MOECO and Chevron to explore advanced closed loop geothermal pilot in Hokkaido Japan

June 22, 2023 Project

TOKYO--June 22, 2023-- Chevron New Energies Japan GK (Chevron New Energies Japan), a subsidiary of Chevron U.S.A. Inc., and
Mitsui Oil Exploration Co., Ltd (MOECO) today announced execution of definitive agreements to proceed with the pilot testing of
advanced geothermal technology. Pursuant to these agreements, Chevron and MOECO will conduct pilot tests of a developing novel
geothermal technology, specifically advanced closed loop (ACL) technology.

　

In September 2022, MOECO signed a joint collaboration agreement (JCA) with Chevron New Energies International Pte, Ltd. to
further explore the technical and commercial feasibility of advanced geothermal energy development and other new energies
technology. The agreements to conduct pilot testing by MOECO and Chevron New Energies Japan is the first project contemplated
by the JCA.

　

MOECO and Chevron signing ceremony for ACL pilot test

　

ACL technology involves sub surface heat exchange through conduction by circulating a working fluid from the surface through a
loop of underground wells to generate electricity (through surface facilities) by utilizing sub surface geothermal heat (sub surface
radiator). It does not require direct extraction of hot water (brine) or steam from underground reservoirs, as is the case with
conventional geothermal technology. ACL is gaining momentum worldwide as a novel technology that has the potential to unlock
geothermal energy globally in multiple locations, closer to load and customers, promoting geothermal development which can be
a lower carbon energy solution and a reliable baseload.

　

The pilot test using this ACL technology is expected to be conducted in the Niseko region of Hokkaido, Japan, with the aim of
derisking, scaling and commercializing geothermal power generation based on ACL technology with additional potential as a
heat resource. MOECO and Chevron New Energies Japan will consider commercial applications based on learnings from this
pilot both in Japan and globally and will leverage the long relationship between the two companies that has developed through
a collaboration of more than 40 years in energy development in the Asia Pacific region.

　

"Chevron believes that the future of energy is lower carbon and aims to be a leader in providing affordable, reliable and ever
cleaner energy. Chevron and MOECO believe that geothermal can be a significant enabler in Japan's lower carbon and net zero
journey," said Barbara Harrison, Vice President of Offsets and Emerging, Chevron New Energies International Pte, Ltd.
"Geothermal development needs to be carried out with the final customer in mind and with consideration of potential impacts to
the environment and the local community. This milestone confirms the commitment of Chevron New Energies Japan and MOECO
to testing out novel geothermal technologies that have the possibility to unlock Japan's geothermal potential while reducing potential
community impact."

　

"We are pleased to launch this pilot test of ACL technology with Chevron New Energies. ACL technology has the potential to unlock
geothermal development in Japan and around the world. We expect to open up a new geothermal business by collaborating with
Chevron New Energies, which has advanced technology and extensive experience to tackle this challenging project," said
Hirotaka Hamamoto, Chief Executive Officer of MOECO. "We, MOECO, a member of the Mitsui & CO's group company, aim to
contribute to the stable supply of energy, achieving improved standards of living, and sustainable development of society through the
promotion of renewable energy projects such as geothermal power generation."

　

　

Drilling of a conventional geothermal exploration well in the Niseko area

Concept diagram of the wells used with this new technology

　

About Chevron

Chevron is one of the world's leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is
essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants,
petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our
traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable
fuels, hydrogen, carbon capture, offsets and other emerging technologies.
More information about Chevron is available at www.Chevron.com.

　

About MOECO

MOECO celebrated its milestone 50th anniversary in 2019. MOECO has been continually devoted to the exploration, development
and production of energy resources globally building from the development of our gas projects in offshore Thailand. MOECO now
embraces the challenge that comes with the world entering a new era where society's demands for energy are rapidly changing.
We renew our commitment towards delivering energy resources that will strive to meet the demands of a changing society through
our global expansion including the continued development of our geothermal business as one of the core group companies of
Mitsui & Co.'s energy business value chain.
More information about MOECO is available at www.moeco.com.