Osaka Gas and Mitsubishi Heavy Industries (MHI) have teamed up to develop a CO₂ value chain for carbon capture, utilisation and storage (CCUS).

The value chain would include the overseas transportation of CO₂ captured in Japan, using it to produce e-methane, and storing it underground.

E-methane is a synthetic gas produced through a process called methanation using hydrogen and CO₂.

The alliance seeks to create an effective CO₂ value chain by combining MHI’s expertise in CO₂ capture, liquefied CO₂ maritime vessel transport, and CO₂ management with Osaka Gas’s know-how in e-methane production and CO₂ storage.

Under the terms of the agreement, the businesses will research ways to capture CO₂ emissions from hard-to-reduce industries, including steel, cement, and chemicals and use ships to carry liquefied CO₂.

Osaka Gas and MHI will also work with businesses from a wide range of industries to carry out a feasibility study on the overall CCUS plan, including CO₂ usage for e-methane and underground sequestration.

The firms said in a statement: “Through this project, Osaka Gas and MHI aim to contribute to achieving a carbon-neutral society by 2050, combining the two companies’ technologies developed to meet their respective goals for net-zero emissions.”

In addition, the collaboration also aims to broaden the CCUS scheme by trading and transferring the value of CCUS as measured by CO₂NNEX.

CO₂NNEX is a digital platform backed by IBM Japan and MHI that offers visualisation of CO₂ value chains.