Energy major TotalEnergies has joined forces with Petronas and Mitsui to establish a Carbon Capture and Storage (CCS) hub in Southeast Asia. This collaboration will involve the evaluation of various carbon storage sites in the Malay basin, including saline aquifers and depleted offshore fields. The partnership aims to advance the initiatives outlined in their Memoranda of Understanding signed in 2022. The tri-party deal is geared towards decarbonizing industrial customers in Southeast Asia, which is one of the world’s fastest-growing regions. The theoretical capacity for carbon storage in the area is believed to exceed the region’s requirements, with a significant portion located in deep saline formations. The implementation of CCS technology can play a vital role in helping Southeast Asia transition to an energy mix that aligns with climate goals. The region has experienced substantial growth in energy demand, mainly fueled by fossil fuels. Additionally, Southeast Asia is home to significant coal and liquefied natural gas exporters. Therefore, the development of CCS infrastructure is crucial to achieving the carbon reduction targets outlined in the Paris Agreement. To reach these goals, carbon capture in the region needs to reach at least 35 Mt CO2 by 2030 and exceed 200 Mt by 2050. This will require the establishment of a specific regulatory framework and substantial investment. The chart above illustrates the projected level of CCS deployment in the region, which will necessitate an annual investment of approximately $1 billion by 2030. International support, increased debt financing, and significant private-sector investment will be essential to meet this financial requirement. The partnership between TotalEnergies, Mitsui, and Petronas aims to create an integrated CCS solution for industries in the Asia-Pacific region. Petronas, Malaysia’s state-owned firm, views this agreement as a means to transform the country into a regional CCS hub. The strategic partnership will encompass various aspects of CCS development, including the identification of potential CO2 storage sites, the assessment of depleted fields and saline aquifers, the identification of potential customers, the determination of the most effective means of transporting captured CO2, and the establishment of the appropriate legal and business structure for CCS commercialization in Malaysia. TotalEnergies CEO Patrick Pouyanné expressed confidence in the partnership, highlighting the company’s expertise in CCS and its commitment to meeting its carbon storage targets. Mitsui, the Japanese oil firm, will utilize its expertise in oil and gas upstream activities and extensive business networks to contribute to the CCS hub project in Southeast Asia. In addition to the CCS hub project, TotalEnergies also entered into a separate agreement with Petronas’ renewable energy subsidiary Gentari. Together, they will develop renewable energy projects in the Asia-Pacific region, with their initial focus being the creation of the 100 MW Pleasant Hills solar project in Australia. The electricity generated from this project will be used to reduce emissions at the Roma field’s gas production and processing facilities, in which both TotalEnergies and Petronas hold a stake. Unfortunately, specific details regarding the volumes and timeline of the Malaysian CCS hub project have not been disclosed at this time.
