Japanese steelmaker Nippon Steel, trading company Mitsubishi, and oil and gas major Exxon Mobil signed a Memorandum of Understanding (MoU) on Jan. 26 to study CO2 capture and storage (CCS) and the creation of CCS value chains in the Asia Pacific.
According to the MoU, the three companies will research the carbon emissions of Nippon Steel’s steel mills and evaluate the required infrastructure development.
This is the first study to develop CCS value chains in Japan, a joint press release said. The research will look into storage opportunities in the Asia Pacific region, including in Australia, Malaysia, and Indonesia.
Steelmaking is among the high-polluting industries, with CO2 emissions accounting for about 7-9% of global emissions. The steel industry in Japan produced 131 million metric tons of carbon in 2020, which is more than any other industry in the country and accounts for more than 10% of national emissions, Japan’s Environment Ministry reported.
As part of the study, Nippon will advance the implementation of carbon capture and storage facilities for overseas storage of carbon emitted from steel sites, as well as developing storage infrastructure, advocating for regulation and policies, and looking into cost adequacy.
Mitsubishi will evaluate the transportation of carbon dioxide and the development of a CCS value chain.
Nippon has set a target to decrease its carbon emissions by 30% by 2030 from 2013 levels and reach carbon neutrality by mid-century. The steelmaker is also working on hydrogen-based technologies and will test an iron direct reduction process via hydrogen in 2025.
Exxon has increased investment in CCS in recent years, and currently has the capacity to capture and store 9 million tons of carbon annually.