Two Australian carbon capture and storage developers have entered into a strategic partnership with Japanese utility Electric Power Development (J-Power) after being awarded greenhouse gas assessment permits, or GHG acreages, with the potential to permanently store up to 1 giga (billion) tonne of CO₂.

The acreages, which were awarded to deepC Store Pty Ltd and Azuli (Australia), are situated in the Bonaparte and Browse Basins some 200-250 km off Australia’s Northwest coast.

The Parties and J-POWER intend to develop a full value chain project from liquified CO₂ received at locations in Japan, Australia, and the surrounding areas and transported by ship to floating storage and injection (FSI) facilities in Australian waters.

In a joint statement, deepC Store Managing Director Daein Cha said both acreages are a good fit for the company’s liquified CO₂ shipping and FSI-based CCS development concept. He also confirmed deepC Store’s commitment to advancing Australia and Japan’s strategic alliance in the CCS business.

In terms of a Joint Study Agreement underwritten by the three parties, J-POWER will make a cash contribution towards early project work and has secured the rights to a participating interest in the commercial joint venture that will further develop the GHG acreages.

Australia is one of the world’s largest liquefied natural gas exporters. Reuters reports that the country is banking on CCS technology to decarbonise its industries and continue expanding its LNG production to meet demand from top buyers such as Japan and South Korea.