KUCHING, Dec 30: Shell New Ventures Malaysia Sdn Bhd (Shell Malaysia) and Petroliam Nasional Berhad (Petronas) have signed a Cooperation Agreement on Oct 12 to jointly explore the development of Carbon Sequestration Hubs offshore Sarawak.
According to a media release today, the agreement set out to deepen both parties’ commitment for joint exploration and appraisal of geological formations as well as the development and operation of potential Carbon Sequestration Hubs offshore Sarawak for the provision of decarbonisation service to cross-border regional customers.
It includes but is not limited to Shell Group’s sourced molecules from Singapore and other global future opportunities, providing a mechanism for the joint deliberation of such potential projects.
A Carbon Sequestration Hub refers to the transportation, injection and storage infrastructure to collect, aggregate and sequester carbon from various domestic and international sources.
Such hubs are one method of deploying carbon capture and storage (CCS) – a combination of existing technologies that capture and store CO2 deep underground, preventing its release into the atmosphere. Shell offers its customers end-to-end carbon capture, transport and storage services.
Shell Malaysia chairman Dato Ivan Tan emphasised that this Cooperation Agreement builds on the Joint Study and Collaboration Agreement signed previously with Petronas in 2021.
“It is an important milestone in maturing carbon capture and storage (CCS) as a commercially scalable decarbonisation solution for industries in Malaysia and beyond.
“We look forward to advancing our collaboration with Petronas to jointly develop reliable, technology driven CCS solutions in Malaysia,” he said in the statement.
Shell Malaysia pointed out that CCS is especially important for heavy industries, such as those that produce steel, cement, or chemicals, or power stations that use hydrocarbons to generate electricity, where there are currently no scalable low-carbon alternatives.
Shell’s target is to become a net-zero emissions energy business by 2050 with its CCS strategy a key pillar of its climate target.
Shell’s ambition is to have access to at least 25 million tonnes a year of CCS capacity by 2035. — DayakDaily