Challenges of the Cross-Border CO2
Transport Concept

February 8, 2024
Business Development Department
New LNG Ventures & Marketing Division, Natural Gas Group
Mitsubishi Corporation
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Our Approach to Energy Transformation
 Mitsubishi intends to continue fulfilling a pivotal role as reliable supplier of energy. It is our goalto push forward “Pragmatic” energy transformation so that energy supply and transformation canboth be achieved.
 Mitsubishi will invest approximately 2 trillion yen by 2030 in areas including renewables, naturalgas, metals, hydrogen and ammonia aiming to achieve its Carbon Neutral Roadmap.

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1Mitsubishi’s CCS projects
 Mitsubishi has already participated in CCS projects to proactively decarbonize our existing LNG
assets. (Cat. A)​
 In addition, several blue hydrogen / ammonia projects and CCS hub projects for industrial CCS
demand are under evaluation / study stage. (Cat. B & C)​

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Awarded Advanced CCS Projects in FY2023
 Financial support to projects which enable to scale up and reduce costs through hubs and clusters
concept as “advanced CCS project”.
 Mitsubishi is leading Oceania CCS projects with Nippon Steel and ExxonMobil (“Cross boarder CCS
value chain”).

Major requirements for applicant• Start CO2 injection by 2030 with a scale of greaterthan 0.5 MTPA.
• Aggregate CO2 from multiple industries in region.
• Japanese companies’ participation into entire CCS
value chain including transportation and storage.

1.5mtpa
1.5mtpa

2.0mtpa

Awarded Projects• 7 projects were awarded.
• Total amount of CO2 volume to be injected in 7
awarded projects amount for 13MTPA.
• Each study commenced around August and will becompleted within FY2023.
• Advanced CCS process in FY2024 is not officiallyannounced yet, it is expected that these 7 projects
and some new projects will apply.

1.5mtpa

1.0mtpa

3.0mtpa
2.0mtpa
2.0mtpa
Source: JOGMEC, edited by Mitsubishi Corporation
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Cross-border CCS value chain projects (Nippon Steel / ExxonMobil / MC)

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4Feasibility study scope in CCS Value Chain
 Aggregate CO2 from multiple industries, transport to overseas CCS sites by shipping, and storageinto depleted fields.
 Sharing of common facilities such as storage tanks, export / import facilities, transportation vessels
which enables cost reductions through the entire value chain.
 Substantial CO2 emission volume storage in destination (depleted fields) incentivizes storage
company as it creates larger revenues.
• Development Concept selection.
• Preliminary Economic rationality.
• Fact finding for legislation and identification of issues.
• Risk identification for the entire CCS value chain.
• Engineering study forcapture.
• Estimation for required landand selection of site.
• CAPEX/OPEX estimation.
• Risk identification.

• Engineering study forliquefaction, storage tank,export facility etc.
• Estimation for required landand selection of site.
• CAPEX/OPEX estimation.
• Risk identification.

• Engineering study for CO2transportation vessel.
• CAPEX/OPEX estimation.
• Risk identification.

••
•
•
•

Assessment for storage site.
Injection Plan.
Monitoring Plan.
CAPEX/OPEX estimation.
Risk identification.

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Purposes and Challenges of cross-border CCS

Purposes of cross-border CCS value chain: Sufficient storage capacity and diversification of storage site outside Japan.
 Early start up by utilizing depleted oil and gas fields.
 Significant cost saving and reduction by utilizing depleted oil and gas fields.
 Promoting CCS industry by participating promising/cost-competitive CCS project andgaining further intelligence.
 Initiative and leadership for rule making of decarbonization in Asia Pacific region.

Challenges related to cross-border CCS value chain: Appropriate financial support from government required to implement CCS value chain.
 Establishment of legislation and regulation for CCS operation.

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6Challenges to CCS value chain business implementation / realization【Entire Value Chain】
 Priority and timeline of implementing CCS as low-carbon solutions vary depending on
companies and industries.
 Manpower shortages of engineering firms during both pre-FID (F/S, pre-FEED andFEED) phase and project phase.
 Construction and manufacturing capacity of necessary equipment and facility.
• Storage tanks, pipelines, liquefied CO2 vessels etc.
 Importance of governmental financial support especially for CAPEX / OPEX funding
particularly in project phase.
【Aggregation】
 Securing land for aggregation, liquefaction, and exporting facilities.
• Storage tanks, pipelines, exporting facilities etc.
 Involvement / engagement / collaboration among both industrial emitters and local
governments are indispensable for implementation of CCS operation.
• Sharing of project progress / status with industrial emitters who have submitted LOI.
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