Sumitomo Corporation, Kawasaki Kisen Kaisha, Ltd. (K LINE), and Hilcorp Alaska have entered into a collaboration to assess the feasibility of implementing carbon capture and storage (CCS) solutions in Alaska, USA. The three companies have formalized their partnership through a joint study agreement aimed at exploring this opportunity.
The study will focus on evaluating the potential for creating a CCS value chain, where CO2 collected in Japan would be transported via large-scale liquefied CO2 carriers to Alaska for long-term storage. The goal is to establish a robust system that facilitates the efficient capture, transport, and sequestration of CO2 between the two regions.
The agreement for the study was signed on October 11, 2024, during the “4th Japan-U.S. CCUS Working Group” meeting—co-hosted by Japan’s Ministry of Economy, Trade and Industry (METI) and the U.S. Department of Energy (DOE). It marks the first initiative led by a Japanese company to jointly pursue a cross-border CCS project involving both Japan and the United States.
Carbon capture in Alaska
Alaska has been a significant site for oil and gas production since the 1950s, and the region’s CCS project is projected to have a total storage capacity of around 50 gigatons. This capacity could potentially offset Japan’s CO2 emissions for the next five decades.
Alaska Governor Mike Dunleavy introduced a bill in Januaru 2023 through his Carbon Management and Monetization Bill Package, that created the regulatory framework for CO2 storage in the state.
Relevant: Alaska Paves Way For Carbon Capture And Storage
The state is considered highly suitable for CCS projects, not only due to the extensive data from its history of oil and gas exploration, which can be utilized for CO2 storage, but also because of its well-established infrastructure, including LNG terminals, ports, and pipelines that can be repurposed for CCS activities.
“In Alaska, we are blessed with the resources of today, but we’re also blessed with the resources of tomorrow,” said Governor Dunleavy when introducing the bill. “With support from the Legislature for our carbon management bill package, we’ll change the conversation about new revenue. We’ve been told by some that we can generate revenue in the billions over 20 years just from our forest lands.”
Japan progressing steadily with carbon capture and storage
CCS has become a priority for the Japanese government and it has adopted a multipronged approach towards each of the value chain’s components.
In July 2024 nine domestic CO2 storage locations were selected for development but their 20 million ton/annum capacity can only partially cover the total amount Japan wants to sequester.
The country has signed a number of bilateral agreements with countries like Australia, Singapore and Malaysia for the development of storage capacity and its shipping industry is working on developing standard specifications and designs for liquefied carbon dioxide (LCO2) carriers.
Read more: Japan Shipping Giants Collaborate To Develop Standardized LCO2 Carriers
