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Comprehensive support for CCS

For the decarbonization of LNG resources and the establishment of a new supply value-chain of hydrogen and ammonia, aiming for the achievement of carbon neutrality by 2050, the application of carbon capture and storage(CCS)technologies and securing suitable sites for CCS are required. JOGMEC strengthen our technical expertise on CCS and project evaluation skills for CCS projects, R&D activities on CCS technologies, and the evaluation of CCS projects. JOGMEC also promote the collaboration with domestic and international organizations. JOGMEC strengthen our functions on the collaboration research and study on CCS projects and CCS site surveys.

Implementing CCS business feasibility evaluations, joint research, and technical studies

Plan:
JOGMEC continue to develop subsurface and surface technologies applied to CCS projects, for instance reservoir simulations for CO2 injection, and CO2 separation and capturing technologies. JOGMEC also promote the commercialization of CCS projects such as the development of high CO2 content gas fields with CCS in Southeast Asia.

Case examples

Reservoir simulations for CO2 injection in depleted gas/oil reservoirs and saline aquifers

Based on our technical expertise cultivated through our experience in oil/gas development, we are working on the development of reservoir simulation techniques which are applicable to the various reservoir conditions of depleted gas/oil reservoirs(Note 1)and saline aquifers(Note 2). Through the collaboration with Halliburton, we investigated a workflow on the modelling of CO2 injection in saline aquifers. We established a workflow which enables the accurate prediction of CO2 distribution in a subsurface reservoir(Note 3).

Commencement of Joint Study for CO2-EOR Pilot Test in Agano City, Niigata-Prefecture

In April 2021, NPEX CORPORATION and JOGMEC commenced a joint study for a pilot test which is to demonstrate the effect of CO2 enhanced oil recovery(EOR)efficiency improvement technology currently under development on the recovery of remaining crude oil deposits underground . We also plan to verify the effect of the reduction of CO2, a greenhouse gas.
  • CO2 injecting to oil remaining area(CO2-EOR:enhanced oil recovery))

  • CO2 injecting to swept area(CCS:storage mechanism)

Launch of joint research for CCS business opportunity assessment aimed at GHG emissions reduction at Australian LNG operation

In 2022, we started a joint research project with INPEX CORPORATION(INPEX) to investigate the feasibility of long-term geological storage of CO2 in the Bonaparte Basin, located offshore northern Australia. The project will contribute to the storage of CO2 emitted from the Ichthys LNG project operated by INPEX in Australia, and to the Darwin CCUS hub concept initiated by the Northern Territory government and others in Australia.

Demonstration project for clean hydrogen and ammonia production combined with CO2 storage and utilization in Kashiwazaki City, Niigata Prefecture

Joint research on “Demonstration test on identifying possible CO2 storage solutions utilizing domestic depleted oil and gas fields” was started in the Hirai area of the Higashi-Kashiwazaki gas field, located in Kashiwazaki City, Niigata Prefecture. In this demonstration test, we plan to acquire well data for research and to inject CO2 obtained from the production of clean fuels such as hydrogen and ammonia (Note 1) into the depleted reservoirs of the Higashi-Kashiwazaki gas field in cooperation with INPEX, which owns a concession in the Higashi-Kashiwazaki gas field. Through this demonstration test, we aim to obtain knowledge related to CO2 injection operations into depleted oil and gas fields in Japan, as well as knowledge that will contribute to understanding the amount of CO2 that can be sequestered. (Note 1)The hydrogen and ammonia production demonstration will be conducted under a project subsidized by the New Energy and Industrial Technology Development Organization (NEDO).

Image of demonstration test (provided by INPEX CORPORATION)

Strengthening cooperation with oil-and-gas-producing countries and Asia

Plan:
We will strengthen relationships with oil- and gas-producing countries through implementing a training programme for energy transition and zero-emission for these countries where there exist potential CCS-suitable sites, and from where the supply of blue/green hydrogen and ammonia is expected. Specifically, this training programme is intended to deepen understanding of the need for fossil-fuel transition/decarbonization and knowledge of new fuels through knowing the latest trends in technology, the JOGMEC method of CCS institution/CO2 reduction evaluation, market trends of hydrogen and ammonia, and site excursions to cutting-edge plants producing hydrogen and ammonia. We will strengthen and expand relationships with resource countries and conduct training projects with an expectation of future involvement in specific projects operating with Japanese companies and institutional design by people who participated in the training programme.
Furthermore, we will strengthen relationships with Asian countries that have increased demand for hydrogen/ammonia and a need for CCS. Specifically, we will contribute to achieving zero-emissions in Asia through an evaluation of CO2 reduction amount in a CCS project and a system development for business implementation, and promoting development of human resources to take crucial roles in the hydrogen/ammonia market. Regarding evaluation of CO2 reduction, we will contribute to establishing a common methodology in Asia by utilizing JOGMEC’s guidelines (see below for details), published in May 2022, to a maximum extent. Furthermore, using the relationships cultivated by these efforts we will promote the application of our equity capital and liability guarantees support to new projects by technical and feasibility evaluation through the entire supply chain including blue and green ammonia production in Asia.

Current status:
Conclusion of MOUs for cooperation including CCS/hydrogen and ammonia development are being promoted among resource-rich countries' governments and related organizations. The “Energy Transition Training Program” has been implemented in several ASEAN countries. In the future, we will continue to expand the program to Asia, including the Middle East, while further enhancing its content.

Active involvement and contribution to the development of evaluation methods, methodologies, and certification frameworks for CO2 reduction

Plan:
Verifying the long-term stability of stored CO2 and improving its reliability are required for CCS commercialization. It is also important to quantitatively show improvement in the environment by evaluating the amount of CO2 reduction through CCS and carbon intensity, such as LNG, hydrogen, and ammonia.
We formulated and published a “CCS guideline” and a “GHG/CI guideline” in May 2022. We will utilize these guidelines in our business. Furthermore, we will evaluate CCS projects and the amounts of CO2 emissions reduction in a way that conforms to reality by advancing information exchange with related organizations. We continue to work on further improvement of the guidelines in terms of function and accuracy by enlarging the scopes (for example, inclusion of synthetic methane) and by considering the CO2 storage amount calculations by CO2-EOR.
We will also investigate methane, whose greenhouse effect is greater than CO2, and actively participate in and contribute to the construction of decarbonization systems using an assessment method for carbon pricing systems such as credit systems.

Current status:
To improve the reliability of CCS projects, we have investigated the evaluation schemes shown in the table below. Specifically, we have studied CCS-related evaluation schemes, and to establish GHG emission evaluation methods, MRV methodologies, and CI evaluation methods for LNG, hydrogen and ammonia projects that are harmonized with international trends. After public consultation on draft of guidelines for subsurface evaluations of CCS projects (CCS Guideline) and quantification methodologies of GHG emissions and carbon intensity of LNG, hydrogen, and ammonia (GHG and CI Guideline), the first version was released in May 2022.
Evaluation Method Examination Technique
CCS feasibility evaluation
(CO2 sequestration and reduction)
  • Technical evaluation of long-term CO2 storage liability and capacity
  • Technical evaluation of CCS project plan(number of wells, injection rate, leakage countermeasures, etc.)
Carbon Intensity
(CI)calculation
  • Methods for calculating GHG emissions such as LNG, hydrogen, and ammonia(including methane); and CI
CO2 reduction amount calculation / certification
  • Methods for calculating CO2 reduction amounts by methods such as CCS
  • Utilization in mechanisms such as carbon pricing
evaluation of CO2 emissions(reductions) in the resource and energy businesses

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