Japanese consortium targets CCS demonstration shipments in 2024

The consortium includes Kansai Electric Power Co., Inc. (KEPCO), one of Japan’s largest power utilities, as well as a number of Japanese energy-intensive producers. KEPCO operates one of the largest coal-fired power generation fleets in Japan, and has identified carbon capture and storage (CCS) as a potential solution to meet its decarbonisation objectives.

KEPCO has been involved in a number of research projects into carbon capture at its Japanese facilities. It is currently waiting to begin trials of an industrial carbon capture technology using a solid sorbent at its Maizaru Power Station. The utility has previously announced that trials of the new technology are expected in fiscal 2023, once commissioning is completed.

The utility is also participating in a NEDO project in Tomakomai City in Hokkaido that aims to act as a demonstration project for the marine transportation of liquefied CO2. Construction of a liquefied CO2 loading facility with a capacity of up to 10,000 tonnes per year began in 2022, and is expected to be completed in early 2024. Demonstration shipments of CO2 are scheduled to being subsequently in fiscal 2024.

Maritime Supply Chain MoUs

Following the beginning of construction of the CO2 receiving terminal, KEPCO has signed a series of agreements with leading Japanese trading houses to study the potential development of liquefied CO2 shipping value chains.

KEPCO signed a memorandum of understanding (MoU) with Mitsui O.S.K. Lines (MOL) in December 2022, and similar agreements with “K” Line in mid January 2023. 

The MOUs related to the study of marine transportation schemes and shipping costs of liquefied CO2 emitted from KEPCO’s thermal power plants, and aims to develop the CCS value chain in future.

“K” Line has particular expertise in the technological requirements of transporting liquefied CO2. In December 2022, it signed Bare Boat Charter and Time Charter contracts for two 7,500 cbm liquefied CO2 ships with the Norwegian-based Northern Lights project. The ships will be delivered in 2024 and will contribute to the world’s first full-scale carbon capture and storage (CCS) value chain.

K Line’s London-based subsidiary, “K” LINE LNG Shipping (UK) Ltd., will manage the two ships, which will transport liquefied CO2 from energy-intensive manufacturers, including the Norcem Brevik and Hafslund Oslo Celsio carbon capture facilities, to the Northern Lights CO2 receiving terminal in Øygarden, Norway.

It is also participating in an Engineering Advancement Association of Japan (hereinafter ENAA) led project to build a demonstration test ship for liquefied CO2 transportation, which will be used in the Tomakomai based CCUS transportation project. The construction of the demonstration vessel began in October 2022 at Mitsubishi Shipbuilding Corporation’s Shimonoseki Shipyard.