Sojitz Corporation

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Energy & Social Infrastructure Division

We are engaged in constructing a gas and LNG value chain based on an integrated business, which includes everything from LNG procurement to receiving terminals and gas-fired power plants. In the renewable energy business, we are concentrating on solar and wind power generation. We are also focused on developing sophisticated social infrastructure based on advancements in AI and the IoT.

Business Models Supporting Value Creation

  • Expertise and robust relationships with blue-chip customers in the energy sector from integrated LNG business (gas field development, liquefaction, transport, and loading) conducted since the 1970s
  • Enhanced business aptitude and capabilities regarding Gas-to-Power projects thanks to combining our energy business and power generation business units
  • Operational know-how and technological expertise acquired through active participation and deep involvement from the construction phase to actual management of the business
  • Speedy project delivery which leverages business acumen and networks established with government organizations

 

External Environment

Opportunities

  • Increase in energy demand owing to robust economic growth in emerging and developing countries
  • Increased demand for clean energy due to heightened environmental concerns
  • Expanded demand for privatization (PPP and PFI) of public services and businesses
  • Revolutionary changes in business environment due to the advancement of the 5Ds

* Mainly refers to the 5Ds—Depopulation, Decarbonization, Decentralization, Deregulation and Digitalization

Risks

  • Economic stagnation due to increasing protectionism
  • Tighter environmental regulations around the globe (e.g. introduction of a carbon tax)
  • Delays in system development on the assumption of advancing privatization
  • Shortened business and product lifecycles due to advancements in IT technology

Businesses

■Gas-related businesses

Our division is developing gas-fired IPP* businesses in the Middle East, Asia, and North America. We have used our 50 years’ experience in integrated LNG business, from production to supply, to join a Gas-To-Power project in Indonesia. These projects deal with all stages of the LNG business, from optimal procurement to management of gas to LNG receiving terminals and power generation plants. We are also taking advantage of our networks of contacts in emerging countries in working on a business to supply natural gas, which is leading to less CO2 emission.
・Gas-fired IPP  ・LNG liquefaction (LNG Japan Corporation)  ・LNG receiving terminal  ・Downstream gas businesses

* Independent Power Producer

■Renewable energy businesses

We are developing and operating solar power plants in 12 locations in Japan and 3 locations overseas. Making use of the knowledge and experience we have cultivated through our success with these plants, we have now joined on-shore wind power generation businesses in Ireland and the U.S., an off-shore wind power generation business in Taiwan, and a biomass power generation business in Japan.
・Solar IPP ・Wind power generation ・Biomass power generation

■Social infrastructure businesses

Through Nissho Electronics, we sell information communications equipment, IT infrastructure, and more. We also provide services including system construction, maintenance, operation, and monitoring. SAKURA Internet Inc.’s data center business provides highly reliable services using the company’s massive IT infrastructure and techniques honed over more than 20 years in serverrelated businesses.Through Nissho Electronics, we sell information communications equipment, IT infrastructure, and more. We also provide services including system construction, maintenance, operation, and monitoring. SAKURA Internet Inc.’s data center business provides highly reliable services using the company’s massive IT infrastructure and techniques honed over more than 20 years in serverrelated businesses.
・Network construction for telecommunication carriers  ・Data center (SAKURA Internet Inc.)

Mugardos LNG Terminal (Spain)

Birdsboro natural gas-fired power plant (U.S.)

Growth Strategy

We will continue to help realize a prosperous and sustainable society by providing sophisticated infrastructure that balances economic growth with environmental impact.

Masakazu Hashimoto

Executive Officer, COO,
Energy & Social Infrastructure Division

The energy situation around the world is facing a major turning point due to interplay between key regional shifts in supply and demand and the movement towards decarbonization. In terms of supply, the U.S. has become a major player following the shale gas revolution; on the demand side, we believe that the tide of decarbonization will trigger a rapid spread in use of natural gas, LNG, and renewable energy, as China, India, and emerging countries in Asia take the lead in driving future growth.

Experts anticipate that Gas-To-Power will become the pillar that supports expanding energy demand in emerging countries in Asia. This has led us to position it as a core business for the division, which we hope to expand by integrating our experience in LNG businesses and gas-fired power plant PPP/PFI* businesses. We are also managing a cutting-edge, high-efficiency gas fired power in the U.S. which utilizes the country’s abundant and inexpensive shale gas as a fuel, thereby further contributing to the realization of a low-carbon society. Meanwhile, for our renewable energy business, we will use our experience with solar power generation businesses in Japan and Germany to accelerate the development of new businesses, in order to respond to the rapid movement towards decarbonization worldwide. Going forward, we will continue to utilize our company’s functions to create high-quality assets and focus on reforming business models using AI and the IoT.

Our mission is to develop sophisticated social infrastructure that promises reliability, safety, and comfort. To fulfill this mission, we will cooperate with excellent partners in Japan and overseas who share our values, contributing to industrialization in different countries around the world.

* Private Finance Initiative: A way of developing of public facilities using private funding

Initiatives

■Gas-fired power generation businesses

We are focused on harnessing the knowledge we have gained from developing the Gas-To-Power project in Indonesia to develop new projects in countries that want to convert to alternative fuels, especially emerging countries in Asia. We are also engaged in developing and operating highly efficient gas-fired power plants in response to U.S. demand shifting from coal-fired electricity generation to gas-fired.

■Gas-related businesses (LNG receiving terminal, downstream gas businesses)

We will install LNG receiving terminals in countries where expect robust gas demand to underpin strong electricity consumption, so called “Gas-To-Power project.“ Furthermore we plan to expand our business supplying natural gas to industrial end-users in Vietnam, together with our Japanese partners, and accelerate the development of new projects in other emerging countries in Asia.

■Renewable energy businesses (solar power plants, wind power plants, biomass)

We will make use of the knowledge and experience that we have acquired through our participation in solar power generation business in Japan and overseas; wind power generation business in Europe, the U.S., and Taiwan; and biomass power generation business in Japan, to accelerate our expansion into new power sources and initiatives in regions where we expect further growth.

Organization

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