Roles and Activities of JOGMEC for the Geothermal Development in Japan

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1 Roles and Activities of JOGMEC for the Geothermal Development in Japan

2 Corporation Mission and Activities of JOGMEC 1 Mission Secure constant and stable supplies of oil, natural gas and mineral resources to support industries and citizens in Japan through various activities relating these resources. Activities Oil & Gas Upstream Investment and Research & Development Metals Strategy & Exploration, and Technology Development Stockpiling Mine Pollution Control Coal Strategy & Exploration, and Technological Support Geothermal Resources Development

3 JOGMEC s Mission in Geothermal Resources Development Field 2 Maximum target Promote the activation of domestic geothermal development Assignments Financial supports for the exploration and development cost Reduce exploration risk (Geological aspect) JOGMEC implements three approaches Financial supports (Subsidy, Equity Capital, Finance, Liability Guarantees) Technology development Potential survey Regional air-borne geophysical survey

4 Outline of Financial Assistance by JOGMEC 3 Potential Survey Exploration EIA Development Operation - Geological Survey - Geophysical Exploration - Structural Boring - Drilling of Investigation Well - Discharge Test - Environmental Impact Assessment - Drilling of Production Well & Reinjection Well - Construction, Start-up & Commissioning of Power Plant - Commercial Operation Feed-in Tariff Scheme (FIT) Electric utilities purchase electricity generated from renewable sources Resource Risk Hatchobaru (Oita Pref.) Financial Assistance provided by JOGMEC Subsidy Equity Capital Liability Guarantees - Up to 50%~100% of necessary funds - Up to 50% of equity capital - Up to 80% of loan provided by financial institutions Research & Development (Budget of JOGMEC : 1.0 billion yen (9.8M US$))

5 Adopted Projects from FY2012 to FY Currently, more than 40 exploration projects are on the road by electric companies, oil companies, mining companies, local government and other entities. Subsidized projects (57) Equity Capital projects (1) Liability Guarantee projects (4) Amemasu-Dake Sobetsu/Bankei Sobetsu/Oukei Niseko Kamikawa Toyoha Biei Ashoro Yunuma Rausu Namarikawa Kaikeonsen Arifukuonsen Housenji Noyahorita Hiiji-Dake Nishizato-Kitazato /Oguni Isimatsunoen/Oguni Houreinoyu/Oguni MInamiaso Yunotani Yakumocho/Kumaishi Ibusuki-shi Esan Minamikayabe Iwakisan Itoigawa/oono Unazuki Ohiradani Obeno Tateyama Sugawara-Binary Ibusuki Tateyamaonsen Nonoyu Lake Toya Okushiri Iwakisan-Dake Kijiyama-Shitanotai Wasabizawa-Akinomiya Sakamakionsen Shimogamo Kawamata Tanabeshihongu Bandai Oyasu Naruko Musa-Dake Shimofur Hiuchi-Dake o Hakkouda-Seibu/Jyogakura Hakkouda-Hokusei Iwatechinetsu Matsuo-Hachimantai Higashihachimantai Amihari Tsuchiyuonsen-Binary Higashiizuchoatagawaonsen Tsunagionsen Iwatechinetsu Omatsukurayamanannbu As of end of Mar, 2017

6 Regional Potential Survey 5 JOGMEC conducts heli-borne geophysical survey that aims to acquire basic data for the evaluation of geothermal resources in order to promote geothermal development start-up. Time Domain Electromagnetic Survey (HTEM) Air-borne Gravity Gradiometer (AGG) No limitation in national parks! Kamikawa Niseko Nigorikawa Tochigi Jyoetsu Toyoha Hachimantai Yuzawa Kurikoma Musadake Teshikaga Kamishihoro Noboribetsu Active volcano Kujyu Oguni Kirishima Completed On going or Planed

7 Research & Development 6 Artificial recharge by river water (EGS technology) The research and development to stabilize the geothermal production by improving evaluation accuracy of fluid flow, and optimizing artificial recharge technique. Technology for Exploration of Geothermal Reservoirs Yanaizu-nishiyama power plant Improvement of exploration accuracy will be expected by applying the seismic method to image the geothermal reservoir structure by solving these issues. Drilling Technology Develop the PDC* bit cutter and body for geothermal well drilling and conduct verification test in order to reduce a drilling cost. *PDC : Polycrystalline Diamond Compact

8 Thank you for your attention! 7