JX Nippon Oil & Gas Exploration Corp, a unit of Japan’s largest oil refiner ENEOS [5020:JP], has announced its plans to store 5 million tons of carbon dioxide (CO2) annually by 2030, as reported by Reuters on June 27. Tetsuo Yamada, Executive Vice President of JX Nippon, stated that the company aims to have an annual carbon storage capacity of 5 million tons by 2030, 15 million tons by 2040, and 50 million tons by 2050. The majority of the captured and stored CO2 will come from JX Nippon’s parent company, ENEOS, which has committed to achieving carbon neutrality by 2040. To achieve its target, the company will need the capability to capture 16 million tons of carbon annually.

JX Nippon’ ambitious goal follows Japan’s recent development plan for CCS. On June 13, Japan’s Ministry of Economy, Trade, and Industry (METI) selected the country’s first seven carbon capture and storage (CCS) projects, with five located in Japan and two abroad. This is part of the Japan’s plan to store 13 million tons of CO2 annually, both domestically and internationally, by 2030, and 120 million to 240 million tons by 2050. Since Japan has limited renewable energy resources, CCS is considered a crucial tool in decarbonizing the electricity sector, which heavily relies on fossil fuels. Additionally, in June, the Japanese government proposed the establishment of common CCS rules in collaboration with the Association of Southeast Asian Nations (ASEAN) and Australia, aiming to lead the deployment of CCS technology in the region.

Sources:

https://www.reuters.com/business/energy/japans-jx-nippon-aims-store-5-mln-t-carbon-by-2030-2023-06-27/

https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/coal/061323-japan-selects-first-seven-ccs-projects-to-store-13-mil-mtyear-co2-by-2030

https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Japan-to-propose-carbon-capture-rules-with-ASEAN-Australia