This document is a translation of the Japanese language original version. In the event of any discrepancy,errors and/or omissions, the Japanese language version shall prevail.

February 1, 2023
To the Press
Idemitsu Kosan Co.,Ltd.
J-Oil Mills, Inc.

Joint Study by Idemitsu Kosan and J-Oil Mills on the Establishment of a
Biomass Business-Circular economy to be realized through co-creation using oil as a link-Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director andCEO: Shunichi Kito; hereinafter "Idemitsu") and J-Oil Mills, Inc. (Head Office: Chuo-ku,Tokyo; President: Tatsuya Sato; hereinafter "J-Oil Mills") have agreed to jointly study theestablishment of a biomass business that produces SAF, recycles plastics, and uses
biochemicals by securing bio-materials, in order to realize a circular economy, and signed
a memorandum of understanding on January 31, 2023.
As a specific measure to reduce CO2 emissions in the aviation industry, there is a growing social
demand to achieve a stable supply of sustainable aviation fuel (SAF). SAF has the multiple technologicalprocesses and raw materials which are derived from non-fossil fuel but one of the challenges is tosecure raw materials that are less competitive with food crops.
In addition, in recent years, the importance of promoting the recycling of plastic resources has been
increasing in response to the ocean plastic waste problem and climate change, and efforts to reduce
plastic usage and waste in the food industry are accelerating.
Through this agreement, both companies will consider the establishment of a biomass business byutilizing their respective businesses, assets, and knowledge. The business includes SAF productionand the establishment of supply chain through the sustainable afforestation of non-edible oilseed rapetrees that do not compete with food and the securing of plant materials by utilizing oil extraction knowhow of J-Oil Mills, as well as the expansion of CO2 fixation relating to the afforestation and the use ofrecycled used plastics and biochemicals made from bionaphtha as packaging materials.

Schematic illustration of a biomass business for the realization of a circular economy

Idemitsu is working to implement diverse and environmentally friendly low-carbon energy, resourcesaving, and circulation solutions in society while fulfilling its responsibility to provide a stable supply ofenergy, mainly fossil fuels including petroleum, under its 2030 Vision "Your Reliable Partner for a
Brighter Future" and 2050 Vision "Shape the Change". As part of this plan, Idemitsu plans to establish
a green supply chain for biomass-derived fuels and chemicals, such as SAF, biodiesel, and biochemicals, by 2030.
J-Oil Mills is developing a wide range of businesses centered on edible oil and fat products, aiming torealize good taste, health, and low burden by extracting value from plant-derived raw materials, in orderto achieve its medium-term business plan "Transforming for Growth" until FY2026 under the vision "Joyfor Life®- Bringing joy to the future by food -". J-Oil Mills has also positioned reducing environmental
burden as one of our materiality, and have set a goal of becoming carbon neutral by reducing CO2
emissions by 50% compared to FY2013 by FY2030 (Scope 1 and 2) and to zero emissions by FY2050.
The two companies aim to quickly realize a biomass business through co-creation using oil, which isindispensable for daily life, as a link, and contribute to the realization of a circular economy.

Contact for Inquiries on this subject
Public Relations Department Public Relations Section, Idemitsu Kosan Co.,Ltd.
URL: https://www.idemitsu.com/en/contact/flow/index.html
Public Relations Group, Corporate Communications Department, J-Oil Mills, Inc.
URL: https://www.j-oil.com/press/