Nikkei has reported Japan’s largest steelmaker Nippon Steel is considering capturing carbon dioxide emissions from its steel plants for underground storage at facilities linked to Exxon Mobil in countries including Australia, Malaysia and Indonesia. Nikkei has learned that “Nippon Steel, Exxon Mobil's Singapore unit and Japanese trading house Mitsubishi will sign a memorandum of understanding to start discussions on the project. Mitsubishi, which connected Nippon Steel and Exxon, would handle transportation, such as by shipping liquefied CO2 to depleted gas fields and other storage sites using specialized vessels.” Details such as the project's start date and capacity need to be ironed out. Nippon Steel aims to cut its CO2 emissions 30% by 2030 from 2013 levels and achieve carbon neutrality in 2050. It is switching to electric arc furnaces, which produce one-quarter of the emissions of blast furnaces, as part of this goal. One of them began commercial operations in October at the steelmaker's Setouchi Works. The company also is working on new hydrogen-based steelmaking technologies. It will test an iron direct reduction process using hydrogen starting in fiscal 2025. Exxon has increased investment in the field in recent years. It can now capture and store 9 million tonnes of carbon a year, accounting for one-fifth of the global capacity. Exxon is slated to bring a new carbon capture and storage facility online in southeastern Australia during 2025, adding up to 2 million tonnes to its annual capacity. It is partnering with local energy companies in Malaysia and Indonesia to explore opportunities in those countries as well.