MODEC is actively pursuing strategies of both decarbonizing our Floating Production Storage and Offloading (FPSO) vessels and exploring new business ventures to realize energy transition. One of the key elements to achieve our vision is the development of carbon capture technologies. This initiative aims to significantly reduce greenhouse gas (GHG) emissions from our FPSOs by capturing carbon dioxide (CO₂) produced during offshore oil production before it is released into the atmosphere.

Pathway Toward Net Zero 2050 　

CO₂ emissions from heat and electricity sources, such as GTGs account for substantial GHG emissions in our Scope 3 emissions. Therefore, it is critical to implement Post-Combustion Carbon Capture technologies in future FPSOs. We aim to leverage our experience in Pre-Combustion Carbon Capture, which involves removing CO₂ before fuel combustion, to drive new technological advancements.

• Post-Combustion Capture
  A method to separate CO₂ from flue gases of the combustion sources.A common method involves using an amine solution, wherein the CO₂ present in the flue gas is absorbed by the amine solution and subsequently separated.
• Pre-Combustion Capture
  A method aimed at removing CO₂ from fossil fuels before the combustion of fuel gases. Amine absorption and membrane separation are utilized for this process.

Based on our internal technology development roadmap for decarbonization, we have structured our focus on post-combustion carbon capture (PCC) technology development around short-term, mid-term, and long-term application targets. We are working concurrently on each development initiative to ensure both the readiness of PCC implementation in upcoming projects and future breakthroughs in technology of this kind.

In the short term, our goal is to materialize PCC in upcoming FPSO projects, using the amine solution-based method^*. The process has track records in both onshore PCC projects by others, and different applications (such as gas sweetening) in our offshore projects. This short-term initiative involves collaboration with suppliers on the basic design and engineering works in advance to actual projects.

• * The amine-based method is a chemical absorption process where exhaust gas is cooled, and CO₂ is absorbed into an amine solution. While amine-based solvents efficiently capture CO₂, a challenge for GTG-PCC application is the size of the absorption tower due to high-flow, low-pressure, and low CO₂ concentration of the flue gas. The large size of this tower poses a challenge due to the substantial installation footprint it demands on floating facilities.

In the mid and long-term, we aim to develop optimal PCC technology to consider unique conditions of FPSOs. This involves research and development aimed at creating advanced and practical PCC solutions that debottleneck challenges of amine adsorption tower process.

1. 1Technologies that Enable Drastic Footprint Reduction
   Given the spatial constraints of offshore facilities compared to onshore power plants, it is crucial to minimize the footprint of installed equipment. Our efforts in this area focus on developing technologies that can significantly reduce the size of carbon capture systems without compromising efficiency.
2. 2Technologies that Enable Energy-saving of PCC Operation
   FPSOs require considerable thermal energy for crude oil separation, making energy-efficient CO₂ separation methods essential. We are developing technologies that reduce the energy needed for CO₂ separation, thereby enhancing the overall energy efficiency of FPSO operations.
3. 3Application of Fuel Cells as Alternatives to Engines
   Emissions from gas turbines used in FPSOs for power generation typically involve a mixture of intake air and fuel gas, resulting in a low concentration of CO₂. We envisage that adopting fuel cell technologies in lieu of gas turbines may be a promising solution for more efficient PCC. Fuel cells generate power by producing exhaust gas composed almost entirely of water and CO₂. This high CO₂ concentration may drastically reduce the CAPEX of PCC system.