Energy & Social Infrastructure Division
Major Business Activities
The world’s energy market is facing a major turning point due to the cross effects of major shifts in regional supply and demand, and the global movement towards decarbonization.
From the supply side, the shale revolution has rapidly expanded the US’s presence. On the demand side, China, India and other emerging Asian countries are expected to play a central role in the market’s growth as the decarbonization trend drives rapid introduction of natural gas, LNG, and renewable energy.
To deal with these rapid changes in the business environment, we established the Energy & Social Infrastructure Division as a new division in April 2018. Our new division integrates the functions of LNG, gas-fired power plants, and renewable energy, with added IT components.
Our focus is now on Gas-to-Power, which is expected to serve as a central means of supporting the growing energy demands in Asia’s emerging countries. We will position Gas-to-Power as a core business and strive to maximize the combined strengths of our long-held prowess in the integrated LNG business and our experience in the gas-fired power plant PPP/PFI business to drive further momentum.
There is an increase in demand to replace aged coal-fired power plants with gas-fired ones in the US, which is a major energy consumer. We will redouble our efforts to contribute to the realization of a low-carbon society by operating cutting-edge, high-efficiency gas-fired power plants in the US that use abundant and low-priced domestic shale gas as fuel.
In the renewable energy business, we will utilize the extensive knowledge gathered through our solar power generation businesses in Germany and Japan to advance our capabilities further to keep up with the pace of rapid decarbonization. We have already succeeded in establishing a solar power generation business in South America and onshore wind power projects in Europe. In future, we will continue to expand globally with a focus on identifying a wide reach of suitable lands and diversifying power (onshore wind, biomass, etc.).
In addition, we set up a new Social Infrastructure Development Office to manage business model transformations accompanying advancements in AI and IoT.
Our mission is to develop advanced social infrastructure that promises reliability, safety, and comfort. To fulfill this mission, we will cooperate with valuable partners in Japan and overseas who share our values to contribute to the development of industrial societies in different countries around the world.
Business models supporting value creation
Examples of Activities for Sustained Growth
Gas/LNG Value Chain Business
Contributing to development of the integrated energy infrastructure:
including LNG plant, LNG terminal and gas-fired power plant
In Asia, where the demand for energy is rising dramatically, significant advances are expected as a result of introducing LNG, which provides an optimal balance of low environmental impact, stable supply, and economic efficiency. However, this requires sophisticated management of a packaged scheme (Gas-to-Power) that covers all stages from optimal procurement to long-term, stable operations of receiving terminals and large power plants. Japan is an advanced country in terms of introduction of LNG, so other countries look to Japan to provide support. In this context, Sojitz will contribute to establishing social infrastructure that promotes both the environment and the economy by leveraging the experience it has accumulated in operating large IPP-type gas-fired power plants in the Middle East, Asia, and North America, and 50 years of experience managing integrated LNG businesses. In addition, as privatization (PPP/PFI) of public businesses and services gains momentum, we will seek to use the knowledge gained through the Gas-to-Power business to provide society with comprehensive solutions in the energy field. This could include, for instance, applying our Gas-to-Power expertise to the business of supplying natural gas as a fuel for industrial use.
Renewable Energy Business
Speedy diversification of markets and power sources to achieve decarbonization
In future, renewable energy is likely to be the world’s most rapidly-growing power source due to fast-paced decarbonization and a reduction in solar and wind power generation costs. Sojitz will promote diversification of markets and power sources by joining onshore wind power plant businesses in Europe and other activities, in addition to its 12 domestic and three overseas solar power plants, thereby strengthening businesses that contribute to decarbonization worldwide. Moreover, the newly established Social Infrastructure Development Office will adopt an ICT field-based approach to build next-generation power systems in which renewable energy will serve as a major power source. For example, such initiatives may include making energy use more efficient using ICT. Through these activities, we will strive to build advanced social infrastructure that offer reliability, safety, and comfort.
- Automotive Division
- Aerospace & Transportation Project Division
- Machinery & Medical Infrastructure Division
- Energy & Social Infrastructure Division
- Metals & Mineral Resources Division
- Chemicals Division
- Foods & Agriculture Business Division
- Retail & Lifestyle Business Division
- Industrial Infrastructure & Urban Development Division