Japanese firms have agreed to develop a carbon capture and storage (CCS) project with Malaysian energy company Petronas which should begin commercial operations by the end of 2028, Japan Petroleum Exploration Co (JAPEX) said on November 20.
Japan targets to be carbon-neutral by 2050 and is actively developing renewable and alternative energy sources from hydrogen and ammonia to solar and wind power, with CCS technology also playing a key role in its transition strategy.
Japan Petroleum Exploration Co is developing the CCS project with JGC Holdings Corpp and Kawasaki Kisen Kaisha as well as state-controlled Petronas.
JAPEX, JGC HD and K Line signed a kay principles agreement with Petronas for the development of the CCS project. (Photo: JAPEX)
The statement indicates that the partners will conduct detailed examinations of business schemes, costs and designs to build pipelines, liquefied carbon dioxide (CO2) receiving facilities, and offshore injection equipment in Malaysia. Their goal is to inject and store CO2 from Japan and Malaysia in depleted oil and gas fields off the Malaysian coast.
They aim to start the front-end engineering design in 2024, make a final investment decision by the mid-2020s and to begin injection and storage of CO2 at offshore sites by the end of 2028.
JAPEX did not provide a cost estimate but said that to inject at least 2 million metric tons of CO2 per year in the initial phase. This is expected to increase to 5 million tons annually by the end of this decade and surpass 10 million tones in early 2030s.
Petronas and JAPEX initiated an initial study in January 2022, with JGC and Kline joining in July 2022. The partners explored potential CO2 storage sites, coastal shipping of CO2, and injection in Malaysia before proceeding to conduct more detailed research.
Japan has been looking to Malaysia as a destination for CO2 exports and storage due to its limited storage sites. Japan's Ministry of Trade and Industry and state-owned energy agency Jogmec have signed an initial agreement with Petronas to commence discussions on a regulatory and general framework for CO2 exports from Japan and storage in Malaysia.
Early this year, Japan set a target of achieving an annual CO2 storage capacity ranging from 6 to 12 million tonnes by 2030 as part of a long-term roadmap for CCS.