Shell, ExxonMobil, CNOOC Partner on Offshore CCS Hub in China
Shell has signed a Memorandum of Understanding (MoU) with China National Offshore Oil Cooperation (CNOOC), Guangdong Provincial Development and Reform Commission and ExxonMobil to explore the feasibility of developing a carbon capture and storage (CCS) hub in the Daya Bay National Economic and Technological Development Zone in Huizhou, Guangdong Province, China.
The four parties intend to explore the development of the CCS hub to capture up to 10 million tonnes of CO2 a year. If successful, it will be China’s first offshore large-scale CCS hub which could help reduce significant CO2 emissions of the Daya Bay National Economic and Technological Development Zone and serve the decarbonisation needs of the enterprises in the area.
Under the MoU, the parties will seek to conduct a study to assess technical solutions, develop a commercial model and work with government to create enabling policies.
“China has an ambitious decarbonisation path – from about 10 billion tons of CO2 emissions a year to net-zero within 30 years,” said Jason Wong, Executive Chairman of Shell Companies in China. “A shift to cleaner energy sources and energy efficiency will not be enough. China will also need to actively remove emissions.
“This makes CCS an essential part of the solution for China to achieve carbon peak by 2030 and carbon neutrality by 2060. We are keen to collaborate with partners to help accelerate the development of CCS in China and make contributions to China’s carbon targets.”
“The surging demand for CCS in China provides Shell with a substantial opportunity to grow its sectoral decarbonisation business,” said Anna Mascolo, Executive Vice President of Shell Emerging Energy Solutions. “To that end, Shell has been proactively working with CNOOC and other partners to evaluate the Daya Bay CCS Hub, not only to secure the option to reduce the emissions from our expanding Nanhai petrochemical plant and other industrial players in the area, but also to help integrate and scale up Shell’s growing low-carbon energy offerings in the country.”
Shell aims to become a net-zero emissions energy business by 2050 and its ambition is to have access to at least 25 million tonnes a year of CCS capacity by 2035.