Storegga, the independent developer of carbon storage and clean fuels, and PETRONAS, the national oil and gas company of Malaysia, have signed a memorandum of understanding (MOU) to assess and determine the commercial, regulatory, and economic factors required for the development of carbon capture and storage (CCS) hub and cluster projects in Malaysia and potentially beyond. The move progresses both firms’ continued efforts to combat climate change through the development of CCS and Carbon Management globally. The phased work will explore collaboration on CCS and related projects in Malaysia and internationally, including the potential development of projects in direct air capture (DAC).

Dr Nick Cooper, CEO at Storegga, said:
“CCS is a vital tool.  A reverse carbon cycle at scale is urgently needed to reduce and remove CO₂ from the atmosphere. We are looking forward to working with PETRONAS in Malaysia and beyond to catalyse CCS hubs and clusters. These hubs will accelerate the development of important carbon reversal technologies such as direct air capture. We have one atmosphere – it is vital that countries around the world work together to reduce and remove CO₂. We are excited that this relationship also expands Storegga’s global presence and utilises our capabilities to support Asia’s progress towards decarbonisation.”

Emry Hisham Yusoff, Head of Carbon Management at PETRONAS, said:
“The collaboration undertaken through this MOU will look into the commerciality and other associated environments to enable the CCS value chain in Malaysia and/or regionally, bringing PETRONAS closer towards establishing Malaysia as a leading and attractive regional CCS solutions hub.

This collaboration is part of PETRONAS’ deliberate steps to build a sustainable portfolio with innovative solutions to produce energy responsibly, supporting the transition to a lower carbon future through collaborative efforts with industry partners.”

The purpose of the MOU between Storegga and PETRONAS can be split into two phases. The first is to work together to develop the CCS commercial strategy and to establish enablers and associated drivers with a view to initiating the potential development of CCS hub and cluster projects in Malaysia and/or regionally, and with affiliates internationally. Areas of potential cooperation include sharing knowledge on the global status of CCS, the economics of CCS, and potential business models as well as developing integrated solutions for emitters.

The second phase involves Storegga and PETRONAS exploring collaboration on CCS or related projects in Malaysia and internationally as well as the development of projects adjacent to CCS such as DAC. 

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