Japanese government-owned firm joins in on two CO2 acreages off Australia

Australian specialist carbon capture and storage (CCS) developers deepC Store and Azuli (Australia), a wholly-owned subsidiary of UK’s Azuli International, have secured two greenhouse gas assessment (GHG) acreages in the Bonaparte and Browse Basins off Australia.

The partners also entered into a joint study agreement for a strategic partnership with J-POWER by which the Japanese government-owned company intends to become a joint venture participant in the GHG acreages, which have the potential to permanently store up to 1 giga (billion) tonne of CO2.

To remind, deepC Store and Azuli announced at the end of 2023 they had jointly bid for GHG Assessment Permits released by the Australian Commonwealth Government as per the 2023 offshore GHG storage acreage release.

The GHG acreages are located in Commonwealth waters, some 200-250 kilometers off the Northwest coast. They comprise blocks GHG23-1 in the Bonaparte and GHG23-2 in the Browse basins. The first has an area size of approximately 1,500 km2 and is located in a water depth of between 70 and 120 meters, while the latter has an area size of 9,500 km2 and is located in a water depth of between 40 and 270 meters.

“We are very pleased to be awarded the 2 GHG Acreages that both show a good fit for “CStore1,” our LCO2 shipping and FSI based CCS development concept. Also following on from our partnership established with J-POWER, a significant global player and pioneer in the electric power industry, we are committed to accelerating the development of CStore1 and advancing Australia and Japan’s strategic alliance in the CCS business,” said deepC Store Managing Director Daein Cha.

The three parties plan to develop a full value chain project from liquified CO2 (LCO2) receipt at locations in Japan and Australia as well as surrounding region, with the LCO2 transported by ship to floating storage and injection (FSI) facilities in Australian waters.

Under the joint study agreement, the intention is to mature the GHG acreages in compliance with Australian Government requirements, as well as consider opportunities to accelerate their development in such a way that the resulting projects can support the objectives of the Australian and Japanese governments in respect of decarbonization targets.

“We are fully committed to developing a CO2 transport and storage solution that addresses the needs of hard-to-abate emitters in the Asia Pacific region.   We plan to mature a commercially viable and technically robust solution through innovative strategic partnerships with key supply chain partners,” said Azuli International Managing Director Hamish Wilson.

In addition, J-POWER will make a cash contribution for the joint study, which is for the early work of the project, and secure rights to a participating interest in the joint venture that will further develop the GHG acreages. 

“We expect that this development will contribute providing a valuable option to Japan and Australia as well as the surrounding region to reduce CO2. CCS will play a critical role in J-POWER’s BLUE MISSION 2050, as well as global energy transitions. We will continue pursuing opportunities for CCS development and carbon reduction with CCS,” J-POWER Executive Officer Akira Yabumoto stated.