Sumitomo Corporation, through its wholly-owned subsidiary Sumitomo Corporation Middle East FZE, has signed a memorandum of understanding (MOU) with Sharjah National Oil Corporation (SNOC) for a potential carbon capture and storage (CCS) project in Sharjah, the United Arab Emirates.
Sumitomo and SNOC will conduct a joint feasibility study to assess the viability of the CCS project, covering a techno-economic analysis including but not limited to the applicability of Japanese technologies relevant to carbon capture, transport and storage, identification of business models, and assessment of regulatory frameworks, Sumitomo said in a news release.
Sumitomo’s CCS project aims to capture and transport carbon dioxide from emitters in Sharjah and neighboring areas for storage in an onshore mature gas field owned and operated by SNOC. Sumitomo said it eventually aims to establish a large-scale CCS hub centered in the city and possibly generate and trade carbon credits.
SNOC’s mature gas field is potentially a competitive carbon sink for sequestration due to its large storage capacity of over several hundred million tons of carbon dioxide, Sumitomo said. The field is also in an ideal location, near multiple large-scale carbon dioxide sources such as power plants and other industrial plants, it added.
“We believe there is big potential for CCS in the Middle East, as it is a key technology to materialize energy transition”, Sumitomo Corporation Middle East FZE Managing Director Hajime Mori said. “In line with our basic environment policy that aims to make the Sumitomo Corporation Group carbon neutral by 2050, we would like to pursue this business with our partner to achieve our common goal.”
“As part of the joint feasibility study, we will collaborate with industry leaders, environmental organizations, and regulators with the aim of developing a viable project which adheres to the highest standards,” SNOC CEO Hatem Al Mosa said. “SNOC has committed to reach net zero on its own operations by 2032 and CCS has the potential to support this goal and beyond. The time to start is now.”
Hydrogen Project with Rio Tinto
Earlier in July, Sumitomo and Rio Tinto agreed to build a pilot plant in Gladstone, Australia to test the use of hydrogen to replace natural gas in the alumina refining process, according to an earlier news release.
The $74 million (AUD 111 million) joint Rio Tinto and Sumitomo Corporation Yarwun Hydrogen Calcination Pilot Demonstration Program is the first of its kind in the world to trial using hydrogen in the refinery calcination process, according to the news release.
The project will consist of a hydrogen plant at the refinery and retrofit of processing equipment and will be co-funded through a $21.3 million (AUD 32 million) grant from the Australian Renewable Energy Agency, the news release said.
Sumitomo expects construction of the plant to start in 2024 and operations to start in 2025. If successful, the project will demonstrate the viability of using hydrogen in the calcination process and could pave the way for adoption at scale across the industry worldwide, the company said.
“This pilot plant is an important step in testing whether hydrogen can replace natural gas in Queensland alumina refineries”, Rio Tinto Aluminium Pacific Operations Managing Director Armando Torres said. “At Rio Tinto, we have put the energy transition at the heart of our business strategy, and this is one of the ways we’re working towards decarbonizing our operations.”
“Demonstrating real-world applications of hydrogen in industrial settings with motivated partners is essential to reducing carbon emissions and working toward our company’s vision of achieving carbon neutrality by 2050”, Sumitomo Energy Innovation Initiative Director Seiji Kitajima said. “Through this demonstration, Sumitomo Corporation aims to venture into the commercialization project to contribute to Rio Tinto’s decarbonization. Sumitomo Corporation is proud to be working on yet another hydrogen project in Australia and contributing to Australia’s own emission reductions goals.”
Sumitomo in January established a dedicated global carbon capture, utilization, and storage team as it highlighted climate change mitigation as one of its focus areas.
To contact the author, email rteodoro.editor@outlook.com
