ITOCHU Oil Exploration Co., Ltd.

ITOCHU Oil Exploration Co., Ltd. Announces Participation in Project to
Research and Develop CO2 Underground Storage Technology
ITOCHU Oil Exploration Co., Ltd. (headquartered in Minato-ku, Tokyo; Shuichi Arase,President & CEO; hereinafter "CIECO") announced today that, together with ITOCHU
Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter"ITOCHU"), it is joining the Geological Carbon Dioxide Storage Technology ResearchAssociation (hereinafter "Research Association") to participate in a project to research anddevelop technologies for underground sequestration of carbon dioxide (hereinafter CO2).
Amid gathering momentum for decarbonization around the world, Japan declared in October
2020 that the country will be carbon neutral by 2050. To achieve this goal, CO2 capture andstorage technology (hereinafter CCS) is expected to be a significant measure to reduce CO2
in both the energy sector (power stations etc.) and the industrial sector (factories etc.), which
account for more than 60% of all CO2 emissions in Japan. To achieve the long-term goals * setout in the Paris Agreement, it is thought that CCS will account for approximately 9% of CO2reduction in 2050. Where social implementation of CCS is concerned, the United States andEurope are already preparing the environment for commercialization, but in Japan public andprivate initiatives are needed to address issues such as identifying and securing suitablestorage sites, CO2 transportation, and social receptivity of CO2 storage.
Aiming for social implementation of CCS in Japan, the Research Association will carry out
research and development with the goals of obtaining social receptivity for CCS, anddeveloping technologies specializing in underground storage of CO2 on a practical scale thatis suited to the storage sites (1 million tons/year). Through activities at the Research Association,
CIECO will accumulate technical knowledge on CCS. Also, by supporting ITOCHU’s work on
economic analysis from a technical perspective, CIECO intends to contribute to the swift
implementation of the Research Association's stated goal of safe, large-scale, and efficient CCS.

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◆ About CO2 capture and CCS Technology
CCS is the abbreviation for Carbon Dioxide Capture and Storage. It is a technology that
separates and captures CO2 emissions from power stations, chemical plants and etc., before
compressing and storing it deep underground.

(Source: Agency for Natural Resources and Energy)◆ Outline of the Geological Carbon Dioxide Storage Technology Research Association(1) Summary of initiatives aimed at practical implementation
・ Establish safety management technologies for large-scale CO2 compression/storage
facilities
・ Establish effective compression/utilization technologies for large-scale storage sites
・ Prepare conditions for CCS dissemination, prepare standards(2) Address: 9-2, Kizugawadai, Kizugawa-Shi, Kyoto
On the premises of the Research Institute of Innovative Technology for the Earth(3) Chairman: Shinichi Hiramatsu (Oyo Corporation, Advisor)Association members: OYO Corporation, INPEX CORPORATION, Japan Petroleum
Exploration Co., Ltd., Taisei Corporation, Electric Power Development Co.,Ltd., JX Nippon Oil& Gas Exploration Corporation, National Institute of Advanced Industrial Science andTechnology (AIST), Research Institute of Innovative Technology for the Earth, ITOCHU
Corporation, ITOCHU Oil Exploration Co., Ltd.

*The so-called 2ºC goal of keeping the average rise in global temperatures below twodegrees Celsius from pre-industrial levels.

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