The success of Japan’s decarbonization efforts depends on innovative technologies such as Carbon Capture and Storage (CCS), as well as hydrogen/ ammonia co-firing.

CCS is widely seen as playing an important role in resolving emissions from LNG and coal-fired power generation facilities. In fact, the 7th Strategic Energy Plan clearly states that thermal power is still needed for grid stability.

In recent years, Japan has made significant strides in CCS, developing legal, financial and technological frameworks. Concrete results are expected with the nine Advanced CCS projects that include both domestic and overseas CO2 shipping.

The country’s main domestic CCS project, in Tomakomai, nears a FID set for this year. As for projects involving cross-border CO2 injection, operation is still a matter for the future, but Japan’s shipping giants are working on securing their technological basis.

While Japan has nearly completed the legal and logistical framework for CCS, the economic engine – carbon pricing – remains underpowered. Japan NRG takes a closer look at what to expect in CCS over the next year.