Workshop on CCU / Carbon Recycling Technologies Held

1. Background

CCU and carbon recycling are key technologies to realize a carbon-neutral society, where carbon dioxide emissions into the atmosphere can be curbed, compared to the those from the conventional use of fossil fuels, by reusing carbon dioxide as a valuable material and resource. In particular, promoting the use of RCFs, such as e-methane and e-fuels, is important for decarbonization in the gas networks and transportation sectors. To introduce RCFs in such sectors, it is necessary for the public and private sectors to work together to solve certain challenges, including technology development and demonstration, production costs, rules for counting carbon dioxide, and certification. In addition, to realize the industrialization of RCFs, it is important to develop a system and other frameworks to encourage private companies to invest in the manufacturing and utilization of such fuels. This includes approaches to calculating the amount of emissions under the rules for counting carbon dioxide from the fuels.

Amid this situation, the G7 Ministers’ Meeting on Climate, Energy and Environment, which was held in Sapporo in April 2023, compiled the ministers’ communiqué under the co-chairmanship of Mr. Nishimura Yasutoshi, Minister of Economy, Trade and Industry, and Mr. Nishimura Akihiro, then-Minister of the Environment. The communiqué included the following points.

• CCU/ carbon recycling and carbon dioxide capture and storage (CCS) can be an important part of a broad portfolio of decarbonization solutions to achieve net-zero emissions by 2050.
• CCU/ carbon recycling technologies, including RCFs, such as e-fuels and e-methane, also can reduce emissions with existing infrastructure from industrial sources that cannot be avoided otherwise by displacing fossil-derived commodities and by using CO2.
• Holding collaborative workshops among industry, academia, and government on CCU/ carbon recycling technologies, such as RCFs.

Based on these, METI and MOE consider it is important to share an awareness of the challenges among project parties in developing methods for counting carbon dioxide emissions involving RCFs and held a workshop aiming to gain common understanding among such parties to promote international cooperation.

2. Date and time

8:00 p.m. - 10:00 p.m., Tuesday, November 7, 2023 (Japan time)

3. Venue

Online format

4. Organizers

METI and MOE of Japan

5. Participants

Government officials, experts, and representatives of private companies from Japan, Canada, the European Union (EU), France, Germany, Italy, the United States, the United Arab Emirates (UAE), Belgium, and Australia

6. Outcomes and overview

Representatives of HIF Global (United States), Mitsubishi Corporation (Japan), Tree Energy Solutions (Belgium), and Santos (Australia) explained their respective efforts for RCFs concerning e-methane and e-fuels. In addition, Mr. Tanabe Kiyoto, Institute for Global Environmental Strategies (IGES), and Mr. Sugii Takeo, Director, Office for Decarbonized Business Promotion, MOE, made a presentation on the current situation of developing international rules for counting carbon dioxide emissions involving CCU/ carbon recycling and a presentation on the current situation of the discussions on products derived from CCU/ carbon recycling under Japan’s Greenhouse GAS Accounting, Reporting, and Disclosure System. Highlights of the discussions in the workshop are as follows.

• e-methane and e-fuels are available in the existing infrastructure and they are expected to be used in such sectors as  gas networks and transportation.
• Looking at the efforts for e-methane and e-fuels by the private sector, private companies are in the phase of exploring a wide range of options for the methods for manufacturing and procuring renewable energy and hydrogen.
• Low-cost renewable energy, access to hydrogen and carbon dioxide sources, proximity to existing infrastructure, and so forth are important elements for the private sector in selecting sites for CCU/ carbon recycling projects. Based on this, it will be effective to establish a clear framework for the system for CCU and RCFs.
• Currently, no clear guidance is set on international rules for counting carbon dioxide emissions involving the utilization of products derived from CCU/ carbon recycling. Going forward, different calculation approaches may be adopted among countries depending on the type of products derived from CCU/ carbon recycling.
• Concerning approaches to handling products derived from CCU/ carbon recycling in counting domestic greenhouse gas emissions, options to consider are organizing the approaches along with national GHG emissions inventories (hereinafter referred to as the “inventories”) under the guidelines by the Intergovernmental Panel on Climate Change (IPCC), or organizing them through bilateral agreements and other forms of consensus, not in accordance with the inventories.

7. Related information

• Results of the Workshop on CCU/ carbon recycling technologies (MOE)

Division in Charge

Gas Market Office, Electricity and Gas Industry Department, Agency for Natural Resources and Energy