INPEX : to Acquire Shares in Japan Suiso Energy to Build International Liquefied Hydrogen Supply Chain

October 31, 2023

Kawasaki Heavy Industries, Ltd

Iwatani Corporation

INPEX CORPORATION

Japan Suiso Energy, Ltd.

INPEX to Acquire Shares in Japan Suiso Energy

to Build International Liquefied Hydrogen Supply Chain

Tokyo, Japan - Kawasaki Heavy Industries, Ltd (Kawasaki), Iwatani Corporation (Iwatani) and INPEX CORPORATION (INPEX) announced today they have concluded a shareholder agreement for INPEX to acquire shares in Japan Suiso Energy, Ltd. (JSE), a joint venture between Kawasaki and Iwatani.

In conjunction with INPEX's acquisition of JSE shares, Kawasaki entered a stock transfer agreement with INPEX to transfer a portion of its holdings of JSE shares. As a result, the parties' equity stakes in JSE are as follows: Kawasaki: 36.6%; Iwatani: 33.4%; INPEX: 30.0%.

As decarbonization efforts accelerate around the world, there are growing expectations for hydrogen as a clean energy source that does not emit CO2 during use. Hydrogen is expected to contribute to energy security as it can be produced from various raw materials, allows for diversification of domestic and international procurement sources, and can be transported and stored for long periods of time.

The Japanese government's "Basic Hydrogen Strategy" revised in June 2023 targets the introduction of up to 3 million tons per year of hydrogen in 2030, followed by 12 million tons in 2040 and 20 million tons in 2050. The strategy also targets a hydrogen supply cost of approximately 30 yen per normal cubic meter in 2030, and 20 yen per normal cubic meter in 2050 on a CIF. To supply hydrogen in large quantities and at low cost in line with these targets, it is extremely important for Japan as an island nation to build an international hydrogen supply chain centered on maritime transportation.

JSE was established to research, plan, invest in and operate an international liquefied hydrogen supply chain. JSE is currently engaged in the "Liquefied Hydrogen Supply Chain Commercialization Demonstration Project" selected by the New Energy and Industrial Technology Development Organization's (NEDO) Green Innovation Fund project in August 2021. This demonstration is intended to support the development of hydrogen liquefaction and transportation technology on a scale of tens of thousands of tons per year for commercialization in the 2030s and the establishment of an integrated international liquefied hydrogen supply chain from Australia to Japan.

As Japan's largest exploration and production (E&P) company, INPEX supplies sustainable energy to Japan and other countries. The company has over 30 years of business experience, including being the first Japanese company to operate a large-scale LNG project (Ichthys LNG Project) in Australia. INPEX's experience and knowledge will be critical for JSE to demonstrate commercialization efforts,

build an international liquefied hydrogen supply chain and strengthen international competitiveness.

Through the operation of JSE, Kawasaki, Iwatani and INPEX aim to steadily build a commercial-scale international liquefied hydrogen supply chain, contributing to the Japanese government's hydrogen goals and the achievement of carbon neutrality by 2050.

■Investment scheme

■Liquefied Hydrogen Supply Chain Commercialization Demonstration Project Timeline: from FY 2021 until FY 2030 (scheduled)

Project Overview:Large-scaleHydrogen Supply Chain Establishment | NEDO Green Innovation Fund Projects

Media inquiries

INPEX: Tokyo Office, Public Relations Group, Tel) [phone]