Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD), Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and JFE Steel Corporation have agreed to conduct a joint evaluation aiming to establish the CCS (Carbon Capture and Storage) value chain originated from Japan (hereinafter “the Evaluation”), aligned with the joint study^*1 on CCS in Malaysia with Petroliam Nasional Berhad (PETRONAS), and concluded a Memorandum of Understanding (MOU) among the four companies on June 19th.

JAPEX, JGC CORPORATION (JGC), an operating company of JGC HD for overseas EPC (engineering, procurement, and construction), and “K” LINE, has been proceeding with the joint study (hereinafter “the Study”) with PETRONAS, including study on suitable sites for CO₂ storage in Malaysia and its technical evaluations, CO₂ capture and transport from the PETRONAS’s LNG complex in Bintulu, and potential of transportation from outside Malaysia including Japan. As part of this study, the three companies also have worked on the investigation and dialogue with potential candidate emitters, considering CO₂ transportation from Japan. As a result of the dialogue with the candidates, the four companies have found that their future direction of the Study aligns with the one of JFE Steel, which has been considering reduction of CO₂ emission from their operations. Therefore, the four companies signed the MOU to conduct the Evaluation.

The four companies will conduct the Evaluation to establish the CCS value chain, from CO₂ separation and capture at JFE’s steelworks, to marine transportation of liquefied CO₂ to the receiving point(s) in Malaysia, including estimation of required facilities and costs. The Evaluation will also be appropriately aligned with the study of CO₂ receipt and storage in Malaysia within the scope of the Study with PETRONAS.

By the establishment of the international CCS value chain through the Evaluation, JAPEX, JGC HD, “K” LINE, and JFE Steel aims to contribute for the realization of carbon neutrality by 2050, including the realization of de-carbonized society in Asia targeted by Asia Energy Transition Initiative (AETI)^*2.

Notes)

*1: Please refer a joint press release “JGC CORPORATION and Kawasaki Kisen Kaisha, Ltd. Joins CCS Study in Malaysia” on July 29, 2022.

*2: The Japanese Government’s initiative announced in May 2021, which aims to achieve sustainable economic growth and carbon neutrality simultaneously in Asia.

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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