Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. ("K" LINE), and JFE Steel Corporation (JFE Steel) have agreed that The Chugoku Electric Power Co., Inc. (EnerGia) and Nippon Gas Line Co., Ltd. (NGL) participate in the joint evaluation aiming to establish CCS (Carbon Capture and Storage) value chain originated from Japan (hereinafter "the Joint Evaluation") for the CCS project in Malaysia and concluded a Memorandum of Understanding (MOU) among the six companies (hereinafter "the Six Companies") on February 26, 2024.

JAPEX, JGC HD, "K" LINE (hereinafter "the Three Companies"), and PETRONAS CCS Ventures Sdn. Bhd. signed the Key Principles Agreement in September 2023 to commercialize the CCS project (hereinafter the "CCS Project Development") and have commenced the specific preparatory works with a view of beginning the front-end engineering design in 2024 and the subsequent construction works ^(*1). As part of the CCS Project Development, the Three Companies conducted a survey assuming receipt of CO₂ from Japan and discussions with candidate CO₂ emitters, have found that their direction aligns with EnerGia’s to consider further reduction methods of CO₂ emissions from power generation businesses, and with NGL’s to proceed with commercialization of domestic marine transportation of liquefied CO₂, therefore, the Six Companies signed the MOU to conduct the Joint Evaluation, in addition to JFE Steel which participated in June 2023^(*2).

The Six Companies will conduct the Joint Evaluation, collaborating with the CCS Project Development, to establish the CCS value chain, from CO₂ separation and capture at JFE Steel’s steelworks and EnerGia Group’s power plant to marine transportation (including domestic marine transportation in the Setouchi area) of liquefied CO₂ to the receiving point(s) in Malaysia, including estimation of required facilities and costs.

In the CCS Project Development, aiming to start injection and storage of CO₂ emitted in Malaysia as well as captured outside Malaysia such as in Japan under the seabed at the end of 2028, the Three Companies have been proceeding with the detailed study on the specifications and estimated costs of necessary facilities, including CO₂ pipelines from onshore gathering facilities, marine transportation of liquefied CO₂, and receiving facilities for liquefied CO₂ transported by ships and offshore injection facilities, and business scheme.

By executing the Joint Evaluation for the early commercialization of the CCS project, JAPEX, JGC HD, “K” LINE, JFE Steel, EnerGia, and NGL will contribute towards carbon neutrality in 2050, including the realization of a de-carbonized society in Asia targeted by the "Asia Energy Transition Initiative (AETI)" ^(*3).

About JFE Steel Corporation

JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 2,255 billion yen and consolidated crude steel output of 23.96 million tons in the fiscal year ended March 2021.

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