Malaysian oil and gas company Petronas has signed a Memorandum of Understanding (MoU) with six South Korean companies to study the feasibility of a full value chain related to CO2 capture, transport, and storage.
The six companies include one of the world’s largest shipbuilders Samsung Heavy Industries (SHI), construction and project management firm Samsung Engineering Co., as well as energy majors SK Earthon, SK Energy, GS Energy Corporation, and chemical company Lotte Chemical Co.
Under the MoU, the companies will evaluate potential CO2 storage sites in Malaysia and explore other areas across the CCS value chain, including cross-border CO2 transportation.
“ The feasibility studies undertaken through this collaboration will identify suitable technologies for the CCS and transportation value chain, bringing Petronas closer towards establishing Malaysia as a leading regional CCS solutions hub,” Petronas Head of Carbon Management, Emry Hisham, said.
Earlier this year, Petronas teamed up with Japanese MOL to study liquefied CO 2 transportation required for CCUS value chain.
The duo will look into liquefied CO 2 transportation for CCUS business within the Asia Pacific and Oceania region. Larvik Shipping AS, which is partly owned by MOL, will also join the project.
Exploration of carbon capture’s potential to decarbonize the energy sector is picking up pace, as players from various sectors join hands on different feasibility studies.
Having in mind that fossil fuels are likely to stay a reality for at least a couple of more decades, carbon capture and storage (CCS) has the potential to play a vital role in meeting global ESG plans.
Other partners in the newly announced MoU have also recognized the potential of CCS. Namely, SK Earthon has identified the technology as its pathway toward achieving carbon neutrality by building on its expertise in oil field exploration businesses.
Furthermore, SHI’s development of CCS solutions intended for onboard application on vessels is gaining momentum, and the shipbuilder’s onboard carbon capture system for LNG-powered vessels won an AIP earlier this year.
The cooperation is being announced just a day after Bureau Veritas revealed i t was partnering up with Wah Kwong and Shanghai Qiyao Enviro nmental Technolgy to study the installation of CCS units on ships.
The parties will look into the feasibility of mounting CCS units on existing ships to meet 2030 Carbon Intensity Indicator (CII) targets . As explained, the study will focus on two types of bulk carriers in operation in the Wah Kwong fleet.
Carbon capture technology has been used in the land-based industry for many years and the solutions are mature. However, there are numerous challenges with regard to its application in the marine sector including safety, layout, energy consumption, and cost-effectiveness.