On August 20, PETRONAS, ADNOC, and Storegga signed the Joint Study and Development Agreement (JSDA) to assess the CO2 storage potential of saline aquifers and develop carbon capture and storage (CCS) facilities in the Penyu basin of Malaysia.
Unlocking the PETRONAS, ADNOC, and Storegga CCS Project
The initiative aims to achieve a CCS capacity of at least 5 million tons annually by 2030. The agreement outlines the following plans:
- Conduct CO2 shipping and logistics study, along with geophysical and geomechanical modeling, reservoir simulation, and containment research.
- The partners will explore the scope of CCS using advanced technologies like AI to optimize storage capacity.
Nora’in Md Salleh, PETRONAS CCS Solutions Sdn. Bhd. (PCCSS)’s Chief Executive Officer said,
“This agreement with ADNOC and Storegga 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. This strategic partnership aligns with PETRONAS’ overarching goal of establishing Malaysia as a regional CCS hub to serve Asia Pacific where it may build up the storage capacity through saline aquifers. This also demonstrates our earnestness in establishing the right pace to deliver CCS hubs here while also contributing to the national climate target.”
Bolstering Ties for a Low-Carbon Future
The Penyu basin is located offshore Peninsular of Malaysia. The country’s rich geological resources, particularly its deep saline aquifer reservoirs, provide an excellent opportunity for large-scale, permanent CO2 storage solutions. Consequently, this agreement is set to boost CCS facilities in the region, helping to create a hub that will support both local and international efforts to reduce emissions.
Nora’in Md Salleh further emphasized Malaysia’s interest in enhancing economic partnerships with the UAE. The collaboration will focus on various sectors, including renewable energy, innovation, and infrastructure. She further noted that the JSDA aligns with the Malaysia-UAE Joint Committee for Cooperation (JCC) framework, thereby building a strong relationship between PETRONAS and ADNOC.
Milestones of the MOU Between Storegga and PETRONAS
Storegga Limited is a UK-based company, focused on developing decarbonization projects like CCS, CCUs, DACs, and hydrogen projects both in the UK and internationally. As a private company, Storegga is backed by investors such as GIC, Mitsui & Co., Ltd., M&G Investments, Macquarie Group, and Snam. Notably, Storegga is the lead developer of the Acorn Carbon Capture and Storage and Hydrogen project in Aberdeen, Scotland.
Moving on, The MOU between Storegga and PETRONAS outlines a two-phase collaboration:
Phase 1: The companies will jointly develop a commercial strategy for CCS. They aim to identify key enablers and drivers for launching CCS hub and cluster projects in Malaysia or the region, with potential international expansion. This phase also includes:
- Sharing knowledge on the global CCS landscape
- Evaluating CCS economics and business models
- Creating integrated solutions for emitters
Phase 2: Jointly they will explore partnerships on CCS and related projects both in Malaysia and internationally. This phase may also involve developing projects connected to CCS, such as Direct Air Capture (DAC).
Dr Nick Cooper, CEO at Storegga, said:
“CCS is a vital tool. A reverse carbon cycle at scale is urgently needed to reduce and remove CO₂ from the atmosphere. We are looking forward to working with PETRONAS in Malaysia and beyond to catalyze CCS hubs and clusters. These hubs will accelerate the development of important carbon reversal technologies such as direct air capture. We have one atmosphere – it is vital that countries around the world work together to reduce and remove CO₂. We are excited that this relationship also expands Storegga’s global presence and utilizes our capabilities to support Asia’s progress towards decarbonization.”
Thus, Storegga’s involvement is crucial due to its pioneering role in advancing CCS globally.
PETRONAS Leads the Way for Malaysia’s Net Zero with CCS Innovation
PETRONAS, a key player in Malaysia’s National Energy Transition Roadmap (NETR), has identified CCS as vital to achieving the nation’s sustainability goals. The Malaysian Government plans to introduce a standalone CCUS bill by year-end to support these efforts.
Aiming for net zero carbon emissions by 2050, PETRONAS is capping Malaysia’s operational emissions at 49.5 mtCO2e by 2024 and reducing Groupwide emissions by 25% by 2030. Guided by its Energy Transition Strategy, PETRONAS balances current energy needs with climate goals, investing in new technologies and sustainable practices to drive the transition to a low-carbon future.
Source: Petronas
Emry Hisham Yusoff, Head of Carbon Management at PETRONAS, shared his thoughts on the MOU, stating that the partnership will explore the commercial aspects and surrounding factors needed to develop the CCS value chain in Malaysia and the region. This move will bring PETRONAS closer to establishing Malaysia as a leading regional hub for CCS solutions.
He emphasized that this partnership supports PETRONAS’ goal of building a sustainable portfolio and advancing the shift to lower-carbon energy.
ADNOC’s World-Class CCS Technology Powers the Partnership
ADNOC is ramping up its decarbonization efforts by doubling its CCS capacity to 10 million tons annually by 2030. Additionally, it aims to achieve net zero in scope 1 and 2 emissions by 2045. Last year in September, ADNOC approved the Habshan CCS project, one of the largest in the Middle East and North Africa, which will store 1.4 million tonnes of CO2 each year in deep underground formations.
Following this, ADNOC greenlit the Hail and Ghasha project, targeting net zero CO2 emissions with a capacity to capture 1.5 million tons of CO2 annually. Over 60% of the investment in this project will boost the UAE’s economy through ADNOC’s In-Country Value program.
Additionally, ADNOC partnered with Carbon Clean, a UK-based company, to deploy the world’s first modular CycloneCC unit in Abu Dhabi, designed to save time, capital, and energy compared to traditional carbon capture methods.
In this context, Hanan Balalaa, ADNOC Senior Vice President for New Energies, said
“Carbon capture is an important tool to responsibly reduce carbon emissions and ADNOC will continue to develop this technology as we work towards our Net Zero by 2045 goal. We are committed to working with trusted global partners like PETRONAS and Storegga to develop and utilize global carbon management hubs, enabling our customers to reduce their emissions and supporting their decarbonization goals.”
source: ADNOC
The project, set to begin by the end of the year, holds great promise for Malaysia. It marks a significant step forward in the country’s mission to become a leader in CCS and other decarbonization efforts.