Kanadevia, the Japanese engineering group formerly known as Hitachi Zosen, has struck a partnership with Taiwan’s Liang Lian Industries to manufacture spherical tanks designed for temporary storage of liquefied carbon dioxide in carbon capture projects. The collaboration positions the companies to capitalize on growing demand from Japanese industries constrained by limited domestic storage capacity.
Japanese companies are increasingly looking to store captured CO2 in Southeast Asian countries like Malaysia and Vietnam, driven by space limitations and Japan’s commitment to achieving 120 million to 240 million tonnes of annual CO2 storage capacity by 2050. The Japanese government has selected seven large-scale projects to capture and store around 13 million tonnes of CO2 per year by 2030, with two projects planning to transport and store CO2 overseas.
The partners plan to leverage Kanadevia’s welding expertise alongside Liang Lian’s specialized knowledge in spherical tank design and construction. Their target is ambitious: building one to two tanks annually by 2030, each capable of holding 5,000 metric tons of CO2. The spherical design offers advantages in pressure distribution and storage efficiency compared to conventional alternatives.
McKinsey analysis suggests Southeast Asia could capture 10 to 20 percent of regional emissions, creating a revenue opportunity of $5 billion to $10 billion annually between 2030 and 2040. Power companies, chemical producers, and steelmakers are expected to drive initial orders as they seek to reduce carbon footprints under tightening environmental regulations.
The partnership underscores Japan’s broader strategy of exporting CO2 for storage after Malaysia’s Petronas signed at least 24 memoranda of understanding with nine countries to store excess emissions in depleted fossil fuel sites.
