Sharjah National Oil Corporation (SNOC) has signed an initial agreement with Japan’s Sumitomo Corporation to explore a carbon-capture project in the emirate.
The companies will conduct a feasibility study covering the entire carbon-capture and storage value chain, including transport, storage, business models and assessment of regulatory aspects, SNOC said in a statement on Monday.
A carbon-capture and storage (CCS) hub would contribute “significantly” to the decarbonisation of the Northern Emirates, the state-owned company said.
“As part of the joint feasibility study, we will collaborate with industry leaders, environmental organisations and regulators with the aim of developing a viable project which adheres to the highest standards,” said Hatem Al Mosa, chief executive of SNOC.
“SNOC has committed to reach net zero on its own operations by 2032 and CCS has the potential to support this goal and beyond. The time to start is now."
SNOC, established in 2010, is tasked with exploration, production, engineering, construction, operation and maintenance of Sharjah's energy assets. In addition to the Mahani gasfield, which was discovered in 2020, SNOC owns and operates three onshore fields, a gas processing complex, two hydrocarbon liquid storage and export terminals and a network of flow lines and production pipelines.
Sumitomo Corporation has been seeking partnerships to advance CCS projects worldwide, while SNOC has been focusing on repurposing its mature gas reservoirs in Sharjah.
CCS involves the trapping of carbon dioxide emissions from industrial activities such as steel and cement production, as well as from fossil-fuel combustion in power generation.
Subsequently, the captured carbon is transported either by ship or through pipelines and securely stored in subsurface geological formations.
“We believe there is big potential for CCS in the Middle East, which is a key technology to materialise energy transition,” said Hajime Mori, managing director of Sumitomo Corporation Middle East.
In January, Adnoc began work on a project to inject captured carbon dioxide into a saline aquifer, a formation of porous rocks that contain brine.
The Abu Dhabi-based energy company has allocated $15 billion to invest in a range of projects by 2030, which will help it accelerate its low-carbon growth strategy.
Adnoc plans to invest in clean power, carbon capture and storage, further electrification of operations, energy efficiency and new measures to build on its policy of zero routine gas flaring.
Global carbon capture, utilisation and storage uptake needs to expand 120 times from current levels by 2050, rising to at least 4.2 gigatonnes per annum of carbon-dioxide captured, for countries to achieve their net-zero commitments, according to McKinsey & Co.
