BP, Chubu Electric expand collaboration to develop CCS value chain

Following the successful completion of the Nagoya CCS feasibility study earlier this year, BP and Chubu Electric Power have expanded their collaboration to explore a carbon capture and storage (CCS) value chain from the Port of Nagoya, Japan, to the Tangguh field in Teluk Bintuni, Papua Barat, Indonesia, Chubu Electric announced on August 21.

This expanded collaboration is formalised in an amended memorandum of understanding (MoU) that BP, as the operator of the Tangguh production sharing contract (PSC), and Chubu Electric have signed. The MoU, which updates the original agreement from September 2023, now includes a broader scope that covers cost optimisation across the CCS value chain and the development of business models to enable commercial CCS projects between Nagoya, Japan, and Tangguh, Indonesia.

The updated MoU also addresses the identification of legal requirements for establishing a large-scale hub and cluster, potential business models—including possible incentives and funding mechanisms—and optimisations for onshore infrastructure, large-scale CO2 liquefaction, shipping, and the procurement and operation of CO2 vessels.

BP and Chubu Electric aim to achieve net-zero CO2 emissions from their operations by 2050. The Port of Nagoya, Japan's largest port by cargo volume, accounts for 3% of the nation's total CO2 emissions and has set a target to reduce its emissions by 46% by FY2030 compared to FY2013.