Markets

Green Transformation Plans For Japanese Refinery

Solar Energy Generation & Supply Part Of Regional Carbon-Free Industrial Hub Of Idemitsu Kosan

Anu Bhambhani
  • Idemitsu Kosan has announced plans to transform its Yamaguchi Refinery into a green industrial hub 
  • Plans revealed include expansion of its solar power generation business on site to be supplied to nearby customers 
  • The company aims to shut down refining operations by March 2024 but will continue to receive, ship and store petroleum products 

Touted as the 2nd largest refiner in Japan, Idemitsu Kosan has revealed plans to turn its Yamaguchi Refinery in Japan into a regional industrial hub to supply carbon-free energy with solar energy part of the plans. The refinery has a daily production capacity of 120,000 barrels. 

This is in line with the company's June 2022 plans to shut down its refining operations on site at Sanyo-Onoda City, Yamaguchi Prefecture by March 2024. The transformation is the result of the company's awareness that 'oil demand will continue to decline.' 

Under the plans announced, Seibu Oil's wholly-owned subsidiary Idemitsu will develop the project as a base for locally produced, locally consumed and carbon-free energy supply and resource circulation. 

While the company statement is short on details, Idemitsu said it plans to expand the solar power generation business and supply electricity to nearby customers from this carbon-free power supply center. 

Idemitsu is in the business of development and operation of renewable energy projects, including solar, wind and biomass. The company is a supplier of this clean energy to wholesale and retail users. Research and development of CIS thin-film solar cells and sale of solar power generation systems is also part of its business portfolio for renewable energy.  

It is also present in the US market as Idemitsu Renewables, a utility-scale solar and energy storage projects developer (see North America PV News Snippets).   

The Japanese company said it aims for the Yamaguchi site to become a regional industrial hub by 2030, contributing to the local community by supplying carbon-free energy and recycling resources through local production and consumption. It will also incorporate biomass and resource recycling center to utilize waste and unused resources to convert them into fuels, chemicals, and the like. 

The location will, however, continue to be used to receive, ship and store petroleum products, according to a company announcement.