16th Kawasaki International Eco-Business Forum

Outlook for Local Production and Local Consumption Model for Production Technologies in Hydrogen & Derived from Used Plastic

Oguchi Planning Group Kawasaki Plant Showa Denko K.K. 13 November 2019 Showa Denko K.K.

INTRODUCING SHOWA DENKO GROUP

2 Company Outline Showa Denko K.K.

Founded: 1 June 1939 Head office: 1-13-9 Shiba Daimon, Minato-ku, President & CEO: Kohei Morikawa Capital: 140,564 million yen* Employees: Consolidated 10,634* *As of 31 December 2018

Group Vision Under its vision, Showa Denko Group Group Message “Act!” strives to realize “a company contributing to the sound growth of society” by helping to create a society where affluence and Our Code of Conduct sustainability are harmonized. Its Practical Guide 3 Introducing Our Main Business Segments Showa Denko K.K. Sales: 992.1 billion yen (FY2018)

Petrochemicals 26% Plastic raw materials, Others synthetic rubber raw materials, etc. 14% Chemicals Sic epitaxial wafers, etc. 15% Electronics 10%

Inorganics Aluminum 25% Cosmetics raw materials, special gases 10% for , fibrous raw materials, Lithium-ion battery materials, etc. gases for industry, etc.

Hard disks, etc. electrodes (for electric steelmaking furnaces), grinding materials, etc. High-purity foils for electrolytic capacitors, cast bars and cast materials, etc. 4 Outline of Showa Denko Ammonia production is carried out at Kawasaki Plant Domestic Locations

Research & Development Sites Main Branches Head Office

Petrochemical Aluminum Product Evaluation Center Chemicals [Chemicals] Isesaki Plant [Aluminum] Kitakata Inorganics [Inorganics] Omachi Plant [Chemicals] Higashinagahara Plant Aluminum [Inorganics] Shiojiri Plant [Aluminum] Oyama Plant (Nasu) Electronics Nagoya Branch [Aluminum] Hikone Plant [Aluminum] Oyama Plant [Chemicals] Tatsuno Plant [Petrochemicals] Tokuyama Plant Kawasaki Plant

Fukuoka Branch [Electronics] Chiba Plant [Petrochemical] Oita Complex Safety Evaluation Center (Chiba)

Institute for Integrated [Inorganics] Yokohama Plant Product Development (Kawasaki) Osaka Branch [Electronics] Chichibu Plant Process Solutions Center (Yokohama)

[Aluminum] Sakai Plant

5 Mt. FUJI

SHOWA DENKO K.K. Kawasaki Plant YOKOHAMA TOKYO KAWASAKI

TAMAGAWA HANEDA RIVER AIRPORT Tokyo Tamagawa River Chidori

Kawasaki

Gasification facility Ogimachi

Crushing facility Okawa Total area: 559,000m 2 To Yokohama Showa Denko K.K.

OUR INITIATIVES INVOLVING HYDROGEN & AMMONIA PRODUCTION FROM WASTE PLASTICS

8 Current Situation with Plastic Recycling in in Japan Recycling Plastic with Situation Current Total volume of waste plastic: 8.99 million tons (2016) Unused Effective utilization 16% 84% Thermal recoveryThermal hmclrecycleChemical aeilrecycleMaterial Burning Landfill 23% 57% 7% 9% 4% Plastic Plastic Waste Management Institute sdi hmclrecycling chemical in Used Approximately Liquefaction Gasification steelworks sdatUsed 60,000 tons (2016)tons Plastic Chemical Recycling Project Showa Denko K.K. (1) Making hydrogen and ammonia from used plastic Domestic Chemical recycling: Volume used plastic waste: Approx. 60,000 tons (2016) 8.99 million tons (2016)

Ammonia Gasification Hydrogen (H ) 175 t/day Used plastic plant 2 195 t/day

Hydrogen station Eco Mark Approval For ammonia production process Carbon dioxide using recycled plastic containers gas and packaging Carbon dioxide 15504001 (CO 2) Showa Denko Kawasaki Plant Dry ice Plastic Chemic Recycle Work Showa Denko K.K. (2) Carbon dioxide reused in carbon dioxide gas and dry ice

Carbon dioxide

Carbonated Fresh food Plant forcing drinks packaging

Showa Denko Group Dry ice

11 Outline of Crush Molding Facilities Showa Denko K.K.

Compressed bale (received) Volume reduction molding (molding machine)

(Magnetic separator)

Crushing (crusher) Volume reduced product (refuse paper & plastic fuel, or RPF) Outline of Gasification Facility Showa Denko K.K.

Gasification facility

Low-temperature High-temperature gasification furnace gasification furnace

Temperature: 600 C Temperature: 1,400 C Pressure: 1 MPaG or higher Pressure: 1 MPaG Night-time View of Ammonia Plant Our air conditioner gasification facility is one of the noted night-time tourist spots in Kawasaki!Showa Denko K.K.

14 Ministry of the Environment (MOE): Initiatives for Collaborating with Local Communities and Demonstrating Low-carbon Hydrogen Technologies

Making use of low-carbon hydrogen derived from used plastics For 5 years from 2015, MOE is implementing a low-carbon Regional recycling of hydrogen hydrogen supply chain project to promote mid-to-long-term efforts to reduce global warming via projects to reduce the Demonstration of model for local production amount of carbon in hydrogen as well as making earnest and local consumption efforts to use that hydrogen.

Hydrogen Used plastic Hydrogen production Transported facility Production (Showa Denko Kawasaki Plant)

Used plastic

collected nationwide (pipeline)Transported Regional recycling model for & recovered low-carbon hydrogen derived from used plastics Discharged

Hydrogen Supplied to Shipped hydrogen station (compressed hydrogen) Economic activities in Utilized coastal area Power & heat High-purity Supplied to hydrogen Converted commercial facility fuel cells (FC) Using FC (Hotel) & FCV (Hydrogen Station)

Showa Denko K.K.

Hydrogen Hydrogen Usage Supplying low-carbon hydrogen to Usage Supplying power & heat Demonstration hydrogen station in Shinsuna Demonstration High-purity (hot water) to Kawasaki 1 Koto-ku, Tokyo King Skyfront Tokyu Rei (Tomoe Shokai facility) 2 Hotel

- Supplying compressed hydrogen by hydrogen - Supplying hydrogen by pipeline gas tanker (trailer truck) - 30% of hotel’s energy provided by hydrogen - Using inexpensive, compact pre-cooler - Hotel’s used plastic (combs & toothbrushes, etc.) Features Features - 5 or 6 FCVs can be filled per unit time recycled as hydrogen FCV Demonstration Image Showa Denko K.K. We started supplying hydrogen derived from used plastics to a hydrogen station from July

Hydrogen Station

17 FC Demonstration Image Showa Denko K.K. We signed a comprehensive agreement paving the way for realization of a hydrogen society with Kawasaki City Commenced use of hydrogen derived from plastic in hotel that started business in 2018

Electricity Used plastics

Giant high-purity hydrogen fuel cells Equivalent to (Made by , Output: 100 kw) some 30 % of all the energy used by hotel

Tokyu Rei Hotel

Hydrogen production facility at Showa Denko Kawasaki Plant Hot water 1,620 L/h(60 C)

MOE Hotel in A zone of King Skyfront Source: Data from Kawasaki City press conference 18 Initiatives for Showa Denko Kawasaki Plant’s SDGs

Recycling used plastics into chemical materials Showa Denko K.K.

Receiving used plastics from local governments Hydrogen production facility Carbonate products

Used plastics Liquefied Making use of carbon dioxide CO 2 in products Dry ice

Utilized as energy in Hydrogen economic activities Main applications of ammonia products

NOx Nitrogen-based Ammonia production facility detoxifying fertilizer agent Supplied to hydrogen station and Fibrous raw Bond & resin commercial facility material materials

Using eco-ammonia to detoxify NOx in thermal power plant

Achieving zero emissions from used plastics in materials

AFFORDABLE AND SUSTAINABLE CITIES RESPONSIBLE CLIMATE CLEAN ENERGY AND COMMUNITIES CONSUMPTION AND ACTION Contributing PRODUCTION SDGs