Entrustment a CCS engineering design work in Higashi-Niigata Area, as the “Engineering Design Work for Advanced CCS Projects” in FY2024

Japan Petroleum Exploration Co., Ltd. (JAPEX), MITSUBISHI GAS CHEMICAL COMPANY, INC. (MGC), Tohoku Electric Power Co., Inc. (TOHOKU-EPCO), and Hokuetsu Corporation (HC) (hereinafter the "Four Companies" for the four companies together) signed a contract with Japan Organization for Metals and Energy Security (JOGMEC) for an engineering design work of CCS ^(*1) (hereinafter the "Work") in the higashi-Niigata area, which is one of the public solicitations regarding the Request for Proposal on the "Engineering Design Work for Advanced CCS Projects" in the fiscal year 2024 (hereinafter the "Public Solicitation").

Following the feasibility study conducted last fiscal year^(*2), the Four Companies will conduct "basic engineering design for CCS value chain" and "assessment on CO₂ storage potential at the planned CO₂ storage site" in higashi-Niigata area, which is a target region in the "Niigata Carbon Neutrality Site Development and Foundation Establishment Strategy" ^(*3) unveiled in March 2023 by Niigata Prefecture, aiming at launching a CCS project by 2030.

From now on, the Four Companies plan to examine the entire value chain of CO₂ separation and capture, CO₂ transport and CO₂ storage as part of "basic engineering design for CCS value chain."

Likewise, the Four Companies will carry out preparatory operations (e.g., construction work to prepare the site for an exploratory well) for appraisal work (an exploratory well^(*4)), formulate a plan for procuring and storing the equipment and materials needed for the exploratory well, drilling the exploratory well, and analyze and assess the data obtained from the exploratory well as part of the "assessment on CO₂ storage potential at the planned CO₂ storage site."

Please refer to the appendix for each companies' role in the Work and each companies' profiles.

The Four Companies will make aggressive challenges towards "Carbon Neutrality in 2050" by realizing the advanced CCS project in the higashi-Niigata area through steady progress of the Work and by creating value adding business such as decarbonized fuel and environmental value with local characteristics.