June 22, 2021
Japan CCS Co., Ltd.
Engineering Advancement Association of Japan
ITOCHU Corporation
NIPPON STEEL CORPORATION
Four Companies to Commence Research, Development and Demonstration Projects
on CO2 Ship Transportation
This is to inform that Japan CCS Co., Ltd. (hereinafter "JCCS"), Engineering Advancement
Association of Japan (hereinafter "ENAA"), ITOCHU Corporation (hereinafter "ITOCHU"),NIPPON STEEL CORPORATION (hereinafter "NIPPON STEEL") jointly applied as a consortiumfor "CCUS R&D and Demonstration Related Projects", which was publicly announced by the New
Energy and Industrial Technology Development Organization (hereinafter "NEDO"), and have been
adopted to conduct the contract "Research, Development and Demonstration Projects on CO2 ShipTransportation".
The "Long-Term Strategy under the Paris Agreement as Growth Strategy", adopted by the Cabinet inJune 2019, clearly states the importance of the role of CCUS/Carbon Recycling as a means tosignificantly reduce CO2 emissions from the use of fossil fuels, while also pointing out the challengeof transporting CO2 due to the distances between CO2 emission sources and storage sites, and assertsthat "as a public-private initiative, it is necessary to create a situation where the private sector canmake investment decisions by designing appropriate business models to transport CO2 safely and at
low cost. " In addition, the "Green Growth Strategy Through Achieving Carbon Neutrality in 2050"
formulated by the Ministry of Economy, Trade and Industry (METI) in collaboration with related
ministries and agencies in December 2020, states that it is extremely important to promotetechnology development and social implementation to realize a decarbonized society in order tosolve the climate change issue, and aims to establish innovative technologies that will enable thereduction of CO2 (Beyond-Zero) by 2050.
With a view towards the social implementation of CCUS around 2030, the consortium will jointly
conduct research and development of transportation technology regarding the transportation of CO2
from emission sources to utilization/storage points at a scale of 1 million tonnes per year, which willlead to long-distance/mass transportation of CO2 and cost reduction and will also aim to establish
ship transportation technology for liquefied CO2 through demonstration and related surveys.
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Specifically, the consortium will engage in the following research and development, demonstration,and surveys.
(1) Research and development to establish ship transportation technology for liquefied CO2 (JCCS,ENAA)
The consortium aims to establish technology for storing and transporting liquefied CO2, which is thekey to realizing mass transportation of CO2. In particular, the ensurance of safety including thecontrol of dry ice formation is an important issue for research and development. Also, theconsortium will proceed preparations for the social implementation of liquefied CO2 shiptransportation such as engaging in the basic design of ships and formulation of international rules.
(2) Demonstration of CO2 ship transportation at a scale of 10,000 tonnes per year (JCCS, ENAA)
In order to consider the technical issues identified in (1) through demonstration, a demonstration
vessel capable for transporting about 1,000 tons of liquefied CO2 will be prepared and operated inabout 10 voyages per year. Regarding the onshore facilities for the demonstration, the consortium
plans to set up a shipping terminal in Maizuru (premises of Kansai Electric Power Co., Inc. powerplant) and a receiving terminal in Tomakomai.
(3) Study of ship transportation business models for the purpose of CCUS (ITOCHU, NIPPONSTEEL）
Aiming to realize the CO2 collection and transportation business, the consortium will conduct astudy on business models regarding CO2 transportation from various mass CO2 emission sources inJapan, including the steel industry.
Research and development on specific issues will be conducted together with subcontractors*.
* Subcontractors：
Mitsui O.S.K. Lines, Kawasaki Kisen Kaisha, Ltd., NIPPON GAS LINE CO., LTD., Ochanomizu
University, and one other company
CCUS is an acronym for Carbon dioxide Capture, Utilization and Storage, and is a technology thatcan contribute to the reduction of carbon dioxide emissions by effectively using CO2 as a resourceand storing it underground. Through this research and development, JCCS, ENAA, ITOCHU, andNIPPON STEEL aim to contribute to a sustainable decarbonized society through the realization of
the social implementation of CCUS.

2[Image of Demonstration Project]Media contact:
Japan CCS Co., Ltd.
International Affairs Department
https://www.japanccs.com/en/contact/
Engineering Advancement Association of Japan
Strategy & Business Promotion Dept.
General Manager
Takuya Kadowaki
Tel: +81-3-5405-7201
E-mail: kadowaki.takuya@enaa.or.jp
https://www.enaa.or.jp/
ITOCHU Corporation
https://www.itochu.co.jp/en/inquiry/product/input
NIPPON STEEL CORPORATION
Public Relations Center
Tel: +81-3-6867-3419
https://www.nipponsteel.com/contact/3