Shinichi NARUUCHI

Senior Executive Officer

Idemitsu Kosan Co.,Ltd.

September 5th, 2017

Promotion of coal utilization harmonized with environment

and its technical development to overseas countries

（環境に調和した石炭利用の推進と海外への技術展開）

Clean Coal Day in Japan 2017

Presentation Outline

1. Idemitsu’s Coal Business Outlook

2. Environmental Measures on Coal Handling

3. Energy Saving and CO2 Emission Reduction

4. Summary

3

1. Idemitsu’s Coal Business Outlook

1-1. Idemitsu’s Value Chain in Coal Business 4

Logistics

Idemitsu Bulk Terminal

Shunan Bulk Terminal

Production

Procurement

Boggabri Mine, AUS

Malinau Mine, IND

Boiler

Operation

Aichi Refinery

Chiba Complex, etc

Coal & Environment Lab.

Technology

Coal Sales in 2016

20Million tons

Japan: 11.5M tons

Overseas： 8.5M tons

Marketing

Head Office

Total supply 13.8M t/y

1-2. Coal Mine Development and Operation 5

Boggabri

Australia

Malinau

AGM

Ensham

Boggabri

Muswellbrook

Tarrawonga

Ensham

Indonesia

Malinau

AGM

Country Australia Indonesia

Mine Boggabri Ensham Muswellbrook Tarrawonga Malinau AGM

Equity 80% 85% 100% 30% 30% 3%

Annual

Production7.0 M ton 5.1 M ton 1.5 M ton 1.9 M ton 4.0 M ton 7.0 M ton

Operation Idemitsu Idemitsu Idemitsu - - -

Idemitsu Bulk Terminal

Idemitsu Bulk Terminal

Stockyard capacity: 350,000 ton

1-3. Coal Terminal 6

Shunan Bulk Terminal

Shunan Bulk Terminal

Stockyard capacity: 1,000,000 ton

1-4. Coal Sales, Captive Use 7

Chiba Complex

Aich Refinery

Annual Coal Sales in 2016

Coal Fired Boiler at Refineries

20.0 M ton (Japan: 11.5 M ton, Overseas: 8.5 M ton)

Refinery Aichi Tokuyama Chiba

Steam Production 200 t/h 140 t/h 300 t/h

Boiler Type PF PF CFBC

Combustion Method Opposed Tangential CFBC

Manufacturer Kawasaki MHPS Mitsui

Tokuyama Complex

Aichi No.4 Boiler Chiba No.6 Boiler

8

Customer Oriented Research & Development

Provide technical supports to coal users.

Improve energy efficiency and minimize

environmental impacts on coal utilization.

Develop technical products which reflect

customer needs.

Coal Analysis Center

Ash fusion temp.

Maceral analysis

Numerical Simulation

Spontaneous

combustion

simulation

Pulverized coal

combustion

simulation

Evaluation Tests

Turbulent

flow furnace

CFBC bench plant

Coal

Handling

test

1-5. Coal & Environment Research Laboratory

9

2. Environmental Measures on Coal Handling

2-1. Idemitsu Bulk Terminal 10

Idemitsu Bulk Terminal, which started operation in 1986, is the largest coal import

facility in metropolitan area.

Total shipment amounts in 2016 was 1.7 million tons.

2-2. Unloading 11

Coal receiving berth - Maximum vessel size: 95,790DWT, Water depth: 14m

Berth length：317m, Unloader capacity: 1,200t/h

Pipe conveyer prevents dust emission during coal transportation.

2-3. Coal Stockyard 12

Coal yard area: 80,000m2, Coal storage capacity: 350,000tons

Stacker & reclaimer capacity: 2,400t/h

Coal is stacked by brand and quality.

2-4. Prevention of Dust Emission 13

A retaining wall (10m) generates updraft to prevent direct wind entry to the yard.

A special fence (5m) on the wall reduces the wind velocity.

Water guns installed around the yard spray over 1,000L/min of water.

2-5. Prevention of Spontaneous Combustion 14

A coal stockpile is packed down with bulldozers to reduce air oxidation.

Temperature inside the stockpile is continuously monitored by thermocouple.

In case of heating, the stockpile is cooled by injecting water and breaking it down.

2-6. Truck & Ship Loading 15

Truck is cleaned by water spray at a truck wash before leaving the yard.

Coal loading berth - Maximum vessel size: 10,000DWT, Water depth: 7.5m

Berth length：214m, Ship loader capacity: 2,400t/h

2-7. Prevention of Dust Emission 16

Fine particles

do not attach

each other.

Water

Fine particles

which are easy

to be scattered

WA-500Fine particles

attach each other

and form

larger flock.

Water film

2-8. Dust Emission Inhibitor “WA-500” 17

Wettability Test

WA-500 contains surfactants that enhance wettability of coal.

2-9. Wind Tunnel Test 18

Fine coal particles formed small stockpile shape are set in the wind tunnel.

The amount of scattered coals are measured to compare the dust emission rate.

2-10. Effect of “WA-500” 19

87

4436

20

20

40

60

80

100

Untreated Water Otherl Agent WA-500

Dust

Em

issio

nR

ate

,w

t%

WA-500

WA-500 is very effective to prevent dust emission.

Coal handling is one of the key technology for promoting environmentally

friendly coal utilization.

Result of Wind Tunnel Test

Dust emission

was prevented.

20

3. Energy Saving and CO2 Emission Reduction

3-1. Boiler Control Optimization System 21

Appearance of ULTY-V plus

Idemitsua and NYK group reached an agreement to

jointly develop and promote the new version of boiler

control optimization system named “ULTY-V plus”

which was originally developed by NYK Trading.

“ULTY-V plus” stabilizes plant control, which leads to

reduce fuel consumption and CO2 emission.

Additionally set up to an existing boiler control system

→ “ULTY-V plus” can reduce about 1% of fuel consumption.

After Installation

Main steam

pressure

Coal Input

Main steam

pressure

Coal Input

Before Installation

3-2. Installation of “ULTY-V plus” 22

ULTY-V plus calculates the correction factor of

fuel function based on the boiler master and

load demand to stabilize main steam pressure.

Air

flow

Coal feed

Fu

el in

pu

t

Boiler master

Correction

Setup

Main steam

PX

+Load

demandFX FX

Fuel function Air-fuel ratio function

Generator Turbine

Coal bunker

MillBoiler

Transmitter

Existing

Control

System

Main steam

pressure

correction

PID

Governor

controlPID PID

Fuel flow rate

Air flow rate

×

Load demand

Boiler master

ULTY correction

factor

÷

Moving average

Calculation

Learning

Storage, Rewrite

ULTY-V plus

3-3. Features of Woody Biomass 23

Chip 1,700～2,800 30～55 1～3% 5～6%

White

Pellet3,500～4,100 7～10 2～5% 10～30%

Black

Pellet4,200～5,700 1～5 30～50% > 50%

Type Appearance

Properties Co-firing with coal

Heating Value

kcal/kg, GAR

Moisture

wt%, AR

Mix

grinding

Exclusive

mill

3-4. Production Method of Black Pellet 24

Torrefied

Product

https://www.hgts.co.jp/

Carbonized gas

Carbonization

kiln

White

Pellet

280～300℃

White

Pellet

Fibrous

Black

Pellet

Granular

3-5. Water Absorption and Breaking Test 25

Black pellet is hydrophobic and does not break down with water for long time, so

it can be handled without silo or special handling facilities.

3-6. Mechanical Endurance Test 26

Idemitsu is promoting research and development to increase the blending ratio of

woody biomass, especially black pellet, in coal-fired boilers.

3-7. CO2 Reduction by Biomass Co-firing 27

864806

605

432

695

467

0

200

400

600

800

1000

Coal USC Coal+BP30 Coal+BP50 Oil LNG

CO

2E

mis

sio

n,

g/k

Wh

Coal:50

+ Bio:50

Black pellet can be fed without any improvement of existing facilities.

When black pellet is blended 50% with coal, CO2 emission per 1kWh become

less than LNG power plant.

Coal:70

+ Bio:30

Coal

(JPN Ave)

Coal

(USC)

28

4. Summary

4. Summary 29

The Paris Agreement, an international framework for global warming

measures, was formally adopted in 2015.

We cannot avoid considering global environmental issues as one of the

companies related to coal business.

Idemitsu has developed highly-efficient clean coal technologies through

research on improving energy efficiency and reducing environmental

impacts.

Based on these, we have established our own coal value chain from the

development and operation of coal mines to transportation, sales and

technical supports.

By pursuing stable energy supply, environmental protection and economic

efficiency, Idemitsu will contribute to the energy security of Japan and the

development of other Asian countries.

We will continue to promote coal business for the new era of sustainable

society that is in balance with the environment.

Thank you very much for your kind attention.

Coal Business Department

Idemitsu Kosan Co., Ltd.