision for 2050

J-POWER “BLUE MISSION 2050”
Towards a carbon-neutral and hydrogen energy society
We have developed the J-POWER “BLUE MISSION 2050” to achieve carbon neutrality by 2050.
 By combining our experience and integrated technologies, we aim to achieve zero CO2 emissions from our power
generation operations by 2050.
 As a milestone, we aim to reduce our CO2 emissions by 40% (compared with the three-year average from 2017 to 2019)by 2030 *1. We will take up this challenge in stages.
 As one of these challenges, we will contribute to the realization of a hydrogen energy society by producing "CO2-freehydrogen" from coal.
*1: 2030 target was renewed to 46% CO2 reduction compared to FY2013, in line with Japanese Government policy

7

J-POWER Group’s Vision for 2050

ACTION PLAN
CONCEPT
The J-POWER “BLUE MISSION 2050” is making an action plan
based on the priorities of “acceleration” and “upcycling.”
Coal-fired
thermalpowerJ-POWER “BLUE MISSION 2050”

Coal gasification+CCUS/Carbon recycling

CO2-free powergeneration

Power networkCO2-free hydrogen powergeneration*1
Production and supply of CO2-freehydrogen
Renewable energy
Steady promotion of nuclearenergy
Stabilizing power network
Power network enhancement*2*1 Including the use of hydrogen extraction from ammonia for power generation*2 The power network enhancement is an initiative for J-POWER transmission.

Priorities for implementation(priority items)

Acceleration

Upcycle8J-POWER Group's Vision for 2050

J-POWER “BLUE MISSION 2050” Roadmap-46%*1CO2 reduction target-22.5M tons
CO2 emissions from J-POWER’s
domestic electric power business
2020

20250Net emission
Realization of carbon neutral

NegativeEmission

Realization of carbon neutral
Co2 emission from J-POWER’s domestic
electric power business
2030

2040

2050

*1

-9.2M tons
Expansion ofCO2-free
power sources

Renewable energy

Nuclear power

New development on thescale of 1,500 MW globally

Construction and operation of Ohma Nuclear Power Plant

Coal-fired power
plants in Japan

Zero emission
power supply

CCS

Additional new development and upcycling of existing sitesPhase out in order from aging/low carbonization initiatives (expansion of biomass co-firing,
introduction of ammonia co-firing, and more)
Development of businessenvironment, and design andconstruction of facilities

Injection andstorage

Hydrogen power
generation

Demonstration test
in JapanUpcycle (adding gasifier to an existing facilities)

Fuel production(CO2-free hydrogen)Overseasdemonstration test

Utilization in other industries

Stabilization

CO2-free hydrogen
power generation

Expansion of hydroelectric power, J-POWER GENESIS, and distributed energy services

Power network
Enhancement*2

Completion of expansion of New
Sakuma Frequency Converter Station

Contribution to power network enhancement*1 Compared to FY2013 results*2 The power network enhancement is an initiative of J-POWER Transmission.
*The basis of the CO2 emission reduction target has changed to FY2013 results from the average results for three years from FY2017 to FY2019. In comparison to the average results for three years from FY2017 to FY2019, the FY2025 target is -7
million tons, and the FY2030 target is -44%/-20.3 million tons.
*This roadmap will be updated and detailed as needed based on government policy conditions and the progress of industrial development. In addition, we will review the contents as the prerequisites change.

9J-POWER Group’s Vision for 2050

J-POWER GENESIS Vision Overall Concept
Various solid fuels

Wide range ofproductsHigh system scalability

J-POWER GENESIS Core Technology

G
Hydrogen power
generation

Biomass

Japan

CO2-free hydrogen

OtherSolidfuelGasifier

Synthesis
CO2Overseas(coal producing countries)

Biomass

Carbon recycling

Chemicalproducts

CO2
mineralization,etc.

CO2 storage

CO2H2
separation andcapture facilities

Renewable energy
electrolysis

Oil residues

J-POWER GENESIS

CO2-freehydrogen*1(Ammonia, liquefied hydrogen)

Gas Cleaning
Facilities

Coal

CO2-freeelectricity

CO2-freehydrogen*1
CO2 storage

CO2-free hydrogen

Gasification ENErgy & Sustainable Integrated System*Trademark registered*1: CO2-free hydrogen including CO2-free ammonia is a “sector-coupled energy” usable in various sectors such as industry and transportation.

10

J-POWER Group’s Technology that Enables Hydrogen Production

Two types of CO2-free Hydrogen Production Methods from Coal
 Domestic hydrogen production: Import coal from overseas to produce hydrogen domestically and make it CO2-free.
 Overseas hydrogen imports: CO2-free hydrogen is produced in coal-producing countries and transported to Japan➡Although each type of hydrogen production has its own advantages and challenges, such as the selection ofsuitable sites for CCS and economical transportation methods, J-POWER will conduct CO2-free hydrogenproduction in the future through demonstration tests of two types of hydrogen production.

OverseasJapan(coal-producing countries)

Domestic hydrogenproduction

Coal

Coal

Coal

Hydrogenproduction

Hydrogen
supply/Powergeneration

H2CCUS/ carbon recycle
H2OverseashydrogenimportsH2

H2

CoalHydrogenproduction

CO2-free hydrogen

H2Hydrogen
supply/Powergeneration

CCUS/carbon recycling
11J-POWER Group's Technologies That Enable Hydrogen Production

J-POWER GENESIS Vision (GENESIS Matsushima)
 J-POWER takes the first step toward CO2-free hydrogen power generation at the Matsushima site, where we paved the way
for the use of imported coal after the oil crisis.
 By applying the new technology to existing assets, J-POWER reduces the environmental burden at an early point witheconomic rationality while maintaining a stable power supply.
Supercritical Pulverized
Coal-fired Power Generation

Gasification System

From 2021 Environmental assessment procedures: Started
Sep. 2021

Natural gasrefinery
Gasturbine

OxygenCoal

A document on primary environment impact consideration
at the early stage: Sent
Dec. 2021
Opinion of the Minister of Economy, Trade and Industry:
Received
Aug. 2022
The scoping document on environmental impact
assessment: Notified and sent
Feb. 2023
Notice from Minister of Economy, Trade and Industry:
Received(Under construction) A draft environmental impact statement

Boilers

Electricity

GGSteamturbine

Biomass

Gasifier

Electricity
Heat recovery
steam generator
Biomass

Start of operation(tentative)

CCUS*1/Carbon Recycling Ready*1 CCUS: CO2, Capture, Utilization and Storage
Matsushima Thermal Power Station, Nagasaki (current)

Osaki CoolGen, Hiroshima

Wakamatsu Research Institute, Fukuoka

Commercialization

Scaled up

Operation of a larger gasifier (biomass-mixed) anddemonstration test of gas turbine operation with highconcentration of hydrogen

Demonstration test of oxygen-blown coalgasification and CO2 separation and capture

EAGLE Project

From 2026

Ammonia

Flow of research & development on coalgasification technology

2002

Construction to begin(tentative)

Chimney

Coal

From 2024

2013

2016

Osaki CoolGen Project2024

Aiming for CO2-free hydrogen power generation in the futurewith coal gasification technology as a core technology
2026

J-POWER GENESIS

12J-POWER Group's Technologies That Enable Hydrogen Production

Change in Gas Composition due to CO2 Separation and Capture
Gas cleaning outlet
Main components are CO and H2

CO-shift reactor outlet
Convert CO to CO2 and H2Main component is H2

OtherApprox. 5%

OtherApprox. 15%

H2COApprox. Approx.
28%
57%

CO2 Absorption tower outlet

H2Approx.
55%OtherApprox. 15%

CO2Approx.
40%

H2Approx.
85%

CO2 Separation& capture facilities

Gasifier

Combustor

Shift vapor (H2O)

Gas turbine
Shift reactor
CO＋H2O→CO2＋H2

CO2Absorber

Captured CO2CO2CO
299% or
99%以上
more

13

Australia-Japan Hydrogen Supply Chain Project

Outline of Australia-Japan Hydrogen Supply Chain Project J-POWER is participating in a pilot test project of constructing supply chain which produces hydrogen by gasifying brown coal in Australia
and transports it to Japan J-POWER has been in charge of gasification of the brown coal and hydrogen refining facilities*1 utilizing its knowledge of coal gasification.
The hydrogen production started in January 2021 and J-POWER achieved 99.999% hydrogen purity in February. J-POWER conducted
the demonstration test using multiple types of brown coal and biomass-mixed brown coal.
 In April 2022, the supply chain including hydrogen transportation and cargo handling to Japan was accomplished, progressing toward therealization of a society where hydrogen can be commonly used as an energy source.
 Utilizing the results of this demonstration test, J-POWER is currently studying the feasibility of commercialization.

<Overview of the Global Hydrogen Supply Chain>
Browncoal

In charge of J-POWER
Gasification

Hydrogenrefining

Hydrogenliquefaction &loading

MOU on cooperation for the development of a hydrogen supply chain between
Australia and Japan (AZEC Public-Private Investment Forum)

Liquefiedhydrogen sea
transportation

Australia

LiquefiedhydrogenunloadingJapan

Benefits of using brown coal
• Abundant resources• Cheaper than coal

January 2021
Start of hydrogenproduction

Provided by: HySTRA, J-Power/J-Power Latrobe
ValleyFiscal year
HESC demonstration schedule20192020

Design/manufacture/installation/test run

March 2023
MOU on cooperation for hydrogen supply
chain between Australia and Japan

April 2022
Supply chain
accomplished2021

2022

2023

2024

Demonstration test

*1 This demonstration test for brown coal was conducted as a project subsidized by the New Energy and Industrial Technology Development Organization (NEDO), a national research and development organization, while the test for hydrogen refining wassponsored by the Australian federal government and the Victoria state government.
The participants for NEDO-subsidized project are Electric Power Development Co., Ltd.(J-POWER), Iwatani Corporation, Kawasaki Heavy Industries Ltd., Shell Japan Limited, Marubeni Corporation, ENEOS Corporation, and Kawasaki Kisen Kaisha, Ltd.,
while the Australian sponsored project was participated by Electric Power Development Co., Ltd.(J-POWER), JPLV*, Iwatani Corporation, Kawasaki Heavy Industries Ltd., HEA, Marubeni Corporation, Sumitomo Corporation, and AGL Energy Ltd.
*J-Power Latrobe Valley

14

Domestic CCS Projects

Feasibility Study on Large-scale CCS in Japan J-POWER, ENEOS Corporation, and JX Petroleum Exploration Co., Ltd. have been studying thefeasibility to commence a CCS project that separates, captures, transports, and stores CO₂ emitted fromJ-POWER's thermal power plants and ENEOS's refineries in western Japan by FY2030 .
 In February 2023, “West Japan Carbon dioxide Storage Survey Co., Ltd.,” was jointly established by the 3parties, promoting to prepare for commercialization, including exploration and evaluation to selectcandidate sites for CO₂ storage.
 In August 2023, the 3 parties have jointly signed a contract with Japan Organization for Metals & Energy
Security (JOGMEC) for the "Study on the Implementation of Advanced CCS Project" for FY2023.
GasifierPlanGas
refining
facilities

CO2 separationand capture
facilitiesHydrogen
Electricity

CO2

Coal

Electricity

Biomass

BoilerCO2Transport ship

Onshoreintegration hub

Injection
facility

CO2 liquefaction/storage
HydrogenElectricity
Fuel oil
Chemical raw
materials

Oil

Pipeline

Storage site
Various emission sources
such as hydrogenproduction equipment,
distillation units, boilers, etc.

CO2
CO2 separationand capture
facilities

CO2liquefaction/storage

15

Overseas CCS Projects

Participation in CO2 Capture, Transportation, and Storage Projectin Queensland, Australia
 Participated in Glencore’s CTSCo*1 Carbon Capture and Storage (CCS) Project in Queensland, Australia, focusing
on capturing CO2 from coal fired power station, transporting and storing.
 Australia's first CCS project for coal fired power emissions, a demonstration project aimed at technical verificationfrom CO2 capture to storage. The Objective is to store up to 110,000 tCO2 p.a. for 3 years starting from 2025.
 500 million tons of CO2 storage potential is available in the area. This project will contribute to economic
development and job creation by creating new industries for blue hydrogen production in Australia.

Schedule to start storage in 2025
2022

2023

2025

Environmental approval for CO2 storage
Construction of CO2 capture plant

2028
Operation of CO2capture plant
Start to press-inRendered image of the proposed CO2 capture plant andMillmerran Power Station in Queensland, Australia

Project partners*1 Carbon Transport and Storage Company (CTSCo) is a Glencore wholly
owned company. J POWER and Marubeni each funded A$10 million inthis project.

CO2 injection site near Moonie Station in Queensland, Australia

16

Exploring new technologies and businesses

Investment in Nippon Fiber Corporation KK (Ash-related)
 J-POWER has invested in Nippon Fiber Corporation KK, which has a technology to produce continuous
filament yarn called "BASHFIBER®" from ash and slag generated from coal-fired power generation andintegrated coal gasification combined cycle.
 BASHFIBER® has excellent strength, heat resistance and chemical resistance, with the potential to be used
in a wide range of fields as a substitute for existing industrial fibers.
 BASHFIBER® is also expected to be used in the space industry, medical sector, and nuclear industries due
to its resistance to radiation, being capable to add a radiation shielding function.

BASHFIBER®

BASHFIBER® processed into woven fabric17