Japan CO2 Capture Plant Market was valued at USD 0.9 Billion in 2022 and is projected to reach USD 2.1 Billion by 2030, growing at a CAGR of 12.5% from 2024 to 2030.
Japan's Ambitious Pursuit of CO₂ Capture: Industrial Demand and Strategic Developments
Japan is actively investing in carbon capture, utilization, and storage (CCUS) technologies to achieve its goal of carbon neutrality by 2050. The government has allocated funds to seven CCS projects, aiming to store a combined 13 million tonnes of CO₂ per year by 2030. citeturn0search2 These projects span both domestic and international sites, including regions like Hokkaido, the Sea of Japan side of Tohoku, Higashi-Niigata, the Metropolitan area, Kyushu, Malaysia, and Australasia.
Industrial Demand Driving CCS Initiatives
Key industries such as power generation, steel, chemicals, cement, and paper production are the primary sources of CO₂ emissions in Japan. To address this, major corporations are investing in CCUS technologies. For instance, Chubu Electric Power plans to invest in CCS projects, including a collaboration with BP to collect CO₂ from industries at the port of Nagoya for storage abroad. citeturn0news12 Additionally, companies like Japan Petroleum Exploration, Idemitsu Kosan, and Hokkaido Electric Power are developing a CCS facility in Tomakomai, Hokkaido, with a capacity of 1.5 to 2 million metric tons of CO₂ per year, aiming to commence operations by 2030. citeturn0news14
Government Initiatives and Funding
The Japanese government, through agencies like Jogmec, is providing financial support to accelerate CCS development. In June 2023, Jogmec selected seven projects for funding, with test drilling scheduled to begin in the fiscal year 2024-2025. The goal is to make final investment decisions by 2026-2027 and commence commercial CCS operations by 2030-2031. citeturn0search2
Technological and Economic Challenges
Despite significant investments, CCUS technology in Japan is still in the development phase, with no large-scale commercial applications yet. Financial viability remains a concern, as current carbon taxation levels are insufficient to support widespread adoption. The Ministry of Economy, Trade, and Industry (METI) has estimated that implementing CCUS in thermal power plants could add 7 to 9 yen per kWh for coal plants and 3 to 4 yen per kWh for gas plants. citeturn0search1
International Collaborations and Future Outlook
Japan is also exploring international CCS projects, including initiatives in Malaysia and Australasia, to diversify storage options and enhance technological expertise. These efforts align with global trends towards decarbonization and position Japan as a potential leader in CCUS technology. However, achieving the 2050 carbon neutrality target will require overcoming significant technological, economic, and regulatory challenges.
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Terrell Natural Gas Processing Plant
Enid Fertilizer
Shute Creek Gas Processing Plant
Sleipner CO2 Storage
Great Plains Synfuels Plant and Weyburn-Midale
Core Energy
China Petroleum & Chemical Corporation
Snhvit CO2 Storage
Arkalon CO2 Compression Facility
Century Plant
Bonanza BioEnergy CCUS EOR
PCS Nitrogen
Petrobras Santos Basin Pre-Salt Oil Field CCS
Lost Cabin Gas Plant
Coffeyville Gasification Plant
Air Products Steam Methane Reformer
Boundary Dam Carbon Capture and Storage
Uthmaniyah CO2-EOR Demonstration
Quest
CCUS EOR
Abu Dhabi CCS
Illinois Industrial Carbon Capture and Storage
Gorgon Carbon Dioxide Injection
Qatar LNG CCS
Alberta Carbon
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Japan CO2 Capture Plant Market
Absorption
Adsorption
Membrane Separation
Cryogenic Distillation
Hybrid Systems
Power Generation
Cement Production
Steel Manufacturing
Chemical Production
Oil and Gas Industry
Large-Scale Plants
Small-Scale Plants
Modular Systems
Pilot Projects
Pre-Combustion Capture
Post-Combustion Capture
Oxy-Fuel Combustion
Direct Air Capture (DAC)
Carbon Footprint Reduction
Energy Efficiency Improvement
Economic Sustainability
Waste Management Strategies
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
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1. Introduction of the Japan CO2 Capture Plant Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Japan CO2 Capture Plant Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Japan CO2 Capture Plant Market, By Type
6. Japan CO2 Capture Plant Market, By Application
7. Japan CO2 Capture Plant Market, By Geography
Asia-Pacific
China
Japan
Korea
India
Australia
Indonesia
Thailand
Philippines
Malaysia and Vietnam
8. Japan CO2 Capture Plant Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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