The Mitsui Chemicals Group generates CO2 emissions through manufacturing processes that involve chemical reactions at high temperatures and fuel combustion at utility facilities for producing steam or electricity. Reducing the amount of GHGs in the atmosphere goes beyond adopting new raw materials and fuels to reduce emissions; another important step is taking measures to capture CO2 and keep it from entering the atmosphere.
We are thus working with Osaka Gas Co., Ltd., which is located in the Senboku Industrial Complex with the Mitsui Chemicals Osaka Works, to separate and capture CO2 from the exhaust gases of the manufacturing plant and utility plant at Osaka Works, as well as from the exhaust gases from the Senboku Natural Gas Power Plant of Daigas Group, the corporate group led by Osaka Gas. The idea is to utilize the captured CO2 domestically and internationally (carbon capture and utilization, or CCU), as well as store it underground (carbon capture and storage, or CCS).
Through this joint study, both companies will promote regional collaboration in the Senboku Industrial Complex to help establish a carbon-neutral fuel supply base, an idea the Japanese government is currently exploring, and continue efforts to achieve a carbon-neutral society by 2050.
Endeavor to create a circular economy
Carbon neutral strategy
Carbon neutrality declaration
The Mitsui Chemicals Group believes that, as a chemicals company, we have an important role to play in helping to build a sustainable society that can limit the average global temperature rise to 1.5 degrees Celsius. Therefore, in November 2020, we declared our commitment to become carbon neutral by 2050.
Our carbon neutral strategy is centered around the two pillars of (1) reducing our own GHG emissions (Scopes 1 and 2), and (2) maximizing the avoided emissions of our products over their entire life cycle. We are starting off with the purpose of contributing to the transformation of society.
We are considering investing an amount to the scale of 140 billion yen in carbon neutrality by 2030, and we will flexibly invest funds across the entire Group.
The Mitsui Chemicals Group’s carbon neutrality strategy
Strategy 1. Reducing GHG emissions (Scopes 1 and 2) of the Mitsui Chemicals Group
The Mitsui Chemicals Group aims to reduce its GHG emissions by 40% by fiscal 2030 relative to fiscal 2013 levels to make important progress toward the goal of achieving carbon neutrality by 2050. This is one of our non-financial targets in VISION 2030.
To facilitate progress, we have defined a clear roadmap toward carbon neutrality in full consideration of prospective plant construction (new plants and expansions) and other factors.
Specifically, we aim to transition to low-carbon raw materials and fuels, conserve energy by installing highly energy-efficient equipment, and adopt renewable energy.
In order to reach carbon neutrality by 2050, in addition to the aforementioned measures, we intend to achieve 80% or more of these reductions mainly through development of new technologies and the transition of our business portfolio—though this presupposes markets, customers, and other aspects of the external environment falling into place or changing. We also plan to pursue policies that include the development and implementation of carbon-negative technologies, such as carbon capture, utilization, and storage (CCUS), to handle the remaining 20%.
As one measure to accelerate our strategy, we revised our internal carbon pricing (ICP) from 3,000 yen/tCO2e to 15,000 yen/tCO2e in April 2022.
By adding internal rate of return (IRR) that takes ICP into account (c-IRR) into our decision-making for large-scale investments, we have a system of discussing the necessity of investments not only from a profitability standpoint but also from the perspective of reducing environmental impact.
Carbon neutral roadmap
Strategy 2. Maximizing avoided emissions through provision of our products
Many of the chemical products we provide go through various life stages in the hands of our customers, including processing, use, and disposal.
Through our supply of Blue Value™ products that make significant environmental contributions, we aim to maximize GHG emissions avoided over the entire product life cycle. In this way, we intend to help all of society achieve carbon neutrality.
We have set a 40% or greater Blue Value™ products sales revenue ratio as one of our non-financial targets in VISION 2030, and we have reflected this in the strategy of each business.
The calculations of our Blue Value™ product-driven avoided emissions are subject to reviews by outside experts. By sharing the results of the calculations with our stakeholders, we will continue to make our contributions easy to visualize.
Blue Value™ sales revenue ratio
*Target:
For automotive applications.
*Reference guidelines:
The World Business Council for Sustainable Development (WBCSD), GX League
Example 1: Low-carbon raw materials and fuels
Switching to alternative fuels for naphtha crackers—ammonia utilization
While naphtha crackers are key for a chemicals company, they also emit a large amount of GHGs. By switching from the conventional methane-based fuel to one in which ammonia is the principal component in naphtha crackers, the Mitsui Chemicals Group aims to bring the amount of CO2 generated in combustion as close to zero as possible (as ammonia does not contain carbon) and contribute to reduction of GHG emissions across the entire petrochemicals industry.
Ammonia has well-established transport and storage technologies, and it is said to be easier to handle as a heat source than hydrogen.
With Mitsui Chemicals, which has both naphtha cracker and ammonia businesses, acting as the leading company, we are proceeding with demonstration tests in collaboration with Maruzen Petrochemical Co., Ltd., Toyo Engineering Corporation, and Sojitz Machinery Corporation, which have knowledge and technical expertise in ethylene plants.
The demonstration period is envisaged to be the 10 years from fiscal 2021 to fiscal 2030, with a goal of developing ammonia burners and test furnaces by 2026 and social implementation of entirely ammonia-fueled naphtha crackers by 2030.
This project has been selected as a demonstration test for “development of advanced technologies for naphtha crackers” by the Green Innovation Fund program publicly solicited by the New Energy and Industrial Technology Development Organization (NEDO).
Example 2: Capture and utilization of CO2
Regional and multi-company collaboration at the Senboku Industrial Complex
Capture and utilization of CO2 emissions from the Senboku Industrial Complex
Example 3: Carbon-negative measures
Progress by Mitsui Chemicals, Inc. -Carbon Neutral Research Center
The Mitsui Chemicals, Inc. - Carbon Neutral Research Center (MCI-CNRC), established in November 2021, applied for two patents, published three journal articles, and made nine academic conference presentations in fiscal 2022.
Among these research outcomes, the synthesis of hydrogen and ammonia from air and water using a combination of an inorganic catalyst and a biocatalyst has a potential to produce future energy sources from familiar raw materials and under mild conditions, and is considered a major step toward achieving carbon neutrality.
Along with other outcomes such as alcohol synthesis using CO2 as a raw material and the development of new environmental assessment tools, we are conducting a diverse range of research to help accelerate the achievement of carbon neutrality.
