In October 2020, the government of Japan set a goal of achieving zero greenhouse gas emissions to realize carbon neutrality by 2050, and in April 2021, declared that it aims to reduce greenhouse gas emissions by 46% compared to FY2013 by FY2030. In addition, in the “GX Promotion Strategy” (Note 1), the government of Japan shows that it will support advanced projects that would become role models for developing the business environment toward the start of CCS (Note 2) project by 2030.
Furthermore, on the framework of the “Asia CCUS Network” (Note 3), Japan will make use of Japan’s CCUS technologies, systems and knowledge sharing and the improvement of the business environment throughout the Asian region.
In May 2024, the Diet passed the Act on Carbon Dioxide Storage Business, which includes a licensing system for CCS businesses, marking a major step toward the practical application of CCS in Japan.
JOGMEC has begun supporting “Advanced CCS Projects ”in FY2023 to establish business models that can be deployed across the nation, with the aim of starting CCS operations by 2030. The project provides integrated support for the entire value chain, from CO2 capture, transportation and storage.
 
In FY2023, JOGMEC selected seven projects and conducted a feasibility study to examine the possibility of building a CCS value chain (Note 4). The study identified the following points as common challenges in realizing CCS:
 

• Reduction in utility costs such as steam and electricity required for CO2 capture
• Increasing domestic construction capacity for storage tanks and ships required for transporting CO2
• Data acquisition for evaluation of CO2 storage capacity, injectivity, containment and long-term integrity

Based on results of the study, JOGMEC issued a new call for applications related to “Engineering Design Work for Advanced CCS Projects” in FY2024, which will involve basic engineering design for the entire CCS value chain and assessment on CO2 storage potential with the aim of reducing uncertainties related to CCS costs and underground storage. JOGMEC has reselected nine projects for priority support and is finalizing contracts for these selected projects.
The nine projects cover various industries, including electric power, oil refinery, steel, chemical, paper and pulp, and cement in regions with high CO2 emissions, such as Hokkaido, Kanto, Chubu, Kinki, Setouchi, and Kyushu. The project aim to store approximately 20 Mtpa of CO2 annually. Among these, five projects are planned for domestic storage in Japan, while the remaining four projects target storage in Asia and Oceania.
 
JOGMEC works closely with the Japanese government, and will support each business phase for the entire value chain of Japanese Advanced CCS Projects to achieve the government’s target of 6 to 12 Mtpa of CO2 storage by 2030.
As final investment decisions (FID) are scheduled by FY2026, in principle, we do not anticipate any new public calls for Advanced CCS Projects from next fiscal year onwards. However, this does not apply in cases where the existing CCS projects find it difficult to achieve the 2030 storage target or where such projects face exceptional circumstances, such as significant changes in the domestic or international situation.  We will continue to consider support for CCS feasibility studies. For the continued support toward a FID, we will establish stage gates based on project progress and make decisions at the end of each fiscal year.
 
JOGMEC will develop not only domestic CCS projects but also CCS projects with overseas storage, mainly in Asia and Oceania, which might lead to decarbonization throughout the Asia-Pacific region.
In this way, JOGMEC will contribute to ensuring a stable supply of energy resources and carbon neutrality in Japan.

(Note 1)

• the Cabinet decided to approve The Strategy for Promoting Structural Transition based on Decarbonization (GX Promotion Strategy) (Available only in Japanese)

(Note 2) Carbon Dioxide Capture and Storage

(Note 3)

• ”Asia CCUS Network” has launched (Website of the Ministry of Economy, Trade and Industry of Japan)

　13 member countries (10 ASEAN countries, Australia, USA and Japan)

(Note 4)

• First Step to Launch Japanese CCS Project - JOGMEC selected 7 projects, starting CO2 storage by FY2030 - (June 22, 2023)

• Overview of Request for Proposal on “Engineering Design for Japanese Advanced CCS Projects” in FY2024. (March 8, 2024)　(Available only in Japanese)

• Overview of Selected Projects (Listed from North to South)（PDF：151KB）