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About Commodity Insights
13 Jun 2023 | 03:28 UTC
Highlights
Five projects picked nationwide in Japan; two in Malaysia, Oceania
Selected in Hokkaido, Sea of Japan, Greater Tokyo, Chubu, Kyushu
Japan already found reservoirs in 11 locations for storing 16 bil mt CO2
Japan selected the country's first seven carbon capture and storage projects June 13 to store 13 million mt/year of CO2 in Japan and abroad by 2030, Minister of Economy, Trade and Industry Yasutoshi Nishimura said, marking a step forward toward 2050 carbon neutrality.
"From now on, we aim to secure storing 13 million mt/year [of CO2] by 2030," Nishimura said at a press conference.
"To target 120 million-240 million mt/year [CO2 storage volume] by 2050, we intend to execute these projects which could potentially be business models first. Today marks the day one to start CCS business in our country."
The move comes as Japan sees CCS as among the essential means to proceed with the country's decarbonization while ensuring its stable energy supply and using fossil fuels such as LNG.
"As we strive for reducing green house gas emissions by 46% by 2030 and aim for 2050 carbon neutrality, we must ensure stable energy supply and stable electricity supply at the same time," Nishimura said.
"With [the use of ] fossil fuels expected to shrink, we see LNG particularly important as a transition energy in the foreseeable future," he said. "We expect CCS to be placed critically important, along with energy sources such as hydrogen and ammonia."
Japan sees the need of launching CCS businesses by 2030 and increase its CO2 storage volumes by 6 million-12 million mt/year to achieve 2050 carbon neutrality, according to the country's long-term CCS roadmap plan approved Jan. 26.
The government is starting its geological survey from fiscal year 2023-24 (April-March) to find suitable locations for CCS. Japan has previously found reservoirs in 11 locations suitable for storing a total of 16 billion mt of CO2 in the country's earlier surveys.
Japan has already launched its first large-scale CCS pilot project in Tomakomai city in Hokkaido, northern Japan, where it has injected a total of 300,000 mt of CO2 as of November 2019.
Under the latest move June 13, Japan designated five CCS projects in the country, spanning from Hokkaido in the north to Kyushu in the southwest, with two projects abroad in Malaysia and the Oceania.
In Hokkaido, the government chose a CCS business being developed in the Tomakomai area by Japan Petroleum Exploration, Idemitsu Kosan and Hokkaido Electric to store 1.5 million mt/year of CO2 from a refinery and power plant in the area.
The government picked a CCS project in the Japan Sea side of the Tohoku region, developed by Itochu, Itochu Oil Exploration, Mitsubishi Heavy Industries, Nippon Steel, INPEX, Taisei Corp and Taiheiyo Cement to store 2 million mt/year of CO2 from nationwide including from steel mills, cement plants.
In the east of Niigata, the government selected a CCS project being developed by Japex, Tohoku Electric, Mitsubishi Gas Chemical, Hokuetsu Corp. and Nomura Research Institute to store 1.5 million mt/year of COS from chemical plants, paper mills and power plants in Niigata prefecture.
In the greater Tokyo, the government adopted a CCS project being developed by INPEX, Nippon Steel and Kanto Natural Gas Development to store 1 million mt/year of CO2 from various industries including steel mills.
The government also chose the Kyushu offshore north and west for a CCS project being developed by ENEOS, JX Nippon Oil & Gas Exploration and Electric Power Development Co., or J-POWER to store 3 million mt/year of CO2 from refineries and thermal power plants in western Japan.
In the offshore Malay Peninsula, Japan opted for a CCS project being developed by Mitsui to store 2 million mt/year of CO2 from multiple industries including refining in the western and Kyushu regions in Japan.
The government also chose a CCS project being developed by Mitsubishi , Nippon Steel, ExxonMobil Asia Pacific in the Oceania to store 2 million mt/year of CO2 from multiple industries including steel mills in the Chubu region in Japan.