Marubeni Corporation (TYO: 8002), one of of the largest sogo shosha (general trading company) in Japan, has entered an agreement to acquire a 50% stake in a carbon capture and storage (CCS) project being developed by Ozona CCS in South Texas, USA.
The joint venture will focus on capturing carbon dioxide (CO2) emissions from multiple gas production and processing plants in the region, transporting the captured CO2 via dedicated pipelines, and storing it in saline aquifers located 1.3 to 1.9 miles (2 to 3 km) underground.
This will be one of the first commercial CCS hubs in the United States, Marubeni said in a statement on Tuesday.
Marubeni, which has been active in the shale oil and gas sector in Texas, will combine its development expertise with Ozona’s capabilities, including subsurface evaluation and infrastructure knowledge, to bring the project to fruition.
The final investment decision is expected by the first half of 2025, with commercial operations set to begin in 2026.
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This is Marubeni’s first CCS investment in the US, Renta Hattori, Director of CCUS at Marubeni America Corporation, said in a comment to the announcement on LinkedIn.
“The US is one of only 2~3 countries in the world where we can make CCS projects feasible right away, because of 45Q and Class II/VI regulations,” he added.
The companies are also exploring additional opportunities for collaboration on similar projects under development by Ozona in Texas.
As Marubeni noted, this initiative aligns with the United States’ goal of reducing greenhouse gas emissions by 65% by 2030 and achieving net-zero emissions by 2050.
The Inflation Reduction Act of August 2022 supports such decarbonization efforts, providing tax credits of up to $85 per ton of CO2 stored for CCS projects that begin construction by January 1, 2033.
Marubeni’s involvement in this CCS project is part of its mid-term management strategy, GC2024, which focuses on strengthening green businesses and promoting green transformation.
Read more: Cormetech Partners With Ozona For Carbon Capture And Sequestration Project
