JERA’s Challenge for the Future of H2 Business Satoshi Onoda President, Representative Director JERA Co., Inc. 14th October, 2020 © 2020 JERA Co., Inc. All Rights Reserved. JERA’s Profile ✓ JERA was founded in April 2015 by merging the fuel and thermal power generation sectors of TEPCO and CHUBU Electric Power. We now boast deep expertise in this field through its vertically integrated functions from upstream to downstream. Domestic Power Generation Upstream Overseas Power Generation Development （including Renewables and Batteries） and Fuel Procurement Gas liquefaction Base Fuel Transportation LNG Receiving and Trading and Storage Terminals Page 1 © 2020 JERA Co., Inc. All Rights Reserved. JERA Zero CO2 Emissions 2050 Taking on the challenge of zero CO2 emissions in JERA’s business both in Japan and overseas JERA Zero CO2 Emissions 2050 ➢ JERA’s mission is to provide cutting-edge solutions to the world’s energy issues. ➢ In order to help achieve a sustainable society, JERA, in the course of carrying out its mission, is taking on the challenge of achieving zero CO2 emissions* from its business both in Japan and overseas. The Three Approaches of JERA Zero CO2 Emissions 2050 1. Complementarity between Renewable Energy and Zero CO2 Emission Thermal Power Generation JERA will achieve Zero CO2 emissions through a combination of renewable energy and zero CO2 emission thermal power generation. The adoption of renewable energy is supported by thermal power generation capable of generating electricity regardless of natural conditions. JERA will promote the adoption of greener fuels and pursue thermal power that does not emit CO2 during power generation. 2. Establishment of Roadmaps Suitable for Each Country and Region Zero CO2 emissions will be achieved by establishing roadmaps that show optimal solutions for each country and region. Since the energy situation is different for each country and region—such as the presence of regional transmission lines or pipelines and the types of renewable energy that could be adopted—JERA will work with stakeholders on a country and regional basis to establish roadmaps. We have developed a roadmap for our business in Japan and will extend this approach to other countries and regions. 3. Smart Transition Zero CO2 emissions will be achieved through a combination of technologies that are available and reliable at the time adoption decisions are made, lowering technical risk and smoothing the transition to a green society. *”JERA Zero CO2 Emissions 2050” is premised on steady advances in decarbonization technology, economic rationality, and consistency with government policy. JERA is developing its own decarbonization technologies and taking the initiative to ensure economic rationality. Page 2 © 2020 JERA Co., Inc. All Rights Reserved. Efforts for hydrogen and ammonia ✓ To promote the use of hydrogen, it is important to reduce costs in the value chain, including transportation. Selecting ammonia as a hydrogen energy carrier leads to an increase in consumption and a reduction in price. ✓ Participation in NEDO commissioned work for ammonia co-firing in thermal power plants ✓ "Tokyo Oi Hydrogen Station" opened as a joint project to promote the use of hydrogen. Upstream Development Transportation and Storage Utilization CCS/EOR・Bio sequestration To other industries CO2 Fuel Cell Blue Hydrogen To other countries （from fossil fuels） Ammonia JERA (NEDO-FS) Industrial Furnace Natural Reforming Gas Vaporization Ammonia Storage Marine Loading Zero Emission or Reforming Synthesis Transportation Storage Thermal Power Renewable Green Hydrogen Energy Electrolysis （from RE） To other Power Producer Fuel for Ship JERA (Tokyo Oi H2 station) Fuel for Mobility Page 3 © 2020 JERA Co., Inc. All Rights Reserved. JERA’s Activities① Ammonia co-firing at thermal power plants ✓ JERA, together with IHI, Marubeni, and Woodside, participated in the NEDO commissioned project "FS for mixed combustion of ammonia at commercial thermal power stations" Conversion to an Denitrification equipment can ammonia co-firing burner Boilerボイラ be used in existing facilities. 排煙脱硝Denitrification 排煙脱硫Exhaust gas Boile desulfurization unit Steam蒸気タービンturbine r 装置unit 装置 EP Facilities such as berths and tanks are required. A灰処理設備sh treatment : modification range equipment タンクTank Vaporizer気化器 Coal handling アンモニア 揚運炭設備 Ammonia equipment 石炭 タンカーtanker Coal tanker タンカー Page 4 © 2020 JERA Co., Inc. All Rights Reserved. JERA’s Activities ② Market Prospects: Hydrogen for mobility fuel ✓ In Japan, the hydrogen market is in the early stages, driven by the use of hydrogen for mobility fuel. ✓ In August 2020, ENEOS Corporation and JERA opened the Tokyo Oi Hydrogen Station, a joint project to promote the use of hydrogen located on the site of the JERA-operated Oi Thermal Power Station. 【Overview of Tokyo Oi Hydrogen Refueling Station 】 Tokyo Oi Hydrogen Refueling Station 3 H2 supply capacity 600Nm /h H2 Source H FCV・FC bus 2 Accumulator Supply Dispenser City Gas generation Compressor device Shipment H2 trailer for HRS in Capital Area Site: Oi thermal power station (JERA) Page 5 © 2020 JERA Co., Inc. All Rights Reserved. END [Disclaimer] The numbers of energy demand and supply forecast expressed or implied in this presentation are quoted from existing researches or experimentally calculated based on those. Those are NOT JERA’s business plan, view, outlook, etc. © 2020 JERA Co., Inc. All Rights Reserved. Global Potential for Future Use of Hydrogen ✓ Hydrogen holds long-term promise in many sectors beyond existing industrial applications. The transportation, construction, and power sectors all have the potential to use hydrogen if the costs of production and utilization prove this fuel to be competitive compared to other options. Hydrogen potential by market in 2050, %, exajoules （出典）U.S. Department of Energy “Hydrogen Strategy” Page 7 © 2020 JERA Co., Inc. All Rights Reserved. Four key opportunities for scaling up hydrogen to 2030 ✓ Scale-up of hydrogen usage is expected in four areas/industries. （出典）IEA “The Future of Hydrogen” Page 8 © 2020 JERA Co., Inc. All Rights Reserved..