By Miho Naganuma / Yomiuri Shimbun Staff Writer

The Japanese Economy, Trade and Industry Ministry is set to provide full-fledged support to companies that conduct projects on carbon capture and storage $(CCS)$, a decarbonization technology that collects carbon dioxide emitted from industrial sources such as factories and then stores them underground.

Looking to commercialize CCS technology by around 2030, the ministry will establish a system to subsidize commercialization costs for at least 10 years, sources said. The aim is to encourage companies to take part by alleviating financial concerns.

CCS requires three processes: separating and collecting carbon dioxide; transferring to storage sites; and injecting underground for storage. The industry ministry will subsidize part of the initial investment and operation costs for CCS projects that transfer CO2 through pipelines. The support period is planned to be around 10 to 15 years.

After the support period ends, companies are obliged to continue their CCS projects for up to the length of the support period. The ministry's goal is to establish a system in which companies can implement CCS projects long-term, and recoup its investments.

According to the industry ministry, the current initial CCS project cost is around several hundred billion yen. The process of collecting and storing CO2 costs about 30,000 yen per ton. These factors make CCS more expensive than other decarbonization technologies, the ministry said. However, there are high hopes in utilizing CCS in industries such as steel and chemicals, where achieving net-zero emissions is difficult through other means.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 11, 2025 03:13 ET (07:13 GMT)

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