Tokyogasgroup csr report

Feature

Striving toward Net-Zero CO2

In the 1960s, Japan’s economy emerged from its postwar recovery and began expanding at a rapid pace and drove a dramatically increase in demand for energy. As a result, it became an urgent task for the country to build up the capacity to supply the energy needed. At the same time, the air pollutants emitted from combustion of petroleum, the primary fuel used to generate energy at that time, became a major issue. Our company responded to these challenges by introducing to Japan in 1969 its first supply of natural gas as a highly environmentally friendly fuel with high calorific value. Over the half century since then, we have continued to stably supply energy while providing diverse new products and solutions. In doing so, we helped to open the door to the natural gas era by ushering in the wider use of this new energy source, both in Japan and overseas.
Today, as climate change intensifies, the global movement toward decarbonization is accelerating, as typified by the Paris Agreement. Amid these shifts, natural gas is expected to play a key role in supplementing unstable renewable energies with its superior environmental properties, supply stability, and economy, and the demand for natural gas is expected to grow both inside and outside of Japan. At the same time, it is our duty as a leading company that handles CO2-emitting natural gas to play a proactive role in the global movement for tackling climate change. Accordingly, we have made “Leadership in the effort to achieve net-zero CO2” the first of the three goals of our Group management vision Compass 2030 so that we can contribute to the resolution of climate change issues. Going forward, we will further strive to pair natural gas with renewable energies and other new technologies to offer new solutions for lifestyles, cities, and our planet.

Initiatives at Compass 2030

In its overall business activities, the Tokyo Gas Group will work to achieve Net-Zero CO2 emissions including customer emissions and lead the transition to a decarbonized society.
We will use technologies and expertise for the effective use of natural gas to promote decarbonization in the electricity and heat sectors as well as for CO2 capture technologies.
We will contribute to reduce carbon emissions on the scale of 10 million tons by 2030 (which exceeds Japan’s target ratio*) and lead the way to reducing CO2 emissions on a global scale.

Efforts to achieve Net-Zero CO2 in the Tokyo Gas Group’s style

Efforts to achieve Net-Zero CO2 in the Tokyo Gas Group’s style

  • *1 CCUS: Carbon Capture, Utilization, and Storage.
Specific Actions
Solutions combining natural gas and renewable energy
  • We will strive toward net-zero CO2 emissions through various actions, including by conserving energy through the efficient use of natural gas in natural gas-fired thermal power generation, cogeneration systems, smart energy networks, and other areas, and by balancing fluctuations in renewable energy output.
  • We will expand renewable energy sources domestically and internationally, and develop new businesses combining decentralized resources such as photovoltaic power systems and storage batteries.
Decarbonization technology innovations
  • Working toward 2030, we will pursue innovation in core technologies contributing to decarbonization, and go further by introducing hydrogen, methanation, and other technologies.
  • We will leverage combinations of technologies and approaches, including optimal use and control of renewable power sources, and advanced use of natural gas.
Resolving problems in daily life and businesses
  • We will expand the use of renewable energy in communities and at businesses while resolving customer needs and challenges, including by installing photovoltaic power systems on the roofs of homes and businesses free of charge, and supplying the power generated to customers.
Overseas expansion
  • We will strive to achieve Net-Zero CO2 on a global scale through business development, considering the energy market environment in each country. Including our businesses in LNG infrastructure and renewable energy.
DFF Inc., Sustainability Dept., General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Steady Reductions in CO2 Emissions from the Effective Use of Natural Gas

Natural gas has the lowest CO2 emissions among all fossil fuels. By ceaselessly working to spread and expand its use, we will steadily reduce CO2 emissions. This includes converting customers’ fuel sources to city gas, which is made from environmentally friendly natural gas. We also achieve further CO2 emissions reductions by improving the efficiency of industrial burners and furnaces and providing heat that is suitable for each application. Moreover, we are steadily promoting the use of gas cogeneration systems (CGS) and fuel cells, which offer high efficiency and energy-saving benefits. Our efforts also involve initiatives to maximize the CO2 emissions reduction result from the effective use of natural gas, including the introduction of digital solutions such as IoT and smart energy networks that optimize electricity and heat at the district level.
We became the first company to introduce carbon-neutral liquefied natural gas to Japan when we began purchasing it from the Shell Group in FY2019. This LNG is carbon-neutral because all the greenhouse gases emitted in the processes from natural gas exploration to combustion is offset by CO2 credits (carbon offsets) held by the Shell Group, and thus this gas is globally considered to be carbon free, even if combusted. Through the provision of this and other new solutions, we are embracing the challenge of net-zero CO2 in our original way together with our customers.

Voice
Japan’s First Supply of Carbon-Neutral City Gas
At Marunouchi Heat Supply Co., Ltd., we have worked to reduce CO2 emissions in various ways, purchases are our first initiative to reduce CO2 emissions via the city gas itself. We are utilizing carbon-neutral city gas to build up a robust and environmentally friendly heat supply network, and achieve further environmental load reductions and enhanced disaster resistance in our district heat supply business. Together with Tokyo Gas, we continue to explore other opportunities to use this approach to further reduce the impact on the environment, including potential projects like this initiative that aim toward realizing a sustainable society through urban development.

KOBAYASHI Shigehiko Managing Director Marunouchi Heat Supply Co., Ltd.

KOBAYASHI ShigehikoManaging Director
Marunouchi Heat Supply Co., Ltd.

DFF Inc., Sustainability Dept., General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Expansion of Renewable Energies

As part of our endeavors to help bring about net-zero CO2 emissions in our electrical power business, we are advancing efforts to secure renewable energy power sources. We are also working to realize the new business of providing energy services that make the most of the compatibility between natural gas and renewable energies. For example, we are developing virtual power plants, which consolidate customers’ various resources by using digital technologies to combine thermal power, renewable energies, and other centralized power sources with distributed power sources such as solar energy, storage batteries, and CGS.

Voice
Responding to Various Needs for Renewable Energy
We develop and operate renewable energy power sources centered on photovoltaic power, wind power, and biomass. Our aim is to supply carbon-free renewable energy-sourced electric power that our customers can use with peace of mind as we sustainably grow our business over the long run. For this to happen, we must deliver affordable electricity through more efficient power generation that takes into account the natural conditions affecting the output. And, we must also gain the understanding of the communities where power sources are installed and give consideration to the local ecosystems and scenery. In January we purchased the Annaka Solar Power Plant (Gunma Prefecture), one of the largest plants of its kind in the Kanto Region, and we are already stably delivering renewable energy electricity to customers. We aim to realize Net-Zero CO2 emissions and to be chosen by customers not only for natural gas, but also for our renewable energy business. In addition to photovoltaic power, we will continue actively pursuing projects in biomass as well as wind power, which has strong potential for the future.

OHONUKI Kahori Renewable Energy Business Development Dept. Tokyo Gas Co., Ltd.

OHONUKI KahoriRenewable Energy Business
Development Dept.
Tokyo Gas Co., Ltd.

DFF Inc., Sustainability Dept., General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Decarbonization of Gaseous Energy

During the ongoing transition to the decarbonized society, Tokyo Gas will continue providing value to customers through the effective use of natural gas, from the perspective of the maximum utilization and reinforcing the resilience of existing infrastructure and facilities. Because innovations in decarbonization technologies will be essential to achieve Net-Zero CO2 emissions, we are also advancing the open innovation of core factor technologies that contribute to decarbonization, the decarbonization of gaseous energy (the recovery, effective use, and storage of CO2 from hydrogen and methane), and the development of ultra-high-efficiency fuel cells.

Voice
Advancing Research to Achieve Net-Zero CO2
The Tokyo Gas Leading-edge Energy System Research Institute, which I belong to, develops scenarios for Tokyo Gas to achieve Net-Zero CO2 emissions and focuses on the research and development of technologies contributing to Net-Zero CO2. When drafting a scenario, we first conceive of growth strategies that backcast the path to achieving Net-Zero CO2 emissions. We then identify the technologies that Tokyo Gas should focus on developing within the scenario and carry out research and development. For example, methanation and other approaches have been proposed as methods for the future carbon-neutral production and supply of gaseous energy. This has the potential to become an important measure for Tokyo Gas to achieve Net-Zero CO2, but it is not actually useful unless the price of hydrogen derived from renewable energy declines. Therefore the Institute is presently conducting research and development toward decreasing the cost of hydrogen production technologies using renewable energies. While there may be many technologies that contribute to decarbonization, we will carefully identify those which are critical to the business growth of the Tokyo Gas Group, pursue research and development on them technologies, and achieve Net-Zero CO2.

KUSHI Takuto Fundamental Technology Dept. Leading-edge Energy System Research Institute Tokyo Gas Co., Ltd.

KUSHI TakutoLeading-edge Energy System Research Institute
Fundamental Technology Dept.
Tokyo Gas Co., Ltd.

DFF Inc., Sustainability Dept., General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Reducing CO2 Emissions on a Global Scale

We are making use of our integrated energy business technologies and expertise to respond to the increase in natural gas demand driven by rapid economic growth. We are also leveraging that know-how to help create comfortable, environmentally friendly cities in Southeast Asia, where LNG imports are expected to increase. To do this, we are introducing LNG/natural gas systems and constructing energy infrastructure in collaboration with governments and enterprises in each country.

Voice
Construction of State-of-the-art Urban District Cooling Center in Thailand
I am in charge of the engineering for One Bangkok, which is a private-sector redevelopment project in the central district of Bangkok, Thailand and is that country’s first urban district cooling project. Air conditioning is critical throughout the year in Bangkok, which has a harsh climate. One Bangkok is the first project in Thailand to seek LEED Platinum Certification for Neighborhood Development* for its environmentally friendly smart city redevelopment concept. The design utilizes rainwater and other recycled water, and incorporates the knowledge cultivated by businesses in Japan together with cutting-edge technologies. The system contributes to reducing the environmental load of the entire area by predicting the cooling load using weather forecasts for the next day and past demand data, and by effectively operating state-of-the-art, high-efficiency chillers and thermal storage equipment.
  • *  The highest level of certification under a system developed and operated by the U.S. Green Building Council (USGBC) for evaluating the environmental performance of buildings and land use.

MAEDA Hidetoshi Energy Service Dept. Overseas Business Div. Tokyo Gas Engineering Solutions Corporation

MAEDA HidetoshiEnergy Service Dept.
Overseas Business Div.
Tokyo Gas Engineering Solutions Corporation

Tokyo Gas has worked as a leading company for the spread of natural gas with its superior environmental properties, supply stability, and economy. The Tokyo Gas Group is working to achieve Net-Zero CO2 emissions and lead the transition to a decarbonized society by creating new value. We do this by collaborating with stakeholders and advancing renewable energy businesses that are highly compatible with natural gas, in ways that leverage the expertise we have gained from reducing CO2 emissions through the effective use of natural gas.

DFF Inc., Sustainability Dept., General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.