bp and Chubu sign broader cooperation on the study for potential international CCS hub & cluster

Following the successful completion of the Nagoya CCS feasibility study this year, BP Berau Ltd ("bp") and Chubu Electric Power Co., Inc ("Chubu Electric") have expanded their collaboration to explore a CCS value chain from Port of Nagoya, Japan, to the Tangguh field in Teluk Bintuni, Papua Barat, Indonesia.

The expanded collaboration is captured in the memorandum of understanding (MoU) amendment that bp, as the operator of Tangguh Production Sharing Contract (PSC), and Chubu Electric signed today. The MoU amends and broadens the scope in the previous MoU inked in September 2023, and now includes evaluation on cost optimization across the CCS value chain and business models to enable commercial CCS projects from Nagoya, Japan, to Tangguh in Indonesia.

Kathy Wu, bp regional president Asia Pacific, gas and low carbon energy and Hiroki Sato, Division CEO of global business at Chubu Electric, signed the MoU amendment on the second day of Asia Zero Emission Community (AZEC) Ministerial Meeting today at The St. Regis Jakarta.

Kathy Wu commented: The MoU amendment marks the continuation of an impactful collaboration between Chubu and bp, together with our Tangguh partners. As the community engages at AZEC and finds a way to support Asia's net zero agenda, this collaboration showcases our part of the works in progressing decarbonization in the Asia region.

Hiroki Sato commented: I believe CCUS is one of the essential pieces for the journey of decarbonization. There is no doubt bp is a very reliable partner for Chubu. Taking the opportunity of this memorable event, I wish to proceed our Nagoya Port CCUS project with the support by the Government of Indonesia and Japan.

The wider MoU will now cover also identification of legal requirements for a large-scale hub & cluster; possible business models -- including potential incentives and funding models required to allow for a commercial CCS project. It also covers optimizations of onshore infrastructure, large size CO₂ liquefaction and shipping, procurement and operation of CO₂ vessels.

bp and Chubu Electric aim to achieve net zero CO₂ emissions from their operations by 2050.

The Port of Nagoya is the largest port in Japan in terms of cargo volume, accounting for 3% of Japan's total CO₂ emissions and has set a target to reduce its emissions by 46% by FY2030 compared to FY2013.

Chubu Electric Division CEO of Global Business Hiroki Sato
Minister of Economy, Trade and Industry Ken Saito
Minister of Investment Rosan Roeslani
BP Regional President Asia Pacific, Gas and Low Carbon Energy Kathy Wu

<Reference: Tangguh Project Overview>