Japan's METI, JOGMEC, and Malaysia's Petronas Collaborate on Cross-Border CO2 Transport

07 Oct, 2023

Japan's METI, JOGMEC, and Malaysia's Petronas Collaborate on Cross-Border CO2 Transport

Japan's Ministry of Economy, Trade and Industry (METI), in collaboration with the Japan Organization for Metals and Energy Security (JOGMEC) and Malaysia's national oil company Petronas, has formalized an agreement to work together on the cross-border transportation and storage of carbon dioxide (CO2). This significant accord, signed on September 27 during the 3rd Asia CCUS Network Forum held in Hiroshima, serves as a pivotal component in facilitating a carbon capture and storage (CCS) project that has been envisioned between the two nations.

Earlier, JOGMEC had identified seven projects, including two overseas initiatives in Malaysia and Oceania, as advanced CCS projects with anticipated operations commencing by 2030. Japan aims to secure an annual CO2 storage capacity of approximately 13 million metric tons by 2030 through these projects. These initiatives will encompass various industries, including electricity, oil refining, steel, chemical, pulp/paper, and cement, spread across industrial clusters located in Hokkaido, Kanto, Chubu, Kinki, Setouchi, and Kyushu regions, as outlined by METI.

Malaysia, endowed with abundant natural resources and suitable land areas for geological CO2 storage, is considering a project that involves the transport of CO2 emissions from Japanese industries to Malaysia for storage. However, for this cross-border CO2 transportation endeavor to take shape, it necessitates the establishment of clear rules and a robust accounting method for calculating CO2 reductions between the two countries.

Japan envisions sharing its CO2 capture, utilization, and storage (CCUS) technologies and expertise in Asia through the framework of the Asia CCUS Network. This international platform encompasses 13 members, including ASEAN states, Australia, the US, and Japan, along with over 100 companies and international organizations.

These collaborative efforts align with Japan's steadfast commitment to achieving carbon neutrality by 2050. As part of its ambitious goals, Japan aims to reduce greenhouse gas emissions by 46% by 2030 compared to 2013 levels.

In a separate development, JERA, one of Japan's largest energy utilities, announced on October 6 that it has entered into a memorandum of understanding (MOU) with Vietnam Electricity (EVN). This MOU sets the stage for the establishment of a decarbonization roadmap for EVN, the state-owned electricity company in Vietnam. As Vietnam anticipates increasing electricity demand commensurate with its economic growth, JERA intends to contribute to the decarbonization of the country's power sector. The MOU entails a comprehensive approach to decarbonizing EVN's entire business, including its thermal power sector, while exploring the integration of ammonia and hydrogen into EVN's thermal power plants.