INPEX and Chubu Electric Power to explore CCS value chain between Japan and Australia

INPEX Corporation and Chubu Electric Power have signed an agreement to study the feasibility of a carbon capture and storage (CCS) value chain and the potential to establish future cross-border collaborations in CCS between Japan and Australia. 

The initiative involves capturing CO2 in Japan and transporting it from the Port of Nagoya to Australia for storage. The captured CO2 will be stored in the Bonaparte Basin off the northwestern coast of the Northern Territory. INPEX, TotalEnergies and Woodside Energy were awarded a greenhouse gas storage assessment permit in this area in 2022. 

The proposed project aims to begin CO2 injection around 2030. It has the potential to play an important role in reducing greenhouse gas emissions from industry.

Using CCS to achieve net zero emissions

The collaboration between INPEX and Chubu Electric Power reinforces both companies’ commitment to achieving net zero emissions. 

INPEX’s Long-term Strategy and Medium-term Business Plan lists carbon capture, utilisation and storage (CCUS) as one of 5 net zero business areas. Under the plan, the company plans to store 2.5 million tons or more of CO2 emissions by 2030. 

The INPEX-operated Ichthys LNG will likely use the CCS solution in Northern Australia to reduce its greenhouse gas emissions. The project produces up to 9.3 million tonnes of LNG and 1.65 million tonnes of LPG per annum. It is one of the few energy projects worldwide to incorporate the whole chain of development and production: subsea, offshore, pipeline and onshore.

Chubu Electric Power sees this project as a step towards decarbonising operations around the Port of Nagoya. The company has a goal to achieve net zero CO2 emissions by 2050. 

The INPEX-Chubu Electric Power project could also be a key component of the Darwin-based CCUS Hub proposed by the Northern Territory Government.

CCS opportunities in Australia

In its 2024–25 Budget, the Australian Government committed A$556.1 million over 10 years to map Australia’s resources and geological storage potential.

The Government will also work towards regional cooperation on carbon sequestration, to support the establishment of regulatory frameworks and bilateral agreements. This will provide regional partners with options for energy security and carbon management solutions.

There is strong interest from northeast Asia in Australia’s CCS opportunities. In June 2024, Austrade supported a delegation of Korean investors to Western Australia, visiting major CCS sites and meeting with government and industry. Austrade also supported a Japan–Korea CCUS delegation in June 2023. The delegation travelled to Victoria and the Northern Territory, including a site visit to INPEX’s Ichthys LNG plant.