As the world faces the increasing challenge of climate change, reducing carbon emissions has become a priority for governments, industries, and environmental organizations. One of the key technologies being developed and implemented to address this issue is Carbon Capture, Utilization, and Storage (CCUS). This technology offers a promising approach to mitigating carbon dioxide (CO2) emissions from industrial sources and power plants and plays a crucial role in the global transition toward cleaner energy and sustainable development.
According to the International Energy Agency (IEA), achieving net-zero emissions will be extremely challenging without CCUS, as its role will extend to nearly every part of the global energy system. The contribution of CCUS is expected to grow over time as technology advances, costs decrease, and cheaper abatement options in some sectors are exhausted.
In Malaysia, the government is committed to ensuring that the implementation of CCUS hubs aligns with the National Energy Transition Roadmap (NETR). Under NETR, Malaysia aims to establish three CCUS hubs by 2030, with a shared storage capacity of up to 15 million tonnes per annum (mTpa), equivalent to approximately 300,000 barrels per day (bpd). Currently, Malaysia has identified 16 depleted fields suitable for CCUS, which is a set of methods designed to prevent CO2 from reaching the atmosphere or to remove what is already present.
Source: NETR Part 2, Ministry of Economy
What is CCUS?
CCUS stands for Carbon Capture, Utilization, and Storage, a process designed to capture CO2 emissions produced from fossil fuel usage in electricity generation and industrial processes. Once captured, the CO2 is either utilized in various industrial applications or stored underground in geological formations to prevent it from entering the atmosphere. CCUS is an integral part of efforts to achieve net-zero emissions, providing a way to balance continued use of fossil fuels with environmental goals.
Three Pillars of CCUS
- Carbon Capture: This involves capturing CO2 emissions directly at their sources. There are three primary methods for capturing carbon: Post-combustion capture involves extracting CO2 from flue gases produced after fossil fuels are burned. Pre-combustion capture converts fossil fuels into a mixture of hydrogen and CO2 before combustion, allowing CO2 to be separated and enabling the use of hydrogen as a clean energy source. Oxy-fuel combustion burns fossil fuels in pure oxygen rather than air, producing flue gas mainly composed of CO2 and water vapor, which simplifies the process of separating CO2.
- Carbon Utilization: Once CO2 is captured, it can be converted into valuable resources. CO2 is primarily used in the fertilizer industry and for enhanced oil recovery. One notable application is Enhanced Oil Recovery (EOR), where CO2 is injected into depleted oil fields to increase oil extraction, while also enabling long-term CO2 storage underground. Additionally, CO2 can be injected into concrete, which enhances its strength and reduces the need for cement.
- Carbon storage: When utilization isn’t feasible, the captured CO2 can be securely stored underground to prevent it from entering the atmosphere. This is achieved through geological storage, where CO2 is injected into deep rock formations beneath the Earth’s surface.
CCUS in Malaysia
CCUS is still in its early stages in Malaysia, but there are signs of development on the horizon. Economy Minister Rafizi Ramli has stated that the regulatory framework for CCUS is anticipated to be introduced in Parliament during the November sessions. We also see the increase of companies adopting or developing plans to adopt the CCUS technology.
Malaysia’s leading oil and gas company, Petronas, has initiated the Kasawari Integrated Offshore High Contaminant Project, a significant CCS project located off the coast of Sarawak. This initiative employs carbon capture and storage technology in fields with high CO2 levels to capture and store emissions. The project also focuses on developing technologies for onshore processing plants to convert CO2 into valuable products. The first CO2 injection is planned to start by the end of 2025. Upon becoming operational, the project is expected to cut down CO2 emissions from flaring by 76 million metric tonnes, with an average annual reduction of 3.7 million metric tonnes, making it one of the largest CCS projects in the world.
Press Metal, a Malaysian aluminum company, recently signed a collaboration agreement with China’s Xi’an Jiaotong University (XJTU) to research and develop a carbon capture and utilization (CCU) model that integrates with its manufacturing process. The research and development project involves a grant of approximately RM7.7 million allocated to Press Metal and is expected to be completed by August 2026. This partnership underscores Press Metal’s commitment to improving its environmental, social, and governance (ESG) scores while striving to develop a comprehensive and effective CCU model that ensures a sustainable cycle of carbon utilization within the industry.
While CCUS is still in infancy stage in Malaysia, we believed as research and innovation continue to advance, CCUS is poised to play a vital role in meeting international climate goals, providing a bridge between current energy systems and a cleaner, more sustainable future.
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