On August 20, PETRONAS, ADNOC, and Storegga have inked a significant Joint Study and Development Agreement (JSDA) aimed at evaluating the CO2 storage potential of saline aquifers and establishing carbon capture and storage (CCS) facilities in the Penyu basin of Malaysia. This groundbreaking initiative seeks to achieve a CCS capacity of at least 5 million tons annually by 2030.
The agreement delineates comprehensive plans, including conducting studies on CO2 shipping and logistics, geophysical and geomechanical modeling, reservoir simulation, and containment research. The partners are set to delve into the realm of CCS utilizing cutting-edge technologies like AI to optimize storage capacity. Nora’in Md Salleh, Chief Executive Officer of PETRONAS CCS Solutions Sdn. Bhd. (PCCSS), expressed, “This agreement with ADNOC and Storegga holds the potential to enhance our capability in developing and de-risking saline aquifers as carbon dioxide storage sites, leveraging our partners’ expertise and experience from other regions.”
The Penyu basin, situated offshore Peninsular Malaysia, boasts rich geological resources, particularly deep saline aquifer reservoirs, offering a prime opportunity for large-scale, permanent CO2 storage solutions. This agreement is poised to bolster CCS facilities in the region, paving the way for a hub that will bolster local and international efforts in emissions reduction. Nora’in Md Salleh underscored Malaysia’s keenness to strengthen economic ties with the UAE, focusing on sectors such as renewable energy, innovation, and infrastructure. This collaboration aligns with the Malaysia-UAE Joint Committee for Cooperation (JCC) framework, fostering a robust relationship between PETRONAS and ADNOC.
Storegga Limited, a UK-based company at the forefront of decarbonization projects including CCS, CCUs, DACs, and hydrogen projects, is a key player in the global arena. Backed by investors like GIC, Mitsui & Co., Ltd., M&G Investments, Macquarie Group, and Snam, Storegga leads the development of the Acorn Carbon Capture and Storage and Hydrogen project in Aberdeen, Scotland. The memorandum of understanding (MOU) between Storegga and PETRONAS outlines a two-phase collaboration strategy:
Phase 1 focuses on jointly developing a commercial strategy for CCS, identifying key enablers and drivers for launching CCS hub and cluster projects in Malaysia or the region, with potential international expansion. This phase includes sharing knowledge on the global CCS landscape, evaluating CCS economics and business models, and creating integrated solutions for emitters. Phase 2 entails exploring partnerships on CCS and related projects in Malaysia and internationally, potentially extending to projects like Direct Air Capture (DAC). Dr. Nick Cooper, CEO at Storegga, stressed the urgency of CCS in reducing and removing CO2 from the atmosphere, expressing excitement about catalyzing CCS hubs and clusters with PETRONAS.
PETRONAS, a pivotal player in Malaysia’s National Energy Transition Roadmap (NETR), views CCS as essential in achieving the nation’s sustainability goals. The Malaysian Government plans to introduce a standalone CCUS bill by year-end to support these efforts. With a target of net zero carbon emissions by 2050, PETRONAS is capping Malaysia’s operational emissions at 49.5 mtCO2e by 2024 and aiming to reduce Groupwide emissions by 25% by 2030. Emry Hisham Yusoff, Head of Carbon Management at PETRONAS, highlighted that the partnership with Storegga will explore commercial aspects to develop the CCS value chain in Malaysia and the region, advancing Malaysia as a regional hub for CCS solutions.
ADNOC is intensifying its decarbonization endeavors by doubling its CCS capacity to 10 million tons annually by 2030, aiming for net zero in scope 1 and 2 emissions by 2045. Noteworthy projects like the Habshan CCS project and the Hail and Ghasha project underscore ADNOC’s commitment to carbon capture. ADNOC’s partnership with Carbon Clean to deploy the world’s first modular CycloneCC unit in Abu Dhabi signifies its dedication to advancing CCS technologies. Hanan Balalaa, ADNOC Senior Vice President for New Energies, emphasized the importance of carbon capture in reducing emissions, underscoring ADNOC’s commitment to developing this technology in line with the Net Zero by 2045 goal.
In conclusion, the collaboration between PETRONAS, ADNOC, and Storegga heralds a new era of CCS development in Malaysia, propelling the nation towards a low-carbon future and underscoring the importance of international partnerships in combating climate change.
