Chevron, JX Nippon to Study Japan-Australia CCS Value Chain

Chevron USA Inc. division Chevron New Energies has signed a memorandum of understanding (MoU) with JX Nippon Oil & Gas Exploration Corporation to study a potential carbon dioxide (CO2) value chain in the Asia Pacific region.

The MoU provides a framework to evaluate the export of CO2 from Japan to carbon capture and storage (CCS) projects in Australia and other countries in the Asia Pacific region, the two companies said in a joint news release Monday.

The two companies are targeting to create a CCS value chain, transporting CO2 emitted from industries in Japan by ship to Chevron’s greenhouse gas portfolio in Australia. The collaboration will also “explore the opportunity to develop suitable transboundary policies and the potential development of CO2 storage sites in other countries in the Asia Pacific region”, according to the release.

“We look forward to building off our long-standing relationship with JX and ENEOS Group, the largest Japanese global petroleum and metals conglomerate, and hope that this joint study ultimately contributes to the further development of large-scale CCS hubs throughout the Asia Pacific region”, Chris Powers, Chevron Vice President of Carbon Capture, Utilization, and Storage (CCUS), said. “We believe large-scale CCS value chain projects will play a key role in advancing Asia Pacific’s lower carbon aspirations, and that long-term collaborations are necessary to meet these aspirations”.

“This MOU is achieved thanks to the significant oil and liquefied natural gas (LNG) relationship with Chevron that we have had over seven decades, and further demonstrates the commitment and dedication of the companies in helping advance lower carbon solutions”. JX Executive Vice President Tetsuo Yamada said.

“JX has positioned CCS as an important initiative in its business strategy under its 'Two-Pronged' approach, in which, in addition to the conventional oil and natural gas development business, decarbonization initiatives centered on CCS/CCUS are another prong of the company's operations such as the Petra Nova CCUS project in Texas, USA”, Yamada continued. “JX will contribute to the realization of a carbon-neutral society by leveraging the knowledge we have accumulated through our various CCS/CCUS-related businesses”.

Chevron in March 2023 also signed an MoU with JERA Co., Inc. to collaborate on CCS projects located in the USA and Australia. The MoU targeted to expand the LNG relationship between the two companies.

Japan-Malaysia CCS Collaboration

Earlier in the month, JX Nippon signed an MoU with ENEOS Corporation, Mitsubishi Corporation, and PETRONAS CCS Solutions Sdn Bhd (PCCSS), an affiliate of Petroliam Nasional Berhad (Petronas), to jointly evaluate CCS value chains between Japan and Malaysia.

Specifically, the companies will study capturing CO2 from industries in the Tokyo Bay area, or the Keihin and Keiyo areas, and shipping it to CO2 storage in Malaysia, according to a separate news release.

The companies estimate to capture around 3 million metric tons per annum (mtpa) of CO2, potentially increasing to 6 million mtpa, and target to start operations by 2030. The project will be “one of the largest scale of the currently planned CCS projects” in Japan, JX Nippon said.

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