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Seneca ESG
- September 1, 2022
Sinopec , one of China’s three major state-owned oil and gas producers, has started the operation of the country’s largest carbon capture, utilization, and storage (CCUS) facility in east China, with plans to build two additional plants of similar size by 2025, as reported by Reuters on August 29. The new CCUS project will capture the carbon dioxide (CO2) generated from Sinopec’s Qilu Petrochemical Company and transport it to Sinopec Shengli Oilfield for enhanced oil recovery. According to Sinopec, the project is expected to inject over 10m tons of CO2 and increase nearly 3m tons of oil output in 15 years. The project can reduce 1m tons of CO2 emissions per year, equivalent to planting 9m trees.
The Chinese government published a roadmap for national CCUS development in 2019, aiming to build CO2 pipelines with an annual transport capacity of 2m tons by 2030 and brace for the industrial application of CCUS technologies. At present, about 40 CCUS demonstration projects are in operation or under construction in 19 provinces of China. Although China’s CCUS deployment is still at an experimental stage, a report published by the Chinese Academy of Science (CAS) suggested that CCUS will play a crucial role in reducing emissions from the power, steelmaking, and cement sectors. Previously, on June 29, another national oil company China National Offshore Oil Corporation (CNOOC) also inked an agreement with Exxon Mobil , Shell , to study the feasibility of establishing a CCUS project capable of capturing 10m tons of CO2 a year in China.
Sources:
https://www.globaltimes.cn/page/202208/1274158.shtml
https://finance.sina.com.cn/money/future/roll/2022-08-30/doc-imizmscv8379882.shtml
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