KUCHING: Shell New Ventures Malaysia Sdn. Bhd. (Shell Malaysia) and Petroliam Nasional Berhad (PETRONAS) inked a Cooperation Agreement to jointly explore the development of Carbon Sequestration Hubs in Malaysia.
According to its statement, the agreement was signed on Oct 12.
It stated that the agreement will deepen both parties’ commitment for joint exploration and appraisal of geological formations as well as the development and operation of potential Carbon Sequestration Hubs offshore Sarawak for the provision of decarbonisation service to cross-border regional customers including but not limited to Shell Group’s sourced molecules from Singapore and other global future opportunities, providing a mechanism for the joint deliberation of such potential projects.
As such, Shell Malaysia Chairman Datuk Ivan Tan described that the agreement builds on the Joint Study and Collaboration Agreement signed previously with PETRONAS in 2021.
“It is an important milestone in maturing carbon capture and storage (CCS) as a commercially scalable decarbonisation solution for industries in Malaysia and beyond.
“We look forward to advancing our collaboration with PETRONAS to jointly develop reliable, technology-driven CCS solutions in Malaysia,” he said.
For the record, CCS is especially important for heavy industries, such as those that produce steel, cement, or chemicals, or power stations that use hydrocarbons to generate electricity, where there are currently no scalable low-carbon alternatives.
As such, he said that Shell’s target is to become a net-zero emissions energy business by 2050. Shell’s CCS strategy is a key pillar of its climate target.
“Our ambition is to have access to at least 25 million tonnes a year of CCS capacity by 2035,” he said.
