Masanori AbeGeneral Manager

Technology and Planning Dept.Japan CCS Co., Ltd.

JCCSJCCS

Who is JCCS ?What we have done in FY2009 –What we have done in FY2009 2010.What we will do in FY2010What we will do in FY2010.Financial IssuesWrap-up

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JCCSJCCS

At the G8 Hokkaido Toyako Summit in July 2008 , leaders declared “We strongly support the launching of 20 large-scale declared, We strongly support the launching of 20 large-scale CCS demonstration projects globally by 2010, taking into account various national circumstances, with a view to beginning broad deployment of CCS by 2020 ”beginning broad deployment of CCS by 2020.Since around the summit, the Japanese Government accelerated developing innovative energy technologies for mitigating l b l i CCS i k t h l f thi global warming. CCS is a key technology for this purpose.

Private companies of Japan gathered and established a company to support this Government with conducting CCS demonstrations.Japan CCS Co., Ltd. is the first private company specialized in CCS in the world.in CCS in the world.

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JCCSJCCS

KEY OBJECTIVES OF JCCS INCORPORATION♦ Accomplish comprehensive investigations for carrying out

CCS total system demonstrations♦ Integrate opinions from the private sector for early

establishment of laws, regulations and technical standards applicable to CCS in Japan

♦ Conduct promoting activities for CCS deployment in Japan

♦ Cooperate with foreign organizations for CCS deployment ♦ Cooperate with foreign organizations for CCS deployment overseas

♦ Collect and exchange the latest information on CCS with overseas research organizations

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JCCSJCCS

Name: JAPAN CCS Co., Ltd.Date of Incorporation:

May 26 2008May 26, 2008Business Description:

A comprehensive investigation for Carbon-dioxide Capture and Storage Projects in JapanCapture and Storage Projects in Japan

Capital: 243 mm yen (ca. US$2.3mm)Shareholders: 37 companies

11 electric power, 5 petroleum, 5 engineering, 4 p , p , g g,petroleum resource developing, 4 general trading, 2 iron and steel, 2 city gas, 1 chemical, 1 non-ferrous metal and cement, 1 steel pipe, 1 special trading

President: Shoichi Ishii, Japan Petroleum Exploration Co., Ltd. (JAPEX)

Directors: 8 representing the shareholders’ industriesA dit T k hi H j R h I tit t f I ti Auditor: Takashi Honjo, Research Institute of Innovative

Technologies for the Earth (RITE)5

JCCSJCCSWho is JCCS -4/5-

Nippon Steel Engineering Co., Ltd.TOYO ENGINEERING CORPORATIONArabian Oil Company Ltd.

Hokkaido Electric Power Co., Inc.Tohoku Electric Power Co., Inc.The Tokyo Electric Power Co., Inc.

h b l i INPEX CORPORATIONJapan Petroleum Exploration Co., Ltd.Mitsui Oil Exploration Co., LTD.JFE Steel Corporation

Chubu Electric Power Co., Inc.Hokuriku Electric Power Co., Inc.The Kansai Electric Power Co., Inc.The Chugoku Electric Power Co Inc JFE Steel Corporation

SUMITOMO METAL INDUSTRIES, LTD. Tenaris NKK TubesITOCHU Corporation

The Chugoku Electric Power Co., Inc.Shikoku Electric Power Co., Inc.Kyushu Electric Power Co., Inc.The Okinawa Electric Power Co Ltd ITOCHU Corporation

Marubeni CorporationMitsubishi CorporationSumitomo Corporation

The Okinawa Electric Power Co., Ltd.Electric Power Development Co., Ltd.COSMO OIL CO., LTD.Idemitsu Kosan Co., Ltd. p

Marubeni-Itochu Steel Inc.Tokyo Gas Co., Ltd.Osaka Gas Co., Ltd.

,JAPAN ENERGY CORPORATIONNIPPON OIL CORPORATIONSHOWA SHELL SEKIYU K. K.

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MITSUBISHI GAS CHEMICALCOMPANY, INC.

Mitsubishi Materials Corporation

CHIYODA CORPORATIONJGC CorporationJFE Engineering Corporation

PROJECT FRAMEWORK- FUNCTIONS OF JCCS -

JCCSJCCSWho is JCCS -5/5-

Ministry of Economy, Trade and Industry (METI)

NEDO*Commissioning

TechnicalResearch organizations,

Commissioning

JAPAN CCS Co., Ltd.

Technical

cooperation

Cooperative Personnel

Investment

organizations,domestic and overseas Private

Companies

CCS relating companies, domestic and

CooperativeResearch

Subcontract

E ti

Universities

g p ,overseas

Execution

Execution

Investigation and relating works for CCS demonstration

7*New Energy and Industrial Technology Development Organization

JCCSJCCS

Fiscal Year08 09 10 11 12 -

METI Subsidized

Project

Development of Assessment Technologiesand Site Screening j

METI Commissioned Project“Demonstration of CO2 Reduction Technology”Demonstration of CO2 Reduction Technology

NEDO Commissioned Project

F ibilit St d CCS T t l S t

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Feasibility Study – CCS Total SystemCO2 capture at IGCC and store at an offshore depleted gas field

*Fiscal Year : April - March

JCCSJCCSMETI Subsidized Project in FY 2008

WO

R Site Evaluation Marine Environmental Investigation

WORK FLOWSupporting Work

RK

S

Economic Effect Analysis

Site EvaluationBasic Research for Leakage Risk Analysis

115

SIT

E

Integrated

7 4

Screening Engineering(15 Models)

WO

RK

Fault Assessment

Evaluations

- Demonstration Models

PR

OD

U PotentialScreening

MethodBenchmark

IssuesDesigns

Fault Assessment

Model

and Plans- Well Completion Study- CO2 Simulation Study- Monitoring Techniques

UC

TS

Method IssuesFault

Assessment

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JCCSJCCSMETI Subsidized Project in FY 2008

15 models of CCS total systemsfor engineering and reservoir study

SourceIGCC

CapturePhysical Absorption

TransportLand Pipeline (gas)

Injection

ERD (Extended

StoreDepleted Gas Field

for engineering and reservoir study

Coal Pulverized Power Plants

Oil refineries

Chemical Plants

Absorption

Chemical Absorption

(gas)

Offshore Pipeline (gas)

Lorry (liquid)

(Extended Reach Drilling) Well

Directional Drilling Well

Field

Aquifer with closure

Neogene Chemical Plants

Gas Field

Paper Mill Plant

Cement Plant

Ship (liquid)Drilling Well

Subsea Completion

Platform

aquifer without closure

Paleogene aquifer without l

Ironworksclosure

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JCCSJCCS

Conceptual Diagram of CCS

Plant B CO2 capture facilities •CO2 is captured at largePlant A

CO2 compressor

CO2 transport (subsea pipeline) CO2 compressor

CO2 capture facilities

Less than 10km

CO2 is captured at large point sources, transported to compressing facilities

Subsea facilities

CO2 injection well Deeper than 1000m below

CO2 injection well

and injected into deep saline aquifers or depleted oil/gas

iSeal

(Mudstone)

seabed

CO2 Storage

reservoirs.•Sub-seabed storage is practical in Japan because long

Reservoir (Sandstone)

(Microscopic image) (Microscopic image)

CO2 Storage

because long negotiations with many land owners are not required

(Microscopic image)

ER D: Extended Reach Drilling

Sand grain

Saline water required.

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JCCSJCCS

CO2 i d b d h N k IGCC d i CO2 is assumed to be captured at the Nakoso IGCC demonstration plant, transported to the Iwaki-oki Gas Field and stored in depleted gas reservoirs.

IGCC I t t d l G ifi ti C bi d C l d t ti l t i d IGCC, Integrated coal Gasification Combined Cycle, demonstration plant is owned and being operated by Clean Coal Power R&D Co., Ltd. (CCP).Iwaki-oki gas field was operated by Inpex (ex-Teikoku Oil).

Term: July 2008 – 2010Nakoso IGCC

I ki ki G Fi ld

Term: July 2008 2010

Offshore PipelineAir-blown

250MWIwaki-oki Gas Field

CompressCaptureSub Sea

CompletionWD 150m

Iwaki

Iwaki-oki Gas Field

Fukushima

Depleted Gas Reservoir2000mbMSLNakoso

IGCC

ca.80km

N

Ibaraki

TOKYO

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JCCSJCCS

Tomakomai City October - November 2009

苫小牧

Population : 170,000 2009Shallow Marine Type- Ocean Bottom Cable

Hokkaido Is

3D Seismic SurveyInvestigation Area （2.7×3 km）

5ｋｍ

b

Hokkaido Is.

Tomakomai

TOKYO buoy

Guard boats

Observation boat

TOKYO

Air gun boat13

Assumed Flow at Tomakomai SiteOne of Examples

Transport InjectionCapture StoreSource Injection

250,000t/yr(SC-CO2)

Plant 1 CO2 Capture Land Pipeline

Separate/Compress

Source

200 000t/

<<NEW>> <<NEW>>

Compress

Injection Well

200,000t/yr(Gas CO2)

Compress/HeatSource

<<NEW>>

AquiferPlant 2 CO2 Capture LiquefiedTank Lorry

Compress/Cool

Liq. CO2

50,000t/yr(Liq.CO2)

JCCSJCCS

FY2009 (Apr. 2009 – Mar. 2010)3D Seismic Survey @ Tomakomai candidate Site3D Seismic Survey @ Tomakomai candidate SiteOffshore Pipeline Route Survey @ Iwaki-oki candidate SiteBasic Designing @ several sites

FY2010 (Apr. 2010 – Mar. 2011)Investigation wells @ several candidate sites3D Seismic Survey @ one candidate siteG l i l l ti ith th 3D d ll d tGeological evaluation with these 3D and well dataDemonstration plan(s) to be presented to METIThe Demonstration site(s) will be selected and the large-The Demonstration site(s) will be selected and the largescale demonstration(s) will be launched

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JCCSJCCS

Shareholders of JCCS have been requesting METI to bear 100% cost for the demonstration projects in Japan100% cost for the demonstration projects in Japan.The national budget is a yearly basis.No guarantee in advance in writing to bear 100% cost for No guarantee in advance in writing to bear 100% cost for the entire project for almost 10 years.METI bore the 100% cost for the projects in FY2009METI bore the 100% cost for the projects in FY2009.METI bears the 100% cost in FY2010.A risk of project suspension or cancellation in future if A risk of project suspension or cancellation in future if METI would decide not to bear 100% cost for the following years and shareholders would not bear the remaining cost.years and shareholders would not bear the remaining cost.

16*Fiscal Year : April - March

JCCSJCCS

The Japanese Government has been accelerating promotion to develop Innovative Energy Technologies including CCS since the Hokkaido Toyako Summit in 2008 including CCS since the Hokkaido Toyako Summit in 2008 and set an aggressive CO2 reduction target in 2009.In order to deploy CCS widely in Japan, several demonstration projects are required.p j qJCCS was established just before the Hokkaido Toyako Summit to support the Government by conducting comprehensive investigations for CCS demonstration in Japan for contributing to mitigate the global warmingJapan for contributing to mitigate the global warming.JCCS carried out site selection and engineering / designing for CCS demonstrations in 2008, and field surveys in 2009.This year three appraisal and exploratory wells will be This year three appraisal and exploratory wells will be drilled in 3 candidate sites.After drilling these wells JCCS will present site evaluation reports to the government and demonstration site(s) will be

l t d b d th tselected based on the reports.

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JCCSJCCS

Thank you for your attention!Thank you for your attention!

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