Mitsubishi Corp. Signs MoU With ExxonMobil to Consider a Project to Reduce Carbon Emissions

As stated by a Mitsubishi Corp spokesperson, the trading house has agreed to consider a carbon dioxide capture and storage (CCS) project with Exxon Mobil Corp and Japan's largest steelmaker, Nippon Steel Corp.

According to the spokesperson, the three companies signed a memorandum of understanding (MoU) on Wednesday to begin discussions about developing value chains for overseas underground storage of CO2 emitted by Japanese steel plants.

As per sources, Nippon Steel is considering capturing CO2 emissions from its domestic steel mills for underground storage at Exxon-linked facilities in Australia, Malaysia, and Indonesia.

According to the sources, Mitsubishi would handle transportation, such as shipping liquefied CO2 to depleted gas fields and other storage sites using specialised vessels.

"What has been reported is correct," the Mitsubishi spokesperson said, but declined to comment further.

Cutting carbon emissions from steelmaking, which account for 7% to 9% of global CO2 emissions, is a critical step in the fight against climate change.

Nippon Steel confirmed that it was discussing the project with the two companies, but declined to elaborate.