INPEX Corporation, an oil and gas company based in Japan has started the front end engineering design (FEED) work for the Niigata Prefecture offshore hydrogen production in Japan. The project will leverage INPEX’s existing fields and infrastructure to generate low-carbon energy.

The project also comprises a new hydrogen production plant that has an annual production capacity of approximatively 100,000 tons. Raw materials will come from INPEX’s Minami-Nagaoka Gas Field and LNG shipped to its Naoetsu Terminal in Niigata Prefecture. INPEX will mainly source LNG from the Ichthys LNG project.

The plant will provide hydrogen for electricity and heating to Niigata Prefecture and surrounding region and will be operational around fiscal 2022.

The facility will use carbon capture and storage technology to capture CO2 emissions during hydrogen production and inject them into Niigata’s depleting gas fields. This would make all the hydrogen produced in such a facility classed as blue hydrogen compared to others produced using traditional methods.

Also read: Air Liquide Secures €110 Million Grant for Hydrogen Project in Belgium

INPEX’s blue hydrogen project is one of the very few initiatives in Japan, which improves energy security and also offers solutions for low-carbon energy. The project will largely help supply clean energy by creating large-scale production of domestic gas reserves-based blue hydrogen.

For more than 60 years, INPEX has explored and produced oil and natural gas in Niigata Prefecture, building up experience. In addition, the company runs an LNG terminal in the area. INPEX’s new project is to develop Niigata Prefecture as a clean energy hub and expand its low-carbon energy business.

Also read: Neste Withdraws from Renewable Hydrogen Project

Commitment to Net Zero and Future Targets

INPEX’s blue hydrogen production initiative aligns with its Vision @2022, announced in February 2022. It provides a framework of how the company is going to achieve net-zero emissions. Under this vision, INPEX has ambitious targets for its hydrogen and CCS/CCUS business. The company aims to commercialize three or more projects by 2030, while the production and supply of 100,000 tons of hydrogen or ammonia per year and injecting 2.5 million tons of CO2 per year is the target.

Frontier has stated that it has entered offtake agreements with CO280 and CREW Carbon. As part of the agreements, Frontier will be investing $80 million in CO2 removal solutions. This investment into CO2 removal solutions falls in line with the strategy by Frontier to accelerate carbon removal technology development.

CO280’s Carbon Removal Project

CO280 will get $48 million in exchange for the removal of 224,500 tons of CO2 between 2028 and 2030. The company focuses on upgrading pulp and paper mills to capture CO2 emissions emitted as by-products of pulp processing activities.

The company uses a carbon removal mechanism that collects biogenic CO2 from recovery boilers at pulp mills. This CO2 is then transported and permanently stored in Class VI wells, ensuring long-term carbon sequestration.

Also read: Frontier Carbon Solutions Launches SCS Hub to Tackle Industrial Emissions

CREW Carbon’s Role in CO2 Removal

CREW Carbon will secure $32.1 million for the removal of 71,878 tons of CO2 between 2025 and 2030. This part of the deal is similar to the agreement with CO280. CREW Carbon partners with wastewater treatment plants to deploy carbon removal systems.

The company adds alkaline minerals to the wastewater treatment tanks, in which microbes produce biogenic CO2. This process converts the CO2 into stable aqueous bicarbonate ions, either safely released into bodies of water or stored underground.

Benefits of Frontier’s Investment

This partnership highlights Frontier’s commitment to supporting scalable carbon removal technologies. By investing in solutions like CREW Carbon and CO280, Frontier is helping stimulate the growth of carbon reduction methods with the potential for rapid expansion.

CREW Carbon installs a monitoring system at treatment plants to measure the amount of carbon dioxide captured in the process. The precision of this system allows for accurate quantification and reporting of carbon removal outcomes.

The Frontier Coalition

Frontier, founded by companies such as Stripe, Google, Shopify, and McKinsey Sustainability, has expanded to include several industry giants. Autodesk, H&M Group, Workday, and Salesforce are also involved in this ambitious investment initiative.

Other partners, including Aledade, Canva, Match Group, Samsara, SKIMS, Skyscanner, Wise, and Zendesk, are making their purchases through Frontier’s partnership with Watershed.

Looking Ahead

With this investment, Frontier aims to catalyze the scaling of carbon removal solutions. The coalition hopes to drive more companies to adopt technologies that can quickly tackle carbon emissions. This move is essential for addressing the climate crisis and achieving ambitious net-zero goals.