Oil major BP and Chubu Electric Power said on Feb. 3 they would study the feasibility of a carbon capture and storage (CCS) project to help reduce CO2 emissions in the Nagoya Port area in central Japan.
Under a memorandum of understanding signed a day earlier, the companies would form a broad alliance in decarbonization businesses in Japan and other key markets in Asia, they said in a joint statement.
In the first step, they will explore the feasibility of collecting CO2 from major emitters in Nagoya and transporting it to storage sites, potentially internationally, they said.
Nagoya is Japan's biggest port in terms of cargo volume and located near steel, automotive and other manufacturing plants. Industries around the port account for 3% of Japan's total emissions, and the port aims to cut the area's emissions by 35% by 2030 compared to 2013 levels.
The total investment of the Nagoya port project could reach several hundreds of billions of yen (several billion dollars), according to Hiroki Sato, Chubu's senior managing executive officer.
"We aim to make a final investment decision on the project by around 2026 and start operation in 2030," he said.
In January, Japan's industry ministry set a target of annual CO2 storage capacity of 6 million to 12 million tonnes by 2030 under a long-term roadmap for CCS.
Japan sees CCS technology - which removes CO2 emissions from the atmosphere and stores them underground - as essential to achieving its goal of carbon neutrality by 2050.
Japan's top steelmaker Nippon Steel Corp, trading house Mitsubishi Corp and Exxon Mobil Corp also said last month they will jointly study CCS and the establishment of CCS value chains in the Asia Pacific regions.
Recommended Reading
Diamondback Curtails Permian Oil Output Amid Associated Gas Glut
2024-08-07 - Diamondback Energy, one of the Permian’s largest oil producers, curtailed some Permian oil output to limit associated gas production. Permian gas output is near record highs, and takeaway capacity out of the basin is bottlenecked.
Civitas’ 4-Mile D-J Basin Wells See ‘Quite Compelling’ Returns
2024-08-05 - Civitas Resources is all-in on the Permian after pumping nearly $7 billion into M&A in the basin last year. But Civitas is drilling longer wells on its legacy Colorado assets, too.
Exxon Pairs Record Pioneer Output with Record Legacy Permian Volumes
2024-08-02 - After closing a $63 billion acquisition of Pioneer Natural Resources, Exxon is the largest producer in the Permian Basin—and the entire U.S.
ConocoPhillips’ Blowout: Permian, Eagle Ford, Bakken Output Rises
2024-08-01 - ConocoPhillips reported a notable uplift in Eagle Ford Shale production during the second quarter, while volumes in the Permian, Bakken and Canada’s Montney Shale also grew.