Climate Change

●Taking on the challenges of production and supply of green LPG

1. Participating in feasibility testing to achieve the practical use of green LPG
Iwatani is currently participating in a project led by Furukawa Electric Co., Ltd. to achieve the practical use of green LPG. As a distribution partner for products, we will move forward to implement the use of green LPG in society in various ways, including studying methods for using green LPG drawing on the analytical, refining, and filling technologies of the Iwatani R&D Center.

2. Developing green LPG production technologies
Five major LPG importers and distributors have joined hands to establish the Japan Green LPG Promotion Institute.
In partnership with the University of Kitakyushu, the Institute is seeking to establish a new technology to produce LPG by synthesizing hydrogen and CO₂, and to help swiftly roll out such technology within society.

●Generating J-Credits from customer CO₂ reductions

Having registered with the J-Credit program, we are seeking to generate environmental value from the CO₂ reductions achieved by customers who have switched to fuels like LPG and LNG. We coordinate customer CO₂ emissions reductions and apply for certification under the J-Credit program. This program makes it possible to convert CO₂ reduction activities into environmental value.

●Launching efforts to quantify and assign value to the CO₂-reduction effects of high-efficiency gas water heaters in ordinary households

Employing blockchain technologies, this initiative will ensure tamper-resistance and traceability by collecting data on gas used by gas water heaters through Iwatani Gateway, our proprietary IoT platform. This in turn will make it possible to assign a value (J-Credits) to CO₂ reductions at households using high-efficiency gas water heaters.
By encouraging the creation of environmental value in each region and by providing services to return environmental value to the residents who create it, this initiative will enhance efforts to achieve carbon neutrality in local communities and across society.

●Hydrogen-LPG mixed pipeline supply

Together with Soma Gas Co., Ltd. and other partners, Iwatani has been selected to participate in the following NEDO* contracted projects: Technology Development Project for Building a Hydrogen-based Society/Technology Development for Hydrogen Utilization in the Community/Study of Potential for Hydrogen Production and Utilization.
This project will verify hydrogen-mixing technologies and safety with the goal of achieving a mixture of about 20% hydrogen in the LPG-based city gas supplied by Soma Gas Co., Ltd.

*NEDO: New Energy and Industrial Technology Development Organization

Hydrogen-LPG mixed pipeline supply

Financial information on the Integrated Energy Business

To establish a hydrogen energy-based society, we are partnering with government agencies and numerous private sector businesses to build supply chains for CO₂-free hydrogen and to enhance engineering functions.

●Liquid hydrogen supply chain commercialization feasibility study project

In February 2022, feasibility testing of sea transport and the loading/unloading of liquid hydrogen between Australia and Japan via liquid hydrogen tankers—part of a NEDO demonstration project—met with success. To move closer to the full-fledged implementation of a CO₂-free hydrogen supply chain, we have been granted subsidies from the Green Innovation Fund to establish the world’s first hydrogen liquefaction and transport technologies on the scale of tens of thousands of tons annually and test an integrated international liquid hydrogen supply chain that ranges from hydrogen production through liquefaction, shipping, sea transport, and unloading. Given the need to reduce costs by scaling up facilities for commercialization in FY2030 and beyond, plans call for the tankers used in this project to be at least 100 times larger than that used in the feasibility testing described above.

●Enhancing engineering functions; joint efforts in hydrogen-refueling station business and other businesses

We are striving to enhance manufacturing and engineering functions. We made Tokico System Solutions, Ltd. a wholly-owned subsidiary. Tokico System Solutions, Ltd. offers strengths in energy supply facilities, including hydrogen dispensers for fuel cell vehicles (FCVs).
Additionally, we have concluded a basic agreement with Cosmo Energy Holdings Co., Ltd. on joint studies in engineering and other fields related to hydrogen-refueling stations and hydrogen production. We are currently examining specific joint efforts in the hydrogen business to apply the technologies and knowledge accumulated by both partner companies and to help establish a decarbonized society.

●Hydrogen burners, hydrogen cutting machines

Iwatani has developed and launched the sale of hydrogen cutting machines that cut steel sheet using 100% hydrogen gas. Replacing the acetylene and LPG traditionally used in machinery for cutting steel girders and thick steel sheet used in construction machinery and other products with 100% hydrogen gas will make it possible to eliminate all CO₂ emissions generated by cutting.
In addition, with Sunray Reinetsu Co., Ltd., a member of the Sumitomo Electric Industries, Ltd. group, we have jointly developed and launched the sale of mixed-combustion type hydrogen burners for use in industrial furnaces. These burners are capable of switching in stages to mixtures of hydrogen and city gas or LPG. In addition to developing global hydrogen supply chains, achieving a decarbonized society requires measures to promote and expand the use of hydrogen applications to generate energy. We will continue to contribute to the realization of a decarbonized society through progress on developing various uses for hydrogen.

Financial information on the Industrial Gases & Machinery Business

●Initiatives related to rechargeable battery materials to meet EV-related demand

Iwatani imports and sells materials, including lithium, cobalt, nickel, and manganese, for cathode active materials in lithium ion rechargeable batteries, which show promise for next generation vehicle applications.
In addition to cathode materials, we handle a wide range of battery materials, including anode active materials, metal materials, and conductivity-boosting agents.

Cathode active materials

●Expansion of processing plant for metals (wire) materials used in air conditioners

Since its founding in 1990, Bangkok Ai-Toa Co., Ltd. has expanded, primarily through sales in Southeast Asia, North America, and Europe. It manufactures metal fan guards used in air conditioners, dishwasher baskets, oven racks, and other parts for use in kitchen appliances, as well as auto parts, logistics equipment, and other products.

In the air conditioner field in particular, markets are expected to continue to grow in Southeast Asia, Europe, India, and other regions. The market for air-to-water (ATW) air-source heat pumps is projected to grow in Europe, North America, and elsewhere.
Preparing to meet future customer demand, Bangkok Ai-Toa has expanded its production facilities, more than doubling its production capacity and adopting an automated production line to improve production efficiency still further.

●Eco-Friendly PET Resins

Iwatani is actively developing and deploying PET resins that have low environmental impact. We have developed and brought to market biomass resin, a plastic made by replacing monoethylene glycol, which accounts for 30% of all raw materials in conventional resins, with plant sourced materials. We have also developed a highly recyclable aluminum catalyst resin that has been adopted as a new resin to promote PET recycling. We are also planning to introduce aluminum catalyst biomass resins that take advantage of the features of both biomass resin and aluminum catalyst resin to realize both reduced CO₂ emissions and high recycling rates.

●Plastic chemical recycling business (R Plus Japan)

In June 2020, R Plus Japan, Ltd., a company for used plastics recycling established by Iwatani and 11 other companies in the plastic value chain, launched operations. Harnessing recycling technologies developed by US biochemical startup Anellotech Inc., the company applies chemical methods to recycle plastics, including PET bottles, directly into raw materials. This method requires fewer steps than conventional methods and helps minimize CO₂ emissions and energy use. To help identify solutions to plastics issues, R Plus Japan is currently working to commercialize its recycling technologies by 2027.

●Securing rights to high-purity titanium ore mined using electricity from renewable energy (hydroelectric)

By investing in Nordic Mining ASA, the Norwegian resources firm, we have secured rights for the Japanese market to high-purity titanium ore from a new mining concession slated to begin operating in 2024. After Australia, this will be the second site of our mineral sands business. This measure will contribute to reliable access to important minerals. The high-purity titanium ore used in aircraft parts and other applications is rare and characterized by low production volumes around the world. This project marks a pioneering global step in green titanium materials mining and achieves zero CO₂ emissions in various ways, including use of electricity from renewable energy (hydroelectric).

Financial information on the Materials Business

●Developing energy infrastructures to support the community

We operate the industry’s leading supply network to ensure that customers across Japan can rely on their LPG supply lines. This network includes five import terminals, 110 filling stations, and some 140 distribution centers. Additionally, we are enhancing facilities at filling stations across Japan to ensure a stable supply of LPG, even in the event of natural disasters.

In addition to the seismic retrofitting of the LPG storage and filling facilities at our 56 Core LPG Centers across Japan, we are enhancing LPG emergency power generators and autogas filling equipment to maintain functionality in the event of power failures.
At centers exposed to high risk of water and wind damage, an increasing risk in recent years, we performed construction to improve disaster resilience, including work to prevent the loss of gas cylinders and positioning electrical equipment further above ground. We will continue to strengthen our supply structure to ensure customers can rely on their LPG supply lines.

●MaruiGas Disaster Relief Corps

Established jointly with some 1,250 MaruiGas distributors to ensure rapid LPG recovery in response to disasters, the MaruiGas Disaster Relief Corps is Japan’s largest and most unique nationwide private sector disaster prevention organization. Since its establishment in response to the 1995 Great Hanshin-Awaji Earthquake, the MaruiGas Disaster Relief Corps has been mobilized more than 31 times.
Deployments have included urgent LPG inspections and recovery work in areas affected by Typhoon Hagibis in 2019 and the Fukushima earthquake in March 2022. As of June 2023, some 3,600 qualified gas technicians from various companies are members of the MaruiGas Disaster Relief Corps. The organization strives to maintain and strengthen its capacity to respond to disasters through annual concurrent nationwide drills.

Deployment examples

●A supply chain to support the stable supply of helium

Helium, an essential material for MRIs in the medical field and in state-of-the-art fields such as fiber optics and semiconductors, is a rare natural resource produced in only a few countries. We achieve a stable supply of helium through double sourcing from the two countries of Qatar and the United States. We operate production facilities not just in Japan, where we boast the leading market share, but in China, Malaysia, Thailand, and Qatar. This ensures a stable supply not just to the domestic market, but to emerging helium markets in China, Southeast Asia, and elsewhere.