Idemitsu Refocuses on Fossil Fuels in New Medium-Term Plan
Japanese refiner Idemitsu Kosan has announced a new medium-term strategy that prioritizes existing fossil fuel businesses over its previous energy transition goals. The company plans to invest 1.8 trillion yen through fiscal 2030 to ensure stable energy supplies amid global geopolitical uncertainty.
IDEMITSU KOSAN CO LTD will invest 1.8 trillion yen ($11.4 billion) through fiscal 2030 to pivot its strategy back toward fossil fuels. The new medium-term plan allocates 830 billion yen specifically to existing core businesses, scrapping previous targets to slash domestic refinery capacity. This reversal prioritizes energy security for Japan as geopolitical volatility disrupts traditional supply chains.
### Shifting Away from Aggressive Decarbonization The new strategy marks a departure from a previous goal to generate over 50% of profit from non-fossil fuel sources by 2030. Idemitsu President Noriaki Sakai cited an increasingly uncertain long-term outlook for fuel consumption as the primary driver for the change. The firm had originally assumed a steady decline in fossil fuel demand that has not materialized.
