Earlier this week, the Japan Energy and Metals National Corporation (JOGMEC) selected nine carbon capture and storage (CCS) projects as "Advanced CCS Projects" for fiscal year 2024. The initiative, involving the Ministry of Economy, Trade and Industry, aims to enhance Japan’s carbon neutrality efforts by 2050. These projects are expected to commence operations by 2030, aiming to store about 20 million tons of CO2 annually.
Five of the projects are slated for storage within Japan, while the remaining four will be based in the Asia-Pacific region. For instance, the Tomakomai Region CCS Project involves Japan Petroleum Exploration Co., Idemitsu Kosan Co., and Hokkaido Electric Power Co., targeting 1.5 to 2 million tons per year. Another project, off the coast of Tohoku, includes Itochu Corporation, Nippon Steel Corporation, and others, aimed at storing 1.5 to 1.9 million tons annually.
This selection follows the enactment of the “Act on Carbon Dioxide Storage Business” in May 2024, which initiated a permit system for storage projects, thus paving the way for CCS commercialization in Japan. JOGMEC is currently inviting applications for design work related to these projects, with final investment decisions expected by the fiscal year 2026.
Globally, CCS projects are gaining traction. For instance, Norway awarded Equinor new North Sea CO2 storage licenses, while Denmark granted Equinor a share in its first CCS exploration permit. In the US, major projects like ExxonMobil’s acquisition of Denbury Inc. and TotalEnergies’ stake in the Bayou Bend project are expanding CCS capacity.
The nine selected CCS projects reflect a significant push toward achieving Japan’s carbon neutrality goals and contributing to global carbon reduction efforts.