A carbon dioxide (CO2) capture and storage value chain between Japan and Australia is to be studied by Mitsui OSK Lines (MOL) and JX Nippon Oil & Gas Exploration Corp. after both companies signed an MOU.
The agreement focuses on capturing CO2 emitted from ENEOS refinery and nearby various industries in Japan, transporting it by CO2 carrier to the Port of Bonython in Australia, and injecting and storing it at the selected storage site.
MOL and JX will jointly conduct studies to select a liquefied CO2 carrier suitable for conditions at ports in Japan and Australia and the expected CO2 transport distance and volume, and estimation of marine transport costs, as well as estimate the cost of the entire CCS value chain between both countries.
Through the MoU, MOL and JX will accelerate their initiatives to build a CCS value chain and contribute to the realisation of a carbon-neutral society, according to a statement.
Developing the CCS business is consistent with MOL’s Blue Action 2035 management plan and environmental vision.
JX has positioned CCS as an important initiative under its ‘two-pronged’ approach whereby, in addition to the conventional oil and natural gas development business, environmentally friendly businesses centred on CCS/CCUS are another axis of the company’s operations.
In December, JX announced it will undertake a study on underground hydrogen in which clean hydrogen is generated from a depleted oil reservoir, as part of the NEDO International Demonstration Project.
In Texas, the company is commercialising the Petra Nova CCUS project (main photo), which practices increasing crude oil production by injecting CO2 recovered from the exhaust gas of a thermal power plant into an oil field.
The project is designed to capture approximately 90% of the CO2 from a 240MW slipstream of flue gas and use or sequester approximately 1.4 million metric tonnes (MT) of the greenhouse gas annually.
It is using a proven carbon capture process, which was jointly developed by Mitsubishi Heavy Industries (MHI) and the Kansai Electric Power Co., that uses a high-performance solvent for CO2 absorption and desorption.
The captured CO2 will be compressed and transported through an 80-mile pipeline to an operating oil field where it will be used for enhanced oil recovery (EOR) and ultimately sequestered.