ADNOC, PETRONAS and Storegga Unite for Malaysian CCS Project

UK-based carbon capture company Storegga has teamed up with energy giants ADNOC and PETRONAS to explore carbon capture and storage (CCS) opportunities in the Penyu Basin.

This partnership — a  joint study and development agreement (JSDA) — aims to evaluate the saline aquifers for CO₂ storage in this area of Malaysia, with a goal of achieving at least five million tonnes per annum (mtpa) of CO₂ storage capacity by 2030. 

The collaboration will focus on CO₂ shipping, logistics, geophysical and geomechanical modelling, reservoir simulation and advanced technologies – including AI — to maximise storage potential. 

Will Malaysia become a CCS leader?

With help from Malaysian multinational oil and gas company PETRONAS, the country is keen to bolster its role as a leader in CCS within APAC. By strengthening bilateral ties with the UAE — where ADNOC, also known as The Abu Dhabi National Oil Company, is headquartered — Malaysia aims to enhance cooperation across sectors such as renewable energy, environment and logistics.

As well as this, this pan-continental union aligns with Malaysia’s interest in intensifying bilateral economic partnerships with the UAE in renewable energy, environment, economy, tourism, entrepreneurship, SMEs and logistics, known as the Malaysia-UAE Joint Committee for Cooperation (JCC) framework.

Nora’in Md Salleh, CEO of PETRONAS CCS Solutions said: “This agreement with ADNOC and Storegga will potentially allow us to build our capability to develop and de-risk saline aquifers as carbon dioxide storage sites by leveraging on our partners’ expertise and experience in other regions.

“With the signing of the JSDA, PETRONAS supports the JCC and enhances the established relationship between PETRONAS and ADNOC, reciprocating PETRONAS’ presence in ADNOC’s unconventional upstream business in Abu Dhabi.”

ADNOC and Storegga’s contribution to global carbon capture

ADNOC is heavily investing in low-carbon projects, with a commitment of US$15bn as part of its new multi-year strategy. It is working to reach a carbon capture capacity of 10mtpa by 2030. 

This partnership with PETRONAS and Storegga is part of ADNOC’s broader strategy to develop global carbon management hubs and contribute to decarbonisation efforts.

“Carbon capture is an important tool to responsibly reduce carbon emissions and ADNOC will continue to develop this technology as we work towards our net zero by 2045 goal,” Hanan Balalaa, ADNOC Senior Vice President for New Energies, said.

“We are committed to working with trusted global partners like PETRONAS and Storegga to develop and utilise global carbon management hubs, enabling our customers to reduce their emissions and supporting their decarbonization goals.”

Storegga, although a relatively small company, has a significant portfolio behind it, including its Acorn CCS project in the UK and the Trudvang CCS project in Norway. This valuable experience is an asset to its collaboration with ADNOC and PETRONAS. 

This, however, is not the first time Storegga has worked with ADNOC. Earlier this year, the energy giant became a lead investor in the climate tech company, reinforcing its dedication to advancing CCS technologies.

Nick Cooper, CEO of Storegga, said: “Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarbonisation by deploying cost-effective CCS globally.

“Storegga is fortunate to be backed by investors with the necessary vision and ambition for the rapid deployment of CCS and carbon removal technologies that are imperative for meeting the global net zero objectives.” 

Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, added: “This strategic investment marks an important milestone in ADNOC’s decarbonisation journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future.

“Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and ADNOC will continue to scale-up this technology as we work towards net zero by 2045.”

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