Latest news with #TomohideMiyata
Observer
15-05-2025
- Business
- Observer
Japan's oil refiners scale back decarbonisation efforts, refocus on fossil fuels
TOKYO: Japanese oil companies are scaling back decarbonisation initiatives, including hydrogen and ammonia projects, amid a global shift towards more stable and cost-effective fossil fuels. The move reflects mounting concerns over energy security, US policy risks, and rising material costs driven by inflation, all of which undermine project profitability and predictability. Across the global energy sector, companies that had reoriented their portfolios to address climate change are increasingly refocusing on oil and gas, where returns have become more attractive following a rebound in fossil fuel prices from pandemic-era lows. "The trend toward a carbon-neutral society is slowing, and the full-scale bifurcation of the energy transition, previously expected around 2030, may be delayed," Eneos Holdings CEO Tomohide Miyata told a news conference this week. Japan's largest refiner is in no rush to supply hydrogen and ammonia, as surging costs are clouding the likelihood of capital investment, Miyata added. In its new three-year business strategy through March 2028, Eneos removed its previous target of supplying up to 4 million metric tons of hydrogen by fiscal year 2040. Instead, stable and affordable energy, including oil, has become more important amid the rising cost of decarbonisation technologies, Miyata said, adding the company would ramp up investment in liquefied natural gas. Idemitsu Kosan, Japan's No.2 refiner, has trimmed decarbonisation investment plans, cutting its budget for initiatives such as hydrogen, ammonia, and synthetic fuels from 1 trillion yen ($6.9 billion) to around 800 billion yen for the period from fiscal 2023 to 2030, President Noriaki Sakai said this week. "We sense that the momentum toward decarbonisation is slowing somewhat... and believe it is necessary to adopt a flexible approach regarding both the pathway and timeline to achieving a carbon-neutral society by 2050," he said. While the global slowdown in low-carbon solutions has become increasingly evident, these remarks are among the most explicit to date from Japanese oil executives to acknowledge it. In February, BP's strategy is to cut spending on renewables and lower-carbon solutions while increasing annual oil and gas spending. Norway's Equinor its 2030 target for investments in renewables and low-carbon solutions. At the energy sector's annual conference in Houston in March, executives from both fossil fuel and renewable companies touted the need to shift from "energy transition" to "energy additions". — Reuters
CNA
15-05-2025
- Business
- CNA
Japan's oil refiners scale back decarbonisation efforts, refocus on fossil fuels
TOKYO: Japanese oil companies are scaling back decarbonisation initiatives, including hydrogen and ammonia projects, amid a global shift towards more stable and cost-effective fossil fuels. The move reflects mounting concerns over energy security, US policy risks, and rising material costs driven by inflation, all of which undermine project profitability and predictability. Across the global energy sector, companies that had reoriented their portfolios to address climate change are increasingly refocusing on oil and gas, where returns have become more attractive following a rebound in fossil fuel prices from pandemic-era lows. "The trend toward a carbon-neutral society is slowing, and the full-scale bifurcation of the energy transition, previously expected around 2030, may be delayed," Eneos Holdings CEO Tomohide Miyata told a news conference this week. Japan's largest refiner is in no rush to supply hydrogen and ammonia, as surging costs are clouding the likelihood of capital investment, Miyata added. In its new three-year business strategy through March 2028, Eneos removed its previous target of supplying up to 4 million metric tons of hydrogen by fiscal year 2040. Instead, stable and affordable energy, including oil, has become more important amid the rising cost of decarbonisation technologies, Miyata said, adding the company would ramp up investment in liquefied natural gas. Idemitsu Kosan, Japan's No 2 refiner, has trimmed decarbonisation investment plans, cutting its budget for initiatives such as hydrogen, ammonia, and synthetic fuels from ¥1 trillion (US$6.9 billion) to around ¥800 billion for the period from fiscal 2023 to 2030, President Noriaki Sakai said this week. "We sense that the momentum toward decarbonisation is slowing somewhat ... and believe it is necessary to adopt a flexible approach regarding both the pathway and timeline to achieving a carbon-neutral society by 2050," he said. While the global slowdown in low-carbon solutions has become increasingly evident, these remarks are among the most explicit to date from Japanese oil executives to acknowledge it. In February, BP revamped its strategy to cut spending on renewables and lower-carbon solutions while increasing annual oil and gas spending. Norway's Equinor scrapped its 2030 target for investments in renewables and low-carbon solutions. At the energy sector's annual conference in Houston in March, executives from both fossil fuel and renewable companies touted the need to shift from "energy transition" to "energy additions".
Reuters
15-05-2025
- Business
- Reuters
Japan's oil refiners scale back decarbonisation efforts, refocus on fossil fuels
TOKYO, May 15 (Reuters) - Japanese oil companies are scaling back decarbonisation initiatives, including hydrogen and ammonia projects, amid a global shift towards more stable and cost-effective fossil fuels. The move reflects mounting concerns over energy security, U.S. policy risks, and rising material costs driven by inflation, all of which undermine project profitability and predictability. Across the global energy sector, companies that had reoriented their portfolios to address climate change are increasingly refocusing on oil and gas, where returns have become more attractive following a rebound in fossil fuel prices from pandemic-era lows. "The trend toward a carbon-neutral society is slowing, and the full-scale bifurcation of the energy transition, previously expected around 2030, may be delayed," Eneos Holdings (5020.T), opens new tab CEO Tomohide Miyata told a news conference this week. Japan's largest refiner is in no rush to supply hydrogen and ammonia, as surging costs are clouding the likelihood of capital investment, Miyata added. In its new three-year business strategy through March 2028, Eneos removed its previous target of supplying up to 4 million metric tons of hydrogen by fiscal year 2040. Instead, stable and affordable energy, including oil, has become more important amid the rising cost of decarbonisation technologies, Miyata said, adding the company would ramp up investment in liquefied natural gas. Idemitsu Kosan (5019.T), opens new tab, Japan's No.2 refiner, has trimmed decarbonisation investment plans, cutting its budget for initiatives such as hydrogen, ammonia, and synthetic fuels from 1 trillion yen ($6.9 billion) to around 800 billion yen for the period from fiscal 2023 to 2030, President Noriaki Sakai said this week. "We sense that the momentum toward decarbonisation is slowing somewhat ... and believe it is necessary to adopt a flexible approach regarding both the pathway and timeline to achieving a carbon-neutral society by 2050," he said. While the global slowdown in low-carbon solutions has become increasingly evident, these remarks are among the most explicit to date from Japanese oil executives to acknowledge it. In February, BP (BP.L), opens new tab revamped its strategy to cut spending on renewables and lower-carbon solutions while increasing annual oil and gas spending. Norway's Equinor ( opens new tab scrapped its 2030 target for investments in renewables and low-carbon solutions. At the energy sector's annual conference in Houston in March, executives from both fossil fuel and renewable companies touted the need to shift from "energy transition" to "energy additions". ($1 = 145.7600 yen)
CNA
12-05-2025
- Business
- CNA
Japan's Eneos to ramp up investment in LNG, SAF while slowing hydrogen
TOKYO :Japan's top oil refiner, Eneos Holdings, plans to increase investment in low-carbon energy such as liquefied natural gas and sustainable aviation fuel, while slowing efforts in cleaner alternatives like hydrogen, its CEO said on Monday. Under a new three-year business plan through March 2028, Eneos will invest 1.56 trillion yen ($10.7 billion), including 740 billion yen in strategic spending focused on low-carbon and decarbonised energy, such as renewables and carbon capture. "We plan to reinforce and expand our LNG operations as demand is expected to grow through around 2040," CEO Tomohide Miyata told a news conference. Spending over the period includes 310 billion yen in low-carbon energy, 250 billion yen in decarbonised energy, and 180 billion yen in oil and chemicals, on top of 820 billion yen to maintain its core refinery operations. Eneos may also tap up to 1 trillion yen in management reserves for strategic investments, including in LNG, Miyata added. Like its global peers, Eneos is shifting its business portfolio to align with the energy transition. "But the trend toward a carbon-neutral society is slowing, and the full-scale bifurcation of the energy transition, previously expected around 2030, may be delayed," Miyata said, adding the company is in no rush to supply hydrogen and ammonia. In the new plan, Eneos has removed its previous target of supplying up to 4 million metric tons of hydrogen by the fiscal 2040 year. Instead, stable and affordable energy, including oil, has become more important amid rising energy security concerns, U.S. policy risks, and the growing cost of decarbonisation technologies, Miyata said. Eneos already holds stake in LNG projects in Asia, but Miyata said U.S. projects, including Alaska LNG, could be considered if economically viable. The refiner reported a 22 per cent decline in net profit for the year ended March 31 and forecast a 18 per cent drop for the current year. It aims to raise its refinery run rate, excluding scheduled maintenance, to 90 per cent by fiscal 2027, up from 78 per cent in 2024.
Reuters
12-05-2025
- Business
- Reuters
Japan's Eneos to ramp up investment in LNG, SAF while slowing hydrogen
TOKYO, May 12 (Reuters) - Japan's top oil refiner, Eneos Holdings, plans to increase investment in low-carbon energy such as liquefied natural gas and sustainable aviation fuel, while slowing efforts in cleaner alternatives like hydrogen, its CEO said on Monday. Under a new three-year business plan through March 2028, Eneos (5020.T), opens new tab will invest 1.56 trillion yen ($10.7 billion), including 740 billion yen in strategic spending focused on low-carbon and decarbonised energy, such as renewables and carbon capture. "We plan to reinforce and expand our LNG operations as demand is expected to grow through around 2040," CEO Tomohide Miyata told a news conference. Spending over the period includes 310 billion yen in low-carbon energy, 250 billion yen in decarbonised energy, and 180 billion yen in oil and chemicals, on top of 820 billion yen to maintain its core refinery operations. Eneos may also tap up to 1 trillion yen in management reserves for strategic investments, including in LNG, Miyata added. Like its global peers, Eneos is shifting its business portfolio to align with the energy transition. "But the trend toward a carbon-neutral society is slowing, and the full-scale bifurcation of the energy transition, previously expected around 2030, may be delayed," Miyata said, adding the company is in no rush to supply hydrogen and ammonia. In the new plan, Eneos has removed its previous target of supplying up to 4 million metric tons of hydrogen by the fiscal 2040 year. Instead, stable and affordable energy, including oil, has become more important amid rising energy security concerns, U.S. policy risks, and the growing cost of decarbonisation technologies, Miyata said. Eneos already holds stake in LNG projects in Asia, but Miyata said U.S. projects, including Alaska LNG, could be considered if economically viable. The refiner reported a 22% decline in net profit for the year ended March 31 and forecast a 18% drop for the current year. It aims to raise its refinery run rate, excluding scheduled maintenance, to 90% by fiscal 2027, up from 78% in 2024. ($1 = 145.9800 yen)
