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.

ONGC NTPC Green Private Limited (ONGPL), a joint venture between ONGC Green Limited (OGL) and NTPC Green Energy Limited (NGEL), has signed a Share Purchase Agreement (SPA) for the acquisition of a 100% shareholding in Ayana Renewable Power Private Limited (Ayana) at ₹195 billion ($ 2.3 billion).

The deal, signed on February 12, 2025, was made with the National Investment and Infrastructure Fund (NIIF), British International Investment Plc (BII), and Eversource Capital. It is ONGPL’s largest investment since November 2024, marking its focus on accelerating India’s shift to renewable energy.

Ayana’s Strong Renewable Energy Portfolio

Ayana, a top renewable energy platform, has on-grid and under-construction assets of about 4.1 GW spread across India’s resource-abundant locations. The portfolio consists of high-credit-rated off-takers like SECI, NTPC, GUVNL, and Indian Railways, providing long-term agreements for its projects. This takeover places ONGPL well to grow even bigger in India’s expanding renewable energy market, leveraging Ayana’s platform and portfolio to drive its expansion.

With India’s Net-Zero Ambitions

This acquisition aligns with ONGC and NTPC’s renewable energy ambitions of achieving net-zero emissions by 2038 and 2050, respectively. The deal aligns with India’s 500 GW renewable energy capacity by 2030 ambition, bringing its Net Zero goal forward to 2070. With the acquisition of Ayana, ONGPL enhances its role in assisting India in realizing its ambitious clean energy goals.

Alignment with India’s Green Energy Transition

NIIF has been instrumental in Ayana’s development, making it one of India’s leading renewable energy platforms. Established in 2018 by BII, Ayana expanded with funding from NIIF and Eversource Capital, diversifying into solar and wind initiatives. Ayana has achieved leading ESG ratings, demonstrating its commitment to high environmental, social, and governance principles in sustainability.

Also read: Tata Power Renewable Energy and ONGC Sign MoU to Explore BESS Opportunities

Support from Global Institutions for the Acquisition

Vinod Giri, Managing Partner, NIIF, said, “Ayana’s success reflects NIIF’s dedication to scaling sustainable infrastructure investments. This transaction unlocks value while attracting global institutional capital into India’s renewable sector. We look forward to seeing Ayana continue its growth trajectory with ONGPL.”

Deloitte Touche Tohmatsu India LLP acted as transaction advisor to ONGPL, while JSA Advocates and Solicitors offered legal advice. Standard Chartered acted as the transaction advisor and Khaitan & Co and Cyril Amarchand Mangaldas handled the deal’s legal work.