by Jov Onsat
Tuesday, June 27, 2023
Synopsis
TotalEnergies and Petronas have agreed to construct a carbon storage facility for Asian customers and develop a solar farm in Australia. The carbon storage project aims to serve Asia's industrial sector by evaluating storage sites in the Malay Basin. However, regulatory and financing challenges are expected. In the other agreement, TotalEnergies and Petronas plan to develop renewables projects in the Asia-Pacific region, including a 100 MW solar farm in Queensland, Australia. These partnerships align with TotalEnergies' roadmap to carbon neutrality by 2050, with a focus on expanding renewable electricity generation capacity.
TotalEnergies SE and Petroliam Nasional Berhad (Petronas) have agreed to build a carbon storage facility for Asian customers and develop a solar farm to serve Australia.
One of the two deals, both signed Monday, commits the French global energy giant, the Malaysian state-owned oil and gas company and Mitsui & Co. Ltd. to a carbon dioxide (CO2) “merchant storage service” that would cater to Asia’s industrial sector.
“The partners will evaluate several CO2 storage sites in the Malay Basin, including both saline aquifers and depleted offshore fields”, TotalEnergies said in a press release.
TotalEnergies though noted regulatory and financing challenges: “In Asia, where countries such as South Korea and Japan have pledged for Net Zero Commitment in 2050, the development of a Carbon Capture and Storage (CCS) value chain for hard-to-abate industrial emissions will require a specific regulatory framework and significant investment”.
The project aims to serve “the best technical means to deliver CO2 to Malaysia from industrial clusters in the region and develop the most appropriate business framework for commercialization of a carbon storage service in Malaysia”, it said.
“We will bring to the partnership our strong CCS [carbon capture and storage] expertise, anchored in Europe with a first integrated project in Norway due to start next year and several other projects that will contribute to meeting our carbon storage capacity target of 10 million tons per year by 2030”, TotalEnergies chief executive Patrick Pouyanne said in the announcement.
Muhammad Taufik, Petronas president and chief executive, said the project would help Malaysia become a regional leader in the CCS sector.
In the other agreement, TotalEnergies and Petronas’ clean energy unit plan to develop renewables projects in Asia-Pacific. One of these will be a 100-megawatt solar farm in Australia’s Queensland state. The project targets to provide electricity to the Roma 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 upstream collaboration already forged in eight countries, TotalEnergies said in a separate media statement.
“The 100MW Pleasant Hills Solar Project, which will contribute to lowering the emissions of Gladstone LNG, is a first material implementation of this agreement”, commented Julien Pouget, TotalEnergies senior vice-president of exploration and production and renewables in Asia-Pacific.
Gentari chief executive Sushil Purohit said, “To achieve our joint decarbonization goals, it is critical to harness all our capabilities, capacity and resources efficiently. This includes optimizing our existing partnerships and working to decarbonize our own business entities”.
“Gentari’s latest partnership with TotalEnergies therefore, will provide a new momentum in our net-zero efforts, and to build the right ecosystem for growth in clean energy and net zero solutions”, Purohit added.
TotalEnergies Decarbonization
As part of its roadmap to carbon neutrality by 2050, TotalEnergies aims to have a CO2 storage capacity offered to customers of 50-100 million tons a year, according to the company’s decarbonization plan published March 2022.
The plan says about half of the energy TotalEnergies would be producing starting 2050 will be renewable electricity, which translates to 500 terawatt hours per year. “This would require developing around 400 GW [gigawatts] of renewable capacity (2030 target: 100 GW in 10 years and 120 TWh/year)”, the plan states.
“By the first half of 2023, TotalEnergies' gross renewable electricity generation installed capacity was 18 GW”, TotalEnergies said in the announcement of the Gentari pact. “TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources and storage by 2025, and then 100 GW by 2030 with the objective of being among the world's top 5 producers of electricity from wind and solar energy.”
Source: www.rigzone.com
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