TotalEnergies SE and Petroliam Nasional Berhad (Petronas) have agreed to build a carbon storage facility for Asian customers and develop a solar farm to service Australia.
One of the two deals, both signed on Monday, involves the French global energy giant, Malaysia’s state oil and gas company and Mitsui & Co. Ltd. to a “commercial storage service” of carbon dioxide (CO2) serving services in Asia. industrial sector.
“The partners will evaluate various CO2 storage sites in the Malaysia Basin, including both saline aquifers and depleted offshore fields,” TotalEnergies said in a press release.
TotEnergies noted regulatory and financing challenges: “In Asia, where countries such as South Korea and Japan have committed to the Net Zero Commitment by 2050, the development of a carbon capture and storage (CCS) value chain ) for industrial emissions that are difficult to reduce. will require a specific regulatory framework and significant investment”.
The project aims to use “the best technical means to deliver CO2 to Malaysia from industrial clusters in the region and develop the most appropriate business framework for the commercialization of a carbon storage service in Malaysia,” he said.
“We will bring our strong CCS to the association [carbon capture and storage] experience, anchored in Europe with a first integrated project in Norway starting next year and several other projects that will contribute to our goal of carbon storage capacity of 10 million tons per year by 2030,” said Patrick Pouyanne, CEO of TotalEnergies, in the announcement.
Muhammad Taufik, president and CEO of Petronas, said the project would help Malaysia become a regional leader in the CCS sector.
In the other agreement, the clean energy unit of TotalEnergies and Petronas plans to develop renewable energy projects in Asia-Pacific. One of them will be a 100 megawatt solar farm in the Australian state of Queensland. The project aims to supply electricity to the Gypsy gas field for production and processing activities.
The partnership with Gentari Renewables Sendirian Bhd “further strengthens TotalEnergies’ partnership with Petronas in the energy transition” with an upward partnership already forged in eight countries, TotalEnergies said in a statement to part of the media.
“The 100 MW Pleasant Hills solar project, which will contribute to reducing Gladstone LNG’s emissions, is a first material implementation of this agreement,” commented Julien Pouget, senior vice president of exploration and production and renewables in Asia-Pacific at TotalEnergies.
Gentari CEO Sushil Purohit said: “To achieve our joint decarbonisation goals, it is critical to leverage all of our capabilities, capacity and resources efficiently. This includes optimizing our existing partnerships and working to decarbonise our own business entities”.
“Gentari’s latest partnership with TotalEnergies will therefore provide further impetus to our net zero efforts and to build the right ecosystem for growth in clean energy and net zero solutions,” Purohit added.
TotalEnergies decarbonisation
As part of its roadmap to carbon neutrality by 2050, TotalEnergies aims to have a CO2 storage capacity that provides customers with 50 to 100 million tonnes per year, according to the decarbonisation plan of the company published in March 2022.
The plan says that roughly half of the energy TotalEnergies would produce starting in 2050 will be renewable electricity, which translates to 500 terawatt-hours per year. “This would require developing about 400 GW [gigawatts] of renewable capacity (goal 2030: 100 GW in 10 years and 120 TWh/year)”, the plan states.
“In the first half of 2023, TotalEnergies’ gross installed renewable electricity generation capacity was 18 GW,” TotalEnergies said in announcing the Gentari pact. “TotalEnergies will continue to expand this business to reach 35 GW of gross generation capacity from renewable sources and storage by 2025, and then 100 GW by 2030 with the aim of being among the top 5 global electricity producers from of wind and solar energy”.
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