Chevron and JX set to collaborate on development of CCS value chain

JX Nippon Oil & Gas Exploration Corporation and Chevron New Energies are to cooperate on a project that could see Japanese CO2 exported to overseas carbon capture and storage (CCS) facilities.

The companies this week signed a memorandum of understanding (MOU) that provides a framework to evaluate a scheme which would take carbon dioxide to Australia and other Asia Pacific region nations.

Chevron New Energies, a division of Chevron USA. Inc., and JX Nippon will evaluate the feasibility of such a CCS value chain. This includes the capture of CO2 emitted from Japan-located industries, including JX affiliates, and transportation by ship to Chevron’s greenhouse gas storage portfolio in Australia.

Possible value chain beginnings

The collaboration will also explore the opportunity to develop suitable transboundary policies, and the potential development of CO2 storage sites in other countries in the Asia Pacific region.

Chris Powers, Chevron’s Vice President of Carbon Capture, Utilisation, and Storage (CCUS), said he believed large-scale CCS value chain projects will play a key role in advancing Asia Pacific’s lower carbon aspirations “and that long-term collaborations are necessary to meet these aspirations”.

He continued: “We look forward to building off our long-standing relationship with JX and ENEOS Group, the largest Japanese global petroleum and metals conglomerate, and hope this joint study ultimately contributes to the further development of large-scale CCS hubs throughout the Asia Pacific region.”

Expanding on thriving relationships

Tetsuo Yamada, Executive Vice President of JX, said: “This MOU is achieved thanks to the significant oil and liquefied natural gas (LNG) relationship with Chevron that we have had over seven decades, and further demonstrates the commitment and dedication of the companies in helping advance lower carbon solutions. 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, decarbonisation initiatives centred on CCS/CCUS are another prong of the company’s operations, such as the Petra Nova CCUS project in Texas, USA.”

He added: “JX will contribute to the realisation of a carbon-neutral society by leveraging knowledge we have accumulated through our various CCS/CCUS-related businesses.”