In a significant move towards sustainable energy solutions, PETRONAS, ADNOC, and Storegga have signed a Joint Study and Development Agreement (JSDA) to evaluate carbon dioxide (CO2) storage capabilities in the Penyu Basin, offshore Peninsular Malaysia.
This collaboration aims to assess saline aquifers for CO2 storage and explore the construction of carbon capture and storage (CCS) facilities in the region. The agreement sets an ambitious target of achieving a minimum CO2 capture and storage capacity of five million tonnes per annum (mtpa) by 2030.
The project’s comprehensive scope includes:
- CO2 shipping and logistics studies
- Geophysical and geomechanical modeling
- Reservoir simulation and containment research
- Exploration of advanced technologies, including artificial intelligence, to enhance storage capacity
Nora’in Md Salleh, CEO of PETRONAS CCS Solutions Sdn. Bhd. (PCCSS), highlighted the strategic importance of this partnership, stating, “This agreement will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging our partners’ expertise and experience in other regions.”
The collaboration aligns with PETRONAS’ goal of establishing Malaysia as a regional CCS hub for the Asia Pacific, utilizing saline aquifers for storage capacity. This initiative supports Malaysia’s National Energy Transition Roadmap (NETR), which identifies CCS as one of six key energy transition strategies.
Further emphasizing the country’s commitment to sustainable energy solutions, the Malaysian government plans to introduce a standalone CCUS bill by the end of 2024.
Hanan Balalaa, ADNOC’s Senior Vice President for New Energies, underscored the role of carbon capture in achieving their Net Zero by 2045 goal, with ADNOC aiming for a carbon capture capacity of 10 mtpa by 2030—equivalent to the emissions from two million internal combustion vehicles.
Tim Stedman, CEO of Storegga, described the partnership as an opportunity to develop a world-class CCS hub and drive large-scale industrial decarbonization.
The JSDA’s activities are set to begin later this year, marking a significant step towards establishing a regional CCS hub that will serve both domestic and international emitters. This collaboration represents a concerted effort to address climate change and accelerate the transition to sustainable energy solutions in the Asia Pacific region.
