Publication date: March 7, 2025

METI Adds Thermal Power With CCS to Upcoming Auctions

The Ministry of Economy, Trade and Industry (METI) announced at a meeting of experts that it plans to add thermal power projects with carbon dioxide capture and storage (CCS) to the next round of ‘long-term decarbonization power source auction’. The auction will be open to existing LNG- and coal-fired power plants if they are equipped with CCS. Although no bids were expected until later in the process, METI has responded to the fact that some operators have begun to consider retrofitting existing thermal power plants with CCS.

For the auction, METI requires a CO2 recovery rate of at least 20% at rated output.The CO2 recovery rate is equivalent to the minimum co-firing rates of 10% and 20% for hydrogen and ammonia, respectively. The bidders will also have to specify the decarbonization process up to  2050.

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Requirements and Support Mechanism for CCS Projects

A storage rate of at least 70% of the annual CO2 emissions generated by the target capacity is imposed. If the storage rate is less than 70%, the contract amount for securing capacity will be reduced by 10-20% depending on how low the storage rate is.

The capacity of the fossil fuel portion of a thermal power plant with CCS will be eligible for support. For example, if a 600 MW coal-fired thermal power plant is equipped with a CCS facility with a CO2 capture rate of 50%, the support would be 300 MW.

Alongside thermal power plants equipped with CCS, long-duration energy storage (LDES) will also be included as a subject in the upcoming round of long-term decarbonization power source auctions.