Japan drives co-operation on carbon capture

More than 100 companies and organisations, together with Asia-Pacific governments, are co-operating in developing carbon capture, storage and utilisation (CCUS) projects as part of global efforts to achieve carbon neutrality by 2050.

Japanese trade and industry (Meti) minister Hiroshi Kajiyama announced today the launch of the Asia CCUS Network, an industry-academia-government platform aimed at promoting CCUS applications and boosting the business environment for CCUS development throughout Asia. So far 13 countries, comprising the 10 members of the Association of Southeast Asian Nations (Asean), Japan, the US and Australia, have expressed their intention to participate in the initiative, along with more than 100 international organisations, companies, financial and research institutes, according to Kajiyama.

The launch was announced at the first Asia CCUS Network Forum organised by Meti and the Economic Research Institute for Asean and East Asia, with the two-day online forum starting today. The Asia CCUS Network was originally proposed by Japan at the 14th East Asia Summit Energy Ministers' Meeting held in November last year.

Funding support Japan yesterday also proposed $10bn in government funding for renewable and low-carbon projects in Asean nations under the Asia Energy Transition Initiative aiming to support development and demonstration of clean energy technology, including CCUS, towards decarbonisation.

The IEA said CCUS technology will play an important role in supporting clean energy transition in southeast Asia, where demand for fossil fuels remain high. Investment in carbon capture technologies in the region will need to reach an average of almost $1bn/yr between 2025 and 2030 to meet climate goals, according to the IEA.

Japan is looking to develop CCUS projects overseas, particularly in Asia, to offset environmental impacts with it expected to stay dependent on oil and gas imports to maintain energy security during a transition to carbon neutrality. Tokyo is also boosting financial support , targeting to reduce potential financial risks in fulfilling costly CCS requirements in upstream oil and gas operations.

Meti is considering utilising the country's joint crediting mechanism scheme to create a joint CCS project in Indonesia. Japanese plant engineering firm JGC and power producer J-Power are planning a CCS demonstration project in Indonesia in the April 2021-March 2022 fiscal year, targeting to capture and store 300,000 t/yr of CO2 at Indonesia's Gundih gas field.

CO2 carriers The start-up of the Japan-Asean platform also coincided with an announcement today by Japan's state-owned research and development institute Nedo to launch a cross-industry study into low-cost technology for safe, mass transport of CO2 by vessels.

Japanese companies are planning to begin a demonstration project in early 2024, with around 10,000 t/yr of CO2 captured at utility Kansai Electric Power's 1,800MW Maizuru coal-fired power plant in Kyoto prefecture and liquefied for transport on a coastal vessel. The liquefied CO2 will be unloaded at the Tomakomai CCUS and Carbon Recycling Demonstration Centre in Hokkaido.

The Nedo's study targets commercialisation by 2030 to achieve marine transport of 1mn t/yr of CO2 to utilisation or storage areas. Participating companies in the study include trading house Itochu, steel firm Nippon Steel and joint venture Japan CCS, while shipping firms K Line and Mitsui OSK Lines have joined as subcontractors.

By Rieko Suda

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