Xodus, an International energy advisory firm, has been selected to support a groundbreaking carbon capture and storage (CCS) initiative in Japan. The project aims to cut CO2 emissions from major Japanese manufacturing industries, supporting the nation’s goal of reaching net-zero by mid-century.

Xodus will partner with several prominent companies, including West Japan Carbon Dioxide Storage Survey Co., Ltd. (WEST), ENEOS Corporation (ENEOS), Electric Power Development Co., Ltd. (J-Power), and ENEOS Xplora Inc. (ENEOS Xplora), to help drive the Offshore Western Kyushu CCS project forward.

The project is following validation of a service pact between JOGMEC and the consortium. JOGMEC is the government organization for Japan overseeing mineral and energy resources. They entered into an agreement with the consortium earlier this year 2025.

Xodus’ Role in the Project

Xodus will use its expertise to design geotechnical survey plans for the pipeline and cable components of the CCS project. With its extensive experience in Japan’s energy sector, the company has established a permanent base, highlighting its commitment to long-term support.

Simon Allison, Vice President – Asia Pacific at Xodus, said, “We are proud to play a part in the delivery of this pioneering CCS initiative, which underscores our commitment to the region and to supporting Japan’s ambition to achieve net zero by 2050.”

Also read: Xodus Launches Dashboard to Assess CO2 Transport Costs for Carbon Capture Across Europe

The Goal of Offshore Western Kyushu CCS

The Offshore Western Kyushu CCS project will capture around 1.7 million metric tons of CO2 every year. ENEOS’s oil plants and J-POWER’s power stations in the Setouchi and Kyushu areas will be capturing the CO2. After being captured, the team will transport CO2 to underground saltwater reservoirs off southwestern Kyushu, storing it safely and permanently.

This major CCS project is part of Japan’s overall decarbonization policy and achieving net-zero emissions by 2050.

Climate Fund Managers BV (CFM), a leading investment manager focused on blended finance for climate projects, has officially launched its new global energy transition and green hydrogen fund, Climate Investor Three (CI3). The fund aims to attract public and private sector capital, offering an equitable risk-return profile to gain access to the rapidly growing energy transition and green hydrogen markets.

CI3 has obtained an initial € 150 million capital commitment from European donors for its Development Tranche. This tranche absorbs early risks, developing target projects and unlocking larger capital volumes to create significant, scalable impacts.

Structure of the Fund

CI3 is structured as a family of funds that invest in the entire green hydrogen and energy transition value chain. The fund operates as a feeder fund, making direct investments in projects or through country-specific underlying funds.

CI3 Namibia partners with EIF and Invest International to support Namibia’s energy transition and foster its green hydrogen sector. Similarly, CI3 South Africa is a collaboration with Invest International, backed by prominent South African institutions such as Sanlam Limited, the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation (IDC). This project drives South Africa’s green hydrogen growth and energy transition, promoting sustainable development and technology adoption in both nations.

Green Hydrogen’s Role in the Energy Transition

Green hydrogen, generated by water electrolysis using renewable energy, has a significant role to play in the global energy transition. It is flexible and portable, making it suitable for decarbonizing industries that are difficult to abate like industry and transport.

Namibia and South Africa, with high-end renewable resources and low-cost production, are capable of being the leaders of the green hydrogen economy. This will not just revolutionize local industries but also propel climate-resilient economic development.

Hans Docter, co-CEO of Invest International, said, “Green hydrogen holds immense potential to drive sustainable development in emerging markets and support the global energy transition. Unlocking this potential requires the public and private sectors to work together.”

He added, “For this reason we are proud to partner with CFM in launching Climate Investor Three as a blended finance vehicle to facilitate such collaboration, enabling public sector institutions like Invest International to deploy our catalytic capital effectively, getting projects off the ground and balancing risks to mobilise private sector investment at scale.”

Also read: Chile seeks European investment for green energy transition

Blended Finance Model to Support Energy Transition Projects

The blended finance structure of Climate Fund Managers’ CI3 allows for investment at all stages of project development. The Development Tranche helps absorb early-stage risks and transforms ideas into viable projects. Additionally, private construction capital mobilizes through customized Equity Tranches, enabling investment from donors, philanthropic capital, DFIs, and institutional investors.