Regional CCS: Japanese firms launch CCS engineering design work in Malaysia

By Romel S. Gurky

Japan Petroleum Exploration Co., Ltd. (JAPEX) and seven other major Japanese companies have embarked on a pivotal engineering design project for Carbon Capture and Storage (CCS) in Sarawak, Malaysia.

JAPEX said in a statement Friday that this initiative, part of the "Japanese Advanced CCS Projects" for fiscal year 2024, aims to tackle CO₂ emissions from various Japanese industries.

The eight companies involved in this contract include JAPEX, JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. ("K" LINE), JFE Steel Corporation (JFE Steel), Mitsubishi Gas Chemical Co., Inc. (MGC), Mitsubishi Chemical Corporation (Mitsubishi Chemical), The Chugoku Electric Power Co., Inc. (EnerGia), and Nippon Gas Line Co., Ltd. (NGL). They have partnered with Japan Organization for Metals and Energy Security (JOGMEC) to execute the design work, which will focus on the equipment and costs associated with capturing and liquefying CO₂ from various industrial sources in Japan, including the Setouchi area.

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PETRONAS CCS Ventures Sdn. Bhd. (PCCSV) will collaborate with these companies to evaluate the logistics of marine transport to Sarawak, including domestic transportation within Japan and the offshore injection and storage of CO₂.

A Key Principles Agreement (KPA) was signed by JAPEX, JGC HD, "K" LINE, and PCCSV on September 22, 2023, marking the beginning of commercializing the CCS project. Additionally, a Storage Site Agreement was finalized with PETROLEUM Sarawak BERHAD on February 26, 2024. This agreement outlines the use of depleted gas fields off the Sarawak coast for CO₂ storage.

On the same date, JAPEX, JGC HD, "K" LINE, JFE Steel, EnerGia, and NGL signed a Memorandum of Understanding to evaluate the CCS value chain from Japan, including the capture, transportation, and storage of CO₂. This joint evaluation highlighted alignment with the decarbonization goals of MGC and Mitsubishi Chemical, leading to the formal contract with JOGMEC.

This project is a significant step toward achieving carbon neutrality by 2050 and supports the "Asia Energy Transition Initiative (AETI)," which aims to create a de-carbonized society across Asia.

Editing by Reiner Simanjuntak