Environmental Initiatives Policy
Since its foundation, the Chiyoda Group has strived to embody its corporate philosophy of “Energy and Environment in Harmony” and has been promoted business activities.
In the transition period to a low-carbon society that the international community is aiming for, starting with the Paris Agreement, we recognize that climate change countermeasures through our business are important management issues. To address this global issue, we will create new innovations with digital innovation technology using the engineering technology we have cultivated, and play a role in a carbon cycle society.
We established Greenhouse Gas(GHG) Emissions Reduction in order to take on the mission of realizing a sustainable society that balances social and economic values.
In order to continue to promote a carbon-recycling society through our business, we will continue to strengthen our efforts for renewable energy, and in addition to taking on the challenge of providing energy through the hydrogen supply chain and establishing a decentralized / complex utility business. We will realization of decarburization and recycling with technological development .
We agreed with the recommendations of the Task Force on Climate-related Financial Information Disclosure (TCFD) , we will actively disclose information in line with the TCFD recommendations.
TCFD Initiatives
In 2019, the Company declared its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. We participated in the Ministry of the Environment’s “Project to Analyze Scenarios of Climate Risks and Opportunities in Accordance with TCFD” and conducted scenario analysis on climate change. As we proceed, we will enhance our analysis for use in our management strategies while disclosing information in line with TCFD recommendations.
Please refer to the following for our scenario analysis.
“Practical Guide for Scenario Analysis in Line with the TCFD Recommendations Ver. 2.0” (3-29–3-36) (Japanese only)
http://www.env.go.jp/policy/tcfd.html
Assumptions under Scenario Analysis
You can scroll horizontally to see it.
| Analytical assumptions | Target |
|---|---|
| Target year | 2040 |
| Scenario | 2°C scenario: Promote countermeasures against climate change (example: introduction of carbon tax) 4°C scenario: Without countermeasures (example: no carbon tax) |
| Reference data | WEO*1 2019 data (unless it does not cover the necessary data) |
| Sectors | LNG / Green Energy EPC / Non-EPC, such as hydrogen, CCU,*2 and distributed composite utilities |
| Financial data | Extension of data to 2040, based on business plan disclosed in Medium-Term Management Plan (Revitalization Plan) up to 2023 |
- 1:World Energy Outlook (WEO), announced by the International Energy Agency (IEA) each fall
- 2:CO2 Capture and Utilization (CCU)
Impact Calculations
A countermeasure policy, based on impact calculations implemented in our business strategies (global environment, digital transformation, redefining Chiyoda’s engineering value)
●4ºC scenario; No promotion of carbon taxes or carbon cycles, and continued dependence on fossil fuels
●2ºC scenario; Promotion of low carbon and carbon cycles, greater demand for green energy facilities, and accelerated implementation of hydrogen and CCU
You can scroll horizontally to see it.
| Items (Impact on the Company) | 2℃ | 4℃ | Policy for countermeasures |
|---|---|---|---|
| LNG | ⇒ | ⇗ | Provision of services that address changes in business structure |
| Petroleum/fossil fuel plant | ⇘ | ⇒ | Optimization of customer assets through the use of AI and digital technologies |
| Hydrogen | ⇗ | - | Early entry into markets and securing of market share due to increasing demand for low carbon and carbon cycles |
| CCU | ⇗ | - | |
| Green energy plant | ⇗ | ⇒ | Promotion of utility business based on future trends |
Case study of project
Establishment of the World’s Largest and Most Advanced Storage Batteries
●Stable Supply of Renewable Energy
The use of renewable energy generated through solar and wind power is increasing in line with the growing drive toward a decarbonized society. Storage batteries, connected to power systems controlling power generation, energy transmission and distribution, store excess energy for discharge when required and resolve the issue of unfavorable weather conditions and the natural environment adversely affecting the stability of energy supply.
Courtesy of North Hokkaido Wind Energy Teansmission Corp.
The Chiyoda Group completed construction of the North Toyotomi Transfer Station Storage Battery System, one of the world's largest battery energy storage facilities at the Kita-Toyotomi Substation in Hokkaido and handed over them to the customer in March 2023. The system is essential to stabilize supply/demand of North Hokkaido Wind Energy Transmission Corporation's power grid by mitigating fluctuations in unstable wind turbine output, and will double Hokkaido's wind power generation capacity by connecting turbines with a 540MW output. We worked for the project over a five-year period from making a preparation to be awarded, working for EPC phases to completion conquering many challenges, including the severe climatic conditions in North Hokkaido. The Group has also commenced a 20-year O&M contract. The Group will contribute to achieving a carbon neutrality by joining operation/maintenance area of energy management business.
Contributing to reducing CO₂ emissions through technologies
●Energy and Environment in Harmony
Chiyoda continues contributing to the reduction of supply chain CO₂ emissions by focusing on the production of more environmentally friendly LNG, a major concept during the increasing demand for a stable energy supply and the transition towards renewable energy.
▶ NFE LNG, Qatar <EPC ongoing>
Through a large CCS facility and Waste Heat Recovery Units, the LNG Trains will emit 25% less CO₂ than existing similar type mega-trains when fully operational.
▶ Freeport LNG, USA <EPC completed>
Electric motor drives (E-Drive) are adopted in the cooling system in lieu of conventional gas turbine drive types, and CO₂ emissions are reduced by 48%.
