New Energy Supply Chain Concept Starting from Tomakomai Area, Hokkaido – Towards Realizing Carbon Neutrality in Hokkaido and Sustainable Growth of Our Company –

Overview of Business Strategy

Hokkaido Electric Power has formulated a new energy supply chain concept starting from the Tomakomai area in Hokkaido. Considering the region’s characteristics with a high ratio of oil and coal and significant potential for energy transition toward low-carbon and decarbonization, the company will promote full-scale entry into the gas business, installation of the next LNG power source, LNG terminal development, and expansion of renewable energy. Furthermore, aiming for social implementation of next-generation energies such as hydrogen, ammonia, CCUS, and e-methane around 2030, the company will provide diverse decarbonization solutions, contributing to realizing carbon neutrality by 2050 while seeking sustainable growth.

Specific Initiatives and Future Outlook

① For full-scale entry into the gas business, Hokkaido Electric Power is advancing the acquisition of gas production and sales business from Japan Petroleum Exploration Co., Ltd. (JAPEX), aiming to establish two bases in Tomakomai and Ishikari and build a supply system throughout Hokkaido. ② The plan for installing the next LNG power source targets FY2035, and along with expanding renewable energy integration, the company is also considering terminal development to accommodate conversion to decarbonized fuels and receiving large foreign vessels. ③ Regarding next-generation energy, efforts are underway to construct a domestic green hydrogen supply chain, develop ammonia terminals, build CCUS supply chains, and consider e-methane production. Through these initiatives, the company aims to respond to increasing energy demand in Hokkaido while targeting sustainable growth.