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CCS (Carbon dioxide Capture and Storage) is a technology used to separate and remove CO2 from industrial emissions and inject the CO2 deep underground for storage. It has been attracting attention as a promising method of reducing CO2 emissions. In Japan, R&D and demonstration projects have been underway toward commercialization. In May 2024, the Act on Carbon Dioxide Storage Businesses (hereinafter CCS Business Act) was enacted to develop a business environment in which private companies can launch CCS business ventures. Part 1 of this article highlights efforts being made at home and overseas toward the commercialization of CCS.

CCS advancing toward commercialization

The utilization of CCS is specified as a means of achieving decarbonization in the COP28 outcome document that was announced in December 2023. In Japan, the 6th Strategic Energy Plan, on which a cabinet decision was made in 2021, mentioned this technology as a promising method that can be used toward achieving carbon neutrality by 2050.

Toward the commercialization of CCS, it is necessary to consider economic aspects, such as the establishment of relevant technologies, cost reduction, and business model development. It is also essential to address social issues, such as the selection of storage sites, and obtain public understanding of this business. To this end, we will advance various efforts based on the Long-Term CCS Roadmap toward the commercialization of CCS that was announced in May 2023.

The CCS Business Act, following a cabinet decision in February 2024, was enacted in May 2024 as a result of the effort toward the commercialization of CCS. The existing energy-related businesses are controlled under the relevant acts. The electric power and gas businesses are regulated under the Electricity Business Act and the Gas Business Act respectively. Similarly, the newly established CCS Business Act is a regulatory act to ensure that CCS business is conducted safely and appropriately. The CCS Business Act is now set to promote CCS toward commercialization.

CCS utilization advancing globally

Efforts toward the commercialization of CCS have been advancing overseas since the latter half of the first decade of this century. The UK and the EU established relevant business acts in 2008 and 2009 respectively to stipulate the rights to use storage reservoirs and the scope of the liability of businesses. The USA also established a similar act around 2009. Around 2020, as the movement toward carbon neutrality gathered momentum, several countries were developing support measures to ensure the profitability of CCS projects.

Industries such as steelmaking, cement, chemical/oil refining complexes, and power generation will have difficulties in reducing CO2 emissions if they only rely on energy efficiency improvements, electrification, and hydrogenation. As the utilization of CCS contributes to reducing CO2 emissions in these industrial sectors, the technology is considered essential globally for achieving net-zero and planning industrial locations. In recent years, not only European countries and the USA but also Asian nations have been considering the introduction of CCS.

The amount of CO2 captured by current projects and planned projects in the world amounts to 350 million tons as of 2023, which is seven times the amount captured as of 2017. It is expected that the amount of CO2 captured will increase as CCS-related laws and regulations and support measures are developed in countries around the world.

Japan launches support measures for advanced CCS projects

A CCS project consists of multiple processes, namely CO2 separation/capture, transportation, and storage. It is expected that various players will enter each phase of the project. The Long-Term CCS Roadmap that was formulated in March 2023 aims to start the CCS business by 2030 with annual CO2 storage of six to eight million tons achieved by the same year.

A CCS demonstration test has been conducted in Tomakomai, Hokkaido. However, it is necessary for a variety of experimental projects to be conducted toward developing detailed business models.

To this end, we have adopted nine projects as “advanced CCS projects” to provide high-priority support for the entire value chain, including CO2 separation/capture, transportation, and storage. It is expected that these projects will become model projects that can be disseminated horizontally toward developing CCS business models.

In selecting these projects, we have considered, wherever possible, the diversity in the combination of CO2 collection sources, transportation methods, and CO2 storage areas. For instance, emission sources cover a wide range of sectors, such as thermal power plants, steelworks, chemical plants, and cement manufacturing factories.

Varying combinations of factors, such as transportation methods and storage areas, will enable us to efficiently gauge the potential of a project and the challenges facing it. This will contribute to the early development of CCS business models.

Part 1 of this article has focused on overseas trends toward the commercialization of CCS and the development of business models. Part 2 will elaborate on the CCS Business Act that was enacted in May 2024.

Divisions in Charge

About this article

Carbon Management Division, Natural Resources and Fuel Department, ANRE

About the Special Contents

Research and Public Relations Office, Commissioner’s Secretariat, ANRE