Malaysia and Japan Ink Cross-Border Carbon Capture and Storage Agreement

Malaysia’s national oil and energy group Petronas recently signed a Memorandum of Cooperation (MoC) with Japan’s Ministry of Economy, Trade and Industry (METI) and the Japanese Organization for Metals and Energy Security (JOGMEC) to strengthen collaboration on cross-border CO2 transportation from business to business for Carbon Capture and Storage (CCS) projects.

CCS is one of the solutions to significantly reduce CO2 emissions into the atmosphere. However, as suitable storage sites are not available in all regions, cross-border CO2 transportation is required to enable regional collaborations to achieve attainable and significant effects.

The MoC seeks to strengthen the cooperation on cross-boundary CCS projects between Japan and Malaysia, taking into consideration the common interest in building a CCS value chain and business model for future carbon neutrality to enhance economic, industrial, and social development.

The MoC also seeks to facilitate the exchange of key information on CCS between Petronas and relevant Japanese industries, including exchanges of information on country-specific laws and regulations relating to CCS. The parties may also explore CCS and related cooperation with key partners including Japanese companies supported by JOGMEC.

The signatories of the MoC were PETRONAS Head of Carbon Management, Emry Hisham Yusoff, METI’s Parliamentary Vice-Minister, Yoshida Nobuhiro, and JOGMEC Vice President, Energy Business Unit, Dr Yamamoto Koji.

“Through this collaboration, partners would be able to establish a deeper understanding of crucial aspects pertaining to the viability of the CCS value chain as a solution for reducing greenhouse gas emissions within the respective business landscapes,” said Emry Hisham Yusoff.

Petronas is championing CCS as a key solution in addressing emissions from its operations as well as local industries.