Environmental

Prevention of Global Warming

Basic Approach

The ENEOS Group is working to reduce CO2 emissions across the entire supply chain in order to contribute to the development of a low-carbon society. To achieve this, we are reducing CO2 emissions by promoting energy conservation during the production stage (business activities), as well as developing and selling environmentally friendly products that have a lower environmental impact, while also expanding our renewable energy business.

For information on our environmental management structure, see Environmental Management.

Response to Climate Change

Based on the results of environmental impact assessments conducted under the environmental management system at our refineries and other business sites, we carry out emergency training drills for flooding and tidal surges and implement initiatives to prevent heat stroke.

For information on our company-wide initiatives on climate change and information on TCFD, see Risks and Opportunities Concerning Climate Change.

Initiatives at Production Sites*

Energy Conservation

The Group's CO2 emissions in fiscal 2018 totaled 28.74 million tons, slightly less than the previous fiscal year.
At our refineries and plants, we are engaged in efforts to increase the number and efficiency of heat exchangers and introduce higher efficiency rotary equipment.
Our crude oil refining energy consumption intensity worsened by 0.2 points due to a lower operation rate and other factors.
The energy consumption intensity of our smelting and refining facilities was 13.3 GJ/t and the intensity of CO2 emissions was 0.82 t-CO2/t. Both figures improved compared to the previous year.
In fiscal 2018, the Group invested around 3.08 billion yen in facilities for energy conservation. Going forward, we remain committed to promoting greater energy conservation by introducing energy-saving technologies and optimizing operations at our refineries and plants.

  • *Scope 1 and Scope 2 as defined in the GHG Protocol.

Changes in Total GHG Emissions

Notes:

  • Calculated in accordance with the Act on Promotion of Global Warming Countermeasures.
  • For detailed data, see Data.

Energy Consumption Intensity for Oil Refining

Note:

  • Covers the refining sites of the ENEOS Group.

Energy Consumption Intensity for Smelting and Refining

Note:

  • Covers the smelting and refining sites of the JX Nippon Mining & Metals Group.

CO2 Emissions Intensity for Smelting and Refining

Note:

  • Covers the smelting and refining sites of the JX Nippon Mining & Metals Group.

Breakdown of GHG Emissions Other Than CO2

Total emissions other than CO2 Tons 147,664
1. CH4 (methane) Tons 42,259
2. N2O (nitrous oxide) Tons 104,782
3. HFCs (hydrofluorocarbons) Tons 411
4. PFCs (perfluorinated compounds) Tons 0
5. SF6 (sulfur hexafluoride) Tons 212
6. NF3 (nitrogen trifluoride) Tons 0

The main greenhouse gases other than CO2 include CH4, produced during crude oil extraction, and N2O, which is emitted from heating furnaces during the oil refining process.
We will continue working to lower these and other GHG emissions.

Initiatives for Operations Outside of Production Sites*

The Group's CO2 emissions from product consumption by customers in fiscal 2018 totaled 226.11 million tons.
The ENEOS Group is working to reduce CO2 emissions outside of its production sites by selling environmentally friendly products. Currently, we are working toward our targets of reducing these emissions by 1.15 million tons in fiscal 2019 and by 1.8 million tons in fiscal 2030, both compared to fiscal 2009.

  • *Scope 3 as defined in the GHG Protocol.

R&D

The ENEOS Group spent a total of around 19.1 billion yen on research and development.

Response to Climate Change

The ENEOS Group is moving ahead with research into climate change response in the following fields in order to address climate change issues.

  • Rationalization and streamlining of oil refining processes
  • Cellulose-type bio-ethanol
  • Technical development for the manufacture, storage, transport and supply of hydrogen that contributes to the effective use of renewable energy
  • Development of environmentally friendly products (fuel-efficient automotive lubricants, etc.)

Technical Development for the Manufacture, Storage, Transport and Supply of Hydrogen That Contributes to the Effective Use of Renewable Energy

We successfully developed the world's first technology for manufacturing CO2-free hydrogen at a low cost. This technology involves converting toluene to methylcyclohexane using electrolytic hydrogenation with electricity generated by solar power in Australia, and then extracting the hydrogen in Japan.
Going forward, we will work on further development of this CO2-free hydrogen manufacturing technology for societal implementation, with the goal of realizing a hydrogen society and preventing global warming.

Supporting Research on Hydrogen Energy Supply through the ENEOS Hydrogen Trust Fund

ENEOS established the ENEOS Hydrogen Trust Fund in March 2006 in order to help speed up the realization of a hydrogen society.
The fund is Japan's first public trust specializing in supporting research on the supply of hydrogen energy. The fund is large enough that a stable supply of research grants worth 50 million yen each year (up to 10 million yen per project) can be provided for 30 years to support innovative and pioneering basic research into hydrogen energy supply systems.

Procurement/Transport

With regard to marine transportation, which primarily involves the transport of crude oil to Japan, the Group is making active efforts to use oil tankers with superior delivery efficiency and fuel efficiency, and to improve fuel consumption by optimizing transportation routes and controlling navigation schedules and speeds.
Regarding land transportation, in addition to consolidating oil depots and improving the distribution efficiency of tank trunks, the Group is working to reduce fuel consumption through efforts such as insisting that drivers turn off their engines when stopped.

Distribution

The Group is actively implementing power-saving measures at its service stations nationwide through efforts such as the installation of photovoltaic power generation systems and the adoption of LED lighting.

Consumption

The Group is promoting greater energy conservation at the consumption stage through the development and sale of environmentally friendly products, which contribute to a lower environmental impact.

Main environmentally friendly products

  • Fuel-saving lubricants
  • Natural gas (LNG)
  • Liquid crystal polymers
  • Electricity generation using renewable energy

See the following for more information on ENEOS's environmentally friendly products. (Available in Japanese only)

Collaboration with Business Partners (Green Procurement)

When purchasing equipment and materials, the Group practices green procurement, taking into account the environmental burden and other social impacts.
For more information, see Supply Chain Management.

Renewable Energy and Hydrogen Supply Business Initiatives

As an initiative for the use and supply of low-carbon energy, the Group operates a renewable energy power generation business, which leverages renewable energy sources such as solar power, wind power and hydro power, and a hydrogen supply business.

Generation Capacity by Energy Source (as of June 2019)

Thermal
(10 sites)
Oil, etc. (9 sites) 1,077MW
LNG (1 site) 421MW
Solar (18 sites) 46MW
Hydro (1 site) 5MW
Wind (2 sites) 3MW
Geothermal (1 site) 0.1MW

Power Generation by Renewable Energy (fiscal 2018)

Solar 51,078MWh
Hydro 28,755MWh
Wind 3,990MWh
Geothermal 591MWh

Note:

  • The GHG emission factor for ENEOS's electric power business in fiscal 2018 was 0.000509 t-CO2/kWh (after adjustment).

Advancement of Renewable Energy Power Generation Business

In order to contribute to the reduction of CO2 emissions through the use of clean energy, the ENEOS Group is actively engaged in the mega solar power generation business using its idle land.
Beginning with the start of commercial operation of the Sendai Mega Solar Power Plant in February 2013, the Group has established mega solar power plants in 18 locations nationwide.
In fiscal 2018, the Group began operation of the new Okabe Mega Solar Power Plant, built at the former site of the Okabe Depot.
The Group is also actively advancing power generation businesses using renewable energies other than solar, including biomass, hydro power, wind power and geothermal, and has amassed a total generation capacity of approximately 54 MW (as of June 2019).
Outside of Japan, the Group is involved in an offshore wind farm in Taiwan, which is slated to begin operations by December 2021.
In April 2019, the Group established the Renewable Energy Department, which will contribute to achieving the 3Es (energy security, economical efficiency and environment) of future energy by helping us adapt to the shift to a low-carbon society and to grow the renewable energy business as a mainstay of the future.

Renewable Energy Power Plants

A wind turbine
Shimoda Onsen Binary Power Plant
Kudamatsu Mega Solar Power Plant

Building an Integrated Hydrogen Supply System, from Production to Transport and Sales

Hydrogen is a clean energy source that does not emit CO2 during use. Because it enables the use of renewable energy and untapped energy sources, hydrogen is considered an important form of energy for the future.
In Japan, hydrogen use has already begun in the field of mobility. As of April 30, 2019, there were around 3,100 fuel cell vehicles (FCVs) nationwide. At 107, Japan has the largest number of hydrogen stations in the world, 41 of which are operated by ENEOS.
Our ENEOS Yokohama Tsunashima Hydrogen Station features a showroom for sharing various forms of information on hydrogen called Suiso Terrace, where active efforts are now taking place to raise awareness about the growth of hydrogen.
Moving forward, ENEOS will leverage its long-standing infrastructure and expertise for the supply of automotive fuel to build a streamlined hydrogen supply chain in Japan, thereby contributing to the realization of a hydrogen society.

Hydrogen Manufacturing and Shipment Center (Naka Ward, Yokohama City)
ENEOS Yokohama Tsunashima Hydrogen Station and Suiso Terrace
Interior of Suiso Terrace

Initiatives to Enhance Business Activities while Reducing CO2

Increasing Crude Oil Production while reducing Greenhouse Gas (CO2) through CO2-EOR (Enhanced Oil Recovery)

CO2 recovery plant

JX Nippon Oil & Gas Exploration carries out its business activities with attention to the reduction of greenhouse gas emissions, a cause of global warming.
Through its equal-stake joint venture in the state of Texas with NRG Energy, Inc., a major power company in the United States, JX Nippon Oil & Gas Exploration is implementing a CO2-EOR project that increases output from an oil field by injecting CO2, recovered from flue gas at NRG's W.A. Parish power plant1, into the West Ranch oil field2.
CO2-EOR refers to the injection of CO2 into depleted oil reservoirs, thereby improving oil recovery and storing the injected CO2 securely underground, thus reducing CO2 emissions into the air.
This project, as a sustainable business, aims to achieve increases of output at legacy oil fields while simultaneously reducing CO2 emissions released into the air.
The world's largest CO2 recovery plant, the primary facility of the project, was completed on schedule and its operation begun in December 2016. As of March 2019, a cumulative total of 2.5 million tons of CO2 was been captured through the project.

  1. 1The largest thermal electric power plant in the United States. It is located southwest of Houston in the state of Texas.
  2. 2West Ranch oil field is located about 130km southwest of the W.A. Parish power plant. JX Nippon Oil & Gas Exploration holds a 25% interest in the West Ranch oil field through its joint venture with NRG. CO2 is transported from the power plant to the oil field via a newly installed pipeline.

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