Japan-Taiwan partnership eyes growing carbon storage demand across ASEAN

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Kanadevia and Liang Lian Industries join forces to build CO2 storage tanks for CCS project. (Photo: Liang Lian Industries)

Japanese heavy industry firm Kanadevia announced a partnership with Taiwan’s Liang Lian Industries to jointly construct spherical liquefied CO2 storage tanks on July 22. The collaboration targets carbon storage projects in Southeast Asia, particularly in Malaysia and Vietnam, with the goal of building one to two 5,000-ton tanks annually.

Expanding CO2 storage infrastructure for cross-border CCS projects

Formerly known as Hitachi Zosen, Kanadevia emphasized that Carbon Capture, Utilization, and Storage (CCUS) is a key component of many countries’ net-zero strategies. However, manufacturing storage tanks for liquefied CO2 remains a bottleneck. By leveraging Liang Lian’s expertise in spherical tank technology, the partnership aims to deliver a more robust and scalable CO2 storage solution.

Japan’s 2024 CCS Business Act outlines a target to sequester 6 to 12 million tons of CO2 annually by 2030, ramping up to between 120 and 240 million tons by 2050. Nine CCS projects have already been selected, with the offshore area of Tomakomai, Hokkaido, designated as the first official CO2 storage zone earlier this year.

However, Japan’s limited geological capacity for CO2 storage has pushed the government and industry players to explore overseas sites, particularly in Southeast Asia. The two companies see strong demand from power, steel, and chemical sectors for transnational CCS projects.

Kanadevia and Liang Lian Industries join forces to build CO2 storage tanks for CCS projects. (Photo: Kanadevia)

Building tank supply to support Asia-Pacific CCS growth

According to Rystad Energy, Malaysia’s depleted oil and gas reservoirs present vast storage potential, supported by favorable government policy. Japan’s Eneos and Mitsui & Co. have already begun laying the groundwork for CCS operations in the country.

Read more: Carbon storage unlocked: Malaysia’s CCS market valued at $250 billion, draws cross-border interest

Kanadevia brings nearly a century of experience in pressure vessel manufacturing, with a specialization in ultra-thick steel plate bending, welding, and assembly. It currently produces up to 10 cylindrical tanks annually, each with a 2,000-ton capacity, mainly for LNG and ammonia.

However, spherical tanks offer better pressure distribution and volume efficiency for liquified CO2, making them a strategic fit for Kanadevia’s expansion into carbon storage.

Founded in 1995, Liang Lian Industries specializes in large-scale industrial and petrochemical plant engineering. In addition to pressure vessels, the company also delivers environmental projects such as waste and water treatment systems. It has recently expressed interest in solar power generation, expanding its portfolio of sustainable infrastructure solutions.

Source: KanadeviaNikkei AsiaLiang Lian Industries

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