The Stacks project

Proof. Note that $h$ is quasi-compact and quasi-separated (see Schemes, Lemma 26.23.8). Hence $h_*\mathcal{O}_ Z$ is a quasi-coherent sheaf of $\mathcal{O}_ X$-modules by Schemes, Lemma 26.24.1. This implies that $\mathcal{I} = \mathop{\mathrm{Ker}}(\mathcal{O}_ X \to h_*\mathcal{O}_ Z)$ is a quasi-coherent sheaf of ideals, see Schemes, Section 26.24. Let $\overline{Z} \subset X$ be the closed subscheme corresponding to $\mathcal{I}$, see Lemma 29.2.3. By Schemes, Lemma 26.4.6 the morphism $h$ factors as $h = i \circ j$ where $i : \overline{Z} \to X$ is the inclusion morphism. To see that $j$ is an open immersion, choose an open subscheme $U \subset X$ such that $h$ induces a closed immersion of $Z$ into $U$. Then it is clear that $\mathcal{I}|_ U$ is the sheaf of ideals corresponding to the closed immersion $Z \to U$. Hence we see that $Z = \overline{Z} \cap U$. $\square$