JRI, MHI and INPEX Enter Contract with METI for Feasibility Study on CCS-EOR Projects in Southern Mexico

Project Structure

The feasibility study consortium appointed by METI will conduct the commissioned work in cooperation with Sumitomo Mitsui Banking Corporation (Head office: Chiyoda-ku Tokyo, President & CEO: Takeshi Kunibe, hereinafter referred to as "SMBC").

　　　JRI： 　 Manage the commissioned work
　　　　　　　　Draft the policies related to the Joint Crediting Mechanism
　　　　　　　　Establish the methodology of GHG emissions reduction
　　　MHI： 　 Evaluate CO2 sources
　　　　　　　　Review CCS-EOR facilities
　　　INPEX： Provide expertise related to CCS-EOR
　　　　　　　　 Evaluate applicability of CO2-EOR
　　　SMBC： Analyze financing and financial support programs related to CCS-EOR

*1 Global Warming Mitigation Technology Promotion Project
Its objectives are to demonstrate the effectiveness of JCM and Japanese low carbon technologies/products, to disseminate the low carbon technologies/products in the partner countries and to increase the number of JCM partner countries by recommending new policies and business schemes in the potential JCM partner countries (including existing JCM partner countries).

*2 CCS-EOR
CCS（Carbon dioxide Capture and Storage） is the set of technologies that separates/captures CO2 emitted from factories and power plants, and sequestrates CO2 underground, where CO2 can be stored stably for a long time. Through CCS, a large amount of CO2, one of the major greenhouse gases, can be reduced. The Intergovernmental Panel on Climate Change (IPCC), a scientific intergovernmental body under the auspices of the United Nations collecting and organizing scientific knowledge about climate change, nominates CCS-EOR as one of the most important actions against climate change. For the consideration of separation/capture of CO2 in the project, the feasibility study consortium will apply the KM CDR Process○R (a kind of chemical absorption process), which uses the high‐performance solvent "KS-1TM " that MHI and the Kansai Electronic Power Company co-developed.

EOR（Enhanced Oil Recovery） is the technology that can increase the recovery of crude oil by injecting CO2 and/or chemicals into oil reservoirs.  CCS-EOR is the combination of CCS and EOR.

*3 Mexico
The volume of oil production in Mexico is ranked 10th in the world, yet its production volume is rapidly decreasing after 2004 due to the maturity of major oil fields and the stagnation of new oil field development.  Mexico addresses the reconstruction of oil industry as a prime task and the enhancement of oil production through EOR is equally as significant as the development of shale layers and deep water oil fields in the Gulf of Mexico.