Japan's CCS Policy and International Collaboration

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

Locations of the selected projects and companies

4The Policy on Regulatory Measures for CCS Business (1)(1) Measures to ensure stable storage of CO2
 “Storage right" will be created as the right to store CO2 in a reservoir, and "prospecting right" will becreated as the right to drill to confirm whether CO2 can be properly stored, and will be subject to licensing
by the Minister of Economy, Trade and Industry.
 “Storage right" and "prospecting right" shall be offered to the open bid in Japanese Mining Law, in order toselect the party that can be most appropriate subject to carry out the storage project adequately.
 “Storage right" and "prospecting right" are deemed property rights, allowing to avoid third party interference
by involving these rights, etc.
 In case of an accident or other incident resulting from storage operations, compensation liability shall bebased on strict liability, in which the operator is liable regardless of intentional or negligent conduct, in orderto provide relief to the victim.

(2) Regulations for storage operators
 “Implementation plans” for storage project shall be subject to approval by the Minister of Economy, Tradeand Industry.
 “Monitoring obligation” is imposed for storage operator to ensure that CO2 is being stored as expected andthat there is no leakage.
 Storage operators prohibited from refusing storage requests from CO2 emitters without justifiable reasonsand treating them in a discriminatory manner, are obliged mortify "fees and other conditions" to Minister ofEconomy, Trade and Industry.
 Storage operators must comply with safety regulations, including the obligation to comply with technicalstandards and notify construction plans to Minister of Economy, Trade and Industry.
5The Policy on Regulatory Measures for CCS Business (2)(3) Transfer of management of storage site to JOGMEC In order to promote active participation in the storage business, the management and other operations at
the storage site will be allowed to be transferred to JOGMEC if certain requirements are met, such as stable
CO2 behavior after the injection is completed.
 Storage operators required to secure allowance for management and operations by injection.
 In order to secure the fund for the management and other operations performed by JOGMEC, storage
operators are required to deposit contribution into a fund which JOGMEC will establish.

(2) Regulations for Pipeline Transport Operators
 Pipeline operators prohibited from refusing transport requests from CO2 emitters without justifiable reasonsand treating them in a discriminatory manner, are obliged mortify "fees and other conditions" to Minister ofEconomy, Trade and Industry.
 Pipeline operators must comply with safety regulations, including the obligation to comply with technicalstandards and notify construction plans to Minister of Economy, Trade and Industry.

6Asian CCUS Network
In 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 Network2025–Toward a decarbonized Asian
economy centered on CCUS

Developing projects andbusiness environment

Investment
CO22020–Establishing a CCUS Networkand providing opportunity forCCUS developmentNote) Figures indicate storage capacities.
Unit: Billion tons (Survey by GCCSI)

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The 3rd Asia CCUS Network ForumThe 3rd Asia CCUS Network Forum held several activities focusing on the practical aspect of CCUS: discussion
on CCUS importance and global trends, Asia-wide CCUS projects, and a signing ceremony of several
memorandums of understanding (MOUs) regarding CCUS, which are developing import/export mechanism ofCO2 and knowledge sharing CCS technology. The Asia CCUS Network will continue to support the expansion ofCCUS deployment in Asia as a platform.

8Joint Statement for 3rd Asia CCUS Network Forumc) Action plan (excerpt)
2. The Asia CCUS Network recognizes the importance of alegal and regulatory framework at the national and regional
level, the economics of CCUS in realizing CO2 trade, andthe challenges of these issues as a platform of CCUS inAsia…
3. Therefore, the CCS and CO2-EOR guidelines published bythe Japan Organization for Metals and Energy Security(JOGMEC), will be useful for Asian countries who areseeking to expand CO2-EOR projects for their own energy
security and transition.
4. The Network will also study the appropriate institutional
designs of financing and carbon credit in Asia with thecooperation of related organizations.
The Asia CCUS Network will contribute to the initiating ofdecarbonization projects introducing CCUS in the Asia Pacificregion through cooperation from SEACA promoted by GCCSI
and the ASEAN Centre for Energy (ACE).

9MOC on the cross-border of CO2 transportation between METI,JOGMEC and PETRONAS
Outline ︓ In order to undertake CO2 transboundary to Malaysia, it is necessary to discuss theestablishment of rules and a method for calculating CO2 reductions between the two countries.
METI, JOGMEC, and PETRONAS signed the MOC to promote discussions on CO2 transboundarytransport and storage.
Purpose of MOU︓The signed MOC aims to promote discussions on the bilateral cross-border of CO2transportation and storage, which will contribute to greenhouse gas reduction.
URL︓https://www.meti.go.jp/english/press/2023/1006_002.html

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Project of advanced monitoring systems for CCS Large-Scale Demonstrative Verification in Cooperation with Overseas Institutions
 Fiber-optic monitoring and measurement systems are to be demonstrated in the US (EERC) and Australia(CSIRO and CO2CRC).

SW Hub demonstration site in Western Australia and Australia Otway, Victoria, Australia(An LOI has been concluded between RITE and CSIRO, and an MOU between RITE and CO2CRC)

Objectives of this project・Stability evaluation of faults
・Shallow fault leakage monitoring
techniqueField tests for stability evaluation of faults in deep formations
11Tomakomai CCS Demonstration Project Demonstrate full-chain CCS system from capture to storage
 Disclose project information & data and enhance understanding of CCS by residents
 Last September, MOU on technical collaboration has been concluded between Japan CCS and Victorian government

Photo by JCCS Co., Ltd.
Photo by JCCS Co., Ltd.

2012

2013

2014

2015

Preparation•Construction of CCS facilities•Drilling inj. and obs. wells

2016

2017

2018

2019

2020

2021

2022

CO2 Injection
300k t-CO2 injected

BaselinesurveyMonitoring
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Japan’s contribution toward CCS value chain Japan is the only country 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 inLarvik 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 inQatar

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