ITOCHU’s Clean-tech Business

Basic Policy and Strategy

ITOCHU has established enhancing contribution and engagement with the SDGs including climate change as one of our basic policies in our Brand-new Deal 2023 medium-term management plan. We aim to achieve "Offset Zero", where the amount of avoided emissions generated by our cleantech business exceeds our GHG emissions by 2040. This target is 10 years ahead of the Japanese government’s target. We will achieve this by being the first in the industry to realize a decarbonized society.

Climate change and other environmental risks are also clean-tech business opportunities at the same time. We will adopt cutting-edge technologies from a medium- to long-term perspective. We will also take the lead in promoting concrete measures which are expected to lead to sustainable growth in the future and which will contribute to a transformation in social structure toward a decarbonized and recycling-oriented society.

Targets (Transition Plans)

Aim for offset zero* of our greenhouse gas emissions by 2040. Achieve this by proactively promoting business that contributes to a reduction in the amount of greenhouse gas emissions (such as clean-tech business).

  • Offset zero: When the amount of greenhouse gas emissions we contribute to reducing exceeds our greenhouse gas emissions
Individual Targets for Each Business Segment
Business Segment Individual Targets
Renewable Energy
  • Increase the ratio of renewable energy capacity within our power generation portfolio to over 20% by FYE2031.
    • Invested in renewable energy generation of approximately 1,800 MW such as in Cotton Plains (wind and solar power), Prairie Switch, Texas in the U.S. (wind power) and in Sarulla in Indonesia (geothermal power).
    • We are currently newly developing renewable energy business of approximately 3,800 MW to achieve a renewable energy ratio of over 20%.
Fuel Ammonia
  • Establish a value chain of fuel ammonia through integrated development including development, ownership and operation of ammonia-fueled ships, development of fuel supply bases, and procurement of fuel ammonia.
  • For the ambition to reach net zero GHG emissions from international shipping by or around 2050, contribute to the decarbonization of international shipping by promoting the spread of ammonia-fueled ships and their social implementation.
Energy Storage Systems (ESS)
  • Aim for a cumulative energy storage of over 2 GWh by FYE2031.
Water Infrastructure
  • Expand our achievements in Europe and Australia to other regions. Continue to build up excellent assets.
Waste Management Project
  • Expand our achievements in Europe to the Middle East and other regions in Asia. Continue to build up excellent assets.


Top Management Involvement: Decarbonization and Carbon Neutral Task Force

We have stated a strong commitment to being the first in the industry to realize a decarbonized society by enhancing contribution and engagement with the SDGs in our Brand-new Deal 2023 medium-term management plan. Based on this commitment, we began the full-scale operation of a decarbonization and carbon neutral task force across companies under the control of President & Chief Operating Officer in April 2021. This task force reports on the details of progress made on initiatives in each company every other week. Its field is not limited to hydrogen and ammonia projects; it also discusses other decarbonization projects (such as emissions trading and Carbon dioxide Capture, Utilization and Storage (CCUS)) which will contribute to a reduction in greenhouse gas emissions and whose market is expected to grow.

Introduction to Individual Businesses

1. Renewable Energy

ITOCHU globally enhances carbon neutral related businesses such as renewable power, hydrogen and ammonia. We aim to make profit growth not only by focusing on investments, but also by providing multi-angled functions such as engineering, operation and maintenance, etc.

Renewable Energy Generation (Equity Interest Basis)

Target for Renewable Energy Ratio of Total Generation

Breakdown of ITOCHU’s Total Generation and Breakdown Target for FYE2031
FYE2020 FYE2021 FYE2022 FYE2023 FYE2024 FYE2024 FYE2031 (Target)
Generation Capacity on Equity Interest Basis (MW) Generation Capacity on Equity Interest Basis (MW) Generation Capacity on Equity Interest Basis (MW) Generation Capacity on Equity Interest Basis (MW) Generation Capacity on Equity Interest Basis (MW) Ratio (%) Ratio (%)








Solar/PV Power


















Renewable Energy (Total)






Natural Gas








Oil-fired Power






Coal-fired Power






Thermal Power (Total)






Grand Total








For a list of our renewable energy-related businesses please visit here.
We have announced a policy not to develop any new coal-fired power generation business*.

Renewable Energy Highlights

Wind Power

ITOCHU has continued invested in wind power generation (onshore and offshore) from the late 1990s. Currently, ITOCHU has interests in five power plants in Japan the United States, and Germany.

Butendiek Offshore Wind Farm in the North Sea of Germany
The Butendiek Offshore Wind Farm

In response to the renewable market growth in Europe, we jointly own an offshore wind generation project (288 MW) located on the German North Sea coast with the CITIC Group with whom we establish a strategic alliance. The wind farm supplies power to approximately 370,000 standard German households, contributing to the transition to a decarbonized society.

Aomori Mutsu Ogawara Onshore Wind Farm

ITOCHU is under construction of an onshore wind farm (maximum output capacity: 64.5 MW) in a suitable site with favorable wind conditions in Rokkasho-mura, Kamikita-gun in Aomori Prefecture as a joint project with Hitachi Zosen Corporation and our associated company, Tokyo Century Corporation. We are aiming to start operation in April 2026. We expect this wind farm to generate approximately 166 million kWh of power a year. That is equivalent to the annual power consumption of approximately 46,000 ordinary Japan households.

Utility Scale Solar Projects

Oita-Hiyoshibaru Solar Power Plant

Following on the start of the commercial operation of a mega-solar power plant in Ehime in 2015, ITOCHU started operating mega-solar power plants in Oita in 2016, Okayama in 2017 and Saga in 2018. This means we now operate four mega-solar power plants in Japan (total power generation output: approximately 130 MW). The knowledge and experience we have gained through operating these power plants is contributing to the expansion of our renewable energy business. We will continue to operate these power plants stably.

Distributed Solar Power Supply Business

i GRID SOLUTIONS On-site Distributed Power Supply

We operate one of the largest on-site distributed power plants in Japan mainly involving the roofs of supermarkets and logistics facilities through our capital and business alliance partner of i GRID SOLUTIONS, Inc. (i GRID). i GRID is involved in the on-site solar power generation business. The company installs self-consumption solar power generation systems at zero initial investment by customers. It then directly supplies power at low cost to facilities over a long period of time. Furthermore, in addition to solar power generation, it integrates and controls distributed power supplies such as storage batteries and electric vehicles with a supply and demand adjustment platform using AI. This allows it to offer solutions for the realization of green transformation in regions centered on customer facilities.

Clean Energy Connect Off-site Distributed Power Supply

Furthermore, we have entered into a capital and business alliance with Clean Energy Connect Co., Ltd. (CEC) for initiatives to contribute to clean energy by effectively utilizing land in Japan. We have been jointly promoting this business since 2021. CEC is involved in the off-site solar power business. The company develops and owns multiple small and medium-sized solar power plants by utilizing idle land in Japan. It then bundles together green power to supply electricity and environmental value over the long-term to customers such as office buildings in the center of cities. Through CEC, ITOCHU will introduce photovoltaic power plants with additional approx. 5,000 locations in Japan with a cumulative total output of 500 MW by FYE 2026, aiming to be one of the largest corporate PPA operators in Japan.

Solar Panel Recycling Business

ITOCHU undertook a capital increase through a third-party allotment from ROSI SAS. – a company engaged in the reuse and develops and owns advanced solar panel recycling technologies, and ITOCHU has entered into these alliances with the aim of promoting and expanding the solar panel recycling business.

In recent years, there is widespread global concern that mass disposal of solar panels that have reached the end of the product lives will occur in the near future. Establishing an appropriate recycling chain for these waste solar panels represents a major challenge for the future, in order to introduce sustainable renewable energy solutions for creating a decarbonized society.

We will contribute to the establishment of a recycling chain for solar panels by combining photovoltaic power generation-related business know-how and networks developed by us so far with ROSI’s advanced and highly economical recycling technologies.

Geothermal Power

ITOCHU participates in Sarulla Geothermal Power Project in Indonesia, which is one of the largest size in geothermal sector. The project entered into construction phase after signing a 30-year power purchase agreement with Indonesia’s state-owned electricity company in 2013. The first and second units were completed and commenced commercial operation in 2017, followed by the third unit in 2018. Indonesia is actively promoting renewable energy, and geothermal is positioned as an important part of it. Among renewable energy, geothermal energy is able to provide stable power supply to the electricity grid through a whole day, not dependent on the natural conditions such as wind or sunlight. ITOCHU is proceeding with decarbonization through stable power supply in line with energy mixes and policies of each country or areas.

Biomass Power

Ichihara Biomass Power Plant

The Ichihara Biomass Power Plant (power generation output: 49.9 MW) in which ITOCHU is participating started commercial operation in December 2020. We expect this power plant to generate approximately 350 million kWh of power a year. That is equivalent to the annual power consumption of approximately 120,000 ordinary Japan households. In addition, we decided to build biomass power plants (power generation output of each: 50 MW) in Hyuga in Miyazaki Prefecture in April 2021 and in Tahara in Aichi Prefecture in November 2021, which are scheduled to start operation in FYE 2025 and 2026, respectively.

Biomass Fuel and Renewable Fuel Related Business

Sustainable Aviation Fuel (SAF)
Copyright: All Nippon Airways co., Ltd. all rights reserved

ITOCHU is working to increase the ratio of renewable energy through the supply of biomass fuels to power generation companies in Japan. We are also working to expand procurement and supply of renewable fuels for the decarbonization of the mobility market, including airplanes and automobiles.

For example, in response to the accelerated decarbonization of the airline industry, we were the first company in Japan to begin selling Sustainable Aviation Fuel (SAF) to airline companies. We are also the first Japanese trading company to obtain ISCC CORSIA certification, which was developed to reduce greenhouse gas (GHG) emissions in the airline industry. This is a certification that proves we are able to supply SAF which meets the carbon offset requirements of CORSIA. We deliver the renewable fuels made from non-fossil-derived raw materials, contributing to a significant reduction in GHG emissions compared to conventional petroleum-derived fuels.

Operation and Maintenance for Renewable Power in North America

ITOCHU provides operation and maintenance service as well as asset management for solar and wind generation in the US principally through our subsidiary NAES Corporation. It serves approximately as many as 1,400 sites throughout the US utilizing its remote monitoring system.

Renewable Power Developments in North America

Utility Scale Solar Projects developed in U.S.A.

Tyr Energy Development Renewables, LLC, dedicated in greenfield renewable energy development in the United States, was established in 2022 and is currently developing renewable energy projects of approximately 3,800 MW. TED has full suite function of greenfield development including land acquisition, permitting, interconnection process, PPA origination, engineering and finance. The U.S. renewable energy market is expected to grow significantly over the next 20 years. To capture the growth, we continue to enhance the development activities.

2. Fuel Ammonia

With international momentum towards the transition to a decarbonized society, the International Maritime Organization (IMO) has set a greenhouse gas (GHG) emissions reduction strategy of 40% efficiency improvement from 2008 levels by 2030, 50% total volume reduction from 2008 levels by 2050. In 2023, the strategy was revised to the ambition to reach net zero of GHG emissions (zero emissions) by or around 2050. In order to achieve these goals, early development and social implementation of zero-emission ships are expected, and ammonia is attracting attention in various fields as a candidate alternative fuel. In addition, a stable supply of ammonia fuel for marine use and the development of supply bases are indispensable elements for the concrete development of ships that use ammonia as their main fuel.

Development of Ammonia Fuel Ship

ITOCHU Corporation has agreed with Nihon Shipyard Co., Ltd., MAN Energy Solutions, Mitsui E&S Machinery Co., Ltd. (Currently, Mitsui E&S Co., Ltd.), ClassNK, ITOCHU ENEX Co. Ltd. on jointly developing oceangoing commercial ships equipped with a main engine using ammonia as its main fuel.

In October 2021, we applied for “the Green Innovation Fund Project / Development Project for Next-Generation Ships / Development of an Ammonia Fueled Ship Project” publicly offered by the New Energy and Industrial Technology Development Organization (NEDO), together with four other companies, including Kawasaki Kisen Kaisha, Ltd., NS United Kaiun Kaisha, Ltd., Nihon Shipyard Co., Ltd. and Mitsui E&S Machinery Co., Ltd. (Currently, Mitsui E&S Co., Ltd.), and successfully selected. In November 2022, We and the said four companies obtained Approval in Principle for the basic design of an ammonia-fueled ship (200,000 deadweight ton type bulk carrier). This project aims to take the lead in the development of propulsion systems and hulls, as well as the ownership and operation of ammonia-fueled ships, as early as possible before 2028.

Development of Supply Chain of Ammonia Bunkering

ITOCHU Corporation and ITOCHU Enex have agreed the joint development of an ammonia fuel supply (bunkering) base in Singapore, the world’s largest supplier of marine fuel, among six companies including TotalEnergies Marine Fuels Pte. Ltd, Pavilion Energy Singapore Pte. Ltd, Vopak Terminals Singapore Pte. Ltd. and Mitsui O.S.K. Lines Ltd. In April 2022, ITOCHU together with the companies signed a memorandum of understanding with the Maritime and Port Authority of Singapore to promote the development of an ammonia fuel supply (bunkering) base in Singapore. For the joint development of an ammonia bunkering, we have signed in 2023 an MOU with Peninsula Petroleum in Spain and also an MOU with Orascom Construction in the Suez Canal. We will be further accelerating the development of a safe fuel supply system and the development of ammonia bunkering vessels.

Since June 2021, ITOCHU has continued to examine and verify common issues related to the use of ammonia as marine fuel through the “Joint Study” a framework established with 34 companies and organizations to promote the use of ammonia as marine fuel. In April 2022, we launched the “Joint Study Framework for Ammonia Bunkering Safety” with 16 companies and organizations as a framework to share issues and knowledge on safety and guidelines for ammonia bunkering among related parties, and are expanding the activities. As a successive phase of these activities, we have executed an MOU for the Joint Study of Ammonia Bunkering Safety for an Ammonia-fueled Container Carrier among 8 companies and organizations in September 2023.

Each of the above joint developments and frameworks is positioned as part of an “Integrated Project” of ITOCHU and partner companies that includes not only the development of ammonia fuel ships and the establishment of an ammonia fuel supply base in Singapore, but also the ownership and operation of these ships, the procurement of ammonia fuel for marine use, and the establishment of a global supply chain. We will work with domestic and overseas companies and relevant ministries and agencies to contribute to the reduction of GHG emissions from international shipping.

Project to Manufacture and Sell Clean Ammonia in Canada, Aiming to Realize a Decarbonized Society

ITOCHU Corporation and Gentari Hydrogen Sdn. Bhd., Petroliam Nasional Berhad group, a Malaysian national oil company, have been conducting detailed studies of a project to manufacture and sell clean ammonia in Alberta, Canada.

ITOCHU Corporation will pursue the creation of a decarbonized society by establishing manufacturing sites and a supply chain for clean ammonia, which is expected to reduce greenhouse gas emissions from conventional fossil fuel derived ammonia.

3. Hydrogen Related Business

In December 2020, Japan announced the “Green Growth Strategy Towards 2050 Carbon Neutrality,” and as part of that strategy, hydrogen is expected to contribute to the decarbonization of various fields as a key technology for carbon neutrality with promising applications across a wide range of fields, such as power generation, industrial usage, transportation, etc.

In light of this major trend, ITOCHU’s wide-ranging networks focused on consumer-related sectors will be used to demonstrate the comprehensive capabilities of the ITOCHU Group and promote the development of the hydrogen market.

Strategic Collaboration to Build a Hydrogen Value Chain

Motomiya Hydrogen Station (Image)

ITOCHU, Air Liquide Japan G.K. and ITOCHU ENEX Co., Ltd. will jointly examine hydrogen production/supply and hydrogen station business focused on major metropolitan areas in Japan. The aim of this is to cultivate the hydrogen market for mobility and industry.

Starting with the Hydrogen Refueling Station (hereinafter “HRS”) in Motomiya-city, Fukushima Prefecture, which is scheduled to start operation in the first half of 2024 as Japan’s first HRS, we will continue to find out more HRS opportunities with similar concept that are expected to be rolled out along with highway and to attract usage of larger scale fuel cell commercial vehicles.

We will demonstrate our comprehensive strengths as a group by making full use of our extensive network focused on the consumer goods industry field to contribute to the growth of the hydrogen market.

Business Model Development of a Local Hydrogen Production for Local Consumption

ITOCHU Corporation has been progressing the joint operationalization research on a hydrogen business based on “the local production for local consumption model” in northern Kyushu with our important customers of Nippon Coke & Engineering Company, Limited (hereinafter “Nippon Coke”) and Compagnie Maritime Belge B.V. (hereinafter, “CMB”). ITOCHU has been supplying raw materials to Nippon Coke, and also has a lot of newly built ship business with CMB which is the largest maritime group in Belgium, both for many years.

Featuring both the hydrogen byproduct of Nippon Coke and the hydrogen engine of CMB, this project aims to create and expand both supply of and demand for hydrogen, with the goal of realizing actually operating hydrogen supply chains based on “the local production for local consumption model”.

Furthermore, by actively deploying this business model in other regions as well, ITOCHU will realize the social implementation of hydrogen on a global scale at the possible earliest time, for enhancing our contribution to and engagement with the SDGs.

Hydrogen Business Partnership with Nel and investment in Everfuel

ITOCHU Corporation has concluded a Memorandum of Understanding with Nel ASA (headquartered in Oslo, Norway), to create a strategic partnership in the hydrogen industry and the both companies are jointly developing hydrogen business. Nel is the world’s largest manufacturer of electrolyzers, which are essential for green hydrogen production, in terms of production capacity, size of systems, number of systems delivered and revenues.

Following an introduction from Nel, in December 2023, ITOCHU and a subsidiary of Osaka Gas Co., Ltd. have entered into a joint agreement to acquire shares of Everfuel A/S, which promotes the establishment of a green hydrogen value chain. The company is engaged in the EPC and operation of green hydrogen production facilities, transportation equipment, and hydrogen stations using water electrolysis equipment. The company is also promoting the construction of a green hydrogen value chain for local production and consumption by selling hydrogen to the industrial and mobility sectors through the use of its own hydrogen stations. The world’s largest hydrogen production and distribution plant (20 MW electrolyzer scale) is scheduled to start commercial operation in 2024 as the company’s first hydrogen production project.

Green Hydrogen Project and Investment Scheme Diagram
Inside the Plant

4. Energy Storage Systems (ESS)

ITOCHU aims to promote decarbonization and reduce environmental footprint by selling energy storage systems (ESS) that enhance and optimize the sustainable supply of renewable energy. As a demonstration of our commitment, we have set a clear sales target for ESS of 20 billion JPY per year and a cumulative energy storage exceeding 2GWh by FYE 2031.

Moving forward, ITOCHU will strengthen our global battery procurement including reusable batteries and dealer network, in order to accelerate the development of energy storage systems for households and industries, and the development of systems for utility scale energy storage that connect renewable energy businesses and consumers for contribution to the decarbonization of each business. We will look to develop AI-equipped energy storage systems and to then launch them onto the market, and will develop businesses that provide solutions tailored to local markets (especially, we assume, the U.S. and Australian markets which are expected to grow in the future) with capital and business alliance partners overseas. Moreover, we will accelerate efforts to recycle waste batteries generated by electric vehicles (EVs) or energy storage systems and efforts relating to the traceability of those. This will allow us to develop our recycling-orientated business and to contribute to a further improvement in corporate value.

Sales and Cumulative Energy Capacity of Our ESS products

Cumulative Capacity of ESS Units Sold (GWh)

In cooperation with NF Blossom Technologies, Inc.*, ITOCHU developed Smart Star ESS series, which have been sold for approximately 60,000 units as of March 2024. We have also begun to build up a track record of installations of Bluestorage, an energy storage system for C&I and grid use, centered on the utility scale energy storage project being promoted by the Japanese government and the Tokyo Metropolitan Government to realize a decarbonized society.

  • NF Blossom Technologies, Inc. is a joint venture by NF Holdings Corporation and ITOCHU launched in February 2020.

Other Initiatives

The Sale of Next-generation Residential ESS Products Using AI Technology

ITOCHU Corporation has entered into a capital and business alliance with Moixa Energy Holdings Ltd. in the United Kingdom, which develops “GridShare,” software for optimal charge/discharge control of power storage systems.

By incorporating GridShare into the Smart Star series, in addition to the original features that demonstrate its strengths during power outages, AI analyzes and learns weather forecasts, user power demand and power generation forecasts, etc., and performs optimal charge and discharge control of the storage system. This enables efficient operation of solar power generation and power storage systems.

In addition, “Smart Star 3”, which went on sale in May 2021, is equipped with the world’s first environmental value point conversion and EV charging function through a home power storage system.

Official website of Smart Star Series: Click here (Japanese only)[Open in a new window]

External view of the Smart Star L
External View of the Smart Star 3

Demand Response Using GridShare

Through Gridshare Japan Co., Ltd., a wholly owned subsidiary of ITOCHU Corporation, users who provide optimal remote-control services are bundled together and demand response is implemented to implement control according to the power supply and demand situation. In FYE 2023, a maximum of approximately 17,000 units and approximately 51 MW/167 MWh of participants were solicited. Even if each power storage system is small, it is integrated and controlled as if it were a single large power storage system and functioned as a virtual power plant (VPP). This initiative is expected to spread renewable energy, respond to the tight supply and demand of electricity, and contribute to the earnings of retail electricity companies, and we will continue to promote it in the future.

Equity Participation in TRENDE Inc. and Future Collaboration

With the mission of "lighting up the future," TRENDE Co., Ltd. develops residential solar power retail services (Hotto Denki, Hidamari Denki, Jibun Denryoku) with zero initial cost, and promotes the efficiency of renewable energy. We are working on technological development and social implementation of P2P power trading*1 that contributes to its practical use and spread.

ITOCHU Corporation and TRENDE aim to expand environmental value transactions utilizing the non-fossil value*2 of renewable energy and realize P2P electricity transactions between customers.

  1. P2P power trading: Abbreviation for Peer to Peer. Refers to direct transactions of electricity between electricity consumers and power generation facility owners.
  2. Non-fossil value: Environmental value given to power sources that do not use fossil fuels for power generation. A trading market was established in May 2018 to promote the introduction of renewable energy.

Establishment of a Fund Exclusively for Utility Scale Energy Storage for the First Time in Japan Promoting Energy Generation and Storage

As activity in the development of renewable energy increases, it is increasingly necessary to develop functions for the adjustment of supply to meet demand for renewable energy as their output fluctuates greatly. Utility scale energy storage, which can provide power grids with the ability to adjust energy supply to meet demand, is essential for the future carbon-free society. The Tokyo Metropolitan Government has decided to create a government-industry fund to accelerate the ubiquitization of utility scale energy storage which contributes to the stabilization of power grids.

ITOCHU was selected, jointly with Gore Street Capital Limited, as the co-manager of the fund for promoting energy creation and storage being created by the Tokyo Metropolitan Government. This fund is the first in Japan that is intended exclusively for utility scale energy storage, following the establishment of similar funds in Europe and the United States.

We will actively promote the grid storage battery business, which is driving the decarbonization of Japan, from a financial perspective by leveraging our accumulated knowledge of the stationary storage system business.

Strategic Business Alliance with Akaysha Energy Pty in the Utility Scale Energy Storage Development

An image of Akaysha’s project under development in Australia.

ITOCHU and Akaysha have entered into a strategic alliance agreement to strengthen our competitiveness in the development of high-performance and efficient grid storage battery systems. Akaysha is a business development platform owned by a fund managed by BlackRock Group, and promotes the development, ownership and operation of grid storage solutions globally. Through this collaboration, we will combine our innovative solutions to contribute to the further introduction and stable supply of renewable energy and play a role in the realization of a sustainable society.

5. Water Infrastructure

ITOCHU identifies water-related businesses as a strategic priority. This is due to our understanding that such demands will increase given global climate change trends projecting drastic changes in rainfall as well as changes in demography especially in emerging economies. We globally engage in water-related businesses such as seawater desalination and water utility, aiming to contribute solutions to the increasing water problems around the world.

Seawater Desalination

We have invested in a seawater desalination project in Victoria, Australia. This is the project that has been providing the reliable water supply for Melbourne since 2012, and this plant is capable to meet approximately 30% of the water need of Melbourne, Victoria. We have invested as the largest shareholder in a seawater desalination project with the Oman Power and Water Procurement Company (OPWP), a government entity of the Sultanate of Oman. OPWP is promoting this project at Barka, in the northern area of the country.

Other Initiatives

The Development and Sales of Seawater Desalinization Plants and Reverse Osmosis Membranes
Stable Supply of Life-sustaining Water
Seawater Desalinization Plant
– Largest Seawater Desalination Project in Oman –

In March 2016, Barka Desalination Company, which we have invested aforesaid, agreed a contract to build and operate a new seawater desalination plant with a capacity of 281,000 m3 per day at Barka, located in the northern area of the Sultanate of Oman, with the aim of ensuring a stable supply of water in the country.
This project is a public-private partnership project with the Oman government to provide water for everyday life to the Barka region that suffers from severe water stress. The facilities involved use reverse osmosis membrane (RO membrane) to desalinate the water and are projected to operate for 20 years. It is the largest seawater desalination project in Oman with a total project cost of approximately 300 million US dollars. The plant has started commercial operation in June 2018. Besides, we realized listing on the Muscat Stock Exchange in February 2022.

6. Waste Management Project

Serbia/Belgrade Waste Management Public-Private Partnership project (under construction with Interim Service)

All over the world, 2.0 billion tons of municipal solid waste (equivalent to 5,400 times of Tokyo Dome) are discharged annually. At least one-third of this waste is not treated with a proper way. As a result, decomposing gases emitted from waste cause fires, and the toxic substances that flow from waste mix with lakes, rivers, and groundwater, having a negative impact on the health of people and ecosystems in the surrounding areas. Due to rapid urbanization and population growth, especially in emerging countries, the world’s waste volume is expected to reach 3.4 billion tons per year over the next 30 years.

ITOCHU is involved as a developer, investor, and operator in 4 energy-from-waste projects for municipal governments in the United Kingdom, which treat 1.3 million tons of waste annually, accounting for around 10% of the UK’s waste incineration market, and generate enough electricity to power 160,000 British households. In the Republic of Serbia, we are working with the government of Serbia and City of Belgrade to develop a Waste Management project with an Energy-from-Waste Facility. The project will address one of the biggest environmental and social problems in Serbia - closing and remediating the existing landfill at the Vinca dumpsite, and treat municipal solid waste in City of Belgrade, and generate electricity. Financed by International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and Oesterreichische Entwicklungsbank (Austria’s Development Bank “OeEB”), the construction of an Energy-from-Waste facility is under construction. This project will treat 340,000 tons of waste annually and generate enough electricity to power 30,000 households. In addition to these projects, ITOCHU have started an Energy-from-Waste project in the Emirate of Dubai, the United Arab Emirates in 2020. This project will be one of the largest energy-from-waste projects in the world, which will treat 1.9 million tons of waste annually, accounting for about 45% of the municipal solid waste in UAE, and generate electricity. This project will contribute to reaching the goals set by Dubai Municipality in minimizing the volume of municipal waste in landfills and developing alternative energy sources as well as contribute to sustainable and ecologically friendly waste management.

7. Low-carbon Iron Supply Chain

Creating a Low CO2 Emission Supply Chain for Ferrous Raw Material

Reducing CO2 emissions during the steelmaking process has become an urgent issue in the steel industry. Compared to the conventional blast furnace route, the direct reduction route, which uses natural gas and high-grade iron ore for the reduction process, significantly lowers CO2 emissions in the ironmaking process. To secure a stable supply of high-grade iron ore, which is an indispensable raw material for the direct reduction route, ITOCHU has acquired partial interests in the AMMC iron ore mining operation in Canada. We are conducting a feasibility study on establishing a low CO2 emission supply chain for ferrous raw material jointly with JFE Steel Corporation, who is our long-term business partner and Emirates Steel Arkan, who is one of the largest publicly traded steel and building materials manufacturers in the region. In this venture, we plan to utilize high grade iron ore produced by CSN Mineração S.A., a superior iron ore producer in which ITOCHU & JFE have invested. On the whole, blast furnace route emits approximately 2 tons of CO2 per ton of steel, whereas the direct reduction route effectively reduces this to about 1 to 1.5 tons of CO2 emissions* with access to abundant natural gas. Looking ahead, we aim to achieve zero CO2 emissions in the steelmaking process by implementing hydrogen reduction.

  • JFE Environmental Vision 2050, page 9
Comparison of CO2 Emissions when Producing 1 Ton of Crude Steel
Low-carbon reduced iron

8. CCUS・Carbon Fixation

ITOCHU invested in the Australia-based company, Mineral Carbonation International (MCi), and has been collaborating with MCi in promoting its technology which produces calcium carbonate by combining by-products of the steelmaking process(slag), coal ash and/or waste concrete with CO2, to permanently lock away CO2 in a solid form and utilize as building materials. MCi was, in June 2021, awarded 14.6 million Australian dollars grants from the Australian government’s Carbon Capture Use and Storage (CCUS) Fund, and then in November 2021 MCi won the first prize in the COP26 Clean Energy Start-up Pitch Battle in Glasgow, among 2,700 competing companies around the world. MCi is a company that aims to remove a billion tons of CO2 annually in the future, as its company mission. In July 2022, ITOCHU, TAISEI CORPORATION, and MCi concluded a memorandum of understanding and are proceeding with verification of the use of this calcium carbonate as raw materials for concrete. With a view to manufacturing products in Japan, we are also discussing calcium carbonate production with domestic companies that discharge raw materials.

9. Green Buildings

ITOCHU’s construction and real estate group are committed to providing real estate and distribution services, especially in housing and commercial facilities as well as distribution facilities and housing complexes, which are sustainable and relevant to everyday life. We aim to do so by being involved throughout the value chain, from the development to the operation and management of real estate products, to streamline and optimize the solutions where we can, utilizing smart city concepts and emerging technologies such as IoT.

Our Group’s real estate investment trust (REIT) participates in the GRESB, a sustainability assessment framework for real estate investors. We are actively acquiring green building certification for our real estate portfolio from the perspective of reducing their environmental impacts. Advance Residence Investment Corporation, a listed residential real estate REIT has 26 real estate assets with CASBEE real estate valuation certifications and 2 real assets with Building-Housing Energy-efficiency Labeling System (BELS) certification which accounts to 32.2% in surface area, and 9.5% in number of units among its entire portfolio. At Advance Logistics Investment Corporation, a listed REIT focused on logistics assets, we own 8 assets with DBJ Green Building certifications, 2 assets with BELS certification and 9 real assets with BELS certification, which accounts to 95.0% in surface area, and 84.6% in number of units among its entire portfolio. At Advance Private Investment Corporation, an unlisted open-ended REIT, we own 1 real estate asset with CASBEE real estate valuation certification, which accounts to 11.4% in surface area, and 10.0% in number of units among its entire portfolios.

  • The percentage of green building certification is information as at end of January 2024.

10. Collaboration with Outside Initiatives

We are promoting and expanding initiatives for clean-tech business by participating in initiatives. We decide to participate in each initiative upon confirming it conforms to our basic policy and initiatives for the clean-tech business.

Carbon Recycling Fund Institute

The Carbon Recycling Fund Institute was established in August 2019. The fund believes it is necessary to make further initiatives to achieve the target of carbon neutrality by 2050 by using CO2 as a carbon source. It is a general incorporated association aiming to solve the problem of global warming and to improve energy access around the world at the same time. It will do this by supporting the creation of carbon recycling innovation through research assistance and publicity activities relating to carbon recycling. ITOCHU is also participating as a member.

Tokyo Zero-emission Innovation Bay

Tokyo Zero-emission Innovation Bay was established in June 2020 as a council by research laboratories, factories, business offices, research institutes, and universities located around the Tokyo Bay area, based on the concept proposed by the Japanese Government to develop the Tokyo Bay Area into the world’s first Zero Emission Version of Silicon Valley where members can best collaborate, plan and carry out research & development/demonstrations/businesses, and disseminate information around the world. ITOCHU Corporation is listed as its member.

Japan CCS Co., Ltd.

In response to the national policy to develop and promote CCS technology, Japan CCS Co., Ltd. (hereinafter JCCS) was established in May 2008 by a group of major companies with expertise in CCS-related fields, including electric power, petroleum, oil development, and plant engineering. JCCS is a company founded and dedicated explicitly for developing the integrated CCS technology, and conducting feasibility studies and demonstration projects in Tomakomai area, Hokkaido, pertaining to carbon dioxide capture, utilization, transportation and storage technologies. As one of the shareholders, ITOCHU Corporation has been supporting this project. Also, separate from this project in Hokkaido, ITOCHU is jointly conducting research and demonstration project of NEDO to establish liquefied CO2 ship transportation technology with JCCS as the consortium partners.

The Association for Reciprocal Revitalizations of Renewable Energy and Region (FOURE)

The Association for Reciprocal Revitalizations of Renewable Energy and Region (FOURE) was established in June 2021. It is an organization aiming to expand the introduction of renewable energy that benefits regions and to realize a decarbonized society. The organization is achieving this aim by spreading the introduction of renewable energy as the main power source in regions in Japan and by regions and renewable energy coexisting and mutually developing. ITOCHU has been participating as a member since March 2022.

Japan Sustainable Fashion Alliance

The Japan Sustainable Fashion Alliance was established in August 2021 with ITOCHU serving as the first representative alongside GOLDWIN INC. and JEPLAN, INC. The purpose of this alliance is to promote a transition to a sustainable fashion industry with targets of zero fashion loss through appropriate production, appropriate purchasing and recycling, and carbon neutrality in 2050. The alliance will realize its purpose by understanding the impact the fashion industry has on the natural environment and society to come up with solutions jointly for shared issues in the fashion and textile industries.

List of Renewable Energy Related Efforts (Power Generation Capacity Basis)
Details of Effort Name of Business Operator / Investment Project Country Generating Capacity / Size Greenhouse Gas Reduction Figures
Wind Power Generation Business

Aspenall Wind Power Generation Project


43 MW

Approx. 100,000 tons / year

Cotton Plains
Wind and Solar Power Generation Business


217 MW

Approx. 480,000 tons / year

Prairie Switch Wind Power Generation Project


160 MW

Approx. 380,000 tons / year

Mutsu Ogawara
Wind Power Generation Project (Under Construction)


64.5 MW

Estimated 150,000 tons / year

Offshore Wind Power Generation Business

Butendiek Offshore Wind Power Generation Project


288 MW

Approx. 770,000 tons / year

Waste Management Projects

ST&W Waste Management Project / South Tyne & Wear Energy Recovery Holdings Limited


Incineration treatment of 260,000 tons / year of general waste
Scale of power generation: Equivalent power consumption of 31,000 homes

Estimated 62,000 tons / year

Cornwall Waste Management Project / Cornwall Energy Recovery Holdings Limited


Incineration treatment of 240,000 tons / year of general waste
Scale of power generation: Equivalent power consumption of 21,000 homes

Estimated 60,000 tons / year

Merseyside Waste Management Project / Merseyside Energy Recovery Holdings Limited


Incineration treatment of 460,000 tons / year of general waste
Scale of power generation: Equivalent power consumption of 63,000 homes

Estimated 130,000 tons / year

West London Waste Management Project / West London Energy Recovery Holdings Limited


Incineration treatment of 350,000 tons / year of general waste
Scale of power generation: Equivalent power consumption of 50,000 homes

Estimated 83,000 tons / year

Serbia Waste Management Project / Beo Cista Energija (Under Operation & Construction)


Incineration treatment of 340,000 tons / year of general waste and utilization of landfill gas
Scale of power and heat generation: Equivalent power consumption of 30,000 homes and heat consumption 60,000 homes in the winter (planned)

Estimated 210,000 tons / year

Dubai Waste Management Project / Warsan Waste Management Company P.S.C. (Under Construction)


Incineration treatment of 1,900,000 tons / year
Generating Capacity: 200 MW (planned)

Estimated 2,170,000 tons / year

Geothermal Power Generation

Sarulla Operations Ltd


330 MW

About 2,630,000 tons/year

Photovoltaic Power Generation

Oita Hiyoshibaru photovoltaic power plant
large-scale solar power plant


45 MW

Estimated 46,000 tons/year

Shin-Okayama photovoltaic power plant
large-scale solar power plant


37 MW

Estimated 38,000 tons/year

Saijo Komatsu photovoltaic power plant
large-scale solar power plant


26 MW

Estimated 27,000 tons/year

Saga-Ouchi photovoltaic power plant
large-scale solar power plant


21 MW

Estimated 21,000 tons/year

i-Grid Solutions, Inc.


178 MW

Estimated 182,000 tons/year

Clean Energy Connect


97 MW

Estimated 99,000 tons/year

Biomass Power Generation

Ichihara Biomass Power Plant


49.9 MW


Hyuga Biomass Power Plant (Under Construction)


50 MW


Tahara Biomass Power Plant (Under Construction)


50 MW


Results of Green Revenue (Organizational performance including cleantech business revenue)
Net profit attributable to ITOCHU
FYE2024 Forecast
Net profit attributable to ITOCHU
Power & Environmental Solutions Division*1

9.6 billion JPY

25.0 billion JPY

North American Electric-power-related Business*2

6.7 billion JPY

14.1 billion JPY

  1. Division under the Energy & Chemicals Company that specializes in domestic renewable energy power generation and storage battery business.
  2. The figures are the sum of results/forecast of the group companies engaged in the North American electric power business and related service business.