Japan’s CCS long-term roadmap

Norihiko Saeki
Director for CCS Policy office, METI, Japan

Japan’s Long-Term Roadmap[Basic principles]
To implement CCS systematically and rationally to promote the sound development of CCS business in Japan withminimal social costs, thereby contributing to the development of Japan's economy and industry, securing a stableenergy supply, and the achievement of carbon neutrality.
[Objectives]
A business environment for commencement shall be prepared by 2030, involving cost reduction, public
understanding, overseas CCS promotion, and CCS Business Act legislation, based on the rough estimation ofenabling CO2 storage of about 120 to 240 million tons as of 2050, and full-scale CCS business shall deploy
after 2030.
Annual storage capacity:
120 to 240 million tons
CCS business starts–2030
Business model construction–2050
Full-scale deployment[Specific actions](1) Government support for CCS business(2) Efforts for reducing CCS costs(3) Promotion of public understanding of CCS business(4) Promotion of overseas CCS business(5) Examination for the development of the CCS Business Act (tentative name)(6) Formulation and review of the CCS Action Plan2

Purpose of advanced CCS program⚫ To secure annual storage of 120-240 million tons of CO2 by 2050, A business model for CCS that can crosssectoral should be established at an early stage. Thus, Japanese government selected “Advanced CCS
projects” led by operators and will actively support them.
⚫ This supporting program will establish various CCS business models by supporting projects with different
combinations of CO2 source, transportation methods and CO2 storage areas. Furthermore, it aims to secure6-12 million tons of CO2 storage per year by 2030.
⚫ This year, this program will provide support for the analysis of this geologic data and feasibility study.

Possible types of CO2 source, transport methods, and CO2 storage areas
CO2 sources

Transport methods

Thermal power plant

Steel plant
Chemical plant
Cement plant

Paper plant
Hydrogen plant etc.

CO2 storage areas
OnshorePipeline
Near shore
Ship

Offshore3

Overviews of Selected Advanced CCS Projects⚫ On June 6, Seven CCS projects was selected as Advanced CCS project (including two oversea exportprojects) which was considered CO2 source, transportation methods, storage areas.
⚫ Selected project target a wide range of industries such as electric pawer, oil refineries, steel, chemical,
pulp/paper, and cement, and capture CO2 emitted from various regions in Japan.
⚫ The total estimated annual storage of CO2 in 2030 is about 13 million tons (including 30% exported overseas).
Storage areas
CO2 Sources
Transportation methods＜Combinations of CO2 sources,Transportation methods, storage areas＞①Tomakomai Area CCS
Oil refinery, electric power
Pipeline
JAPEX, Idemitsu Kosan, Hokkaido Electric power
plant

Types of storage site
Onshore depleted gas fields
and/or Near shore②Tohoku region west coast CCS
ITOCHU Corp., Nippon Steel, Taiheiyo Cement,
Mitsubishi Heavy Industries, ITOCHU Oil Exploration,
INPEX, Taisei Corp.

Steel plant, Cement plant

Ship, Pipeline

Near shore③East Niigata Aria CCS
JAPEX, Tohoku electric power, Mitsubishi Gas
Chemical Company, Hokuetsu Co, Nomura ResearchInstitute.

Chemical plant, Paperplant, electric power plant

Pipeline

Onshore depleted gas fields ～Near Shore④Metropolitan Aria CCS
INPEX, Nippon Steel, Kanto Natural Gas Development

Steel plant, others

Pipeline

Near Shore⑤Northern to Western Offshore CCS
ENEOS、JX Nippon Oil & Gas Exploration、J-PowerOil refinery, electric power
plant

Ship, Pipeline

Offshore⑥Offshore Malay CCS
Mitsui & Co.

Oil refinery, Chemical plant,
Ship, Pipeline
othersOversea project (Malaysia)⑦Oceania
Mitsubishi Corp., Nippon Steel, ExxonMobil

Steel plant, others

Oversea project（Oceania）

Ship, Pipeline4Locations of the selected projects and companies

5Lessons from Advanced CCS Program⚫ T & S companies requires several hundreds million dollars and high technologies to install. The number ofpotential entrants would be limited.
⚫ In order to install Carbon Capture process and transportation, “Aggregator” for emitters is necessary to foster
by promoting outsourcing. Some public utilities companies to think to enter.
⚫ In CCS, quantities of CO2 to transport would be more than 100 times. Primary transport would be pipelines
and shipping would fill the regional gap.

CCS System and its challenges
Emitters
Consolidationof consumers

CarbonCapture・・・ In Japan there are around 7,500 factories to consume more than energy
equivalent to 3,000kl annually・Large class facilities ： couples of 100k – million ton
Commissioned・Middle class facilities：couples of 10k – 100k ton
Capture・Small class facilities ：～ couples of 10 K ton
・・・ “Aggregation business” to covers Carbon Capture needs- Covering potential users and accept outsourcing of capture

Transport・・・ Smooth installation of pipelines and liquified shipping
Pipelines are required to cover the general requirement

Storage・・・ Expansion of its capacity and sustainable discovery ofpotential

6Liquefied CO2 Shipping Demonstration Project⚫ A demonstration project for long-haul transportation from emission sources to places suitable forstorage will be carried out to establish liquefied CO2 shipping techniques. Specifically,demonstration transportation, including a 1,000 km long-haul transportation route of from
Maizuru to Tomakomai, will start in 2024, with the aim of achieving the world’s first results.

Outline⚫ Establishment of CO2 liquefaction and storage
systems and marine transportation technology
for long-haul and large-scal transportation⚫ Demonstration test of 10,000 tons of CO2transport by ship per year
⚫ Feasibility Study on Vessel Transportation forCCUS

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Examination for the development of the CCS Business Act (tentative name)
Background of the study
CCS has not been commercialized until now: the reasons from legal viewpoints are as follows:(1)

The application of laws and regulations (e.g., Mining Act, Mine Safety Act) to the CCS business and therules to be complied with on the operators' side and the national supervision system wereunclear.
Note) Mining Act and Mine Safety Act apply to oil and natural gas production increases, which aretechnically common to CCS projects; however, it is unclear whether they apply to CCS projects.

(2)
(3)
(4)

There were no rules for arranging gas composition, and measuring, transporting, and providing
the data in the CCS value chain of CO2 capture, transportation, and storage.
There was no mechanism to eliminate or prevent interference from third parties to secure thestability of a long-term project.
The development of CCS shall proceed while obtaining the understanding of residents; however, there
was no compliance with safety regulations, no mechanism for compensation for damage, and noclear explanation of what the operator should explain to residents.
Note) In Japan's mining legislation, impacts on the surrounding environment are discussed in thepreservation issues.

(5)

In particular, the safety and monitoring responsibilities of storage operators were unclear. Also,business viability could not be guaranteed unless responsibility was extinguished.
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Details of the measures⚫ (1) Developing the CCS Business Act (new law) is urgent.
⚫ Based on the CCS value chain, (2) the Act should cover capture, transportation, and storage.
⚫ In particular, the storage business has many points in common with the oil and natural gas business.
Thus, measures, such as (2) the institutionalization common to land and sea, (3) new establishment ofstorage business rights, (4) the establishment of a security system and clarification of liability forcompensation (no fault liability), and (5) limitations of monitoring responsibilities shall be taken, referringto mining legislations.
⚫ A legal framework for CO2 exports aimed at promoting overseas CCS should be determined.

⚫ Captured CO2 should be able to be sold to promote CCU/carbon recycling.

【The value chain of the entire CCS business】

CO2 emitting
business operators

Exportation of CO2
CO2Emission gas

CaptureBusiness operators(Notification system)

CO2Transportation
Business operators(Notification system)

CO2

StorageBusiness operators(Approval system)

CO2

Sale of captured CO2 to businesses that use it9Building Asian-wide CCUS NetworkIn June 2021, the Asia CCUS Network (ACN), an international industry-academia-government platform,
was established as part of AETI. It aims to share knowledge and develop a business environment for
CCUS utilization throughout Asia where large-scale CO2 storage potential is expected.
2030–
Asian-wide CCUS Network

2025–

Toward a decarbonized Asian
economy centered on CCUS

Developing projects andbusiness environment

Investment
CO22020–

Establishing a CCUS Networkand providing opportunity for
CCUS development

Note) Figures indicate storage capacities.
Unit: Billion tons (Survey by GCCSI)

10Support through risk money supply by JOGMEC
Example of the scheme for risk money supply and related support tools
Investment
Right acquisition ofCCS(Note 2)

Privateshareholder

Joint projects with other companies, etc.
(e.g., JV)

Investment

Investment
Hydrogen,etc.

Exploration

Storage

Asset acquisition

Corporate acquisition

Manufacturing

Storage

Asset acquisition

Corporate acquisition

Project company
StorageDebt
guarantee
LoanLoan

JBIC, etc.

City bank

Hydrogen, etc.

Asset acquisition

Corporate acquisition

Manufacturing

Storage

Asset acquisition

Corporate acquisition

Debt guarantee

Note 1)Special Purpose CompanyNote 2) Only in cases where particular circumstances make it difficult for aperson other than ETIC to acquire the concession

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Japan’s contribution toward CCS value chain⚫ Japan is the only economy that has various technology related to the CCS value chain,such as CO2 capture, transport and storage.
[Engineering]

Global No.1 Provider for exhausted gases (70% ofglobal market) and Provided for Petra Nova

CO2 capture

Provided for Steel Makers andCoal-fired power plants.
Delivered PCC facility as EPC contractor,
New technology development under NEDO project[Engineering]

Liquefied CO2transport ship

CO2 pipeline[Shipping Company]
Invested in
Larvik Shipping

Low Temperature Low PressureFirst mover in the world[Manufacturing][Engineering]

Providesfor Northern Lights

Provides Seamless Pipe for CO2
Injection well of Northern Lights[Engineering]

Storage/Totalengineering

Designed “Tomakomai” Demonstration PJ

Delivered CCS facilities for LNG plants inQatar12