INPEX Corporation has signed an agreement with Chubu Electric Power Co. through subsidiary INPEX Browse E&P to assess capturing carbon dioxide (CO2) in Japan and transporting it from the port of Nagoya to Australia for storage.
INPEX was awarded a greenhouse gas storage assessment permit in the Bonaparte Basin off the Northern Territory, with TotalEnergies CCS Australia and Woodside Energy, in 2022, with CO2 injection targeted for 2030. INPEX-operated Ichthys LNG would be a natural user of the CCS solution as it seeks to cut its emissions.
It is the latest in a series of a carbon capture and storage studies involving the two countries.
In February, Mitsui OSK Lines (MOL) and JX Nippon Oil & Gas Exploration Corp. signed an MOU focusing on capturing CO2 emitted from ENEOS refinery and nearby various industries in Japan, transporting it by CO2 carrier to the Port of Bonython in Australia, and injecting and storing it at the selected storage site.
Read more: Mitsui OSK Lines and JX to explore CCS value chain between Japan and Australia
Last December, Woodside Energy signed a non-binding MOU with four Japanese companies.
Reflecting the demand for large-scale decarbonisation solutions, the deal will see Woodside working alongside Sumitomo Corporation, JFE Steel Corporation, Sumitomo Osaka Cement Co. Ltd and Kawasaki Kisen Kaisha.
Read more: Woodside to advance CCS value chain between Japan and Australia
Three months earlier, Woodside said it was exploring a CCS value chain with Kansai Electric Power (KEPCO), which announced its intention to research the capture of CO2 emitted from its thermal power plants, and its transport to Australia.
Read more: Woodside and KEPCO to explore Japan-Australia CCS value chain
Oil and gas overlap opportunities
Asia-Pacific could account for more than half of global carbon capture and storage by 2050, according to McKinsey & Co., though it acknowledges reaching that target ‘won’t be an easy task’.
“To realise its potential, the region needs to deliver exponential growth: at least 450 times its current operational CCUS projects,” it states.
“It is also characterised by inequitable access to viable domestic underground storage, and varying levels of regulatory maturity.”
Source: McKinsey & Co
On the plus side, the CCUS value chain overlaps with the upstream oil and gas industry, where the region has many advantages – mature local supply chains; efficiencies in wells delivery; established operational, maintenance, and health, safety, and environmental (HSE) practices; and proven track records from state-owned and independent oil companies.
The majority of CCUS value-chain activities (such as gas compression and transport, injection-well delivery, and subsurface monitoring) are familiar to companies operating in the oil and gas sector.
But outside this sector, the level of technical understanding of CCUS is low.
“Partly because of this, Asia-Pacific does not have a deep pool of pilot and operational-project proof points across sectors and countries to demonstrate technological readiness (such as CO2 separation and capture) and key technical de-risking (such as the ability to reuse existing wells without compromising integrity). This risks creating a ‘wait and see’ mindset for governments and companies, dampening momentum for CCUS,” McKinsey notes.
