Petroliam Nasional Berhad (Petronas) through its subsidiary PETRONAS CCS Solutions Sdn Bhd (PCCSS) has signed a joint study agreement with JERA Co., Inc. to evaluate the feasibility of the entire carbon capture and storage (CCS) value chain between Japan and Malaysia.
The scope of the agreement includes the separation and capture of carbon dioxide (CO2) emitted by JERA in Japan, cross-border transportation, and CO2 storage in Malaysia, the two companies said in separate news releases.
Malaysia has an abundance of potentially suitable sites for underground CO2 storage, and Petronas has expertise in CCS, with multiple CCS projects in the pipeline. The collaboration will help build a global network for cross-border CO2 transport and storage, the two companies said.
PCCSS CEO Nora’in Md Salleh said, “This agreement signifies a pivotal step towards enhanced collaboration with an important partner. This spirit of collaboration will speed up progression and enrich CCS delivery by leveraging the vast experiences of the two organizations. This is in line with Petronas' commitment in accelerating the development of prominent CCS hubs in Malaysia, for the region”.
This is the second announced collaboration regarding CCS between the two countries in recent weeks. In March, Petronas, Petroleum Sarawak Berhad (Petros) through its subsidiary - CCS Ventures Sdn Bhd (Petronas CCS Ventures), and a Japanese consortium signed a storage site agreement for the M3 depleted field offshore Sarawak. The Japanese consortium is composed of Japan Petroleum Exploration Co., Ltd. (Japex), JGC Holdings Corporation, and Kawasaki Kisen Kaisha, Ltd. (K LINE).
Under the agreement, the parties will undertake feasibility studies for CCS sites as well as plan the development of CO2 storage sites, including onshore terminals and transportation pipelines, as well as assessment of its techno-commercial feasibility, according to an earlier news release.
Japanese energy firms have also been exploring partnerships in other parts of the globe. Two weeks ago, Chevron USA Inc. division Chevron New Energies signed a memorandum of understanding (MoU) with JX Nippon Oil & Gas Exploration Corporation to study a potential CO2 value chain in the Asia Pacific region.
The MoU provides a framework to evaluate the export of CO2 from Japan to carbon capture and storage (CCS) projects in Australia and other countries in the Asia Pacific region, the two companies said in a joint news release.
The two companies are targeting to create a CCS value chain, transporting CO2 emitted from industries in Japan by ship to Chevron’s greenhouse gas portfolio in Australia. The collaboration will also “explore the opportunity to develop suitable transboundary policies and the potential development of CO2 storage sites in other countries in the Asia Pacific region”, according to the release.
Earlier in March, Japex signed an MoU with Invest Alberta Corporation to advance the former’s sustainability goals in the province. The two parties aim to work together on Japex’s potential projects in the province, namely carbon capture, utilization and storage (CCUS), bioenergy with carbon capture and storage (BECCS), and blue hydrogen/ammonia. Invest Alberta will support the Japanese firm with its in-depth knowledge of the local market and investment landscape.
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