41st JCCP International Symposium

JGC Group’sInitiatives toward Sustainability- Green Refinery Project 26/Jan/2023
Koji KAGAYAMAJGC Holdings Corporation

Sustainability Co-Creation Department
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Long-term Group Management Strategy：2040 Vision
Enhancing planetary healthPurposeFactors behind the Establishment of the 2040 Vision

Coping with the dramaticallychanging business environment

Our Vision in2040

A Corporate Group that contributes toenhancing Planetary Health via thefollowing 5 business fields

Energy Transformation
Healthcare/ Life Science
Functional Material
Circular Economy
Industrial/ Urban
Infrastructure

Materializing a long-term growth that grasps
social changes
The 3 transformations
contributing to the materialization of the 2040 Vision
Business
Business field expansion that
Oil & Gas focused
copes with energy transformation
FieldsBusiness Model
Organization

EPC Model, Manufacturing
Model
Management in Japan・Execution organizations cateredfor large-scaled EPC projects

Deepening the EPC businessmodel and diversification of nonEPC business models
Regional management structureand strengthening of anenvironment encouraging
innovation

Carbon Neutral in 2050
© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health2

JGC Group’s Medium Term Business Plan (2021-2025)
5 years of challenges

Present（2021～2025）●Advancing into the renewable energy field●Growth of the functional material
manufacturing field●Sowing the seeds for sustainability-relatedbusinesses●Making the energy transition field one of
JGC’s core business fields●Active investment in growing businesses●Building prospective business basisLow/decarbonization
Oil and Gas

Clean Energy

Core
Businesses

Oil & Gas

Renewable Energy© 2023 JGC HOLDINGS CORPORATION

Energy Transition

Functional
materialHealth/ Life Science

CircularEconomy

Industrial/ Urban
Infrastructure​Enhancing planetary healthTimeline3

Placing a Focus on “Value Chain” and “Co-Creation”© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health4Focused Areas
Utilization ofUsed EV Batteries

Plastic Waste Gasification Chemical
Recycling

Utilization ofUsed PV Panels

Plastic Waste Pyrolysis Chemical
Recycling
Fiber recycling

Hydrogen・AmmoniaDX
Carbon CreditsCertification

Used Cooking Oil SAF

CO2 Capture・Utilization・Storage
Quantification of GHG
emission (MRV)
DeCaaS* for Manufacturing
Industry
DeCaaS* for Electric PowerIndustry
GHG : Greenhouse gas

Biogas・Bio LNG

Bio

Biochemical
Forest Resource
Utilization

MRV : Measurement Reporting Verification*DeCarbonizaition as a Service. A general term for services required for a society that maximizes renewable energy© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health5Domestic Approach for Carbon NeutralityEVH2Clean Energy
Carbon recycling
Biomass Utilization
CCS/CCUS
Carbon removalReferred to METI HP© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health

6

JGC’s Approach for Carbon Neutrality - Green Refinery CO2

Carbon Removal

Carbon DioxideSink

GreenRefinery

Biomass
Utilization

EnergyDecarbonation© 2023 JGC HOLDINGS CORPORATION

Material
Decarbonation​Enhancing planetary health7

Material Decarbonation thru Green Refinery
Biomass(Agricultural)

Fermentation
Gasification

Wood
Biomass

Green
Refinery

Ethanol
MethanolOlefinichydrocarbon

Naphtha

Jet Fuel（SAF）
DieselAromatic
Hydrocarbon
BTX
Existing Flow

Flow to Established by GR© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health8

Crude oil to Bio-crude for oil refining
Refinery

ImportedCrude Oil

Addiction
to OilAbove ground resources
http://www.museum.kyushu-u.ac.jp/publications/annual_exhibitions/MINE2001/02/02-02.html

Underground resources

Fast Pyrolysis

Bio-crude© 2023 JGC HOLDINGS CORPORATION

Japan Made Oil​Enhancing planetary health9Value Chain of Green RefineryGreen Refinery

Forestry
Connect

Forest Residues
Forestry waste

Fast Pyrolysis

Biomass Conversion

Connect•••

Feedstock(semi)
ProductsPyrolysis Oil© 2023 JGC HOLDINGS CORPORATIONOil Based Industry

Existing Refinery
Co-processing•••

BTX
NaphthaPropylene

Bio-Chemical
MaterialSAF
DieselBunker

Bio-Fuels​Enhancing planetary health10Approach for Green Refinery Feedstock Securement①Increase the log production②Collect the forest residues
For lumber

25% usage in H29

For plywood

Domestic Supply：
31 million m3

Wood biomass：
2.4 million ton
Amount of woody biomass generated andused(assumption)①

Increase

Forest residues：
10 million ton

Forestresidues

Residues fromlumber mill：
5.0 million tonResidues
from lumber
millWastes fromconstruction

Use
Differential(total - use)
Tx 104 ton© 2023 JGC HOLDINGS CORPORATION

Wood chipproduction②CollectWastes fromConstruction：
5.2 million ton​Enhancing planetary health11

Challenges for Japanese Forestry
LegendOver 30°
15°~30°

Steep slope forest (35° over)
Shortage of forestry manpower
Forestry profitability
Segmentalized forest ownership

3°~15°
0°~3°Slope Map

https://www.skr.mlit.go.jp/road/ir/sir/gyousei/sesaku/seibi/h31pdf/
all.pdf to METI HP

ZoningAutomation

Supply chainmanagement

Forestry x DX
Digitalization

Tree Robot
https://www.fcba.fr/wp-content/uploads/2020/11/fcbainfo-2019-1robotique-exploitation-forestiere-chakroun-loureiromorais.pdf© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health12

Approaches for Forest Residues Collection
Timber Flow
CutForSelling

Transport

Logging

Timbers

Produced 10% 20% of Wood

Forestry

Left in Forest

Working GroupOut of Size

Forest Residues

Branch and Leaves

Obstruction ofAfforestation

POC (Proof of concept) with Local Government© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health13

Sustainable solutions for forestry and oil/chemical industry

Fossil Oil Refining
Oilfield

CO2ProductCrude Oil

Green Refinery
ForestTreeTree Planting

Bio-Crude

CO2 Absorption

Forest resources = Sustainable resources© 2023 JGC HOLDINGS CORPORATION

Japan Made Oil​Enhancing planetary health14

サステナビリティ協創部

JGC Holdings Corporation
Sustainability Co-Creation
Department

Koji Kagayama
kagayama.koji@jgc.com

We accelerate the realization of carbon neutral society bycompleting and commercializing immature technologies
through collaborative creation with partners.
© 2023 JGC HOLDINGS CORPORATION​Enhancing planetary health