ITOCHU’s Clean-tech Business
Basic Policy and Strategy
ITOCHU Corporation 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. This basic policy is carried over to the Management Policy “The Brand-new Deal” formulated in 2024. We aim to achieve “Offset Zero”, where the amount of avoided emissions generated by our clean-tech 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. Furthermore, “The Brand-new Deal” identifies one of the pillars of our strategy to sustainably enhance corporate value as “Grow Earnings - No Growth without Investment,” and we aim to expand our business areas.
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 circulating society. As a general trading company, our policy is to pursue environmental and economic value at the same time by leveraging our broad value chain and making diversified business investments to increase the overall profitability of our projects. Therefore, we apply the same rigorous investment criteria to the clean-tech business as to other businesses.
We also monitor trends of the amount of avoided emissions from the clean-tech business and the external environment that affects this amount, and review our operation according to the progress of each business and market conditions.
Targets (Transition Plans)
We aim to achieve offset zero* for our greenhouse gas (GHG) emissions by 2040 by proactively promoting business that contributes to a reduction in the amount of GHG emissions (such as clean-tech business).
- Offset zero: When the amount of GHG emissions we contribute to reducing exceeds our GHG emissions
| Business Segment | Individual Targets |
| Renewable Energy |
|
| Fuel Ammonia |
|
| Energy Storage Systems (ESS) |
|
| Water Infrastructure |
|
| Waste Management Project |
|
Initiatives
Top Management Involvement: Decarbonization and Carbon Neutral Task Force
ITOCHU 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 previous medium-term management plan, Brand-new Deal 2023, and carried it forward into the current Management Policies formulated in April 2024, which serve as a medium to long term compass. At ITOCHU, we launched 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, in principle, every month. 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 GHG emissions and whose market is expected to grow.
Introduction to Individual Businesses
1. Renewable Energy
ITOCHU globally enhances decarbonization-related businesses such as renewable power, hydrogen and ammonia. In the United States, leveraging more than 20 years of experience in the power business, we have established a value chain centered on Tyr Energy, Inc. and NAES Corporation, covering development, construction, investment, operation and maintenance. By strengthening renewable energy mainly in solar and onshore wind —which are experiencing strong private-sector demand— and combining development with engineering, O&M and repair and overhaul functions, we aim to build earnings across the value chain.
Renewable Energy Power Generation
Renewable Energy Generation (Equity Interest Basis)
Target for Renewable Energy Ratio of Total Generation (Equity Interest Basis)
| FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2025 | FY2030 (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 (%) | |
| Wind | 122 |
164 |
196 |
240 |
213 |
19.9% |
20%> |
| Solar/PV Power | 112 |
132 |
164 |
225 |
360 |
||
| Geothermal | 83 |
83 |
83 |
83 |
83 |
||
| Biomass | 57 |
57 |
57 |
57 |
57 |
||
Renewable Energy (Total) |
373 |
436 |
500 |
605 |
712 |
||
| Natural Gas | 1,258 |
1,258 |
1,466 |
1,666 |
1,897 |
80.1% |
80%< |
| Oil-fired Power | 315 |
315 |
315 |
315 |
315 |
||
| Coal-fired Power | 640 |
640 |
640 |
640 |
640 |
||
Thermal Power (Total) |
2,213 |
2,213 |
2,421 |
2,621 |
2,852 |
||
Grand Total |
2,586 |
2,648 |
2,921 |
3,226 |
3,564 |
100% |
100% |
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
Aomori Mutsu Ogawara Onshore Wind Farm
In March 2026, commercial operation of an onshore wind farm (maximum output capacity: 64.5 MW) began in a suitable site with favorable wind conditions in Rokkasho-mura, Kamikita-gun in Aomori Prefecture as a joint project with Kanadevia Corporation and our associated company, Tokyo Century Corporation. We expect this wind farm to generate approximately 170 million kWh of power a year. That is equivalent to the annual power consumption of approximately 46,000 ordinary Japanese households.
Utility Scale Solar Projects
Following on the start of the commercial operation of a mega-solar power plant in Ehime Prefecture in 2015, ITOCHU started operating mega-solar power plants in Oita Prefecture in 2016, Okayama Prefecture in 2017 and Saga Prefecture in 2018. This means we now operate four mega-solar power plants in Japan (total power generation output: approximately 130 MW). In 2025, we decided to convert the aforementioned power plant in Saga Prefecture to the FIP scheme and operate it with an integrated battery storage system. Under the existing FIT scheme, electricity generated is purchased by electric power companies at a fixed price set by the government, whereas the FIP scheme allows electricity to be sold at market prices, with a certain premium paid on top of the market price. This transition enables flexible supply by storing electricity, thereby contributing to the stable supply of renewable energy. 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
ITOCHU operates 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.
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, contributing to their decarbonization and RE100 targets. By FY2025, we have introduced solar power plants with “additionality” at approximately 2,700 locations in Japan. These solar power plants are widely distributed across 352 municipalities in 25 prefectures nationwide, aiming to stabilize power generation fluctuations due to weather and mitigate risks such as disasters through a diversified power plant portfolio. The total power generation is expected to be 236 million kWh per year, with CO2 reductions amounting to 107,000 tons of CO2 annually.
Biomass Power
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 Japanese households. In addition, Hyuga Biomass Power Plant (power generation output: 50 MW) in which ITOCHU participates has begun commercial operation in Hyuga in Miyazaki Prefecture in October 2024. Additionally, in Tahara in Aichi Prefecture, a biomass power plant (power generation output: 50 MW) is under construction and scheduled to start operation in FY2026.
Wind Power Business
ITOCHU invests in seven wind power projects in total, including six in the United States and one in Japan. In 2023, we established a fund targeting renewable energy assets in North America. Through this fund, we invested in the Grandview Wind Power Plant (211 MW) in February 2024 and Dan’s Mountain Wind Project (55MW) in May 2025. We plan to build out a renewable energy portfolio worth approximately US 2 billion dollars through this fund.
In January 2026, we also invested in the Bowman Wind Power Plant (208MW) in North Dakota, one of the highest wind resource regions in the United States. For this project, we have entered into power purchase agreements (PPAs) with a total of eight entities, including universities and medical institutions. By supplying renewable energy equivalent to the electricity consumption of approximately 100,000 households, we are making a direct contribution to the development of a sustainable local community.
Solar Panel Recycling Business
ITOCHU undertook a capital increase through a third-party allotment from ROSI SAS. – a French company engaged in reuse and developing and holding 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 has been 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 solar 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 area.
Solar Power
ITOCHU is actively expanding its solar power business, mainly in the United States and Japan. In October 2025, we invested in Phase 1 (150 MW) of the Black Hollow Sun Power Plant (Platte River Solar Power Project), which will become the largest solar power facility in Northern Colorado, USA. Phase 2 (108 MW) is currently under construction and is scheduled for completion by the end of 2026. Once both phases are operational, the total capacity will reach 258 MW. Through a power purchase agreement (PPA) with a local utility company, the project will supply renewable energy equivalent to the electricity consumption of approximately 70,000 households.
Operation and Maintenance for Renewable Power in North America
Through NAES Corporation, ITOCHU’s wholly owned subsidiary and the world’s largest independent O&M provider, ITOCHU provides operation and maintenance services and asset management for approximately 1,000 solar, battery storage and wind power facilities in the United States, representing about 3,000 MW in aggregate. By utilizing remote monitoring systems, NAES delivers services to distributed renewable generation sites across the country.
Renewable Power Developments in North America
Through Tyr Energy Development Renewables, LLC (TED), a dedicated greenfield renewable energy development platform established in the United States in 2022, we are currently developing renewable energy projects of 40 solar projects approximately totaling 6,500 MW, including projects already sold. TED has full suite function of greenfield development including land acquisition, permitting, grid interconnection process, Power Purchase Agreements origination, contractor and equipment selection and financing arrangements, thereby accelerating development in the North American renewable energy market.
Solar and Battery Hybrid IPP Project in Timor-Leste
ITOCHU in partnership with EDF power solutions of the EDF Group, is participating in solar (72 MW) and battery storage (36 MW / 36 MWh) project in Timor-Leste, which will be the country’s first full-scale renewable energy IPP project. In July 2025, ITOCHU signed a 25-year long-term power purchase agreement with the Timor-Leste Electric Utility. Currently, Timor-Leste relies almost entirely on imported diesel fuel for its electricity supply, resulting in substantial financial burdens and significant greenhouse gas emissions. The project involves the construction of a 72 MW solar power plant and a 36 MW / 36 MWh battery energy storage system in Manatuto Province with construction scheduled to commence in FY2026. The plant is expected to supply renewable energy equivalent to the typical consumption of approximately 80,000 households (around 400,000 people) in Timor-Leste, contributing not only to improved living infrastructure through stable power supply, but also to the realization of Timor-Leste’s clean energy policy goals.
Waste Management Project
A portion of municipal solid waste generated globally is neither properly collected nor appropriately treated, and is instead left scattered or disposed of through uncontrolled landfilling or open burning. As a result, decomposition gases may accumulate and spontaneously ignite, causing fires, while hazardous substances can leach into rivers, lakes and groundwater, adversely affecting the health of local communities and surrounding ecosystems. With rapid urbanization and population growth, particularly in emerging economies, global waste volumes are expected to continue to increase. ITOCHU therefore positions the waste-to-energy business as a strategic focus area, contributing to the realization of sustainable local communities and the reduction of environmental impact.
In the United Kingdom, ITOCHU invests in three waste-to-energy projects for municipal authorities. These projects collectively treat approximately 850 thousand tons of waste annually and supply electricity equivalent to the consumption of around 100,000 households. In the Republic of Serbia, in collaboration with the Government of Serbia and the City of Belgrade, ITOCHU develops promotes an integrated waste management project that includes a waste-to-energy facility. This project closes and properly manages the Vinča landfill, which had caused severe environmental damage and was one of the country’s most significant environmental and social challenges. The project incinerates municipal solid waste generated in the City of Belgrade and utilizes the heat generated to produce clean electricity. Financing has been arranged from an international consortium comprising the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the Austrian Development Bank (OeEB). Construction of the waste management facility, including the waste-to-energy plant, has been completed, and commercial operation commenced in July 2024. The waste-to-energy plant treats approximately 340 thousand tons of waste annually and supplies electricity equivalent to the consumption of around 30,000 households.
In addition to these initiatives, ITOCHU is also engaged in a waste-to-energy project in the Emirate of Dubai, UAE. This project is one of the largest waste-to-energy facilities in the world, treating approximately 1.9 million tons of municipal solid waste annually, equivalent to about 45% of the total waste generated in the emirate. The facility incinerates municipal solid waste and utilizes the heat generated during the process to produce electricity. Construction of the facility was completed in August 2024, and commercial operation has commenced. Through 35 years of operation, the project is expected to contribute to the achievement of the Dubai government’s environmental and sanitary policy objectives, including the reduction of waste sent to landfill, the promotion of sustainable and environmentally sound waste management, and the advancement of alternative energy sources that do not rely on fossil fuels.
Energy Storage Systems (ESS)
ITOCHU is advancing the integration and control of distributed energy resources centered on energy storage systems, in response to the increasing need for grid stabilization accompanying the widespread adoption of renewable energy. Through these initiatives, we aim to optimize electricity supply and demand, realize a decarbonized society, and mitigate environmental risks. In particular, we position the battery storage business as a core pillar for our business growth and are focused on building a robust social infrastructure to support stable power supply.
In the residential sector, we are enhancing our virtual power plant (VPP) business through GridShare, our AI-based control software. By integrally managing a diverse array of distributed energy resources, including residential batteries, heat pump water heaters (EcoCute), and other home appliances, we are working to establish a new energy management model. These efforts contribute to reinforcing regional power systems and improving overall energy efficiency.
In the grid and industrial sectors, we leverage our strong procurement capabilities and extensive sales network for battery-related equipment to invest in and operate grid-scale storage plants. In addition, we offer Bluestorage, a solution that supports corporate decarbonization and resilience enhancement. We are also committed to building a resource-circulating business by advancing battery recycling and establishing robust traceability systems for used batteries. By FY2030, we aim to achieve a cumulative installed storage capacity of approximately 3.5 GWh, thereby contributing to the sustainable enhancement of our corporate value.
Cumulative Energy Capacity of Our ESS Products
Cumulative Installed Capacity of Distributed Energy Resources (GWh)
In cooperation with business partners, ITOCHU developed and commercialized Smart Star series of residential ESS. As of the end of March 2026, approximately 60,000 distributed units can be controlled through our platform.
We have also begun to build up a track record of installations of Bluestorage, an energy storage system for C&I (Commercial and Industrial) 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.
Other Initiatives
Operation 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 deployment 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 generation 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. The fund came into full operation after investment of more than 9 billion yen from private institutional investors.
The fund has goals of making maximum use of renewable energy power sources, stabilizing power demand and supply, enlarging the energy storage plant market and establishing a finance model. With capital participation from many different business sectors including real estate, services, automobiles and finance, the fund will work with these partners to achieve these goals.
Joint Promotion of a Utility-scale Energy Storage Project in Chikuzen, Fukuoka
ITOCHU, in collaboration with Mitsubishi Estate Co., Ltd. and Tokyo Century Corporation, has commenced construction of a utility-scale battery energy storage facility in Chikuzen-machi, Asakura-gun, Fukuoka Prefecture. The project is scheduled to begin commercial operation in FY2027.
As renewable energy sources, particularly solar power, continue to expand in the Kyushu region, large fluctuations in power output depending on weather conditions and time of day have created challenges for maintaining a stable electricity supply. To address these challenges and help stabilize the power grid, this project will flexibly participate in multiple electricity markets, including the Capacity Market, Wholesale Electricity Market, and Balancing Market, and aims to achieve both stable profitability and grid stability through advanced operations utilizing our proprietary AI system. By providing supply-demand balancing capacity, we will help build a sustainable energy society.
As Japan advances toward its 2050 carbon neutrality target under the Seventh Strategic Energy Plan formulated by the Ministry of Economy, Trade and Industry, the deployment of renewable energy—particularly solar power—is accelerating. In this context, the battery storage market is expected to continue expanding significantly.
Equity Participation in TRENDE Inc. and Future Collaboration
With the mission of “lighting up the future,” TRENDE Inc. offers leasing services (“Teraris”) that enable customers to install residential solar power systems and energy storage systems with no upfront cost, while also engaging in the technological development and social implementation of P2P power trading*1 aimed at promoting the efficient utilization and broader adoption of renewable energy.
ITOCHU and TRENDE aim to expand environmental value transactions utilizing the non-fossil value*2 of renewable energy and realize P2P electricity transactions between customers.
- P2P power trading: Abbreviation for Peer to Peer. Refers to direct transactions of electricity between electricity consumers and power generation facility owners.
- 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.
Energy Management Business Using AI Technology
As renewable energy adoption continues to expand, achieving both a decarbonized society and a stable electricity supply has become an increasingly important challenge. Because renewable energy output varies depending on weather conditions and time of the day, the importance of energy storage systems that can flexibly charge and discharge in response to electricity supply-demand fluctuations is growing. Leveraging its accumulated expertise in the battery storage business and power trading, ITOCHU is advancing energy management businesses that utilize AI.
Specifically, by analyzing weather forecasts, electricity demand, electricity market prices, and other data, ITOCHU optimizes the charging and discharging of batteries in order to maximize the use of renewable energy, stabilize the supply-demand balance, and optimize energy costs. In addition, ITOCHU is also working to build a new energy management model that integrates and controls distributed energy resources such as residential batteries, EVs, and water heaters, and utilizes them as balancing capacity.
Going forward, ITOCHU will continue to promote the wider adoption of renewable energy and the realization of a sustainable society through the implementation of new systems powered by digital technologies.
| Details of Effort | Name of Business / Investment Project | Country | Generating Capacity / Size | Estimated GHG Reduction Figures (Project 100% Basis) |
| Wind | Aspenall Wind Power Project |
USA |
43 MW |
100,000 t/year |
Cotton Plains Wind Power Project |
USA |
202 MW |
480,000 t/year |
|
Prairie Switch Wind Power Project |
USA |
160 MW |
380,000 t/year |
|
Grandview Wind Power Project |
USA |
211 MW |
500,000 t/year |
|
Bowman Wind Power Project |
USA |
209 MW |
500,000 t/year |
|
Dan’s Mountain Power Project |
USA |
55 MW |
130,0000 t/year |
|
Mutsu Ogawara Wind Power Project |
Japan |
64.5 MW |
150,000 t/year |
|
| Waste Management | ST&W Waste Management Project / South Tyne & Wear Energy Recovery Holdings Limited |
UK |
|
60,000 t/year |
Cornwall Waste Management Project / Cornwall Energy Recovery Holdings Limited |
UK |
|
60,000 t/year |
|
West London Waste Management Project / West London Energy Recovery Holdings Limited |
UK |
|
80,000 t/year |
|
Serbia Waste Management Project / Beo Cista Energija |
Serbia |
|
210,000 t/year |
|
Dubai Waste Management Project / Warsan Waste Management Company P.S.C. |
UAE |
|
2,170,000 t/year |
|
| Geothermal | Sarulla Operations Ltd |
Indonesia |
330 MW |
1,850,000 t/year |
| Solar | Cotton Plains Solar Power Project |
USA |
15 MW |
20,000 t/year |
Rosamond South Solar and Storge Battery Project |
USA |
140 MW |
150,000 t/year |
|
Black Hollow Sun (Platte River Solar Project) |
USA |
258 MW |
280,000 t/year |
|
Rooftop Solar Projects |
Vietnam |
22 MW |
30,000 t/year |
|
Oita Hiyoshibaru Solar Power Plant |
Japan |
45 MW |
50,000 t/year |
|
Shin-Okayama Solar Power Plant |
Japan |
37 MW |
40,000 t/year |
|
Saijo Komatsu Solar Power Plant |
Japan |
26 MW |
30,000 t/year |
|
Saga-Ouchi Solar Power Plant |
Japan |
21 MW |
20,000 t/year |
|
i-Grid Solutions, Inc. |
Japan |
364 MW |
390,000 t/year |
|
Clean Energy Connect |
Japan |
244 MW |
260,000 t/year |
|
| Biomass | Ichihara Biomass Power Plant |
Japan |
|
370,000 t/year |
Hyuga Biomass Power Plant |
Japan |
50 MW |
370,000 t/year |
|
Tahara Biomass Power Plant (Under Construction) |
Japan |
50 MW |
370,000 t/year |
| FY2025 Net profit attributable to ITOCHU |
FY2026 Forecast Net profit attributable to ITOCHU |
|
| Energy & Power Solutions Division*1 | 27.0 billion JPY |
29.5 billion JPY |
| North American Electric-power-related Business*2 | 26.5 billion JPY |
27.8 billion JPY |
- Division under the Energy & Chemicals Company that specializes in domestic renewable energy power generation and storage battery business.
- The figures are the sum of results/forecast of the Group companies engaged in the North American electric power business and related service business.
2. Next-Generation Energy
Fuel Ammonia
With international momentum towards the transition to a decarbonized society, the International Maritime Organization (IMO) has set a 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.
Joint Development of Ammonia-Fueled Vessels and Development of the Supply Chain for Marine Ammonia Fuel
ITOCHU is pursuing an integrated project for ammonia fuel with the aim of contributing to the decarbonization of international shipping. This integrated project comprehensively covers (i) development of vessels fueled primarily by ammonia, (ii) ownership and operation of such vessels, (iii) development of fuel supply bases, and (iv) procurement and production development of fuel ammonia. Through this integrated approach, we aim to build a global ammonia value chain and contribute to the social implementation of ammonia as a marine fuel.
Development of Ammonia-Fueled Vessels
In October 2021, ITOCHU, together with Kawasaki Kisen Kaisha, Ltd., NS United Kaiun Kaisha, Ltd., Nihon Shipyard Co., Ltd. and Mitsui E&S Co., Ltd., applied for and was selected under NEDO’s Green Innovation Fund Project for the Development of Next-Generation Ships / Development of Ammonia-Fueled Ships. In November 2022, the five companies jointly obtained Approval in Principle from ClassNK (Nippon Kaiji Kyokai) for the basic design of an ammonia-fueled 200,000 deadweight ton bulk carrier.
In February 2026, the ammonia engine for a large ammonia-fueled bulk carrier entered its final onshore testing phase, and we are proceeding with finalization of vessel specifications and discussions with shipyards toward placement of a shipbuilding order.
Development of the Supply Chain for Marine Ammonia Fuel
ITOCHU is advancing the development of marine ammonia fuel supply globally. We are prioritizing Singapore and are also progressing initiatives in major European ports, the Suez Canal, the Panama Canal and other locations. In Singapore, ITOCHU was selected in July 2024 as a candidate ammonia bunkering player by the Maritime and Port Authority of Singapore. In June 2025, through Clean Ammonia Bunkering Shipping Pte. Ltd., our wholly owned Singapore-based subsidiary, we ordered the world’s first newbuilding ammonia bunkering vessel with a tank capacity of 5,000 m3. This vessel is expected to be delivered in September 2027.
In April 2026, the Maritime and Port Authority of Singapore granted authorisation to conduct ammonia bunkering trials in Singapore. Based on this authorisation, ITOCHU plans to conduct demonstration trials in collaboration with Mitsui O.S.K. Lines, jointly with CMB.TECH NV, supplying ammonia fuel from the dedicated bunkering vessel to dual-fuel Capesize bulk carriers in Singapore.
Outside Singapore, ITOCHU is promoting collaborative initiatives for marine ammonia fuel supply with Peninsula Petroleum in Spain and Orascom Construction PLC in Egypt. At the same time, we are progressing green ammonia production projects in Indonesia and India as supply sources for bunkering hubs in Singapore and other major ports, thereby promoting the establishment of a safe fuel supply system and a global supply chain.
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.
Green Hydrogen Production Project with Everfuel of Denmark
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) has started commercial operation in February 2025 as the company’s first hydrogen production project.
ITOCHU aims to horizontally expand the local hydrogen production and consumption business to Europe and other regions and to enter into the business of producing hydrogen-derived products by utilizing the knowledge and expertise gained through this project, while contributing to the realization of a decarbonized society.
Investment in Protium Green Solutions
In December 2024, ITOCHU invested in Protium Green Solutions Limited, a UK-based company engaged in distributed green hydrogen production based on a local production and local consumption model. Since Protium Green Solutions started hydrogen production in 2023, the company has been providing hydrogen solutions to a number of customers in the industrial and transportation sectors by offering intensive consultation on hydrogen usage which is specific to each individual customer. Through this investment, ITOCHU looks to promote green hydrogen solutions in Asian markets, including Japan, with the ultimate aim of realizing a low-carbon society.
Investment in ZeroAvia, Distribution Agreement in Asia, and Strategic Partnership for Hydrogen Infrastructure Development and Maintenance System Establishment
In 2024, ITOCHU invested in ZeroAvia, Inc., a US-based company engaged in the development and manufacturing of hydrogen-electric engines for aircraft. Additionally, we have signed a representative agreement for Asia and a Memorandum of Understanding with ZeroAvia to jointly promote the establishment of maintenance systems, airport infrastructure, and hydrogen infrastructure, with the goal of achieving decarbonization in the aviation sector. ZeroAvia is developing hydrogen-electric engines with extremely low environmental impact. In 2023, the company successfully conducted a demonstration flight using its engine installed on a 19 seat Dornier 228 aircraft. In 2025, ZeroAvia became the first developer of hydrogen-electric engines in the world to receive Design Organization Approval (DOA) from the UK Civil Aviation Authority. ZeroAvia aims to obtain certification sequentially for engines for 9–19 seat aircraft, then 40–80 seat aircraft, and ultimately larger aircraft (200 seats) in the future. Compared with conventional jet fuel engines, hydrogen fuel cell engines are expected to reduce GHG emissions by more than 90% and to lower operating costs by approximately 40% due to the smaller number of components. Through collaboration with aircraft manufacturers, energy companies and airports, ZeroAvia has already secured more than 2,400 pre-orders for engines.
To support the commercialization of ZeroAvia’s hydrogen-electric engines, which contribute to decarbonization in the aviation industry, ITOCHU will collaborate with hydrogen infrastructure partners and airlines both domestically and internationally. Through these efforts, we aim to contribute to the realization of sustainable local communities and the reduction of environmental impact on a global scale.
Low-Carbon Fuel Business
Sustainable Aviation Fuel (SAF)
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 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.
In May 2023, ITOCHU has signed a trademark licensing agreement and a collaboration agreement for brand enhancement with Neste OYJ, the world’s largest renewable fuel manufacturer. The purpose of these agreements is to expand the distribution of their renewable diesel, ’Neste MY Renewable Diesel,’ within Japan.
Copyright: All Nippon Airways co., Ltd. all rights reserved
Copyright: Neste MY Renewable Diesel
Supply of Low-Carbon Methanol Fuel to NYK Line at the Port of Ulsan, South Korea
As part of its efforts to build an alternative low-carbon fuel supply chain in the maritime sector, on September, 2025, ITOCHU Corporation sold low-carbon methanol fuel to NYK Line at the Port of Ulsan, South Korea and supplied it via the Ship-to-Ship (STS)* method to a methanol dual-fuel bulk carrier time-chartered by NYK BULK & PROJECTS CARRIERS LTD., a wholly owned subsidiary of NYK Line.
The low-carbon methanol fuel we supplied this time can significantly reduce carbon emissions compared to conventional fossil fuels such as heavy fuel oil. As reducing GHG emissions in the maritime industry becomes an urgent issue due to the global increase in cargo volume, this fuel achieves an approximately 65% reduction in GHG emissions compared to conventional heavy fuel oil. Through this, we are striving to achieve the goal of net-zero GHG emissions from international shipping by around 2050. Moving forward, we will expand our supply network, focusing on major Asian ports, to contribute to the decarbonization of international shipping and the achievement of the SDGs.
- STS method: A method of supplying fuel directly from a bunkering vessel.
TotalEnergies, TES, Osaka Gas, Toho Gas and ITOCHU Partner Up to Develop the Live Oak Project for e-NG Production in Nebraska
ITOCHU has entered into a joint development agreement with TotalEnergies SE, Tree Energy Solutions Belgium B.V., Osaka Gas Co., Ltd., and Toho Gas Co., Ltd. to conduct a front-end engineering design (FEED) for an e-methane (e-NG) production project in Nebraska, U.S. In this project, ITOCHU aims to produce e-NG using green hydrogen generated from renewable energy and biogenic CO2 captured at bioethanol production plants, with plans to begin commercial operations by FY2030 with a capacity of approximately 75 ktpa of methanation and to export e-NG to Japan.
e-NG is chemically identical to methane, the primary component of conventional city gas. As such, existing LNG liquefaction and transportation facilities, city gas infrastructure and customers’ combustion equipment can be used in the same manner as before. Therefore e-NG can facilitate a smooth transition to carbon neutrality while helping minimize overall social costs. We will coordinate Japanese companies and contribute to the societal implementation of e-methane and the realization of a carbon-neutral society.
3. Water Infrastructure
ITOCHU positions water-related business as a strategic priority in anticipation of growing demand driven by economic development, population growth and changes in rainfall patterns caused by climate change, particularly in emerging economies. We are engaged globally in businesses such as seawater desalination and water utility concessions.
Seawater Desalination
ITOCHU has invested in a seawater desalination project in Victoria, Australia. The plant has supported stable water supply to Melbourne since 2012 and is capable of meeting approximately 30% of the city’s water demand. We have also invested as the largest shareholder in a seawater desalination project in Barka, Oman, promoted by Oman’s public water procurement entity.
Other Initiatives
The Development and Sales of Seawater Desalinization Plants and Reverse Osmosis Membranes
Stable Supply of Life-sustaining Water
— Largest Seawater Desalination Project in Oman —
In March 2016, Barka Desalination Company, in which ITOCHU has invested, signed a contract for a seawater desalination project in Barka, northern Oman, with a capacity of 281,000 m3 per day. The project is a public-private partnership with the Government of Oman to provide potable water in a region facing severe water stress. Using reverse osmosis membrane technology, the plant and associated facilities are operated over a 20-year period and commenced commercial operation in June 2018. With a total project cost of approximately US$300 million, it is the largest seawater desalination project in Oman. In February 2022, the company was listed on the Muscat Stock Exchange.
Currently, it serves as a vital piece of infrastructure, meeting approximately 30% of the water demand in the Muscat metropolitan area and about 23% of Oman’s total water demand. The plant is strategically positioned as a key water supply hub for the capital, Muscat. It provides safe and reliable drinking water essential to daily life to the region, where severe water shortages had been a major challenge, and makes a significant contribution to the well-being of Omani citizens and the country’s sustainable development.
Water Treatment Plant Business
Sewerage Construction Project in the Kurdistan Region of Iraq
ITOCHU has been awarded the contract for the construction of a sewerage treatment facility project promoted by the Kurdistan Regional Government, and, in August 2025, signed a construction contract with the Directorate of Water and Sewerage. This project utilizes a Japanese ODA loan, which was agreed between the Japan International Cooperation Agency (JICA) and the Government of Iraq in June 2015, and aims for completion in 2028.
Erbil, with a population of approximately 2 million, has faced serious issues such as contamination of drinking water caused by underground infiltration of human waste and deterioration of public river water quality. The development of this facility will fundamentally improve the sanitary environment of the region and realize the securement and effective use of water resources. By actively promoting environmental business, ITOCHU will continue to contribute to the realization of a sustainable society through the effective utilization of environmental resources and efforts to solve social issues.
4. 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. The direct reduction route is a ironmaking process that can significantly reduce CO2 emissions in the steelmaking process compared to the conventional blast furnace route by using high-grade iron ore, which has high iron content, as the raw material and natural gas for its reduction.
ITOCHU is 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 EMSTEEL, the largest steel and building materials company in the UAE. 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.
In this venture, we plan to utilize high-grade iron ore produced by CSN Mineração S.A. (CM), a superior iron ore producer in which ITOCHU has invested. In November 2024, we made an additional investment in CM. The Casa de Pedra mine owned by CM is a rare, operating mine that can produce high-grade iron ore on a large scale and at low cost. Through this additional investment, we will strengthen our cooperative relationship with CM to develop and expand its production system, thereby building a low CO2 emission supply chain for ferrous raw material.
In addition to this, we have been participating in an iron ore project in Canada since 2022, producing high-grade iron ore which is essential for the production of reduced iron.
- JFE Environmental Vision 2050, page 9
5. CCUS/Carbon Fixation
Mineral Carbonation Project with MCi of Australia
(photo taken in January 2025)
ITOCHU invested in the Australia-based company, MCi Carbon Pty Ltd (MCi), and has been collaborating with MCi in promoting its mineral carbonation technology which produces carbon embodied products by combining steelmaking slag (by-products of the steelmaking processes), waste concrete and/or serpentinite with CO2, to utilize as building materials. MCi, established in October 2013, is a pioneer in this field, aiming at the fixation of 100 million tons of CO2 annually in the future, as its company mission.
In July 2022, ITOCHU, TAISEI CORPORATION, and MCi concluded a Memorandum of Understanding (MoU) and are proceeding with verification of the use of these carbon embodied products as raw materials for concrete. In January 2025, ITOCHU, Mitsubishi UBE Cement Corporation, and MCi concluded a MoU with the aim of establishing a supply chain such as construction of a manufacturing plant, securing feedstocks and sales of raw materials in Japan. MCi and ITOCHU are also in discussions with other CO2 emitters and raw material suppliers both in Japan and foreign countries for commercialization.
MCi has developed the “Myrtle” demonstration plant in Newcastle, Australia as the next step beyond its earlier pilot facilities. With a CO₂ processing capacity of approximately 2,000 tons per year, Myrtle is regarded as one of the world’s largest and most advanced mineral carbonation demonstration plants, featuring automated and continuous operation capabilities. The plant will serve as a key platform for process validation and operational data collection to support the design and commercialization of future large-scale facilities. Looking ahead, MCi aims to scale up to commercial plants around 2030, first in Australia and subsequently in Japan.
About a Study and Design Work Contract Related to an Advanced CCS Project
A joint proposal by ITOCHU (lead company), NIPPON STEEL CORPORATION, TAIHEIYO CEMENT CORPORATION, Mitsubishi Heavy Industries, Ltd., INPEX CORPORATION, TAISEI CORPORATION, and ITOCHU Oil Exploration Co., Ltd. for the Tohoku Region West Coast CCS Initiative has been selected for the “Survey for the Implementation of Advanced CCS Projects” for FY2023 and the “Design Work Related to Advanced CCS Projects” for FY2024 by the Japan Organization for Metals and Energy Security (JOGMEC).
CCS (Carbon dioxide Capture and Storage) is positioned as a means for decarbonization that should be fully harnessed to achieve two targets set by the Japanese government: carbon neutrality in 2050 and a 60% reduction in GHG emissions (from the FY2013 level) in FY2035, and ITOCHU is committed to focusing on its social implementation.
6. Green Buildings
ITOCHU’s construction and real estate group is 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.
The Group’s real estate investment trust (REIT) participates in the GRESB Real Estate Assessment, 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 27 real estate assets with CASBEE real estate valuation certifications, one real estate asset with DBJ Green Building certification, and five real estate assets with Building-Housing Energy-efficiency Labeling System (BELS) certification which accounts to 33.4% in surface area, and 11.1% in number of units among its entire portfolio. At Advance Private Investment Corporation, an unlisted open-ended REIT, we own seven real estate assets with CASBEE real estate valuation certification, which accounts to 49.9% in surface area, and 36.8% in number of units among its entire portfolios.
- Each figure is information as at end of January 2026.
Collaboration with Outside Initiatives
ITOCHU is 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, a general incorporated association established in August 2019, believes that further efforts are necessary to achieve carbon neutrality by 2050 by using CO2 as a carbon source. The institute aims to simultaneously solve the problem of global warming and improve energy access around the world. It supports the creation of carbon recycling innovation through research assistance and publicity activities related to carbon recycling, with ITOCHU also participating as a member.
Japan CCS Co., Ltd.
In response to the national policy to develop and promote CCS technology, Japan CCS Co., Ltd. (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 has been supporting this project. Also, separate from this project in Hokkaido, We are 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. As of May 2026, the alliance has 18 regular member companies and 56 supporting member companies. 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.