CCUS PROJECTS AROUND THE WORLD
Tomakomai CCUS Platform Project (Japan)
In Japan, the world's pioneering CCUS project is underway in Tomakomai, Hokkaido, involving the local community and many industries. The Port of Tomakomai is home to a major petroleum value chain and Japan‘s first COcapture and storage facility. Taking advantage of this feature, coupled with abundant renewable potential of Hokkaido, the project aims to realize a carbon-recycling business through cross-industry collaboration.
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Carbon-recycling promoted in Tomakomai through cross-industry collaboration
Tomakomai is a leading industrial city in Hokkaido. It is home to not only the Yufutsu oil and gas field, the only commercially producing oil and gas field, and the only refinery in Hokkaido, but also many manufacturing plants for automobile, paper, chemical, and other industries. Most notably, this area has Japan's first large-scale CCS demonstration facilities. To put it another way, in Japan, it is practically the only location where the entire value chain from oil production, refining, and underground storage of COis located.
Due to these characteristics of Tomakomai, Deloitte and Japan Petroleum Exploration Company (JAPEX) have begun a feasibility study of a carbon-recycling project through cross-industrial collaboration to achieve net-zero COemissions for the entire city from 2021, under contract with New Energy and Industrial Technology Development Organization (NEDO).
Tomakomai's future vision to achieve with CCUS
Through dialogue with 38 local companies and organizations, Deloitte examined the situation of CO, heat, and other emissions in Tomakomai and the combination of enterprises that could utilize these resources each other, drawing up a grand design (Figure 1) for the CCUS through cross-industry collaboration. First, CO pipelines will be used to connect large CO emitters with consumers, and exhaust gas from small CO emitters will be collected through the dedicated pipeline. To produce synthetic fuels, which is the primary consumer of CO , the pipelines will also supply hydrogen, the raw material for the synthetic fuels. In addition, an electricity network will be established to supply locally generated renewable energy. The idea is to comprehensively lead the entire city to zero emissions through the three infrastructures: CO , hydrogen, and renewable electricity infrastructures. Figure 1
Grand design of the Tomakomai CCUS project based on inter-industry collaboration
Having said that, it is not realistic to build all the infrastructure at once, since this plan involves large-scale infrastructure development, and some of the technologies under consideration are not commercially available at this time. Therefore, we developed a scenario in which technically established and economically feasible technologies, such as CO-absorbing concrete, will be introduced initially and gradually expand deployments (Figure 2).Figure 2
A scenario for phased technology implementation in the Tomakomai CCUS project
Deloitte's role in the Tomakomai project
The Tomakomai project is an idea that cannot be implemented by a single entity. It is designed to make effective use of resources, including CO, through cross-industry collaboration. Coordination among a large number of enterprises is essential for the success of this project. Deloitte thus took on the role of a coordinator and drew a grand design for the project
In order to materialize the grand design, it is necessary to overcome complex challenges ranging from formulating regulations, building consortium to operation of COpipeline. Deloitte is a consulting firm with a diverse range of professionals providing services from strategy consulting, financial advisory, auditing, and assurance. We will bring together these strengths to provide comprehensive support for the Tomakomai project all the way through to social implementation.
To contact Deloitte regarding carbon neutrality and CCUS, please click here.