Abu Dhabi-based Adnoc, Malaysia's Petronas and UK-based Storegga have signed an agreement to explore carbon capture and storage facilities in Penyu Basin, offshore Peninsular Malaysia.
The agreement aims to achieve a carbon dioxide capture and storage capacity of at least 5 million tonnes a year by 2030, Adnoc said on Tuesday.
A typical passenger vehicle emits about 4.6 tonnes of carbon dioxide annually, so capturing 5 million tonnes is roughly equivalent to the emissions produced by about 1.1 million vehicles in a year, The National’s calculations showed.
The deal will also explore the application of advanced technologies, including artificial intelligence, to enhance storage capacity.
“This agreement … will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging on our partners’ expertise and experience in other regions,” said Nora’in Md Salleh, chief executive of Petronas CCS solutions.
Carbon capture, utilisation and storage (CCUS) involves trapping carbon dioxide emissions from industrial activities such as steel and cement production, as well as from fossil fuel combustion in power generation.
The gas is injected into deep underground rock formations, including depleted oil and gasfields, saline aquifers, or coal seams.
The global CCUS market is projected to reach $7 billion by 2030, from $1.9 billion in 2020, growing nearly 13.8 per cent per annum, according to Allied Market Research.
Malaysia is actively exploring and investing in carbon capture as a key strategy to reduce its carbon footprint.
The country, which is the second-largest oil and gas producer in South-East Asia, has pledged to reduce its greenhouse gas emissions by 45 per cent across all sectors by 2030 and aims to achieve net-zero emissions by 2050.
“We are committed to working with trusted global partners like Petronas and Storegga to develop and utilise global carbon management hubs,” said Hanan Balalaa, Adnoc's senior vice president for new energies.
The Abu Dhabi-based energy company is targeting a carbon capture capacity of 10 million tonnes a year by 2030, which is the equivalent emissions to those released by 2 million internal combustion vehicles.
Adnoc reported a reduction of 6.2 million tonnes of carbon dioxide equivalent in scope 1 (direct) and scope 2 (indirect) emissions last year, as the company takes steps to achieve net zero by 2045.
The reduction included 4.8 million tonnes from using clean grid energy from solar and nuclear power, Adnoc said in its 2023 sustainability report.
Last year, Adnoc acquired a 10.1 per cent equity stake in Storegga to become a lead investor in the company, which focuses on the development of CCS projects.
The partnership "is an opportunity to develop a world-class CCS hub and bring about large-scale industrial decarbonisation”, said Tim Stedman, chief executive of Storegga.
