Idemitsu’s contribution to the energy transition
by decarbonization efforts
including black-pellet commercialization.

The 32nd Clean Coal Day International Symposium 2023

Yuzo YOSHIDA
Executive Officer, General Manager
Coal and Business Solution Department
Idemitsu Kosan Co.,Ltd.

Contents

1. Idemitsu’s Coal Business2. Idemitsu Green Energy Pellet (Black Pellet)
3. Blue Ammonia
4. Carbon Recycling – Carbonation
5. Conclusion

21. Idemitsu’s Coal Business3

1-1. Idemitsu’s Coal Business
Production

Logistics

Marketing

In-house Use

Coal Sales in JFY2022
Approx 13.1MT
Japan:
8.6MT
Overseas: 4.5MTBoggabri Mine

Idemitsu Bulk Terminal

Aichi Complex

Procurement
Shunan Bulk Terminal

Head Office

Chiba Complex

TechnologyCoal & Environment Lab.
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1-2. Energy transition policy of Idemitsu
Australia

Indonesia

EnshamBoggabriMalinau

BrisbaneMuswellbrook

Jakarta
SydneyMelbourne

Boggabri

EnshamMuswellbrook

Maninau

Annual Production

6.5 MT

4.0 MT

0.8 MT

4.0 MT

Equity80%

85%100%30%

StatusContinuation

Sale of its stake

End of mine life

Sale of its stake

Idemitsu continues coal production at Boggabri mine for stable supply.
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1-3. Requirements for fuel in transition periodSimilar handlingproperties to coal

Good affinity withcoal in co-firing

Start from smaller
size facilities

No need for
big technical challenges

High co-firing ratio with coal will contribute to largely reduce CO2 emission.
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2. Idemitsu Green Energy Pellet (Black Pellet)

72-1. What is black pellet ?
❑ Black pellet is produced through themild pyrolysis process performed attemperature of 200-300℃ in inert
atmosphere.
Wood scraps

SawdustBlack pellet

Pelletizer
Retally kiln
White pellet

Black pellet is fuel with high CV produced by torrefaction of wood pellet.
82-2. Comparison between black and white pellet
Black pellet

White pellet

Calorific value, kcal/kg

5,500 - 4,300

4,000 - 3,600

Logistics efficiency

HighMedium

Storage

OutdoorIndoor (Silo, Warehouse)

Grindability

GoodMedium

Suitability for co-firing〇△AppearanceBlack pellet is the most suitable biomass fuel for co-firing with coal.
92-3. Advantages of black pellet❑ Calorific value : High

Change of appearance after wetting

Black pellet❑ Grindability : GoodWhite pellet

Appearance after grinding

0 min

BPWP

1 min
Granular like coal

Fiber shape❑ Waterproof : GoodSince black pellet does not collapse withwater, additional facilities such as silo
and warehouse are not needed for thestorage.

1 day

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2-4. Commercial plant in Vietnam❑ Feedstock : Woody biomass (Acacia)❑ Capacity : 120,000 ton/year❑ Technology : TSI’s rotary kiln

Idemitsu Green Energy Vietnam

Binh Dinh

112-5. Completion ceremony - 2023.7.28

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2-6. Production facilities – Torrefaction plant132-7. Production facilities - Silo14

2-8. Site video15

2-9. Utilization of domestic biomass

Shunan City
Local industry developmentby effective use ofcity-owned forestry

Shunan City

Companies
Idemitsu, Tokuyama
Tosoh, Marubeni
Biomass use at their coalboilers in Shunan area

As joint activity, test plantation of fast-growing
trees is on going at the city-owned land.
Effective use of both imported and domestic biomass
is important to increase the supply of black pellet.
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2-10. Business development plan❑ Target supply : 3 million tons of BP in 2030
０2024

STAGE 32023
STAGE 22018

Secured supply（Vietnam, Malaysia, Indonesia)

Commercial plant2030

STAGE 4
Various supply source（Southeast Asia, Australia,North America, Japan）

Technology improvement（Larger scale, Higher efficiency）

Feedstock diversification

STAGE 1

（Grass type, Biomass residue）

Demo plant

Demonstration

Commercialization

MarketEstablishment

Diversification17

3. Blue Ammonia183-1. Development of ammonia supply chain❑ Idemitsu is developing the ammonia supply chain for Japanese users utilizing
sources from overseas.
Overseas
Hydrogenproduction

Japan
Ammonia
production

Green H2

Transportation

Storage

Self-use

Transport green ammonia
from overseas to Japan

Convert existing facilities intoammonia import terminalAmmonia co-firing atour refineries

To build ammonia
infrastructure

To develop co-firing
technology and provide
it to our coal users

NH3Blue H2
To obtain knowledge oftransportation and import ofammonia

CO2Sales193-2. Ammonia import terminal at Shunan Complex❑ Feasibility study is carried out considering to convert existing LPG tanks andjetty into ammonia terminal.
LPG Jetty

Shunan Industrial Complex
Deep water：13.2m
Drawing limits：12m＊Many of VLGC can be docked

Supply method 1:
Pipeline transportation

Supply method 2:
Coastal transportation

LPG Tanks (Refrigerated Storage Tanks)

Pipeline installation(Under consideration)

Ammonia import terminal (Under consideration)20

3-3. Ammonia co-firing tests❑ Idemitsu is conducting bench and actual scale combustion tests in order toestablish ammonia co-firing technology for coal boilers at general industries.
❑ Numerical simulation is also carried out for applying various test data to otherboilers at our coal users.
Bench scale test furnace

Actual scale coal-fired boiler (140t/h)

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4. Carbon Recycling - Carbonation22

4-1. CO2 fixation by carbonation
Boiler exhaust gas

CO2Calcium carbonate

Carbonation

High concentrated
calcium effluents

CO2LimewaterCa
Concrete sludge, etc.
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Asphalt mixture :Traffic safety, comfort
Plastic deformation

Asphalt
Bind
aggregates

Surface

Limestone
Cross
sectionFill crack
betweenaggregatesFine
aggregate

Roadbed (Gravel) :Prevent embrittlement
Subgrade (Soil) :Breakup of load
Filled up ground

Increasestability

Substitute by calcium carbonate

4-2. Application to road paving material

Coarseaggregate
Support load
to roadIdemitsu focused on the replacement of limestone in road pavement.
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4-3. Road pavement test

Synthetic calcium carbonate and asphalt for light colored pavement(Idemitsu Meibright A) were used for the test paving at our laboratory.
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5. Conclusion

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5. Conclusion
Black pellet❑ Commercial production of black pellet (Capacity: 120,000 ton/year) will
start soon in Vietnam.

❑ Idemitsu is challenging to expand the BP production to 3 million tons in
2030 through a lot of overseas and domestic projects.
❑ We believe that BP is the most realistic and efficient solution in energy
transition because it has very good affinity with coal in co-firing.
Blue ammonia & Carbon recycling❑ Idemitsu is also developing the blue ammonia supply chain and thecarbon recycling technologies.
❑ These activities along with BP will strongly secure the achievement ofcarbon neutrality.
Idemitsu provides effective solutions to contribute the energy transition.
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Thank you very much for your kind attention !

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