New Corporate Vision andEnvironmental Targets for 2035

JERA Co., Inc.
May, 2022© 2022 JERA Co., Inc. All Rights Reserved.

New Corporate Vision for 2035
MissionTo provide cutting edge solutions to the world’s energy issues

New Corporate Vision for 2035 (Newly established)

再生可能エネルギーと低炭素火力を組み合わせたクリーンエネルギー供給基盤を提供することにより、アジアを中心とした世界の健全な成長と発展に貢献する
To scale up its clean energy platform of renewables and low greenhouse gas thermal
power, sparking sustainable development in Asia and around the world

Reference: Corporate Vision for 2025 (Established in April 2019)
Global leader in LNG and renewables,sparking the transition to a clean energy economy

Page 1© 2022 JERA Co., Inc. All Rights Reserved.

JERA Initiatives Looking Toward 2035

Current2035

GrowthContributing to developmentin Asia and around the world

Stable Supply

Replacement

Clean energy platform

LNG-firedpower plants
Coal-fired
power plants

Hydrogen co-firing
Conversion to dual firing using
non-fossil fuels

Ammonia co-firing

Address
intermittency*Expansion ofrenewable energy

Renewable energy*Address the two intermittencies of renewable energy(1) Daily output fluctuations due to expanded use of variable renewable energy(2) Weekly or monthly variations in supply-demand due to weather conditions
such as intermittent cloudy and windless periods

Page 2+ Optimization+ Digitalization

Decarbonization© 2022 JERA Co., Inc. All Rights Reserved.

Securing Human Resources to Achieve the New Corporate
Vision for 2035
Efforts to secure human resources (recruitment and development)• Hiring of new graduates started(approximately 100 in FY 2022)• Expansion of mid-career recruitment
focusing on high level specialists(approximately 130
Expansion ofemployees in FY 2021)
new graduates/mid-career
recruitment

Improvement of
human
resources
value• Establishment of a system forindependent career development• Local hiring of approximately 300
employees at overseas bases(as of April 2022)
Borderless
utilization ofhuman
resources
Promotion ofdiversity &inclusion• Introduction of job-based HR
system that provides marketlevel compensation and pays forperformance

Page 3• Borderless utilization of humanresources at both headquarters
and overseas bases•

Promotion of diversity andinclusion with the vision of"ensuring the happiness of
all employees and theirfamilies" and "accelerating
growth that enhances
enterprise value"© 2022 JERA Co., Inc. All Rights Reserved.

JERA Environmental Target 2035

JERA Environmental Target 2035 for its Business in JapanJERA aims to reduce CO2 emissions from domestic operations by at least 60% (relative to FY2013) by FY 2035 through the following:
・ Given the expanded adoption of renewable energy based on the national government’s 2050 carbon
neutral policy, JERA will strive to develop and adopt renewable energy in Japan.
・JERA will work to reduce carbon emission intensity from thermal power generation by promotinghydrogen and ammonia co-firing.
"JERA Environmental Target 2035" is premised on consistency with policy and on the business environment under which it will be realized.

Page 4© 2022 JERA Co., Inc. All Rights Reserved.

“JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan”
and “JERA Environmental Targets for its Business in Japan”
JERA Zero CO2 Emissions 2050 Roadmap for its Business in Japan (Updated in May 2022)
By 2030

By 2040

Shutdown ofInefficient Coal
Power Plants
Co-Firing withAmmonia
Co-Firing withHydrogen*Zero CO2 Emissions Thermal Power
GenerationAction Period Leading to Achievement

Renewable
EnergyReduce carbon emission intensity ofthermal power plants by 20% basedon the long-term energy supplydemand outlook for FY 2030 as set
by the government

actual coal power plant(Hekinan Thermal PowerStation)

Verify stable
operation of actual
power plant▲20%

Challenge Period Leading to Achievement

By 2030
By 2035
Shut down all ofJERA’s inefficient(supercritical or less)coal power plants

Start operation at 20%
co-firing rate

Demonstration in an

Demonstration

CO2Emissions
Intensity

By 2050

Detailed decision based on theresults of the demonstration

2030s
Start Operation at 50%
co-firing rate

Resolving Technical Issues (Selection of Hydrogen Carriers)
2030s
Select the most technically and economically suitablehydrogen carrier from among ammonia, liquified
Start Operationhydrogen, methylcyclohexane (MCH), etc.

Promote development centered on offshore wind power projects
Support adoption using storage batteries

CO2Emissionsof at least

ZERO
CO2Emissions▲60%

Virtually zero CO2 emissions
from JERA’s operations in JapanExpansion ofco-firing rate

2040s
Shift to thermalpower plants
using 100%
ammonia as fuelthrough power plant
replacement

Expansion of
co-firing rate

By 2050, CO2 emitted frompower plants using fossil fuels isoffset using offset technology orby CO2-free LNG

This roadmap will be gradually developed in greater detail based on relevant conditions such as government policies. JERA will revise the roadmap when relevant conditions change significantly.
*The use of CO2-free LNG is also being considered.

JERA Environmental Target 2030

JERA Environmental Target 2035

JERA is actively working to reduce CO2 emissions. In its domestic operations, JERA willachieve the following by FY2030:➢ Shut down all inefficient (supercritical or less) coal power plants and conduct
demonstration tests of mixed combustion with ammonia at high-efficiency (ultrasupercritical) coal power plants.
➢ Promote the development of renewable energy centered on offshore wind power projects
and work to further improve the efficiency of LNG thermal power generation.
➢ Reduce carbon emission intensity of thermal power plants by 20% based on the long-term
energy supply-demand outlook for FY 2030 as set by the government.

JERA aims to reduce CO2 emissions from domestic operarions by at least 60%(relative to FY 2013) by FY 2035 through the following:➢ Given the expanded adoption of renewable energy based on the national
government’s 2050 carbon neutral policy, JERA will strive to develop andadopt renewable energy in Japan.
➢ JERA will work to reduce carbon emission intensity from thermal power
generation by promoting hydrogen and ammonia co-firing.

Page 5JERA Zero CO2 Emissions 2050 Roadmap and JERA Environmental Targets are premised on steadyadvances in decarbonization technology, economic rationality, consistency with policy, and thebusiness environment under which they will be realized.

© 2022 JERA Co., Inc. All Rights Reserved.

Specific Initiatives for Decarbonization
To achieve the JERA Environmental Targets, JERA aims to develop decarbonization technologies in the following timeline:◼ A demonstration test with an ammonia co-firing rate of 20% will start at Hekinan Thermal Power Station Unit 4 by
FY2024, and another demonstration test with a co-firing rate of at least 50% will be conducted at Hekinan ThermalPower Station Unit 5 by FY2028. JERA aims for commercial operation at the same co-firing rate.
◼ A demonstration test of with a hydrogen co-firing rate of 30% (by volume) using JERA's gas turbine combustor will be
conducted by FY2025 with the aim of commercial operation in the mid 2030s.
By 2030
FY2024Co-firing rateof 20%

Construction
work fordemonstration

By 2035

By 2050late 2020s
Construction workfor commercial
operation

Start of commercial
operation

Demonstration test

Co-firing rate of 20%by FY2028

Ammonia

Co-firing rateof at least

Development of burner/construction work for demonstration

50%

early 2030s
Construction workfor commercial
operation

Start of commercial
operation

Demonstration test
Co-firing rate of at least 50%
100%
ammoniausage

Development of boiler / gas turbine for100% ammonia usage100%

mid 2030s

by FY2025

HydrogenCo-firing/100%

Construction
work fordemonstration

Expansion of co-firing rate / technological development forenlargement

Start of commercial
operation

Demonstration test
Co-firing rate of 30%(by volume)
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