KUALA LUMPUR: Shell New Ventures Malaysia Sdn Bhd (Shell Malaysia) and Petroliam Nasional Bhd (Petronas) have signed a cooperation agreement on Oct 12 to jointly explore the development of carbon sequestration hubs in Malaysia.
Shell Malaysia said the agreement deepened 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.
"This will then extend towards 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," it said today.
Shell Malaysia chairman Datuk Ivan Tan said the agreement was built 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 added.
Shell Malaysia said CCS was 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.
"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," the company said.