Marubeni and J-POWER fund A＄20 million in Glencore’s CTSCo Project in Queensland
Jun. 08. 2022
Electric Power Development Co., Ltd.
Marubeni Corporation (headquartered in Chiyoda-ku, Tokyo; Masumi Kakinoki, President; “Marubeni”) and Electric Power Development Co., Ltd. (headquartered in Chuo-ku, Tokyo; Toshifumi Watanabe, President; “J-POWER”) will each fund A$10 million in Glencore’s CTSCo Carbon Capture and Storage (CCS) Project in Queensland. Both Marubeni and J-POWER are long term joint venture partners in Glencore’s mining operations in Australia.
Glencore’s CTSCo Project aims to demonstrate carbon capture and storage technology. It focuses on capturing CO2 from the Millmerran coal-fired power station and permanently storing it deep underground in a dedicated storage site 100km from the power station. CTSCo has the potential to store significant volumes of CO2 to reduce existing and future sources of industrial emissions. This could improve energy security for the national electricity market, maintain and grow jobs in regional Queensland and enable future industries including hydrogen production, while also contributing to Australian and Queensland Government climate and emission reduction goals. A comprehensive Environmental Impact Statement for the Project is currently in progress, working towards the commencement of CO₂ injection in 2025.
“We are happy to be able to participate in the first CCS project in Australia to capture CO2 from a coal-fired power plant,” said Jun Horie, Group CEO of Marubeni’s Materials Group. “CCS is an important technology in enabling a carbon neutral economy worldwide, not to mention Japan. We hope to bring back what we learn from this project to contribute to the industry’s emission reduction goals.”
“Promoting CCS projects will be critical technology to achieve net-zero-emissions not only for the power sector but various sectors,” said Hiroyasu Sugiyama, Executive Vice President of J-POWER. “We are glad to be a member of this project.We believe that the practical application of CCS and the technology will contribute to decarbonization in Australia and all over the world as well.”
“We are delighted to welcome Marubeni and J-POWER as important funders in our CTSCo Project,” said Earl Melamed, Head of Glencore’s Global Coal Assets. “CTSCo is one of the most advanced onshore CCS projects in Australia and has the potential to store significant volumes of CO2 from a number of industries while playing an important role in deploying this critical emission reduction technology and bringing down its costs. Marubeni and J-POWER are long-term investors in the Australian resources sector and their involvement in our project further highlights the potential for CCS to materially reduce emissions in Queensland.”
CTSCo is a Glencore wholly owned company backed by Glencore funding. Other key project funding participants include Low Emission Technology Australia and the Australian Government.
Marubeni released its Long-Term Vision on Climate Change in March 2021, announcing its goal to become a net-positive company that can generate a positive impact on climate change and grow as a corporate group. To reach this goal, Marubeni plans to achieve net-zero GHG emissions by 2050, starting with halving its Scope 1 & 2 CO2 emissions and reducing 20% of its Scope 3 CO2 emissions from recorded FYE March 2020 levels by 2030.
J-POWER announced the Blue Mission 2050 initiative in February 2021. It is a vision to achieve carbon neutrality and a hydrogen society in 2050. We set a mid-term goal of reducing our CO2 emissions by 19 million tons in 2030, which represents a 40% reduction against our three-year average emissions from 2017 to 2019. Furthermore, J-POWER introduced a new short-term target to reduce CO2 emissions by 7 million tons in 2025.
Glencore recognises its responsibility to contribute to the global effort to achieve the goals of the Paris Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021 we increased our medium-term emission reduction target to a 50% reduction by 2035 and introduced a new short-term target of a 15% reduction by 2026.
Rendered image of the proposed CO2 capture plant to be located at the Millmerran Power Station in Queensland, Australia
Photo of the CO2 injection site near Moonie in Queensland, Australia