Posted on 20 Jun 2023
Japanese steel mill JFE Steel plans to work with domestic firms to capture CO2 emissions from its steel production, in efforts to establish a carbon capture and storage (CCS) value chain from Japan to Malaysia.
JFE Steel on 19 June signed an initial agreement with upstream developer Japex, engineering firm JGC and shipping firm K-Line to explore the possibility of separating and collecting CO2 from its steelworks and delivering liquefied CO2 to Malaysia, with the firms aiming to estimate required facilities and costs. Japex, JGC and K-Line previously looked for potential CO2-emitting firms, under a separate CCS value chain tie-up with Malaysia's state-owned Petronas, before deciding to collaborate with JFE.
JFE Steel will not be directly involved in the collaboration with Petronas, but its deal will be in line with the Petronas study in terms of CO2 receipt and storage in Malaysia.
JFE Steel is aiming for a 18pc reduction in its CO2 emissions based on 2013-14 levels by the April 2024-March 2025 fiscal year and a 30pc cut by 2030-31, ahead of its 2050 carbon neutral goal.
Japex partnered with Petronas to establish a CCS value chain since January 2022, and JGC and K-Line joined the collaboration in July 2022. The companies collaborated to explore suitable sites for CO2 storage in Malaysia,including a technical evaluation. They also conducted studies on CO2 capture and transport from Petronas' LNG complex in Bintulu and potential transportation of CO2 from outside of Malaysia, including Japan.
Investments in CCS operations are gaining momentum in Japan, as the country would need to deploy the clean technology to offset CO2 emissions in hard-to-abate sectors such as steel, power refineries, chemical and paper production sites.
The Japanese government recently selected seven potential CCS projects for its financial support, aiming to start commercial CCS business from 2030-31. Japan plans to achieve CO2 storage capacity of 6mn-12mn t/yr by 2030 and store 120mn-240mn t/yr of CO2 by 2050.
Source:Argus Media
