The energy industry is entering a new phase due to the decarbonization movement and increasing geopolitical risks. In addressing this challenging situation, which can be referred to as the Energy Trilemma, it is important to prioritize continuous decarbonization through measures such as CCS, while ensuring a stable supply of existing energy sources, with natural gas at the forefront.

The JGC Group has built a reputation as a leading contractor in CCS. Our track record of construction includes projects such as our first CCS facility at an Algerian natural gas refinery in 2004, a CCS installation at an Australian LNG plant that is one of the world’s largest, and one of Japan’s first large-scale CCS pilot projects in Hokkaido. Along with construction of CCS facilities, JGC is actively developing technologies used in CO₂ separation. With NGK Insulators, Ltd., we have developed original CO₂ separation and capture technology applying DDR-type zeolite membranes, which are being tested in preparation for commercial deployment at plants. This technology offers higher CO₂/CH₄ selectivity than with conventional polymeric membranes, and the membranes’exceptional durability in high- pressure, high-CO₂ environments makes them promising in CO₂-EOR（enhanced oil recovery）. Another technology for which JGC is involved in sales and has already licensed at CCS facilities outside of Japan is HiPACT ^®, which recovers CO₂ at high pressures from natural gas and synthesis gas, enabling cost reduction and energy saving in CCS. HiPACT ^® was jointly developed by the JGC Group and BASF. JGC Group is promoting maturation and commercializing of technologies that contribute to sustainability through collaborative innovation, with “Enhancing planetary health” as its own purpose. This keynote introduces our efforts in the areas of Sustainability and Carbon Capture, Utilization and Storage Projects.

We are officially aiming to significantly reduce CO₂ emissions and become a carbon-neutral society. On the other hand, our society cannot accept soaring energy prices at this point. We empirically analyzed the relationship between the unit cost of offshore wind power projects and the factors based on actual data from offshore wind power facilities in Europe. As a result, based on the data collected in this study from 2000 onwards, it was observed that the project unit cost tends to increase as the year of wind power facilities commissioning is newer. It suggested that excessive expectations such as “significant progress in cost reduction” should be avoided. We applied real options analysis to carbon dioxide capture and storage（CCS）investment and calculated the investment threshold at which it is appropriate to make the investment in terms of expected costs. As a result, we confirmed that there are large areas where it is cost-effective to wait at that point, rather than immediately making a final investment decision in a new power source. This means that it is challenging to proceed with CCS investment under uncertainty. To promote the spread of CCS, it is necessary to overcome the investment barriers shown in this analysis. Carbon neutrality has been focused on for a long time. To maintain and secure the direction of carbon neutrality while minimizing the economic burden as much as possible, it is necessary to confront these challenges that lie ahead.

In November 2020, the first offshore wind power tender（the so-called Round 1）, to which the Renewable Energy Sea Area Utilization Act applies, was conducted in four sea areas across the country. Among the four areas, a consortium led by Mitsubishi Corporation won the bidding for three sites. Two were off the coast of Noshiro City and Yurihonjo City（in which our company, Venti Japan is a member of the consortium）in Akita Prefecture and one was off the coast of Choshi City in Chiba Prefecture. This result caused a stir when it was released. Following Round 1, the government designated another four sea areas for the second major tender, two of which are Happo-Noshiro coast and Oga-Katagami-Akita coast in Akita Prefecture. The biddings were closed and now under review.

In addition, the first large-scale offshore wind power plant built in the ports of Akita and Noshiro started commercial operation in December 2022 and January 2023, respectively. So far, Akita Prefecture has been competing with Aomori Prefecture for the top spot in the field of onshore wind power, but has now taken a significant lead in offshore wind power, making it the largest wind power generation region in Japan. In this presentation, I would like to talk about how Akita’ s wind power generation industry has developed and what can be expected from wind power generation from the perspective of a local wind power developer.

Creating a wormhole network in tight reservoirs is a long-explored concept in acid stimulation to extract oil/gas from low permeable rocks efficiently. Conventional acid stimulation technique, such as high-rate acid injection in limited entry intervals, are for focusing acid contact on limited parts of a reservoir and for suppressing rapid acid consumption near wellbore. These techniques facilitate creation of high-velocity flow channels called “wormhole” within dissolvable host rock, but for the cost of extra pumping power and acid volume.

However, if minerals existing along vein network can be dissolved using a fit-for-purpose acid recipe, stimulation should be done effectively without necessitating such costly techniques. This is because rapid acid consumption will no longer be an issue as the mineral filling veins are usually limited in its weight-ratio of less than 10 percent, compared to the host rock. In addition, spatial extent of vein network reaching tens of meters is not rare. Extremely deep penetration of acid can be achieved by targeting such vein network.

The new acid stimulation technique based on dissolution of mineral vein network in tight reservoir rocks is proposed to promote efficient developments for three domestic oil/gas fields. One of the three fields is Katakai gas field, which has been formed in a tight volcanic reservoir rock seating over 4000m depth and having an ultra-high temperature of 180 degree Celsius. Due to such high temperature, a special acid recipe composed of chelating agents is selected by long-term batch reaction tests. The recipe shows not only a high and stable acid capacity but also a low corrosive characteristics. A field test indicated an effectiveness of the new acid technique by achieving negative skin at minus 1.27 through the acid volume of 94kL at the maximum injection rate of 2.5 barrel per minute（BPM）.

According to the PEST（political, economic, sociocultural and technological）analysis of Japanese energy security, the utilization and advancement of the carbon capture and storage（CCS）technology is indispensable on top of the energy transition to green and hydrogen to meet the net zero target in 2050. This lecture focused on CCS, underground hydrogen storage and production, and geothermal to discuss the up-to-date simulation technologies, current challenges, and limitations.

This study exhibits a detailed lithologic description of the outcrops along the 79.95 m-thick Ichino-sawa section of the Late Miocene-Early Pliocene Kanatsu Formation, the main reservoir horizon of the Niitsu Oilfield, Niigata, Japan. A total of six facies types of sediment gravity flow deposits were identified. A preliminary pore-throat radius analysis was also conducted on 13 samples from four sandstone beds. These revealed distinctive vertical variations of variable scales in both lithology and porosity in this lower slope setting of a channel-levee complex. The sedimentation processes of the sandstone beds are discussed, suggesting that reservoir quality（porosity and thickness）is strongly controlled by the flow conditions immediately prior to the deposition. Comparison with deep-sea sediments in other areas within and outside the Niigata Basin is also shown. The methods used in this case study can be useful in creating a template for predicting reservoir quality in relatively new fields.