Inpex Launches Undersea CO2 Storage Test Near Tokyo to Support Green Steel Initiative

Bullish (0.4)Impact: Medium

Published on July 24, 2026 (3 hours ago) · By Vibe Trader

Inpex Launches Undersea CO2 Storage Test Near Tokyo to Support Green Steel Initiative

Japanese energy company Inpex has announced the commencement of trial drilling for a carbon capture and storage (CCS) project on the seafloor off the coast of Chiba prefecture, near Tokyo [1]. The primary objective of this initiative is to evaluate the geological suitability of the seafloor near Kujukuri for long-term CO2 injection and storage, utilizing Inpex's drilling rig [1].

This project is part of a broader strategy to facilitate greener steel production and reduce industrial emissions in Japan [1]. If the test drilling confirms the feasibility of undersea CO2 storage, the site could become a critical asset for capturing and storing carbon dioxide from heavy industries, thereby supporting Japan's decarbonization efforts in both the steel and energy sectors [1].

Despite the potential benefits, the article notes that significant cost barriers remain, which could hinder the widespread adoption of undersea CO2 storage technology [1]. The data collected from this trial will be essential in determining the project's viability and informing future investments in CCS infrastructure [1].

CONCLUSION

Inpex's undersea CO2 storage test marks a significant step toward decarbonizing Japan's steel and energy industries. While the project could enable large-scale emissions reductions, high costs remain a major challenge for broader implementation.

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