ENEOS (5020) Status Update summary

CCS market and policy context

• CCS is positioned as a future earnings pillar alongside oil and gas, drawing on subsurface and CO₂ capture, storage and utilization expertise.

• Global capacity is expanding, with 41 projects operational and 351 in planning; IEA estimates CCUS could deliver 15% of cumulative CO₂ reductions by 2070, or 6.9 billion tons annually.

• Japan’s CCS Act was promulgated May 24, 2024; exploration rules took effect Aug. 5, with storage and pipeline provisions due within two years.

• Japan targets 6–12 million tons of annual storage by 2030 and 120–240 million tons by 2050; nine selected advanced projects plan ~20 million tons annually.

Targets and strategy

• Storage targets: 5 million tons by 2030, 15 million in the 2040s and 50 million by 2050, including third-party storage.

• CCS contributions to carbon neutrality goals: 3 million tons stored by 2030 and 11 million by 2040.

• Scope 1+2 emissions targets: 31 million tons in FY2025 (-14% vs. FY2013), 19 million tons in FY2030 (-46%) and net zero in FY2040.

• CCS deployment by 2030 is a priority, alongside transition businesses such as blue hydrogen and ammonia; expertise includes subsurface assessment, injection and monitoring, with experience at Petra Nova and Tomakomai.

Project progress

• Offshore Western Kyushu CCS, established by ENEOS, J-POWER and JX in February 2023, would capture CO₂ from western Japan refineries and power plants for offshore storage.

• Western Kyushu targets site selection and FID by 2026, followed by construction and injection by 2030; site selection and trial drilling are planned for 2025–2026, with capture, transport and storage scopes to align before FID.

• Domestic storage is the priority, with projects in Malaysia and Australia under study to supplement capacity limitations.

• JX joined Sumitomo Corporation’s Louisiana SAF/BECCS project; other work includes Malaysia and Australia value-chain studies and CO₂ liquefaction and storage optimization with NYK and KNCC.