Japanese firms, Malaysia's Petronas to set up CO2 storage by end-2028

Japan Petroleum Exploration Co

20/11/2023 09:57

Nov 20 (Reuters) - Japanese companies have agreed to
develop a carbon capture and storage (CCS) project with
Malaysian energy firm Petronas which should start holding its
first carbon dioxide (CO2) emissions from end-2028, Japan
Petroleum Exploration Co said on Monday. 
    Japan plans 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 an important role in its strategy. 
    Japan Petroleum Exploration Co (JAPEX)  1662.T  is
developing the CCS project  with JGC Holdings Corp  1963.T  and
Kawasaki Kisen Kaisha, or K Line  9107.T , as well as
state-controlled Petronas. 
    The companies plan to start the front-end engineering design
next year with a goal to inject and store CO2 from Japan and
Malaysia in depleted oil and gas fields off the Malaysian coast,
the statement said. 
    JAPEX did not provide a cost estimate but said that at least
2 million metric tons of CO2 per year is planned to be injected
at the start, rising to 5 million tons annually by the end of
this decade and to over 10 million tones in early 2030s.  
    Early this year, Japan set a target of annual CO2 storage
capacity of 6-12 million tonnes by 2030 under a long-term
roadmap for CCS which removes CO2 emissions from the atmosphere
and stores them underground. 

 (Reporting by Katya Golubkova; editing by Miral Fahmy)
 ((ekaterina.golubkova@thomsonreuters.com;))