As more and more companies jockey for innovative ways to develop and improve their carbon capture and storage strategies, one of the largest energy giants in the world appears to be striking deals left and right.
You may have heard by now that Petronas, a fully-integrated Malaysian oil and gas company whose reach spans over 100 countries and is ranked among the FORTUNE Global 500®, signed a Memorandum of Understanding with independent tank storage company, Vopak, just before Thanksgiving. The team-up will improve efforts to study the development of a carbon capture and storage value chain focusing on the CO2 emitted by industries in Singapore.
The news was initially reported by gasworld, which added that Petronas has also signed CO2 transport and storage deals with several other energy companies, including Mitsui, Shell, and JAPEX.
We are excited about this project with our long-term partner Petronas to jointly collaborate,” the President of Vopak Asia and Middle East, Chris Robblee, said in a recent press release. “This is well aligned with our commitment to support the energy transition through development of CO2 infrastructure for sustainable energy solutions and the decarbonization of the industry.”
More on this deal and its significance
There is growing interest worldwide in reducing CO2 emissions to mitigate climate change. And a big piece of that interest is CO2 capture and storage. Rather than let CO2 float away into our atmosphere and impact global warming, carbon dioxide manufacturing companies have designed and implemented environmentally-friendly processes and systems to capture and sequester these emissions at the source so they can then be used later for secondary purposes that are cleaner and safer.
In the United States, the demand for carbon dioxide reached 10.3 million tons per year in 2021, with a revenue of $2.75 billion. That domestic demand is projected to expand at an annual growth rate of 2% during the next five years.
Globally, the demand is valued at roughly $3.68 billion in 2021, with an expected compound annual growth rate of 7.3%. Moreover, gasworld reported that 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.
The deal between Petronas and Vopak includes CO2 transport from a Vopak terminal for potential injection into the regional storage hubs developed by Petronas, the press release states.
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