Regional CCS: PETRONAS teams up with Storegga, ADNOC to evaluate offshore CCS in Malaysia

By Romel S. Gurky

Low carbon solution provider Storegga, alongside PETRONAS and ADNOC, has signed a Joint Study and Development Agreement (JSDA) to assess the feasibility of carbon capture and storage (CCS) in saline aquifers located in the Penyu basin, offshore Peninsular Malaysia. The agreement aims to develop a CCS facility with a capacity to capture and store at least 5 million tonnes per annum (mtpa) of CO2 by 2030.

This collaboration will involve a comprehensive study, including CO2 shipping and logistics, geophysical and geomechanical modeling, reservoir simulation, and research on containment. The partners will also explore the use of advanced technologies, such as artificial intelligence (AI), to maximize storage capacity, Storegga said on Tuesday.

Storegga’s participation is crucial due to its pioneering role in advancing CCS globally. The company's extensive experience in leading CCS initiatives complements the expertise of PETRONAS and ADNOC, creating a formidable partnership poised to accelerate industrial decarbonization, it added.

Read also: Regional CCS: Petronas initiates study for Northern CCS Hub

Tim Stedman, CEO of Storegga, expressed the significance of this collaboration: “This pioneering partnership is an opportunity to develop a world-class CCS hub and bring about large-scale industrial decarbonization. Storegga’s experience from other leading CCS regions, plus the expertise of our partners, represent a combined intent to act now to tackle climate change.”

Malaysia's deep saline aquifers provide an ideal geological setting for large-scale, permanent CO2 storage. The success of this initiative will not only bolster Malaysia’s CCS capabilities but also lay the groundwork for a regional CCS hub, serving both domestic and international emitters.

The JSDA's activities are expected to commence later this year.

Storegga is specializing in industrial CO2 storage and hydrogen. The company is supported by a shareholder group, including Macquarie, GIC, ADNOC, Mitsui & Co., M&G, and Snam. Storegga is driving industrial decarbonization across the United Kingdom, the United States, and Norway, with notable projects like the Acorn CCS and Cromarty Hydrogen in the UK, Trudvang CCS in Norway, and Harvest Bend CCS in Louisiana.

Editing by Alexander Ginting