Execution of Joint Study Agreement about Australian Offshore Carbon Dioxide (CO2) Capture and Storage Hub Project 'deepC Store'

June 15, 2021

JX Nippon Oil & Gas Exploration Corporation ('JX') (President and CEO, Hiroshi Hosoi) is pleased to announce that it has executed Joint Study Agreements with Transborders Energy (Transborders) to co-develop deepC Store.

deepC Store will consist of capturing CO₂ from industrial sources in Australia and the Asia-Pacific region, shipping of liquid CO₂ from capture sites to CO₂ Floating Storage and Injection (FSI) hub facility in offshore Australia, and CO₂ injection well for storage in a subsurface storage complex in close proximity to the FSI hub facility, as shown below.

Through the Joint Study Agreements, JX will collaborate with Transborders to perform the following activities with the partners Commonwealth Scientific and Industrial Research Organisation (CSIRO), Kyushu Electric Power, Mitsui O.S.K. Lines, Osaka Gas and Osaka Gas Australia, Tokyo Gas Australia, Toho Gas, Technip Energies and Add Energy Group:

• Conduct technical Pre-FEED for deepC Store;
• Evaluate and select deepC Store's CO₂ injection site; and
• Pre-negotiate key commercial terms that would enable deepC Store including arrangements for CO₂ supply, deepC Store EPC, operations and financing.

JX believes Carbon Dioxide (CO₂) Capture, Utilization and Storage (CCUS) will play an important role in the realization of carbon neutrality and are delighted to be part of deepC Store. JX has established proven track records in several CCUS projects, such as a CO₂-EOR pilot test in Vietnam and the Petra Nova CCUS Project utilizing CO₂ captured from a thermal power plant in Texas, U.S.A. JX is confident of making a significant contribution to the project by closely working together with Transborders and partners.

One of the ENEOS Group's envisioned goals for 2040 is contributing to the development of a low carbon, recycling-oriented society with the pursuit of carbon neutral status in our own CO₂ emissions. As part of our efforts to achieve this goal, JX continues to work toward the promotion of CCUS businesses.

Transborders Energy : https://transbordersenergy.com/