MOL and JX Sign MoU For Development of Cross Border CCS Value Chain

Japan’s Mitsui O.S.K. Lines (MOL) and JX Nippon Oil & Gas Exploration Corporation (JX) have signed a memorandum of understanding (MoU) to develop a Carbon Dioxide Capture and Storage (CCS) value chain between Japan and Australia, including marine transport of carbon dioxide (CO2).

The MoU focuses on the establishment of a CCS value chain by capturing CO2 emitted from ENEOS refinery and nearby various industries in Japan, transporting it by CO2 carrier to the Port of Bonython in Australia, and injecting and storing it at the selected storage site.

Under the MoU, MOL and JX will jointly conduct the following studies:

  • Select a liquefied CO2 carrier suitable for conditions at ports in Japan and Australia and the expected CO2 transport distance and volume, and estimation of marine transport costs
  • Estimate the cost of the entire CCS value chain between Japan and Australia

MOL will focus mainly on item (1), while JX’s role will centre on item (2).

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, environmentally friendly businesses centered on CCS/CCUS are another key axis of the company’s operations.