Status of Sustainability-oriented
Business Development
Masahiro Aika
Senior Executive Officer, General Manager,
Sustainability Co-Creation Department
JGC Holdings Corporation

Contents

01

Overview

02

Recycling initiatives

03

CO2 emission control and utilization initiatives

04

New energy initiatives

05

Future policies© 2021 JGC Group

01

Overview© 2021 JGC GroupOverviewGroup environmental initiatives
Construction of plants andfacilities that contribute to lower
environmental impact

Materiality

Societies in Harmony with theEnvironment

Functional materials
manufacturing for lowcarbon and environmental
purposesCommercialization ofenvironmental technologies© 2021 JGC GroupOverview

Framework
JGC Corporation
Process Technology
Division

Consulting

Group-wide
promotion ofcommercializationJGC CorporationJGC Holdings
CorporationJapan NUS

Research &Development
CenterSustainability Co-Creation
Department

FunctionalMaterials
Manufacturing• JGC C&C
• Japan FineCeramics

JGC Japan
Corporation
Strategic Planning
Office© 2021 JGC GroupOverview

Co-creation with other companies

External partners
 Companies in Japan and overseas
 Joint ventures
 Universities, research institutes
 Government agencies,
municipalities

Also applying othercompanies' technologies tobuild value chains and create
new businessTechnology【JGC Group】

Expertise

Expertise
Licensing

ConsultingHR

Technicaldevelopment,scaling up

Co-creation

Equipment
production, sales

Funds

Technology

Manufacturing,
sales

HR

Facility
maintenance

Design andconstruction ofproduction facilities

Funds© 2021 JGC GroupOverview

Fields of interest
Recycling••

Waste plastic recycling
Sustainable aviation fuel (SAF)

CO2 emission control and utilization•••

Carbon dioxide capture and storage (CCS)DDR membranes
CO2 mineralization

New energy•

Hydrogen (ammonia)

Other fields of interest-Bio
Energy management
Green chemicals, etc.
© 2021 JGC GroupTM02Recycling initiatives© 2021 JGC GroupRecycling initiatives

Waste plastic gasification chemical recycling
Overview•••

The Ebara Ube Process (EUP) was developed by Ebara Environmental
Plant Co., Ltd. and Ube Industries, Ltd. Plastic waste is gasified withoxygen and steam to produce syngas for use in synthesis of chemicalproducts.

•Various products

Waste plastic gasification technique with the world's only long-term
track record of commercial operation, at the Kawasaki Plant of Showa
Denko.

Rubberproducts
Plasticproducts

Relicensing agreement concluded in October 2020. Toward further use ofEUP, we will promote licensing and facility construction.

Competitive advantages•

Plastic waste

One of the few processes that can break down, at the molecular level,
mixed plastic waste and plastic with impurities, which are physicallydifficult to recycle.
Supports production of a broad range of products such as hydrogen,ammonia, and propylene.

Plastic collection

Synthetic
fiber

Fuel cellvehicles
Power
generation

Gasification

Production

Chemicals(Ammonia, ethylene,propylene, etc.)
Chemicalsynthesis

Chemicalplants

Market scale
Projected total global amount of plastic for chemical recycling2020: tens of thousands of tons/year ⇒ 2030: nearly 50 million tons/year

Syngas

Source: How plastics waste recycling could transform the chemical industry, McKinsey & Company© 2021 JGC GroupEUP process

Recycling initiatives

Production of sustainable aviation fuelOverview•••

We are accelerating the establishment of both a system to produce
domestic SAF as a next-gen aviation fuel from hydrogenated waste
cooking oil and the corresponding value chain.

We are evaluating business feasibility in fiscal 2020 toward operation ofproduction facilities and full-scale commercialization around 2025.
Meanwhile, we are also involved in producing SAF from waste plastic.

Participant strengths and roles••••

Strategy•

Network that recovers used cooking oil
Expertise in biodiesel production

Proposal and construction of economical
production facilities, applying an extensive trackrecord in plant construction
Wealth of experience in sales and supply of energy
products and operation of related facilities

Early commercialization at scale; enjoy first-mover advantage

Market scale
Projected SAF demand in Japan
2020: 0 L/year ⇒ 2030: nearly 340,000 kL/year(JGC estimate, assuming introduction of SAF that has the effect of reducing CO2 by 70%, and with SAF
contributing half of the required amount of CO2 reduction relative to the required amount of international flightrefueling in Japan.)© 2021 JGC Group03

CO2 emission control andutilization initiatives© 2021 JGC GroupCO2 emission control and utilization
Building on array of supporting technologies andpast achievements
HiPACT chemical
absorption method

Separation,
recovery

Source: Naftna Industrija Srbije (NIS)

CO2 separation using DDRtype zeolite membranes

Resource
recoveryCO2 mineralization

CCSSequestration

Direct use(underground CO2storage)CO2-EOR
Enhanced Oil
Recovery

Crude oilOil reserve© 2021 JGC GroupCO2 emission control and utilization initiatives

Carbon dioxide capture and storage (CCS)JGC CCS achievements
Country

Plant

CompletedHighlights

BP Exploration (In Salah)Ltd./Sonatrach

Algeria

Natural gas processing

2004

World’s 2nd CCS plant at a natural gas processing
site

Gorgon JVAustralia

LNG plant

Not disclosed

One of the world's largest CCS projects

Naftna Industrija Srbije (NIS)

SerbiaNatural gas processing

2015

Applies HiPACT® co-developed with BASF(licensed)

Tomakomai,
HokkaidoOil refinery(hydrogen productionfacility)

2016

First large-scale CCS in Japan

ClientJapan CCS Co., Ltd.

In Salah natural gas plant

Gorgon LNG plant

Tomakomai CCS facilities© 2021 JGC GroupCO2 emission control and utilization initiatives

Carbon capture and recovery using DDR-type zeolite membrane
Overview••

Original CO2 separation technology applying DDR-type zeolite
membranes has been developed with NGK Insulators.

Large-scale field testing has been underway in U.S. since 2020. We
are planning to apply this at commercial plants after testing.

Strategy•

Higher CO2/CH4 selectivity compared with conventional polymeric
membranes, promising in CO2-EOR (enhanced oil recovery) by highoperation durability in high-pressure and high CO2 concentration.

Market scale
U.S. CO2-EOR demand forecast

NGK Insulators, Ltd.

DDR-type zeolite membrane

2020: Approx. 500,000 barrels/day ⇒ 2030: Approx. 1.4 million barrels/day(Source: USDepartment of Energy "Carbon Capture, Utilization, and Storage: Climate Change, Economic Competitiveness, and Energy Security"© 2021 JGC GroupCO2 emission control and utilization initiatives

CO2 mineralization
Overview••

Current initiatives: Two NEDO-commissioned projects

Method of extracting calcium and magnesium from waste materials(such as waste concrete and seawater/waste brine*) and combining it
in a reaction with CO2 from thermal power plants or the like toproduce carbonates.
Carbonates are a useful raw material in industrial products and also
serve as a construction material.

••

Development of an accelerated carbonatization process using calcium
and the like in industrial waste, such as waste concrete
Development of CO2 fixation technique using seawater and wastebrine that also produces valuable resources*Waste brine: Desalination wastewater that is twice as concentrated
as seawater. Highly saline.

Thermal power plant

CO2Waste concrete, seawater,waste brineCalcium,magnesium

CO2 mineralization plant

Carbonates© 2021 JGC Group04

New energy initiatives© 2021 JGC GroupNew energy initiatives

Hydrogen (ammonia)
Compatible with all hydrogen carriers. Ammonia is a significant forte of ours.

Comparison of main hydrogen carriers
Carrier
Liquid hydrogen

LOHC (organic hydride)

Advantages•••

Ammonia••

Pure hydrogen (100%)
Can be stored/transported at normalpressure and temperature; easy tohandle
Highest hydrogen density (121 kgH2/m3)
Can be combustible directly without
CO2 emissions
Large commercial supply chain
already establishedIssues

JGC Technologies•

Extremely low temperature of -253°C
makes it difficult to be handled•

Cryogenic technology applying
expertise with LNG•

Low hydrogen density (47.3 kg-H2/m3for MCH)•

Hydrogenation/dehydrogenation
processing technology•

Hazardous; must be handled with care••

Green ammonia synthesis process
New ammonia synthesis catalystsTM© 2021 JGC GroupTM

New energy initiativesAmmoniaOverview•••

Competitive advantages

Hydrogen as ammonia can be transported and stored efficiently;
supply chain has already been established•

Can be used directly in power generation, marine engine or otherapplications; no CO2 emissions from combustion

Determined to be an optimal hydrogen carrier for mass consumption
and transportation••

Market scale

World's first successful demonstration of a green ammonia value
chain – with hydrogen from solar-powered water electrolysis,ammonia synthesis at low temperature and pressure, and power
generation by an ammonia gas turbine (47 kW)

Participated in a blue ammonia pilot program that produces ammonia
from fossil fuels and offsets CO2 with CCS; have knowledge andtechnology in both green and blue applications
Have received FS/FEED inquiries for multiple hydrogen and ammonia
production projects in Japan and overseas

Projected fuel ammonia demand in Japan
2020: 0 tons/year ⇒ 2030: Approx. 3–5 million tons/year
Source: Ammonia Roadmap, Clean Fuel Ammonia Association

Normal pressure (1 barA)
Solarpower

Waterelectrolysis

HydrogenAmmonia synthesis

Compression

NitrogenAmmonia synthesis pilot projectfacility

Technology developed: Low
pressure (< 80 barA)(Conventional technology: Highpressure (200 barA))

Developed a new ammonia synthesis catalyst
that is highly active at low temperature andpressure; greatly reduces the energy needed© 2021 JGC Group

05

Future policies© 2021 JGC GroupFuture policies
Accelerate efforts to create new business•

Key areas: waste plastic
gasification and hydrogen(ammonia)•Focus on securing FEED and EPC orders for waste plastic gasification chemical
recycling and hydrogen (ammonia) projects that we expect to lead to newbusiness at an early stage.
Propose plans to clients that combine CO2 separation and capture technology
with the existing LNG supply chain, and aim to secure orders for FEED and EPC
in related projects.

Find and nurture the seeds of future environmental business•As seeds of new business besides waste plastic gasification, hydrogen(ammonia), and CCS, promptly implement technical development, verification,and business feasibility evaluation for CO2 mineralization, next-gen aviationfuel (SAF), and DDR-type zeolite membranes, among others.

•Also sow seeds for other business such as bio, electricity management, andgreen chemicals.

•Venture into certification, LCA, and trading in preparation for the introductionof carbon pricing.
© 2021 JGC Group