Australian LNG player Woodside has signed a non-binding memorandum of understanding with four Japanese companies to enable studies of a potential carbon capture and storage (CCS) value chain between Japan and Australia.
Under the MoU, Woodside with Sumitomo Corporation, JFE Steel Corporation, Sumitomo Osaka Cement, and K Line will study the capture, storage and transportation of CO2 emissions from the Setouchi and Shikoku regions of Japan and the injection and storage of the CO2 at Australian storage sites.
According to Woodside, the memorandum reflects the demand for large-scale decarbonization solutions and highlights the unique geological advantages of Australia with subsurface characteristics that are highly suitable for large-scale CCS projects.
In September, Woodside signed a similar deal with Japan’s Kansai Electric Power as well as with Sumitomo, Toho Gas, and K Line.
Woodside and compatriot LNG player Santos recently confirmed that the two firms are in discussions regarding a potential merger.
The combination of the two firms would create a merged energy and LNG giant with a market value of about A$80 billion ($52.4 billion).
Speaking of Santos, the firm also signed this week a memorandum of understanding with Japan’s JX Nippon Oil & Gas Exploration Corporation (JX) and ENEOS.
Santos said it plans to expand the Moomba carbon capture and storage (CCS) project and transform the Cooper Basin into a “decarbonization and low-carbon fuels hub”.
The MoU seeks to jointly identify and define commercial and investment opportunities covering the potential importation of up to 5 Mtpa of CO2 by 2030, 10 Mtpa by 2035 and 20 Mtpa by 2040 from Japan to the Moomba CCS project, via either Port Bonython in South Australia or Gladstone in Queensland, it said.