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JOGMEC Advanced initiatives towards commercialization of CCS

[JOGMEC] Advanced initiatives towards commercialization of CCS
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Press release: June 28, 2024
Advanced initiatives toward commercialization of CCS
*~Selected 9 projects for design work, etc. as candidates for CO2 storage to start by 2030~*
JOGMEC (Headquarters: Minato-ku, Tokyo, Chairman: Takahara
From March 8th to April 5th, 2024, the company called for commissioned research work related to “design work, etc. related to advanced CCS projects,” and as a result of strict screening, 9 projects were selected (5 projects for domestic storage, 5 projects for domestic storage, 4 overseas storage projects) were selected as candidates. Regarding CCS, a technology that captures carbon dioxide (CO2) and stores it underground, JOGMEC will support the “design work in the CCS value chain” and the “storage potential evaluation work of planned CO2 storage sites” including test drilling surveys. This will greatly promote efforts toward decarbonization.
A total of 9 projects store approximately 20 million tons of CO2 per year. Location maps and proposing companies of 9 projects selected as advanced CCS projects in FY2020

In October 2020, the Japanese government set a carbon neutral goal of reducing overall greenhouse gas emissions to zero by 2050, and in April 2021, it set a goal of reducing greenhouse gas emissions by 46% in 2030 compared to 2013. I declared that I would. In addition, the GX Promotion Strategy (Note 1) indicates a policy of supporting innovative projects that serve as role models in order to create a business environment for the start of CCS (Note 2) business by 2030. Masu.

Furthermore, through the Japan-led Asia CCUS Network (Note 3), we are leveraging Japan’s technology, systems, and know-how to share knowledge and improve the business environment throughout Asia.

Additionally, in May 2024, the Diet passed the “Act on Carbon Dioxide Storage Businesses,” which includes a license system for businesses, etc., marking a major step towards the commercialization of CCS in Japan.

Against this background, JOGMEC is working on an innovative project that will serve as a model for establishing a business model that can be expanded horizontally, with the aim of starting a CCS business by 2030. We began supporting the project in fiscal 2023 as an “advanced CCS project” that comprehensively supports the entire storage value chain.

In fiscal 2023, we selected seven projects that aim to begin storing domestically emitted CO2 by fiscal 2030, and conducted a feasibility study to examine the possibility of building a CCS value chain (Note 4). . According to the 2023 survey, the following points are recognized as common issues in realizing CCS.

・Reduction of utility costs such as steam and electricity required for CO2 recovery
・Increase domestic construction capacity for storage tanks and ships necessary for CO2 transport by ship
・Data acquisition for evaluating CO2 storage potential, underground injection ability, containment capacity, and long-term health.

Based on the above results, starting in FY2024, we will begin the “Advanced CCS Project” project, which will carry out design work for the entire CCS value chain and storage potential evaluation work, with the aim of reducing uncertainties related to CCS costs and underground storage. We have newly implemented a new call for proposals for “design work, etc.” and have reselected projects for which we will provide priority support in the future. JOGMEC will now begin discussions to conclude contracts for the nine selected projects.

Continuing from 2023, the nine projects selected this time involve participation in a variety of business fields such as power
generation, oil refining, steel, chemicals, paper/pulp, and cement, and are located in Hokkaido, Kanto, Chubu, Kinki, Setouchi, and other industrial areas. We will respond to CO2 emissions in regions such as Kyushu. In addition, the goal is to store approximately 20 million tons of CO2 per year in total for the nine projects selected this time, of which five will be stored in Japan and the remaining four will be stored in Asia and Oceania.

In close collaboration with the Japanese government, JOGMEC will provide support tailored to the entire value chain of advanced CCS projects according to the business phase. We will continue to promote initiatives to achieve the CO2 storage amount.

As operators are scheduled to make their final investment decisions by fiscal 2026, we do not anticipate any new selection of advanced CCS projects from next fiscal year onwards. This does not apply if there are special circumstances, such as a significant change in the domestic or foreign situation. Additionally, we will continue to consider support for CCS business feasibility studies. In order to continue supporting projects that serve as models for final investment decisions, we will establish stage gates based on the progress of the project, and will make a decision on whether to continue the project at the end of each fiscal year.

Through advanced CCS projects, JOGMEC will support the development of model CCS, not only in domestic storage but also in overseas storage, mainly in Asia and Oceania. We will promote these initiatives. Through this, we will contribute to the stable supply of resource energy and the realization of carbon neutrality in Japan.

(Note 1) The “Strategy for Promoting Transition to a Decarbonized Growth-Oriented Economic Structure” was approved by the Cabinet (Ministry of Economy, Trade and Industry homepage)
(URL) (Note 2) Carbon Dioxide Capture and Storage: Separation, recovery and storage of CO2
(Note 3) “Asia CCUS Network” has been launched (Ministry of Economy, Trade and Industry homepage)
(URL) There are 13 member countries (10 ASEAN countries, Australia, the United States, and Japan)
(Note 4) Japan’s first CCS commercialization initiative – Seven projects selected as candidates for CO2 storage by 2030 (June 13, 2023)

■Summary of public recruitment for outsourcing contractors regarding “design work related to advanced CCS projects”
For details on this call for applicants, please see below.
Public call for contractors for “design work related to advanced CCS projects” (March 8, 2024)

■Summary of projects selected for “Design work related to advanced CCS projects” in FY2020
The business outline of the selected projects is listed below. Summary of projects selected for 2020 “Design work related to advanced CCS projects” (PDF)

■(Reference) Government support for CCS projects
Source: CCS Long-term Roadmap Study Group Final Summary (PDF) (Ministry of Economy, Trade and Industry website)

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