Australia’s energy giant Woodside has inked a non-binding memorandum of understanding (MoU) with the Japan-headquartered Kansai Electric Power Co. (KEPCO) to enable studies of a potential carbon, capture and storage (CCS) value chain between Japan and Australia.
Under the MoU with Woodside, KEPCO plans to research the capture of carbon dioxide (CO2) emitted from its thermal power plants and its transport to Australia, where the Australian giant is progressing CCS projects and will conduct the study of injection and storage of CO2 delivered from Japan as well as the potential production of synthetic methane (e-methane).
Furthermore, the MoU outlines a generic value chain study that will consider the end-to-end technical and commercial factors with the aim of progressing a future CCS value chain between Japan and Australia. The studies include an evaluation of storage opportunities in some of Australia’s offshore basins .
While explaining that the latest MoU reflects the increasing demand for large-scale decarbonisation solutions from Woodside’s industry partners in the Asia-Pacific region, Shaun Gregory , Woodside’s Executive Vice President, stated: “CCS has the potential to provide a pathway for Woodside’s customers and value chain participants in the region to decarbonise their own industrial emissions.
“Australia, with its unique geology and offshore storage potential, has an opportunity to play a role in this emerging market, supporting the broader Asia-Pacific region in their climate goals and net-zero aspirations.”
Woodside’s MoU with KEPCO comes on the heels of a similar one with Sumitomo, Toho Gas, and Kawasaki Kisen Kaisha (K Line) to look into the feasibility of establishing an entire CCS value chain, whereby CO 2 emissions from various industries and companies in the Chubu region, Japan, would be captured/accumulated, and liquefied with CO 2 separation and capture technology using unutilised LNG cryogenic energy being developed by Toho Gas.
The Japanese government has set a goal of reducing overall greenhouse gas (GHG) emissions to net-zero by 2050 and implemented a policy to develop a business environment to initiate CCS projects by 2030. Australia also considers CCS as an important decarbonisation tool, which will allow it to achieve its GHG emission reduction targets.