Malaysian state-run oil company Petronas [PNAGF:US]has signed a joint study agreement with Japanese power generation firm JERA to study the feasibility of buildinga carbon capture and storage (CCS) value chain, as reported by Reuters on April 2. The study will evaluate the separation and capture of carbon dioxide (CO2) emissions from JERA’s operations in Japan, cross-border transportation, and CO2 storage in Malaysia. This agreement is poised to strengthen the collaboration and foster a global network for efficient cross-border CO2 transport and storage. According to Petronas, the partnership aims to reduce greenhouse gas (GHG) emissions in the Asia Pacific region, especially in Malaysia and Japan. It also aligns with the firm’s commitment to accelerate the development of CCS hubs in Malaysia.

The partnership will leverage the growing demand for carbon storage in Japan, which lacks suitable storage sites domestically, alongside Malaysia’s ambition to become a regional CCS hub. Earlier in March, Petronas also partnered with a consortium comprising three Japanese enterprises, including Eneos [5020:JP], JX Nippon Oil & Gas Exploration, and trading house Mitsubishi Corp [9058:JP], to develop a CCS project spanning Japan and Malaysia. The initiative plans to annually separate and capture 3 million tons of CO2 from Japan’s industrial emissions, and then ship the captured CO2 to Malaysia for storage in depleted oil fields. Japan has set out a target to capture and sequester 120 million to 240 million tons of CO2 annually by 2050.

Sources:

https://www.reuters.com/sustainability/climate-energy/malaysias-petronas-inks-deal-with-jera-study-carbon-capture-storage-2024-04-02/

https://www.thestar.com.my/business/business-news/2024/04/02/petronas-jera-to-explore-feasibility-of-ccs-value-chain-between-japan-and-malaysia

https://asia.nikkei.com/Spotlight/Environment/Malaysia-s-Petronas-and-Japanese-partners-team-on-carbon-storage