Joint Study on CO2 Utilization around Niigata Area

MITSUBISHI GAS CHEMICAL COMPANY, INC. (President: Masashi Fujii, Headquarters: Chiyoda-ku, Tokyo, hereinafter "MGC"), and Japan Petroleum Exploration Co., Ltd. (President: Masahiro Fujita, Headquarters: Chiyoda-ku, Tokyo, hereinafter "JAPEX") have agreed to conduct a joint study on the feasibility of CO₂ utilization business around Niigata area, by leveraging each company's business basement.

MGC has the expertise in the production of methanol and ammonia in Niigata City, and JAPEX conducts oil and natural gas production in the several fields in Niigata Prefecture. At this time, MGC and JAPEX have agreed to conduct a joint study on the feasibility of CO₂ utilization, based on MGC's Niigata Plant and the Higashi-Niigata Gas Field which MGC and JAPEX have been operating together.

MGC will start a study for the commercialization of methanol production from CO₂ emitted at the Niigata Plant. In addition, JAPEX will lead a technical study of CO₂-EOR/EGR (Enhanced Oil/Gas Recovery) application to the Higashi-Niigata Gas Field by utilizing the surplus CO₂ in the MGC's plant, aiming to increase oil and natural gas production in the gas field.

Also, we have the future scopes mainly in the Niigata area, for the realization of methanation, which produces methane from CO₂, and CCUS (Carbon dioxide Capture, Utilization, and Storage) leveraging experience from CO₂-EOR/EGR at the Higashi-Niigata Gas Field.

In September 2020, Niigata Prefecture stated to "Aim the net-zero (carbon-neutrality) of greenhouse gas emission by 2050." Besides, the Japanese government's declaration of "Carbon-neutrality by 2050" in October 2020 is accelerating the effort towards carbon-neutrality by both public and private sectors. Based on these directions, Niigata Prefecture, together with Kanto Bureau of Economy, Trade and Industry, has formulated "Niigata Prefecture Carbon-neutral Industry Vision" and "Business Model Development Roadmap," aiming to promote the creation of new industries utilizing local resources and technical seeds in Niigata.

MGC and JAPEX will aim to make contributions for the carbon-neutral by 2050 in the Niigata area and beyond by leveraging each company's strength.