The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPAN24 November 2020
JGA Chair Michiaki Hirose Press conference on 24 November 2020
Summary of remarks

Regarding Prime Minister Suga's declaration "Aiming for a carbon-neutral,
decarbonization society in 2050"<Introduction>
Prime Minister Suga's declaration of "Aiming for a carbon-neutral,decarbonization society in 2050" is very epoch-making and historic. The gas
industry has implemented various efforts to reduce environmental impact, but
we would like to take this declaration as an opportunity to further accelerateour efforts. Since it has not been long since the Prime Minister Suga'sdeclaration, the Japan Gas Association is still in the process of systematic
discussions and consensus building, but I would state my thoughts on thedeclaration.
Since the city gas business started from gas light at Yokohama in 1872, wehave supported people's lives and industry with our business model of"manufacturing gas, supplying it through pipeline, and providing services
according to the needs of consumers". It can be said that the history of city
gas business is the history of various environmental changes, disasters, andcompetition with other energies. This is, so to speak, a history of facing
trials head-on and changing ourselves as the times change, and that is ourDNA.
On the other hand, looking to the future, there are major changes such as
decarbonization, response to frequent natural disasters, and digitization, andthere is an urgent need to reform the social and industrial structures toward1the realization of a sustainable society..
Energy is indispensable regardless of the times, and the sophistication of S +3E is an important issue. Especially in light of environmental compatibility,
Prime Minister Suga's policy of "carbon neutralization in 2050" is anextremely challenging goal. Even in the industrial world, discontinuous
efforts that are not an extension of conventional global warming
countermeasures are required.
Energy is used not only in "electric power" but also in various forms such as"heat", which accounts for about 60 % of energy consumption in theconsumer and industrial fields , and "transportation" . For those reasons, it isimportant to properly use energy in the right place according to the usage
pattern and optimize the energy as a whole.
Furthermore, from theperspective of strengthening resilience, multiplexing energy networks isextremely important . In addition, since energy is the blood that supports lifeand industry, it is necessary to smoothly transition to a decarbonized society
without stopping supply. We, the gas industry, will actively contribute to therealization of a carbon-neutral and decarbonized society in the future in orderto realize such energy diversification, multiplexing and smooth transitions.
1. Toward the realization of a carbon-neutral, decarbonized society(1) Basic concept
Positioning the 30 years up to 2050 as the transition stage, we will promote
the following initiatives.
a) Advanced innovation of gas energy
We will take on the challenge of advanced innovations in gas energy suchas hydrogen, metanation, biogas, and CCUS. We will gradually introduce
these innovations while developing infrastructure, and for the time being, wewill also utilize carbon-neutral LNG and aim to realize carbon-neutral in
2050. There are still many fluid factors, and it cannot be said that it isdefinite. However, as the current target image, we would like to aim for2

introduction of 5 to 20% by 2030, 30 to 50% by 2040, and 95 to 100% by2050.
b) Natural gas shift and advanced utilization of natural gas
In order to reduce cumulative CO 2, we will promote a thorough shift tonatural gas and advanced use of natural gas as an initiative on the demandside .
c) International contribution
In view of the expansion of global use of gas energy such as hydrogen, wewill transfer Japan's excellent gas-related technologies overseas tocontribute to international contribution and improvement of Japan'spresence..

(2) Advanced innovation of gas energy
Through innovative innovation, we will promote "decarbonization of the gas
flowing in the pipe itself". Utilization of metanation technology, which is atypical example, can contribute to the reduction of social costs because
existing facilities such as pipelines and gas appliances can be used. Inaddition, there is a lot of room for development, and we will work on thedirect use of hydrogen, which is a field that will lead to the growth of Japan.
In addition, biogas will be utilized to promote decarbonization of the gasitself.

(3) CO 2 reduction by natural gas shift and advanced utilization
In addition to fuel conversion, we are promoting a shift to natural gas byexpanding demand for new applications such as LNG bunkering. The
adjustability of the renewable energy is expected to be , and also contributeto resiliency enhanced co - expanding the introduction of generator or a fuel3cell or the like distributed energy system, achieving further promotion ofefficiency and Smart Energy System Gas System Therefore, it contributes tosteady CO 2 reduction.

2. Picture of future gas supply
Considering the picture of future gas supply that combines innovation
technology and gas infrastructure, it is assumed as follows.
(1) Coastal area: Constructed a hydrogen grid starting from
A hydrogen grid will be constructed starting from overseas importedhydrogen, and carbon-neutral methane will be manufactured andaccepted in Japan.
(2) Urban areas: Carbon-neutral methane is decarbonized at low cost by
utilizing existing gas facilities.
(3) Region: Carbon-neutral methane and hydrogen are used properly, andlocal production and local consumption are carried out in each conduit
network to revitalize the region.
3 . Challenge to realize a carbon-neutral, carbon-free society
Our challenge for carbon neutralization will also contribute to thedecarbonization of electric power, such as the decarbonization of raw
materials for gas-fired power generation.
To realize such a carbon-free society, "improvement of gas infrastructuresuch as expansion of gas pipeline network", "cost reduction of hydrogen,etc.", "promotion of cooperation with the national and local governments
and other industries"4

<Conclusion>
The gas system can realize not only carbon-free society, but also solve social
issues such as strengthening resilience and contributing to regional
revitalization and can achieve both sustainability and economic development.

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