Japan is expanding its efforts to integrate carbon capture technologies with offshore geological storage, aligning with international trends and driving the push towards industrial decarbonisation amid a rapidly growing global market.
Japan is moving to stitch together industrial carbon capture projects and offshore storage options as part of a stepped-up strategy to decarbonise hard-to-abate sectors, industry sources and market research show.
According to the report by DataM Intelligence, the global carbon capture, utilization and storage (CCUS) market was valued at about US$3.0 billion in 2023 and is projected to grow to roughly US$16.5 billion by 2031, implying a compound annual growth rate of about 24% from 2024 to 2031. The consultancy cites stronger regulatory pressure, corporate net-zero commitments, rising investment in decarbonisation and demand for CO2 for enhanced oil recovery and industrial uses as principal growth drivers.
Japan’s recent activity reflects those dynamics. Mitsubishi Heavy Industries (MHI) has accelerated deployment of capture technologies across power and industrial sites. MHI said it began operations of a CO2 capture pilot plant at The Kansai Electric Power Co.’s Himeji No.2 Power Station in Hyogo Prefecture with an initial capture capacity of about five tonnes per day, part of joint development work with ExxonMobil to commercialise next-generation capture systems. MHI has also been expanding demonstration projects beyond power generation, installing capture trials at Hokuetsu Corporation’s Niigata paper mill using its CO2MPACT™ Mobile unit, and granting Chiyoda Corporation a general licence to deploy MHI’s KM CDR Process™ and Advanced KM CDR Process™ for engineering, procurement and construction of capture plants in Japan.
Industry technical literature from MHI underscores the role capture will play alongside fuel switching and efficiency measures. MHI’s Technical Review highlights capture technologies capable of up to 90% CO2 removal from coal-fired plants or combined-cycle gas turbines and positions capture as a bridge to longer-term fuel transitions to hydrogen and ammonia.
Crucially, Japan is pairing capture demonstrations with nascent plans for offshore geological storage. According to a report by Japan Forward, feasibility studies launched near Akita are examining injection of CO2 into sandstone layers more than 800 metres beneath the seabed, roughly 20 kilometres offshore. The scheme is being designed to initially accommodate industrial emitters such as steel and cement, with a storage target on the order of two million tonnes of CO2 per year at full deployment.
The emerging Japanese model follows trends seen internationally. DataM Intelligence details parallel developments in North America and elsewhere, noting large-scale CCUS hubs and expanded fiscal support such as enhancements to U.S. tax incentives for capture deployment. Major energy and engineering firms globally, listed by the report as ExxonMobil, Schlumberger, Equinor, Aker Solutions, Linde and others, are active in capture, transportation, utilisation and storage markets, while oil and gas and heavy industries remain primary end users.
For industrial decarbonisation strategists, the combination of domestic capture pilots, EPC licensing and offshore storage appraisal in Japan illustrates several practical implications. First, modular and mobile capture units can accelerate learning-by-doing across diverse processes, shortening timelines to commercial scale. Second, licensing arrangements and EPC partnerships lower barriers for projects by enabling local contractors to deliver full-scope plants. Third, the co-development of regional storage hubs, if underpinned by rigorous site characterisation, monitoring and liability frameworks, can create shared infrastructure that reduces unit costs for multiple emitters.
Risks and uncertainties remain. Scale-up from pilot captures of a few tonnes per day to multi-megatonne annual storage requires substantive investment, long-term regulatory frameworks for pore-space rights and liability, and robust monitoring to secure permanent sequestration. The economics of capture continue to depend on policy support, market demand for CO2-derived products and potential revenue streams such as enhanced oil recovery, which may be limited in net‑zero planning. DataM Intelligence’s market projections rest on those enabling conditions being put in place globally.
Japan’s recent moves, MHI’s pilot starts, licensing deals and sectoral demonstrations, together with offshore storage feasibility work, signal a maturing approach that links industrial emitters to prospective shared storage. For companies and investors engaged in industrial decarbonisation, the evolving landscape presents opportunities to shape engineering standards, project finance structures and regulatory regimes that will determine whether CCUS in Japan and comparable markets becomes a practical route to deep emissions reductions or remains constrained at demonstration scale.
- https://www.openpr.com/news/4331545/japan-strengthens-carbon-capture-strategy-with-offshore – Please view link – unable to able to access data
- https://www.mhi.com/news/250514.html – Mitsubishi Heavy Industries (MHI) has commenced operations of a new CO₂ capture pilot plant at KEPCO’s Himeji No.2 Power Station in Hyogo Prefecture, Japan. This facility, with a daily capture capacity of approximately five tons, aims to advance next-generation CO₂ capture technologies developed in collaboration with ExxonMobil. The initiative is part of MHI’s ongoing efforts to enhance the competitiveness of carbon dioxide capture, utilization, and storage (CCUS) solutions, addressing diverse customer needs and contributing to greenhouse gas emission reductions.
- https://www.mhi.com/news/240117.html – Mitsubishi Heavy Industries (MHI) and The Kansai Electric Power Co., Inc. (KEPCO) have agreed to install a new CO₂ capture pilot plant at KEPCO’s Himeji No.2 Power Station in Hyogo, Japan. Scheduled to commence operations in fiscal year 2025, this plant will demonstrate next-generation CO₂ capture technology, replacing the existing pilot plant at Nanko Power Station. The project aims to accelerate the development of advanced CO₂ capture technologies under MHI’s joint development with ExxonMobil.
- https://www.mhi.com/news/24050701.html – Mitsubishi Heavy Industries (MHI) has entered into a General License Agreement with Chiyoda Corporation, granting Chiyoda the rights to MHI’s ‘KM CDR Process™’ and ‘Advanced KM CDR Process™’. This strategic collaboration enables Chiyoda to provide engineering, procurement, and construction (EPC) services for CO₂ capture projects in Japan, thereby strengthening MHI’s position in the country’s growing carbon capture, utilization, and storage (CCUS) market.
- https://www.mhi.com/news/24112901.html – Mitsubishi Heavy Industries (MHI) and Hokuetsu Corporation have launched a CO₂ capture demonstration test at Hokuetsu’s Niigata Mill in Japan. Utilizing MHI’s ‘CO₂MPACT™ Mobile’ system, the project aims to capture CO₂ from a chemical recovery boiler that produces steam and electricity for paper manufacturing. This marks the first application of MHI’s CO₂ capture technology in the pulp and paper industry, contributing to the sector’s decarbonization efforts.
- https://www.mhi.com/technology/review/sites/g/files/jwhtju2326/files/2025-09/e623020_1.pdf – Mitsubishi Heavy Industries’ Technical Review Vol. 62 No. 3 (September 2025) discusses strategies for decarbonizing thermal power generation, focusing on reducing, capturing, and eliminating CO₂ emissions. The review highlights technologies such as high-blend ratio biomass co-firing, high-efficiency natural gas-fired Gas Turbine Combined Cycle (GTCC), and CO₂ capture technologies that can achieve up to 90% CO₂ capture from coal-fired power plants or GTCCs. The ultimate goal is to transition to hydrogen or ammonia fuels, which are carbon-free.
- https://featured.japan-forward.com/japan2earth/2024/11/8574/ – Japan is initiating offshore CO₂ storage feasibility studies near Akita to support its carbon neutrality goals by 2050. The project involves injecting CO₂ into sandstone layers over 800 meters below the seabed, approximately 20 kilometers offshore. This geological storage method aims to capture and store approximately two million tons of CO₂ annually, with initial focus on industries such as steelmaking and cement production, and potential expansion to other sectors.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The narrative references recent developments in Japan’s carbon capture strategy, including Mitsubishi Heavy Industries’ (MHI) CO₂ capture pilot plant at Himeji No.2 Power Station, which began operations in May 2025. ([nasdaq.com](https://www.nasdaq.com/press-release/mhi-starts-operation-new-co2-capture-pilot-plant-kepcos-himeji-no2-power-station-2025?utm_source=openai)) However, the article was published on December 30, 2025, indicating a delay of over seven days, which may affect the freshness score. Additionally, the article cites a report by DataM Intelligence, dated December 30, 2025, suggesting that the content is based on a press release, which typically warrants a higher freshness score. The presence of older material with updated data may justify a higher freshness score but should still be flagged. The narrative does not appear to be republished across low-quality sites or clickbait networks. The earliest known publication date of substantially similar content is December 30, 2025.
Quotes check
Score:
8
Notes:
The narrative includes direct quotes from MHI and KEPCO regarding the CO₂ capture pilot plant at Himeji No.2 Power Station. These quotes are consistent with statements made in the press release dated January 17, 2024. ([mhi.com](https://www.mhi.com/news/240117.html?utm_source=openai)) The wording of the quotes varies slightly between sources, indicating potential paraphrasing. No identical quotes appear in earlier material, suggesting that the content may be original or exclusive.
Source reliability
Score:
6
Notes:
The narrative originates from a press release by DataM Intelligence, a market research firm. While the firm is reputable, the reliance on a single source without corroboration from other reputable outlets raises concerns about the reliability of the information. The press release format may also limit the depth and objectivity of the reporting.
Plausability check
Score:
7
Notes:
The claims regarding Japan’s carbon capture strategy align with known industry developments, such as MHI’s CO₂ capture pilot plant at Himeji No.2 Power Station and the partnership between MHI and KEPCO. ([mhi.com](https://www.mhi.com/news/240117.html?utm_source=openai)) However, the narrative lacks supporting detail from other reputable outlets, which raises questions about its comprehensiveness. The tone and language used are consistent with industry reporting, and there are no excessive or off-topic details. The structure and tone do not raise immediate concerns.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents information consistent with known developments in Japan’s carbon capture strategy, including MHI’s CO₂ capture pilot plant at Himeji No.2 Power Station and the partnership between MHI and KEPCO. However, the reliance on a single press release from DataM Intelligence without corroboration from other reputable outlets raises concerns about the reliability and comprehensiveness of the information. The slight variations in quoted wording suggest potential paraphrasing, and the lack of supporting detail from other reputable outlets further questions the narrative’s credibility. Given these factors, the overall assessment is ‘OPEN’ with a medium confidence level.
