Special Lecture III at the 33rd
Clean Coal Day International Symposium (2024)

Towards Balancing Energy Security
and the Environment
J-POWER BLUE MISSION 2050

September 2, 2024
J-POWERGlobal energy trends

Energy Transition
Improvement and optimization
under conventional sources ofenergy
20th century

Cycle driven by global dynamics

Transition to new energy
sources and establishmentof infrastructure

World War I&II

Coal/Biomass

Fluid revolution
Oil-fired・The golden age of oil
Scale-up, energy saving, and lower
pollution↓Reduced costs, matured technologies↓Wider use of oil(e.g., petrochemistry)

Late 20th toearly 21stcentury

1973 Oil Crisis (Fourth Middle East War)1978 Oil Crisis (oil strikes)
1980-88 Iran-Iraq War
Supply chain
development

LNG-fired・Coal/Biomass → Oil

Fuel diversification
・Liquefaction of Natural Gas(LNG)
・Revival of coal・1971–1973 JERA Minami-Yokohama PS

Coal-fired
・1981 J-POWER Matsushima PS

21st century
onwardSupply chain
development

Capacity scale-up, high efficiency, andenvironment-friendly↓

Reduced costs, matured technologies↓Global warming and climate change
1997 COP 3 in Kyoto
2015 COP 21 in Paris
Digital transformation andthe AI Revolution

Diversity of fuels, rise in power
consumption

?

Today
Carbon neutrality
・Renewables and nuclear
・Abated thermal

1Global energy trends

GDP, Population, Energy Demand, CO2 Emissions⚫ Over the past 50 years and more・Even today, GDP, population, energy demand, and CO2 emissions have all continued to increase globally.
・The following figure indicates the order;
Population < Energy-related CO2 emissions < Demand for primary energy < GDP PPP.
・The dashed line(black color) in the figure represents the “Share of fossil fuels” in the primary energy basket, which

has never less than 80% in the past 50 years. == Decarbonization has no progressed in the past 50 years.

GDP PPP
Demand for primary energy
Energy-related CO2 emissions
Population
Share of fossil fuels (RHS)

Source: The graph was created based on IEA World Energy Balance 2023.
2

Global energy trends

Share of Primary Energy Supply by Source⚫ Over the past 50 years and more, the descending order of share among sources has remained the same—namely, oilat the top, followed by coal, gas, renewable energy, and nuclear energy.
⚫ Reasons may include economic efficiency, convenience, substitutability, and in addition to the lock-in effects ofdistribution infrastructure.

Oil
Coal
Gas
Renewable energy
Nuclear

Source: The graph was created based on IEA World Energy Balance 2023.
3

Global energy trends

Global Energy Demand by Source⚫ Primary energy demand in the OECD countries has been declining since the 2000s. Demand for coal has mainly declined.
⚫ Primary energy demand of Non-OECD countries continues to increase and has risen sharply since the 2000s. All fuels areon the rise, especially coal.
⚫ OECD countries have policy for decarbonization, advocating "eliminating the use of fossil fuels, especially coal," but for
Non-OECD countries, this is an unrealistic proposition.

Other renewablesources
Biomass and waste
Hydropower
Nuclear
Gas
Coal
Oil

Source: The graph was created based on IEA World Energy Balance 2023.
4Factors influencing energy supply and demand

Global Energy Dynamics and Fuel Prices⚫ Geopolitical risks related to fuel procurement are increasing due to factors such as Russian invasion of Ukraine, theworsening situation between Israel and Palestine, and conflicts or disasters in key maritime transportation routes like theRed Sea and the Panama Canal.
⚫ Although fuel prices, which spiked in 2022, have since decreased, but their values remain about two to three times higher
than in the late 2010s.
⚫ Investment in upstream development of fossil fuels is declining and it is expected that fuel price volatility will increase inthe future.
Russian invasionof Ukraine＜Major causes of energy insecurity＞
Worsening IsraelPalestine conflict

Equipment failures at LNG
plants in the United States(Since Feb. 2022)(Jun. 2022–Feb. 2023)(Since Oct. 2023)

Traffic restrictions throughthe drought-hit Panama Canalcaused by water shortages

Houthis' attacks onships in the Red Sea(Since around Nov. 2023)(Since around Oct. 2023)

Reroutingaround the Cape of Good Hopeaway from the Red Sea(longer distance and higher costs)(dollars/ton)

Red Sea

Strikes at LNG plants
in Australia(Sep.–Nov. 2023)

PanamaCanal

Cape ofGood Hope

Change in coal market prices
Fuel coal from South Africa
Fuel coal from Australia

Prices remain twice or thrice
higher than in the late 2010s.

Ships face wait times or
are rerouted around theCape of Good Hope(longer distance and higher costs)(dollars/MMBtu)

Change in market prices of natural gasand LNG
TTF (Europe)
JKM (Asia)

Prices remain two or three times
higher than in the late 2010s.

Source: Commentaries on Energy White Paper 2024 (June 2024)

5

Factors influencing energy supply and demand

Outlook for Power Demand in Japan with Ongoing Digital
Transformation and the AI Revolution⚫ According to a forecast by OCCTO for the next decade, household sector power demand will decrease due to populationdecline, power saving and energy conservation. In contrast, the industrial sector demand will significantly increase due tothe construction and expansion of data centers and semiconductor factories (refer to left figure).
⚫ In total, Japan’s power demand is expected to increase 1.35 -1.5 times the current level by 2050 (refer to right figure).

Forecast power demand in Japan

Forecast power generation in Japanx 100 TWh
Forecast
Construction andexpansion of data centersand semiconductor
manufacturing plants

Possible increase fromdigital transformation
driven by generative AI, etc.

ca. 1,350–
1,500 TWh*2

ca. 1,000 TWh*1

Current forecast
Last forecast- Reduction in remote work
- Power saving and energy
conservation*The graph was created based on Demand Forecast for Japanand by Serviced Region 2024 by the Organization for Crossregional Coordination of Transmission Operators (OCCTO).

(FY)*1: The forecast is based on the Comprehensive Energy Statistics and Sixth
Strategic Energy Plan.
*2: The reference value is based on power generation estimates by RITE presented
at the 43rd meeting of the Strategic Policy Committee.

Source: Commentaries on Energy White Paper 2024 (June 2024)

6

J-POWER BLUE MISSION 2050

J-POWER “BLUE MISSION 2050”
Realizing a Carbon-neutral and Hydrogen Society

J-POWER has defined the mission which will achieve Carbon-neutral by 2050
as “BLUE MISSION 2050”.
⚫ J-POWER Group brings together a wealth of experience and technologies to reduce the CO2 emissions causedby power generation to zero by 2050.
⚫ The group has set a milestone to reduce CO2 emissions by 46% in 2030.
⚫ To fulfill this mission, J-POWER Group will contribute to the realization of a hydrogen-based society through theproduction of CO2-free hydrogen from coal.

7J-POWER BLUE MISSION 2050

Roadmap for Achieving Our Mission⚫ J-POWER is on track to achieve its CO2 emissions reduction target by 2030. The group will accelerate this with further
initiatives with an eye to 2050.

Net zero emissions
CO2 reduction target-22.5 million tons

Carbon neutrality

CO2 emissions from J-POWER's
domestic power generation business

CO2 emissions from J-POWER's domestic
power generation business-9.2 million
tonsGreater deploymentof CO2-free powersources

Renewable energy

Nuclear power

Domestic coal-firedthermal power

Push for zeroemission powersourcesCCS

4 billion kWh/year increase in power
generation in Japan
Development of new sources around the world

Start of construction and operation of the Ohma Nuclear Power Plant

Phasing out aged power
plants one after anotherLow-carbon initiatives(Greater deployment of biomass co-firing andintroduction of ammonia co-firing, etc.)

Development of businessenvironment, design andconstruction of facilities

Injection andstorage

CO2-free thermal power generation(Hydrogen, ammonia, IGCC + CCS, biomass
co-firing + CCS, etc.)Upcycling

Hydrogen power
generation

Demonstration tests in Japan

Fuel production(CO2-free hydrogen)

Consideration of overseas
commercialization

Stabilization

Further development of new sources, upcycling atexisting sites, maximum utilization of existing assets(Adding gasifiers to theexisting assets)
Utilization in other industries

Improvement in load following capability through the use of hydropower and upcycling (adding gasifiers
to the existing assets), and the expansion of distributed energy services

Power networks
Enhancement*2*1 Compared to the actual emissions in FY2013.

Enhancement completed with NewSakuma Frequency Converter
Station and other facilities

Contributing to enhancement of power networks*2 The power network enhancement is an initiative of J-POWER Transmission Network.

8J-POWER BLUE MISSION 2050

Reshaping J-POWER’s Business Portfolio In Line
With J-POWER BLUE MISSION 2050
⚫ J-POWER Group is steadily expanding its renewable energy businesses, developing the Ohma Nuclear Power Plant, and ispressing ahead with the necessary transition for thermal energy to reshape its portfolio to mainly base its business operations
on carbon-neutral assets in the 2030s.
Business portfolio at the end of FY2023

Business portfolio in the 2030s
Seeking to expand
into adjacent areas

Ohma NPP

Renewableenergy in Japan

5,210

Japan CO2-free
power sources*1

Overseas renewableenergy 1,030

Overseas
CO2-freepower sources

Transmission
andtransformation*2

1,720

Overseas gas-fired
power generation(including some coal-fired
power generation)

New lines ofbusiness

3,850
Adjacent power-related
interests in natural resources

Transmission
andtransformation*2730
Coal-fired power
generation at aging
plants 470
The size of each bubble represents the total value of relevant fixedassets in the business department (in hundreds of millions of yen)

Carbon-neutral assets

Overseastransitionalpowersources

6,840

Thermalpower generationin Japan

Transitional assets

Coal assets

Assetreplacement

Transitionalpowersources inJapan

Adjacent powerrelated interests innatural resources
Thermal power
generation in Japan

Non-operational assets*1 Domestic renewable energy, CO2-free thermal power, and Ohma NPP *2 Transmission and transformation business is an initiative of J-POWER Transmission.

9J-POWER BLUE MISSION 2050

Direction of Our Thermal Power Generation Transition in Japan⚫ A low-carbon or decarbonization is pursued by ensuring a reliable power supply with fading out inefficient coal-fired power
plants by 2030 and choosing the right abated technologies applicable for highly efficient thermal power plants considering
their site characteristics.

This plan will be updated, reviewed, and refined as needed according to the government's policies towards green
transformation (including the energy master plan, global warming mitigation measures, and NDC), the balance of power
supply and demand, the designed electricity system, the progress in industrial development, and other conditions.

Intended transition
Isogo Thermal PowerPlant

Takasago Thermal
Power Plant

Takehara Thermal
Power Plant

Tachibana-wanThermal Power Plant

Intended transition

Unit 1

Hydrogen

Unit 2

Hydrogen

Unit 1

To be decommissioned

Unit 2

To be decommissioned

Matsuura Thermal
Power Plant

Unit 1More biomass co-firing + CCS

Unit 3To be discontinued or made intoa reserve power source

Unit 1

Matsushima Thermal
Power Plant

Ishikawa Coal-fired
Power Plant

To be decommissioned at the end of
FY2024

Unit 2

Addition of a gasifier

Unit 1

To be discontinued or made intoa reserve power source

Unit 2Ammonia/CCS

Unit 1

Unit 2

Kashima PowerStationAmmonia co-firing

Unit 1

Unit 2Ammonia

Unit 2

New site
Hydrogen/ammonia

Ammonia co-firing
Ammonia10J-POWER BLUE MISSION 2050

GENESIS Matsushima Plan
⚫ Commercial application of the technology verified in the Osaki CoolGen Project combined with the upcycling of an existing
unit with an additional gasification system⚫ As a first step toward power generation with CO2-free hydrogen, the plant is aiming to be Japan’s most advanced carbon-freethermal power plant.
First step toward CO2-free hydrogen power generation
Supercritical pulverizedcoal-fired thermal plant

Gasification system

Gas clean-up unit
BoilerOxygenGas turbine

Electricity

Coal

Steam turbine
BiomassElectricity
Gasifier

Heat-recovery
steam generator

Stack
Matsushima Thermal Power Plant (current)

Coal

Biomass Ammonia

Preparation forstarting construction

Announcement ofimplementation
Environment assessment
Start of procedure

Fulfillment of GENESIS
Matsushima Plan

Construction work

Implementation of CCS
Existing Unit 1 decommissioned
Existing Unit 2 discontinued

Startingconstruction

Start of•operations

CO2-freehydrogenpowergeneration*Seek to collaborate with advanced CCS support projects

11J-POWER BLUE MISSION 2050

Production of CO2-Free Hydrogen From Coal and Core Technologies⚫ J-POWER will pursue economic efficiency and rationality, such as selection of suitable sites for CCS and transportation
methods, with the goal of producing CO2-free hydrogen from coal both domestically and internationally.
Coal producer

Hydrogen productionin JapanHydrogen importJapan

Coal

H2

CCUS/Carbon recycling

H2
H2

H2

Coal

Hydrogen production

CoalHydrogen
supply/Powergeneration

Hydrogen production

Hydrogen
supply/PowergenerationH2

CO2-free hydrogen

CCUS/Carbon recycling

Outlet of cleaned Syngas

After WGSR

The main contents are
CO and H2.

CO reacts with water to form
CO2 and H2.

Other approx. 5%

After CO2 capture
The main content is H2.
Other approx. 15%

Other approx. 15%

H2approx. 28%

COapprox. 57%

H2approx. 55%

H2approx. 85%

CO2approx. 40%

PSA
Gasifier

CO2 capture unit
Water vapor for reaction

WGS reactor
CO + H2O → CO2 + H2Hydrogen

Captured CO2
CO2absorber

99% or more
CO2CCUS/Carbonrecycling

Hydrogen production with technologies for oxygen-blown coal gasification and CO2 capture12

13