PETALING JAYA: Petroleum Sarawak Bhd (Petros) has teamed up with South Korea’s Posco Group to collaborate on the development of the carbon capture and storage (CCS) business in Sarawak.
State-owned Petros, which is the resource manager for the CCS business in Sarawak, inked a memorandum of understanding (MoU) with Posco Holdings, Posco International and Posco Engineering & Construction Co Ltd (Posco E&C) in Kuching yesterday witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg.
The MoU signatories were Petros acting senior vice-president of Sarawak Resources Management Anyi Ngau and Posco Holdings executive vice-president and head of hydrogen business Cho Ju-Ik.
The four companies will conduct a joint study on potential carbon storage sites in Sarawak based on available data provided by Petros, transportation of carbon dioxide (CO2) from South Korea to the CCS hub in Sarawak, CO2 injection and sequestration, and solutions to reduce, mitigate and/or avoid green house gas (CHG) emissions from the CCS opportunities.
They will also assess the technical and commercial feasibility of the CCS business.
Abang Johari said according to the CCS Institute, carbon capture, utilisation and storage (CCUS) is one of the few technologies that is able to adequately displace CO2 and the only technology capable of reducing large-scale emissions from diverse industrial sources.
In addition, he said the technology can be retrofitted to many existing facilities, enabling them to operate cleanly for the remainder of their lifecycles.
“CCUS is beginning to prove itself as a commercially viable solution that has the potential to be used for the making of hydrogen, blue ammonia, biofuels and other products, thereby providing a sustained platform in Sarawak apart from the generation of carbon credits.
“In this regard, Sarawak’s initiative in CCUS aims to support the green energy business in line with global financial movement towards the environment, social and governance (ESG) framework,” he added.
Abang Johari said the Petros-Posco partnership is a step in the right direction to create a sustainable energy future for the benefit of the coming generations.
“We must ensure that we strike a balance between building our economy and mitigating the impact on our environment and society. We are glad to be working with a like-minded corporation that places emphasis on sustainable development.
“It is imperative to actively engage in multi-lateral processes that aim to address the global challenge – climate change that endangers the well-being of people and the planet.
“The next few years are critical to act for a sustainable future for all. Delayed action triggers the impact of climate change so catastrophic that our world will become unrecognisable. Changing course will require immediate, ambitious and concerted efforts to slash emissions.
“I think we must focus on developing and implementing cleaner energy technologies across the value chain to enable us to meet the world’s demand for energy in a sustainable and efficient manner,” he added.
Abang Johari said the Sarawak government had recently updated the Sarawak Land Code Ordinance and developed the CCS standards to include legislation regulating this new business opportunity.
Cho said Posco International had abundant experience in the exploration and production of overseas oil and gas fields, and Posco E&C had already completed in-depth study for CO2 facilities. “So, we are confident of accelerating our carbon neutrality by means of gathering group-level abilities,” he added.
Anyi said CCS sites were part of Sarawak land, and the CCS industry aimed to promote the development of Sarawak’s massive sour gas reserves, which contains CO2.
“Through the CCS business, it would enable Sarawak to ensure long-term energy security for the state, provide more local jobs in this green industry and provide an additional revenue source to the state,” added Anyi.
