Seven Companies Announce to Conduct Engineering Design Work for Japanese Advanced CCS(Carbon Capture and Storage) ProjectITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter"ITOCHU"), Nippon Steel Corporation (headquartered in Chiyoda-ku, Tokyo; Tadashi Imai, President &COO; hereinafter "Nippon Steel"), Taiheiyo Cement Corporation (headquartered in Bunkyo-ku, Tokyo;
Yoshifumi Taura, President and Representative Director; hereinafter "Taiheiyo Cement"), Mitsubishi HeavyIndustries, Ltd. (headquartered in Chiyoda-ku, Tokyo; Seiji Izumisawa, President and CEO; hereinafter"MHI"), INPEX CORPORATION (headquartered in Minato-ku, Tokyo; Takayuki Ueda, President & CEO;hereinafter “INPEX"), Taisei Corporation (headquartered in Shinjuku-ku, Tokyo; Yoshiro Aikawa, President
and CEO; hereinafter "Taisei"), and ITOCHU Oil Exploration Co., Ltd. (headquartered in Minato-ku, Tokyo;
Takayuki Tsutsumi, President & CEO; hereinafter "CIECO”) announced today that the Tohoku Region West
Coast CCS initiative (hereinafter "the Initiative") that the seven companies jointly proposed, has been
selected by the Japan Organization for Metals and Energy Security (hereinafter "JOGMEC") to conduct“Engineering Design Work for Japanese Advanced CCS Projects” (hereinafter "Work"), a public offeredproject. *1
CCS is positioned as a means for decarbonization that should be fully harnessed, particularly in hard-to-abate
industries*2, to achieve two targets set by the Japanese government: carbon neutrality in 2050 and a 46%
reduction in greenhouse gas emissions (from FY2013 level) in FY2030. To expedite social implementationof CCS, JOGMEC issued a public call for advanced CCS projects in 2023 with the goal of achieving thesuccessful underground storage of domestically-emitted carbon dioxide (CO2) by FY2030. And the Initiative
was selected as one of the first advanced CCS projects in Japan to be eligible for governmental support.
The Initiative involves the concept of using ships to transport CO2 separated and captured at the Nippon
Steel’s Kyushu Works Oita Area and the Kawasaki Plant of DC CO., Ltd., a Taiheiyo Cement Group company,
to candidate storage sites. In FY2023, a feasibility study was conducted relating to the CO2 separation,
capture, transportation and storage, which included identifying technical issues in the overall project as well
as studies on economic viability and public acceptance. *3
The Work selected this time includes Front End Engineering Design (FEED) work relating to the separation,
capture, ship transportation and storage of CO2 and appraisal drilling, as the next phase of the project. *4
Based on the results of the feasibility study mentioned above, basic engineering design work will be carriedout from the perspectives of both technical and economic viability for each element of the value chain withthe goal of starting operations by FY2030.
The seven companies will continue to cooperate with each other to contribute to the realization of asustainable society by aiming for the early social implementation of CCS in Japan.

1

< Roles of Each Company in the Work ><Schedule for the Initiative>2

*1 Details of the announcements made by the Ministry of Economy, Trade and Industry and JOGMEC onJune 28, 2024
 Advanced Efforts for Commercialization of CCS: JOGMEC selects projects as Japanese Advanced
CCS Projects for FY2024 (announced by the Ministry of Economy, Trade and Industry) (Availableonly in Japanese)
https://www.meti.go.jp/press/2024/06/20240628011/20240628011.html
 Advanced Efforts for Commercialization of CCS: JOGMEC selects Nine projects as JapaneseAdvanced CCS Projects (announced by JOGMEC)
https://www.jogmec.go.jp/english/news/release/news_10_00072.html*2 Refers to the industries such as the materials industries in which it is considered difficult to achieve
decarbonization merely by electrification, the introduction of hydrogen, or other means.
*3 Seven Companies Announce to Conduct a Joint Study on Japanese Advanced CCS (Carbon Capture andStorage) Project
https://www.itochu.co.jp/en/news/press/2023/230802.html*4 Overview of Request for Proposal on “Engineering Design for Japanese Advanced CCS Projects” in
FY2024. (March 8, 2024) (Available only in Japanese)
https://www.jogmec.go.jp/news/bid/bid_10_00836.html< For inquiries related to this release >Taiheiyo Cement Corporation
Investor Relations & Corporate Communications Group
General Affairs Department
E-mail．ir-com@taiheiyo-cement.co.jp

3