KAWASAKI KISEN KAISHA, LTD: Agreed on Joint Evaluation with JFE Steel Corporation to Establish CCS Value Chain Originated from Japan Aligned with CCS Study in Malaysia

to Establish CCS Value Chain Originated from Japan Aligned with CCS Study in Malaysia

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Release date- 19062023 - 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 19.

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 in Japan, 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

KAWASAKI KISEN KAISHA, LTD.

*1: Please refer a joint press release 'JGC CORPORATION and Kawasaki Kisen Kaisha, Ltd.

Joins CCS Study in Malaysia' on July 29, 2022.

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral7943232713056097109/main/0/link/220729EN.pdf

*2: The Japanese Government's initiative announced in May 2021, which aims to achieve

sustainable economic growth and carbon neutrality simultaneously in Asia.