September 13, 2024
Japan Petroleum Exploration Co., Ltd.
JGC Holdings Corporation
Kawasaki Kisen Kaisha, Ltd.
JFE Steel Corporation
Mitsubishi Gas Chemical Co., Inc.
Mitsubishi Chemical Corporation
The Chugoku Electric Power Co., Inc.
Nippon Gas Line Co., Ltd.
PETRONAS CCS Ventures Sdn. Bhd.
Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. (“K” LINE), JFE Steel Corporation (JFE Steel), Mitsubishi Gas Chemical Co., Inc. (MGC), Mitsubishi Chemical Corporation (Mitsubishi Chemical), The Chugoku Electric Power Co., Inc. (EnerGia) and Nippon Gas Line Co., Ltd. (NGL) (hereinafter “Eight Japanese Companies”) signed a contract with Japan Organization for Metals and Energy Security (JOGMEC) for the commissioning of design work, etc. (hereafter, the “Work”) related to the Carbon Capture and Storage (CCS) project to inject and store CO2 emitted from multiple industries in Japan including the Setouchi area in offshore Sarawak, Malaysia, which is one of the public solicitations regarding the Request for Proposal on the “Japanese Advanced CCS Projects” in the fiscal year 2024 (hereinafter the “Public Solicitation”).
Eight Japanese Companies that signed the contract will proceed with the Work to examine the equipment and costs required for the separation, collection and liquefaction of CO2 emitted from steelworks, power plant, chemical plant, etc., in Japan. PETRONAS CCS Ventures Sdn. Bhd. (PCCSV) will jointly work with the Eight Japanese Companies (hereinafter “Nine Participating Companies”) to examine equipment and costs required for the marine transport to Sarawak (including domestic marine transportation in the Setouchi area) and the injection and storage of the CO2.
Please refer to the appendix for an outline of the Work, roles of the Nine Participating Companies and profiles of each company.
JAPEX, JGC HD, “K” LINE, and PCCSV have signed the Key Principles Agreement (KPA) regarding the study of commercializing the CCS project on September 22, 2023*1 and have signed the Storage Site Agreement with PETROLEUM Sarawak BERHAD the Sarawak state-run energy company and the state’s CO2 storage rights manager on February 26, 2024. To implement the injection and storage of CO2 from domestic as well as foreign countries such as Japan, JAPEX, JGC HD, “K” LINE, and PCCSV are investigating the profitability of the CCS project using depleted gas fields off the coast of Sarawak, offshore Malaysia including M3 depleted field as CO2 storage sites by formulating a development plan for the CO2 storage sites including CO2 transportation, onshore terminals and pipelines, and evaluating their technical and commercial feasibility*2.
In addition, on February 26, 2024, JAPEX, JGC HD, “K” LINE, JFE Steel, EnerGia, and NGL (hereinafter “the Six Companies”) have signed a Memorandum of Understanding regarding joint evaluation aiming to establish CCS value chain originated from Japan for the commercialization of the CCS project in Malaysia. The Six Companies are conducting the joint evaluation of required facilities and costs*3 to establish the CCS value chain, from CO2 separation and capture at JFE Steel’s steelworks and EnerGia Group’s power plant to marine transportation (including domestic marine transportation in the Setouchi area) of liquefied CO2 to the receiving point(s) in Malaysia. As the joint evaluation progressed, the Six Companies recognized that their direction of business consideration was in line with those of MGC and Mitsubishi Chemical, which were considering decarbonizing their factories. As a result, the Eight Japanese Companies concluded the contract with JOGMEC.
By promoting the Work with the aim to early commercialize the CCS project, the Eight Japanese Companies will contribute towards carbon neutrality in 2050, including the realization of a de-carbonized society in Asia targeted by the “Asia Energy Transition Initiative (AETI)” *4.
*1: Please refer a joint press release “JAPEX, JGC HD, and “K” LINE Sign a Key Principles Agreement with PETRONAS for the maturation and development of the CCS Project in Malaysia” on November 20, 2023.
https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20231120.html
*2: Please refer a joint press release “JAPEX, JGC, and “K” LINE Sign a Storage Site Agreement with PETRONAS and PETROS for the CCS Project in Malaysia” on February 29, 2024.
https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240229.html
*3: Please refer a joint press release “The Chugoku Electric Power and Nippon Gas Line Participate in the Joint Evaluation to Establish CCS Value Chain Originated from Japan for the CCS Project in Malaysia” on February 26, 2024.
https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240226.html
*4: The Japanese Government’s initiative announced in May 2021, which aims to achieve sustainable economic growth and carbon neutrality simultaneously in Asia.
[Appendix] Outline of the Work
1) Outline
|
Storage area |
Off the coast of Sarawak, offshore Malaysia |
|
Storage amount |
Approximately 1.9~2.9 million tons per year (*) |
|
Emission source |
Steelworks, Power plant, and Chemical plant in the Setouchi area |
|
Transportation |
Pipelines, domestic coastal boat transportation, oceangoing transportation |
|
Feature of the project |
Promote a highly scalable, wide-area project that connects CO2 storage regions with substantial injection potential via marine transportation, targeting a wide range of industries in the Setouchi area. |
(*) Assumption storage capacity in 2030 is 5 million tons per year.
2) Each role of the Nine Participating Companies in the Work
|
JAPEX |
Conduct joint technical and commercial studies on CO2 transport and storage by utilizing the experience and expertise of each company in areas such as oil and natural gas exploration and development, CO2 geological storage, plant design and construction, and marine transport of liquefied CO2 |
|
JGC |
|
|
“K” LINE |
|
|
PCCSV(*) |
|
|
JFE Steel |
CO2 separate, capture facilities in the JFE Steel’s own operation, and liquefy and shipping facilities in the JFE Steel’s premises |
|
MGC |
CO2 separate and capture facilities in the MGC’s own operation |
|
Mitsubishi Chemical |
CO2 separate and capture facilities in the Mitsubishi Chemical’s own operation |
|
EnerGia |
CO2 separate and capture facilities in the EnerGia’s own operation, and liquefy and shipping facilities in the adjacent premises |
|
NGL |
Infrastructure for domestic coastal boat transport of liquefied CO2. |
(*) PCCSV is participating as a joint proponent, not as a contracting party.
[Appendix] Outline of Nine Participating Companies
Japan Petroleum Exploration Co., Ltd. (JAPEX)
Head Office：SAPIA Tower 1-7-12, Marunouchi, Chiyoda-ku, Tokyo
Representative：Representative Director and President, Chief Executive Officer, YAMASHITA Michiro
JGC Holdings Corporation (JGC HD)
Head Office：2-3-1, Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa
Representative：Representative Director, Chairman and Chief Executive Officer (CEO), Masayuki Sato
Kawasaki Kisen Kaisha, Ltd. (“K” LINE)
Head Office：2-1-1, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative：Representative Director, President & CEO, Yukikazu Myochin
PETRONAS CCS Ventures Sdn. Bhd.（PCCSV）(*)
Head Office：Tower 1, PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia
Representative：Chief Executive Officer, Emry Hisham Yusoff
(*) PCCSV is participating as a joint proponent, not as a contracting party.
JFE Steel Corporation (JFE Steel)
Head Office： 2-2-3, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative： President and CEO, Masayuki Hirose
Mitsubishi Gas Chemical Co., Inc. (MGC)
Head Office：Mitsubishi Building 2-5-2, Marunouchi, Chiyoda-ku, Tokyo
Representative：Representative Director, President, Masashi Fujii
Mitsubishi Chemical Corporation (Mitsubishi Chemical)
Head Office：1-1-1 Marunouchi, Chiyoda-ku, Tokyo
Representative：Representative Director, Yasuo Shimodaira
Representative Director, Nobuo Fukuda
The Chugoku Electric Power Co., Inc. (EnerGia)
Head Office：4-33 Komachi,Naka-ku,Hiroshima-shi,Hiroshima
Representative：Representative Director, President & Chief Executive Officer, Nakagawa Kengo
Nippon Gas Line Co., Ltd. (NGL)
Head Office：4-12-7 Sanbancho, Matsuyama City, Ehime
Representative：President Yasuhiro Muramatsu
