Energy Transition

To achieve net zero emissions by 2050, INPEX is advancing lower-carbon solutions centered on CCS and hydrogen, among key mitigation technologies. Additionally, we are exploring new ventures in power-related business fields.

In the transition toward net zero emissions, it is important to select appropriate methods according to the circumstances and transition stage of each region. Besides the introduction of renewable energy, the application of CCS for existing oil and gas facilities and the use of hydrogen or ammonia are also realistic transition pathways. We seek to strengthen the stable supply of oil and natural gas while also aiming to achieve net zero emissions by 2050. We position CCS and hydrogen/ammonia as important businesses. These businesses allow us to meet the needs of society by leveraging the technology and rich experience we have developed in underground resource exploration to provide ways to reduce greenhouse gas (GHG) emissions.

Based on INPEX Vision 2035, the INPEX Group is advancing lower-carbon businesses. By 2035, we aim to reduce GHG emissions by integrating CCS into our natural gas and LNG projects. Additionally, we aim to create new revenue streams by offering GHG emission reduction solutions to third parties through CCS and hydrogen technologies.

To achieve this target, we have undertaken specific efforts in our overseas CCS projects. In Australia, we have begun preliminary front end engineering design (Pre-FEED) work for the Bonaparte CCS Project, which has storage potential of more than 10 million tons per year, and we are conducting various studies toward commercialization. In July 2025, the project became the first CCS project in Australia to receive Major Project Status, making it a promising project. In Japan, we established Metropolitan CCS, LTD. for the Metropolitan Area CCS Project and are carrying out studies and engineering and design work toward commercialization. Once the project starts operating, we expect it to store about 1.2 million tons of CO2 underground each year. We also expect to expand underground storage to about 5 million tons per year in the future.

In hydrogen-related businesses, we began commissioning work with the introduction of natural gas in June 2025 at Kashiwazaki Hydrogen Park in Kashiwazaki City, Niigata Prefecture. There, we are conducting an integrated blue hydrogen and ammonia production and utilization demonstration test project. In November of the same year, we held an opening ceremony there. Following demonstration operations, we expect to produce about 700 tons of hydrogen per year and store about 5,500 tons of CO2 underground. Through this demonstration, we aim to accumulate technology and experience across the full supply chain, from hydrogen and ammonia production to utilization. We also aim to build a track record that will establish us as a pioneer in lower-carbon businesses in Japan and overseas.

We will continue to see the provision of clean energy and GHG emission reduction solutions as business opportunities and work toward net zero.

As a comprehensive energy company, we aim to expand our businesses in power-related business fields. We will contribute to the development of a high-value-added power supply system by combining renewable energy with balancing power sources such as battery storage and cleaner gas-fired power generation. We are also exploring opportunities to extract subsurface resources other than oil and natural gas that support the power supply system.

In Japan, we are moving ahead with construction of the geothermal power project in the Oyasu area of Akita Prefecture, with operations scheduled to begin in FY 2027. Since 2024, we have also continued exploratory drilling for geothermal energy development in the Sempo area of Shibetsu Town, Hokkaido, where we serve as operator. In addition, Goto Offshore Wind Farm, Japan's first commercial floating wind power project, began commercial operation in January 2026 off Goto City in Nagasaki Prefecture. Furthermore, in October 2025, a consortium in which we participate as a collaborating company was selected as the project candidate for the Yunishigawa Dam New Hydropower Plant Installation and Operation Project in Nikko City, Tochigi Prefecture by the Kinugawa Dam Integrated Management Office of the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.

Outside Japan, in Australia, Potentia Energy Pty Ltd (formerly Enel Green Power Australia Pty Ltd), a renewable energy subsidiary jointly owned by the INPEX Group and Enel S.p.A, a major Italian power and energy company, signed an asset sale and purchase agreement with infrastructure fund managers and others in February 2025. Through this agreement, it acquired renewable energy assets totaling more than 1 GW across Australia. In the wind power field, three offshore wind farms in the Netherlands and the United Kingdom are operating. In the geothermal field, three projects in Indonesia are operating. In January 2025, we made a final investment decision (FID) and signed a project finance agreement for the expansion of the Muara Laboh Geothermal Power Project. The expansion is roughly the same scale as the existing facilities.

The INPEX Group currently holds about 780 MW of renewable energy generating capacity on an equity basis in Japan and overseas. This includes offshore wind power generation in Europe, geothermal energy generation in Indonesia, and solar and onshore wind power generation in Australia.
To gain revenue across the entire power value chain, we will establish a stable power source portfolio, enhance value through our efforts in power solutions, and create synergy with our existing businesses (such as gas, hydrogen, ammonia, and CCS) to help achieve net zero emissions by 2050.