Independent tank storage company Vopak will work alongside energy giant Petronas to study the development of a carbon capture and storage (CCS) value chain focusing on the CO2 emitted by industries in Singapore.
Having signed a Memorandum of Understanding (MoU), the companies intend to focus on CO2 transport from a Vopak terminal for potential injection into the regional storage hubs developed by Petronas.
These hubs enable industries wanting to decarbonise their processes a way to store waste CO2 when underground geologic reservoirs are not abundant.
The deal comes after a slew of CO2 transport and storage deals signed between Petronas and a range of energy companies including ~Mitsui, Shell and JAPEX.
Having embraced the five Sustainable Development Goals (SDGs) released by the UN in 2015, Vopak has stated that it aims to help limit climate change, while providing access to affordable, reliable and sustainable energy and feedstocks .
“We are excited about this project with our long-term partner Petronas to jointly collaborate,” said Chris Robblee, President of Vopak Asia & Middle East. “This is well aligned with our commitment to support the energy transition through development of CO2-infrastructure for sustainable energy solutions and the decarbonisation of the industry.”
According to market consumer data specialist Statista, the industrial sector was the largest source of greenhouse gas emissions in Singapore in 2021, with a 47% share of emissions.
Interest in technologies associated with CCS has been growing rapidly in both the public and private sectors over the paste five to ten years. Spurred on by Net Zero initiatives and government-industry collaboration, carbon capture has been labelled as ‘vital’ to reaching 2050 targets by the Intergovernmental Panel on Climate Change (IPCC).
A report released by the organisation earlier this year reaffirmed CCS as a ‘critical technology’ for mitigating climate change.
Commenting on the report, Jarad Daniels, CEO of the Global CCS Institute said, “The IPCC has once again confirmed that CCS is key to reaching Net Zero emissions by mid-century and mitigating climate change.”
“The Institute welcomes that the report has highlighted the need for CCS across a range of sectors, including energy production, manufacturing and industry, and CO2 removal (CDR).”
However, the technology is not without its critics. One major concern with CCS is that CO2 could leak out the underground reservoirs in which they’re injected into the surrounding air and contribute to climate change or taint nearby water supplies.
According to the Global CCS Institute, these fears are unfounded and CCS is ‘a proven technology that has been in safe operation for over 46 years.’