Inpex and JERA Collaborate on Japan-Australia Carbon Capture and Storage Project

Inpex and JERA signed an agreement to conduct a joint study on a large-scale carbon capture and storage project connecting Japan and Australia. The study aims to assess the viability of capturing CO2 emissions in Japan and transporting them to Australia for secure underground storage.

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Trim Correspondents
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Inpex and JERA Collaborate on Japan-Australia Carbon Capture and Storage Project

Inpex and JERA Collaborate on Japan-Australia Carbon Capture and Storage Project

Japanese energy giants Inpex and JERA have joined forces to explore the feasibility of a large-scale carbon capture and storage (CCS) project connecting Japan and Australia. The two companies signed an agreement on May 10 to conduct a preliminary joint study on establishing a CCS value chain that would capture carbon dioxide emissions in Japan and transport them to Australia for secure underground storage.

Why this matters: This collaboration has significant implications for global efforts to reduce greenhouse gas emissions, as it could pave the way for cross-border CCS projects that transcend national boundaries. The success of this project could also inspire similar initiatives in other regions, accelerating the transition to a low-carbon economy.

The joint study aims to assess the viability of the project across the entire CCS value chain, from the separation and capture of CO2 emissions generated by JERA's operations in Japan to the transportation logistics and identification of suitable storage sites in Australia. Inpex brings its expertise in CCS technologies and business development to the partnership, having been granted a greenhouse gas storage assessment permit in 2022 for an area in the Bonaparte Basin off the northwestern coast of Australia's Northern Territory, alongside TotalEnergies and Woodside.

The potential storage site aligns with the Northern Territory government's plans for a Darwin-based carbon capture, utilization, and storage (CCUS) hub. JERA, meanwhile, views this collaboration as a step towards constructing a global CCS value chain for the cross-border transportation and storage of CO2, supporting its goal of achieving net-zero emissions from its domestic and international operations by 2050 under the JERA Zero CO2 Emissions 2050 initiative.

This partnership is the latest in a series of CCS-related moves by JERA. In April, the company formed an agreement with Petronas to explore opportunities for capturing CO2 in Japan and storing it in Malaysia. JERA also signed a memorandum of understanding with Chevron New Energies in March 2022 to collaborate on CCS projects in the United States and Australia.

The Inpex-JERA joint study represents a significant step towards establishing a Japan-Australia CCS value chain, which has the potential to make a substantial contribution to both countries' decarbonization efforts. As governments and industries in the Asia-Pacific region increasingly turn to CCS as a means of mitigating greenhouse gas emissions, this project could serve as a model for future cross-border collaborations in the field.