3rd Nov 2022
Storegga, PETRONAS and ADNOC have signed a joint study and development agreement for saline aquifers in the Penyu basin, offshore Peninsular Malaysia
Image (above): The signing, featuring Storegga CEO Tim Stedman (far left), which took place this week.
Storegga, PETRONAS and ADNOC announced today the signing of a Joint Study and Development Agreement (JSDA) to evaluate the carbon dioxide (CO2) emissions storage capabilities of saline aquifers and the construction of carbon capture and storage (CCS) facilities in the Penyu basin, offshore Peninsular Malaysia.
The agreement is targeting at least 5 million tonnes per annum (mtpa) of CO2 capture and storage capacity by 2030 and its scope includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation and containment research while exploring the application of advanced technologies, including artificial intelligence (AI), to enhance storage capacity.
Having Storegga as a partner to collaborate in Malaysia is imperative, as Storegga is one of the few companies that boldly took the first steps to progress CCS globally when it was in its infancy stage. Today, Storegga is widely recognized as one of the leading players in this space.
Tim Stedman, CEO of Storegga, said: “This pioneering partnership is an opportunity to develop a world-class CCS hub and bring about large-scale industrial decarbonisation. 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.”
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.”
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.”
Malaysia's geological abundance of deep saline aquifer reservoirs should allow for the development of large-scale, permanent CO2 storage solutions and the agreement will significantly accelerate regional CCS deployment, while strengthening collaboration between the strategic partners. The success of this initiative will lay the foundations for a regional CCS hub serving both domestic and international emitters.
ADNOC is targeting a carbon capture capacity of 10 mtpa by 2030, which is the equivalent emissions to those released by 2 million internal combustion vehicles.
The JSDA’s activities are provisionally scheduled to begin later this year.
About Storegga
Storegga is an independent developer of low-carbon solutions including industrial CO2 storage and hydrogen, backed by a world-class shareholder group including Macquarie, GIC, ADNOC, Mitsui & Co., M&G and Snam. With a portfolio of CCS and hydrogen projects in the United Kingdom, the United States and Norway, Storegga is advancing industrial decarbonisation in sectors such as manufacturing, power generation, distilling, chemicals and others. Storegga projects include the Acorn CCS and Cromarty Hydrogen projects in the UK, Trudvang CCS in Norway and Harvest Bend CCS in Louisiana. For more information, please visit: storegga.earth
