Japan’s CCS Implementation Target andJOGMEC’s role
Hiroyuki MORI
Energy Business Unit
September, 2024

2JOGMEC - Who We Are
Japan Organization For Metals and Energy Security (JOGMEC) is a policy executing
agency of the Japanese government to stable and affordable supply of natural resources.
Area of BusinessCCS
LNG and E&P

Geothermal

MetalsStockpiling

Hydrogen,Ammonia

Coal

Wind Power

Mine Pollution Control

Area of Services-Financial Support
Equity Finance
Liability Guarantee
Grant
Subsidy, etc.

-Technology Support
Geological Survey
Technology Development
Marine Resources Development
Environmental Safety, etc.

-Intelligence Support
Resource Diplomacy
International Cooperation
Information Analysis, etc.

3Current Global Context and Energy Trilemma
Energy is crucial to societal development➢ Requires a stable and affordable supply➢ Requires sustainable actions that
respect the global environment
However…

Meeting all these requirements ischallenging➢ International politics and economics arefull of uncertainties➢ Considerations for the global
environment often result in cost burdens
for affordable supply

Our Function“Energy Trilemma”
Energy Security

Securing diverse
energy sources
increases costs.

Using fossil fuels ensures
stable supply but has asignificant environmental
impactEconomicCompetitivenessIntroducing renewableenergy has high initial costs
but is environmentallyfriendly in the long term.

Environmental
Sustainability

44

JOGMEC - Interface between Policy and Business JOGMEC, as the executing
agency of Japan's energy policy
led by METI
➢ Solving issues related to theenergy trilemma by providing-financial support services-technical support services-intelligence support services➢ Providing services not only toJapanese companies but also tooverseas partner organizations* S+3E (Safety Plus Three Es) :A concept that aims to simultaneously achieve safety(Safety) as a prerequisite, stable supply (EnergySecurity), economic efficiency (Economic Efficiency),
and environmental compatibility (Environment).

Stable and Affordable
Energy Supply(Government)
Policymaking

Intelligence Support
Policy recommendation

Policy Implementation
JOGMEC
Energy Business Unit(Implement policies related to natural resources area)

Area of Activities:
LNG, E&P, CCS, Hydrogen & Fuel Ammonia
Support Programs

JapaneseIts
Private +Partners
SectorFinancialSupportPrograms request
Application
TechnologySupport

IntelligenceSupport

Organic and Dynamic
Support Services of JOGMEC
Our Function

5Uniqueness of JOGMEC as a government agency➢ To provide finance, technology, and intelligence support services
simultaneously within one institution⇒ JOGMEC's services are carried out in a way that maximizes thisuniqueness.

Targeted points of JOGMEC's Energy Unit

1. LNG and E&P :➢ LNG, E&P, Methane hydrate as the transitional energy
2. Low Carbonization:➢ Methane Emission Control while using fossil fuels like LNG➢ CCUS while utilizing our accumulated know-how
3. Decarbonization:➢ To move away from dependence on fossil fuels in the future➢ Actively supporting hydrogen, ammonia and synthetic fuels.

HIF Global LLC operates the world’s first
operational e-fuels plant from 2022,
Haru Oni, Chile.

Japan’s CCS Implementation Target and JOGMEC’s role

Mton CO2 per year
24,000240

Start of Advanced 22,000
CCS Projects
20,000in 2023, 2024
18,000Preparations
16,000survey, exploratory 14,000
12,000drilling, site120
10,000characterization,
8,000
FEED and EPC

Achievement ofcarbon neutrality(2050)

Estimateannualstorage
volume⇒Finance support for"Advanced CCS Projects“⇒Technical support in
120 MM ton various countries throughjoint study

CCS BusinessAct (2024)

・Technical /financial follow-up
・Second-mover support

4,000
2,000

Basic studies anddemonstration
projects.
(Iwanohara,Tomakomai, Minami-aga,Hirai, etc.)

240 MM ton JOGMEC:

Start of CO2injection(2030)

6,000

0620 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

2030

Year2050

46%* reduction ofGHG emission (2030)* Compared with 2013

Based on METI: May 27, 2022 20220527_2.pdf (meti.go.jp)⇒Intelligence support topromote CCS projects
globallyIn collaboration with theMETI to support policy
formulation in eachcountry, create rules forcross-border transport,and standardize
infrastructure and ships.

Examples of JOGMEC’s Support (1) “Advanced CCS Projects”
Selected 9 CCS projects (2024)
JOGMEC selected 9 role model projects(* all contracts not concluded yet)
5 for domestic storage
4 for overseas storage
for Japanese Advanced CCS Projects in2024.
JOGMEC provides support for the firsttime in Japan toward the initiation of CCS
that is to capture and store CO2
underground, which would greatly
advance Japan’s efforts to achieve acarbon-neutral society.
https://www.jogmec.go.jp/english/news/release/news_10_00036.html

7

8Examples of JOGMEC’s Support (2) “CarbonNet CCS Project”
CarbonNet CCS Project JOGMEC signed an agreement for our engagement with theCarbonNet CCS planned for the Victorian Government in Jan, 2022.
 We will contribute to the FEED of the CCS project being conductedby the Government, and will work with the Government to proceedwith the commercialisation of the project.
 The project is to store 6 mtpa of CO2 (Total atCarbonNetCO2least 168 MM tons).
 the world’s first international bluehydrogen value chain derived fromlignite coal.

Melbourne

Latrobe Valley

Pelican site

Port of Hastings
The Gippsland Basin

Location of the CarbonNet projectin the Gippsland Basin, Victoria

 Attained jointly by Japan andAustralia

Concept of the Blue Hydrogen Value Chain

http://www.hystra.or.jp

Japan and Australia Jointly Promote the World's First International Lignite Hydrogen Value Chain Building― Engagement with the CCS project will contribute to the storage of CO2, which is essential for clean commercial hydrogen production ― : News Releases | Japan Organization for Metals and Energy Security (JOGMEC)Examples of JOGMEC’s Support (3) Cross border CO2transportation
Cross-border CO2
Transportation MOCs

9JOGMEC’s activities
Collaboration with ACE(ASEAN Center for Energy)

MOC on cross border CO2transportation 【Sep.2023】

Joint report on cross-border CO2 transportation【May 2024】

PETRONAS(MALAYSIA)
https://www.jogmec.go.jp/english/news/release/news_10_00067.html

MOC on CCS partnership（including cross border CO2transportation）【Aug.2024】

AZEC
ACN

METI/JOGMEC/Asia CCUS Network’sInternational Workshop on CO2
Cross-border Transport and Storage
in the Asia-Pacific Region 【Feb.2024】
Workshop
Handbook
will be available
within 2024！

THE MINISTRY OF TRADE AND
INDUSTRY OF THE REPUBLIC(SINGAPORE)

AZEC: Asia Zero Emission Community
ACN: Asia CCUS Networkhttps://www.jogmec.go.jp/english/news/release/news_08_00014.html

Way
Forward
OurFunction

10

Our role➢ JOGMEC's role is to respond to future uncertainties as much as possible➢ JOGMEC strives to provide diversified and comprehensive services

In the field of low carbonization and decarbonization➢ JOGMEC incorporates the latest technologies and provides comprehensive support specially,
1. Methane Emission Reduction Technologies
2. Carbon Capture and Storage (CCS) technologies
3. Promotion of hydrogen energy use

Our Function

Thank you for your attention!
Visit our website!

https://mirai.jogmec.go.jp/en/

https://www.jogmec.go.jp/english/index.html

11