Mitsui O.S.K. Lines, Ltd. (MOL) and JX Nippon Oil & Gas Exploration Corporation have signed a memorandum of understanding (MoU) to develop a carbon capture and storage (CCS) value chain between Japan and Australia, which includes the marine transport of carbon dioxide.
The MoU covers the establishment of a CCS value chain by capturing carbon dioxide emitted from the ENEOS refinery and nearby various industries in Japan. The captured emissions will then be transported by a carrier to the Port of Bonython in Australia and injected into a selected storage site, the two companies said in a joint news release. The ENEOS Group owns JX Nippon.
MOL will focus on the selection of a liquefied CO2 carrier suitable for the conditions at ports in Japan and Australia and the expected transport distance and volume. JX will focus on evaluating the estimated cost of the entire CCS value chain, according to the release.
JX Nippon in December 2023, also signed a separate MoU with Santos Ltd. and ENEOS for a joint feasibility study that will evaluate the potential to capture, transport and sequester emissions from Japan, supporting the expansion of the Moomba CCS project.
The Santos MoU seeks to jointly identify and define commercial and investment opportunities covering the potential importation of up to five million metric tons per annum (MMtpa) of CO2 by 2030, 10 MMtpa by 2035 and 20 MMtpa by 2040 from Japan to the Moomba CCS project, via either Port Bonython in South Australia or Gladstone in Queensland.
The project would potentially provide a large-scale source of CO2 to support Phase 2 of the Moomba CCS project and provide feedstock for future e-methane production.
In September 2023, JX Nippon restarted operations at the Petra Nova CCUS project in Texas, which had been shut down since May 2020. The Petra Nova facility captures carbon dioxide from the flue gas of the WA Parish thermal power plant in Texas. The captured greenhouse gas travels through an 80-mile pipeline to an oilfield near Houston for use in enhanced oil recovery operations to increase extraction. The carbon capture facility of the project is one of the largest in the world and can capture approximately 1.4 million metric tons per year of carbon dioxide, according to an earlier news release.
The Petra Nova facility began operations in 2017 and had a target carbon capture rate of 90 percent. According to an earlier Institute for Energy Economics and Financial Analysis (IEEFA) report, the actual carbon dioxide capture rate was substantially lower than 90 percent, perhaps as low as 65 percent to 70 percent, based on USA Environmental Protection Agency data. The unit was plagued by technical difficulties, failing to meet its in-operation target of 85 percent, and it was taken offline in May 2020.
Meanwhile, Poland’s natural gas transmission system operator OGP Gaz System S.A. recently selected MOL to deliver and operate the floating storage regasification unit (FSRU) in the Gulf of Gdansk.
The FSRU will serve as a liquefied natural gas (LNG) regasification terminal and will be located at a mooring platform near the shore in the area of the Port of Gdańsk, between the mouths of the Vistula River branches, Śmiała and Martwa. The necessary offshore and onshore infrastructure will also be constructed as part of the project, Gaz System said in a recent news release. The project commissioning is planned for 2027/2028.
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