Japan eyes commercial phase for carbon capture with help of policy, funding

Japan's carbon recycling push strategy is shifting to commercialization as government funding and policy support help companies move pilot projects toward deployment. At the 8th International Conference on Carbon Recycling 2026 in Tokyo on Oct. 9, speakers said progress will depend on building a full carbon capture and utilization ecosystem and driving down costs.

"Japan has set the goal of achieving carbon neutrality by 2050. To achieve this goal, not only should renewable energy and energy conservation be introduced, but also, we need to [make] the most of carbon recycling and CCS," said Dr Yoshihiko Ohishi, director, circular economy department, New Energy and Industrial Technology Development Organization.

In particular, power generation and industries that are hard to abate such as those in the manufacturing of materials and chemicals will see CCS becoming an essential technology, Ohishi said.

Sumitomo Chemical Company Ltd. is concentrating on lowering capture costs and industrializing its membrane technology, Dr Morio Yamamoto, director of the industrial technology & research laboratory, at the company said.

Key requirements

In Japan, Ministry of Economy, Trade and Industry has set a ¥2 trillion ($12.64 billion) Green Innovation Fund, and NEDO is responsible for the management, Ohishi said. However, to promote carbon recycling, several key requirements are necessary.

A stable supply of hydrogen is needed as a feedstock for the manufacturing of chemicals, Ohishi said. The maturity of each technology must be considered as they are promoted and implemented.

Most importantly, there must be continuous reduction of cost for these technologies to be adopted, he said. And crucially, it's important to promote the social implementation of the CCS starting with areas which are feasible.

For social implementation by 2030, the products being promoted include synthetic fuel replacing gasoline and SAF; synthetic methane replacing city gas; and green LPG are some of the projects being promoted by NEDO, Ohishi said.

Bringing cost down

Unlike conventional capture technologies aimed at large industrial sites, Sumitomo sees membrane separation serving smaller and dispersed emission sources such as waste incinerators and medium-sized industrial facilities, opening a wider CCUS market, Yamamoto said.

The company's target is CO₂ capture costs of about ¥2,000/mt per metric ton of CO₂ from industrial exhaust streams, Yamamoto said. Achieving this cost level is viewed as essential for broad adoption.

The technology itself is advancing, but the next hurdle is industrial-scale production of membranes and modules, he said.

Following successful operation of the Kawasaki City demonstration plant at Ukishima Treatment Centre, Sumitomo plans extended testing through 2027 eyeing a commercial phase, Yamamoto said.