Signed a Joint Study Agreement for CCS Feasibility Study in Alaska, USA ~ First feasibility study for Japanese companies for realizing Cross-Border CCS between Japan and the United States ~

Sumitomo Corporation, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and Hilcorp Alaska have agreed to conduct a feasibility study on carbon capture and storage (CCS) in Alaska, USA, formalized by a joint study agreement among the three companies. This study aims to develop a CCS value chain that involves aggregating CO2 in Japan, transporting it via large liquefied CO2 vessels to Alaska for sequestration and storage. This initiative marks the first collaboration between a Japanese company and U.S. entities focused on commercializing cross-border CCS, with plans to work alongside the Japanese and U.S. governments.

On October 11, 2024, during the "4th Japan-U.S. CCUS Working Group" meeting, co-hosted by Japan's Ministry of Economy, Trade and Industry (METI) and the U.S. Department of Energy (DOE), a signing ceremony for the joint study agreement took place in the presence of officials from both governments.

The Japanese government is actively promoting the development of a supportive business environment for CCS projects, with a goal to initiate them by 2030. In line with this, the April 2024 Japan-U.S. Joint Leaders’ Statement highlighted the intention to explore the potential for cross-border carbon dioxide transport and storage hubs between Japan and Alaska. In response, Sumitomo Corporation, “K” LINE, and Hilcorp have launched this joint study to establish a CCS value chain and evaluate CO2 storage potential in Alaska. Each company will leverage its expertise to conduct technical research on CO2 storage capacity, the requirements for liquefied CO2 vessels, and assess the business landscape to evaluate project feasibility.

Alaska has been engaged in oil and gas field development since the 1950s, with the CCS project projected to have a total storage capacity of 50 gigatons, equivalent to Japan's CO2 emissions over the next 50 years. The state is seen as a promising location for CCS due to the valuable data gained from previous oil and gas development, along with existing infrastructure such as LNG terminals, port facilities, and pipelines. This collaboration aims to advance carbon neutrality through the development of carbon management technology between Japan and the United States.