ENEOS (5020) Status Update summary

CCS business strategy and market context

• CCS is positioned as a future earnings pillar alongside oil and gas, leveraging existing expertise in CO2 capture, storage, and utilization.

• Global CCS capacity is expanding, with 41 projects operational and 351 in planning, supported by significant government subsidies and policy frameworks.

• Japan's government aims for 46% CO2 reduction by 2030 and carbon neutrality by 2050, with a roadmap to scale CCS projects and new legislation to support the sector.

National and company targets

• Japan targets 6–12 million tons of CO2 injection by 2030 and 120–240 million tons by 2050, with advanced CCS projects already underway.

• The company aims to inject 5 million tons by 2030, 15 million by 2040s, and 50 million by 2050, including storage for third parties.

• CCS is integral to achieving ENEOS Group’s carbon neutrality goals, requiring 3 million tons stored by 2030 and 11 million by 2040.

Project pipeline and technical challenges

• Key projects include a Western Kyushu CCS consortium targeting 2030 implementation, with site selection and trial drilling planned for 2025–2026.

• Technical challenges include limited domestic oil/gas fields, site selection, and the need for synchronized development of capture, transport, and storage.

• Parallel pursuit of domestic and overseas storage is necessary to meet national targets, with projects in Malaysia and Australia under study.