Core Businesses

4

Other Initiatives

In addition to the initiatives outlined above, Tokyo Gas promotes a number of businesses in its efforts to contribute to the evolutionof a total energy business. Of those businesses, this section contains profiles about smart energy networks, the real estatebusiness and the hydrogen business.

1 Smart Energy Networks
A combination of renewable energy and gas cogeneration system, asmart energy network provides optimum control by means ofinformation and communication technology (ICT) and realizes energy

conservation and reduced CO2 emissions by the comprehensiveutilization of electric power and heat within the network.

At the present time, Tokyo Gas is advancing several projects in collaboration with government and business partners.

Examples ofRecent Initiatives●July 2014

●November 2014

●Future Strategies●

Construction commenced of Smart Energy Center in the wharf district of Toyosu, Tokyo(supply scheduled to begin in fiscal 2016)
Construction of a smart energy network in Japan’s first innovative urban community ina city block area in the northⅠdistrict from the east exit of Tamachi station, TokyoCommence construction of second Smart Energy Center to expand the smart energy network in thenorth district from the north exit of Tamachi station
Initiate commercialization study with a view to business participation in Nihonbashi-Muromachi District
Urban Redevelopment Electric Power and Heat Supply Plan, a smart city project that will be the first inJapan to include a fully developed urban area

Diagram of a Smart Energy Network

Apartment Buildings

Hospitals

・Photovoltaic Power Generation
・Fuel Cell・Photovoltaic Power Generation
・Gas Cogeneration
・Energy Storage System

LNG TerminalBiomassGeneration

Waste Disposal CenterOffice Buildings
・Photovoltaic Power Generation
・Gas Cogeneration・Energy Storage System

Wind Turbine Generation

Information andCommunications Technology
Power Plant

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Tokyo Gas Annual Report 2015

Detached Houses

Commercial Facilities

・Photovoltaic Power Generation
・Fuel Cell・Photovoltaic Power Generation
・Gas Cogeneration
・Energy Storage System

Core Businesses

2 Real Estate BusinessTokyo Gas holds high-potential, large-scale sites in such locations asTamachi and Toyosu in the Tokyo metropolitan area. While limiting
risk, the Company develops its real estate holdings and works toimprove asset value by their effective use. We are installing smart

JR Tamachi Station

New city hub

Residential hubenergy networks, an advanced energy system, in those assets thatare not yet developed and, in concert with efforts to improve asset
value, will promote initiatives as am energy business partner.

Intended location of theTokyo 2020 Olympics andParalympics Athletes’ Village
Toyosu-ohashi Bridge(scheduled to openin fiscal 2016)

HotelOffice

Toyosu Park

Minato Park Shibaura

ToyosuGastenani
Gas Science Museum Station●Pedestrian deckOffice

Day care centerfor children andother facilities

Shijoumae Station

Public district
Shibaura ParkAiiku
Hospital

TGMM Shibaura Project (Provisional Name)

Yurakucho LineHarumi-ohashi
Bridge

Shintoyosu Station

Toyosu New Market(Planed site)
Fujimi
BridgeAriake NorthBridge

Tamachi Station East Exit Northern District Redevelopment Plan
Ariake Tennis no Mori
StationYurikamome
Toyosu Station● Toyosu Ramp

Kiyari Bridge

Intended location ofa Tokyo 2020 Olympics andParalympics Stadium

Tokyo Gas Group site

Toyosu District Redevelopment Plan

晴海大橋

3 Hydrogen Business
Attention has been focused on hydrogen vehicles for their low
environmental impact and as replacements for conventional,
gasoline-powered vehicles. Hydrogen vehicles utilize electric power,
generated by a chemical reaction between hydrogen and oxygen in afuel cell, to drive electric motors. The city gas provided by Tokyo Gas
consists primarily of methane (CH4). Therefore, we are able to extracthydrogen from this gas to create fuel for hydrogen vehicles.
In addition to automotive innovation and reducing the cost of thevehicles, making hydrogen vehicles more widespread necessitatesbringing down the cost of the hydrogen fuel. Tokyo Gas, however,believes that the supply of hydrogen at a stable price will boost themarket penetration of hydrogen vehicles.
In December 2014, as part of the initiatives toward greaterhydrogen utilization in the years to come, Nerima Hydrogen
Station—the first commercial hydrogen station in the Kanto
region—was opened and commenced sales. A hydrogen station
under construction in Saitama City, Saitama Prefecture, is planned tocommence sales during the current fiscal year. We will continue toreview future construction, while monitoring social conditions and themarket penetration of fuel cell hydrogen vehicles.

Ceremony marking the filling of a hydrogen vehicles

Tokyo Gas Annual Report 201536