Page 4 - AsianOil Week 44 2022

AsianOil COMMENTARY AsianOil

Another international partnership

moves Chinese CCUS forward

Shell has joined forces with Sinopec, Baowu and BASF to develop a CCUS site

in the East China region

CHINA SHELL signed a memorandum of understand- per year [tpy] of CCS capacity by 2035,” he said.
ing (MoU) with China’s Sinopec and Baowu, and The emissions captured from industry could
WHAT: Germany’s BASF, last week, on exploring the then be delivered to a receiving terminal on
Shell and others have feasibility of developing an open-source carbon board CO2 carrier ships, and then to onshore
formed a new CCUS capture utilisation and storage (CCUS) site in the and offshore storage sites via pipelines. Shell
partnership in China. East China region. said this would offer a flexible, efficient and inte-
The project could offer industries in the mid- grated decarbonisation option for companies
WHY: dle and lower parts of the Yangtze River region working in the region.
Momentum is building the chance to capture and store their CO2 According to Shell, China could store as
behind CCUS in the emissions on a contractual basis, Shell said on much as 2,500 gigatonnes of carbon, giving its
country, supported by November 4. second largest potential storage capacity after
Beijing's climate goals. “The four parties intend to conduct a joint the US. It currently has 40 CCUS pilot projects
study to assess the technical solutions and underway, but only with a total capacity of 3mn
WHAT NEXT: develop a commercial model for the project. The tpy. And most of these developments are used
CCUS is set to serve a study will also explore how to establish high-in- to bolster oil recovery, by pumping CO2 into
vital role in helping China tegrity and verified low-carbon product supply underground reservoirs.
peak its emissions no chains and propose enabling policies. If success- “In a net-zero emissions energy system, a
later than 2030 and reach ful, it will be China’s first large-scale open-source little more than 1.3 Gt of CO2 a year will need
net zero by 2060. CCUS project with a potential capacity of tens to be captured and permanently stored in 2060.
of million tonnes of CO2 per year,” added Shell. This means CCUS capacity will need to increase
Shell’s downstream director, Huibert more than 400 times in the next four decades,”
Vigeveno, stressed the importance of CCUS in Shell said. “While this is technically possible, as
tackling emissions from hard-to-bate sectors. many of the CCUS technologies in China are
“This project is also in line with Shell’s stra- close to or have reached commercialisation,
tegic approach to provide decarbonisation solu- the main challenge lies in creating conditions
tions to individual market sectors, as well as our to support substantial investment in large-scale
ambition of having access to at least 25mn tonnes CCUS, particularly as a solution to industrial

P4 www. NEWSBASE .com Week 44 08•November•2022