One of Japan’s most prominent oil refineries, Idemitsu Kosan Co, has announced it will invest ¥690 billion (€4.3 billion) over the next three years to March 2026 to step up its energy transition procedures, while scaling down fossil fuel assets, to tackle climate change.
Under the new three-year business plan, Idemitsu aims to lower the proportion of its total profits coming from fossil fuel businesses to 70% – compared to 95% currently. To boost profits from non-fossil fuel segments, Idemitsu plans to spend ¥290 billion on cleaner fuels such as sustainable aviation fuel (SAF) and ammonia.
¥130 billion will be spent to reinforce Idemitsu’s mainstay in businesses such as petroleum, functional materials and resources, while ¥270 billion will be used for operational maintenance.
To manage the estimated 20% fall in domestic fuel demand by 2030, Indemitsu plans to reduce its refinery capacity by 300,000 barrels per day.
It is scheduled to terminate refining operations at Seibu Oil’s Yamaguchi plant by March 2024, reducing 120,000 bpd capacity.
To produce and promote cleaner energy, Idemitsu has decided to not invest in any new coal mines.