Gas compressor for 'world's largest offshore CCS project' ordered from Japan

JERA, Petronas looking into CCS value chain between Japan and Malaysia

Japan’s JERA has signed a joint study agreement (JSA) with Malaysia’s Petroliam Nasional Berhad (Petronas), through its subsidiary Petronas CCS Solutions (PCCSS), to evaluate the feasibility of separating and capturing CO2 emitted by JERA in Japan and then transporting it to Malaysia for storage.

According to JERA, under the JSA, the two companies will jointly examine feasibility across the entire carbon capture and storage (CCS) value chain, including the separation and capture of CO2 emitted by JERA in Japan, transportation methods and shipping/receiving conditions for cross-border CO2 transport, as well as storage of CO2 in Malaysian gas fields.

CCS is a crucial solution for industries that have difficulty reducing CO2 emissions, JERA said, adding that governments worldwide actively support CCS projects and numerous initiatives are underway, including in the Asia-Pacific region. JERA also pointed out that Malaysia has an abundance of potentially suitable sites for underground CO2 storage.

Regarding the company’s CCS activities, JERA said it is accelerating its evaluation of CO2 capture and storage technologies and related economic considerations. To note, JERA aims to achieve net-zero CO2 emissions from its domestic and overseas businesses by 2050.

In 2024, several industry players have come together for the CCS value chain between Japan and Malaysia. The Chugoku Electric Power (EnerGia) and Nippon Gas Line (NGL) joined the project aiming to establish a CCS value chain originating from Japan for the CCS project in Malaysia, together with Japan Petroleum Exploration (JAPEX), JGC Holdings Corporation (JGC HD), K Line and JFE Steel Corporation (JFE Steel).

Furthermore, Mitsui & Co. and Chugoku Electric Power concluded a memorandum of understanding (MoU) concerning a joint study aimed at the creation of a value chain encompassing CCS and carbon transportation. This value chain is set to be developed for a CO2 storage site offshore Malaysia that is being jointly developed by Mitsui, Petronas, through its subsidiary Petronas CCS Solutions, and TotalEnergies.

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