Shell (LON:SHEL) has signed a Joint Study Agreement with CNOOC, Guangdong Provincial Development and Reform Commission, and ExxonMobil (NYSE:XOM) for the Daya Bay carbon capture and storage (CCS) hub project in China.
“It is a significant step forward in developing this joint project after we signed the Memorandum of Understanding for the project in June last year. 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 region,” Jason Wong, executive chairman for Shell companies in China said today.
“With this Joint Study Agreement signed, we will work together to assess the technical solution, develop the business model and work with government to develop enabling policies for the project,” he added.
“As we know, China has an ambitious decarbonisation path – from about 10 billion tonnes of CO2 emissions a year to net-zero within 30 years. A shift to cleaner energy sources and energy efficiency will not be enough, which makes CCS an essential part of the solution for China to achieve carbon peak by 2030 and carbon neutrality by 2060. We are happy to see the progress of the Daya Bay CCS project and look forward to working together with partners to help accelerate the development of CCS in China and make contributions to China’s carbon targets,” said Wong.
China has significant geological potential for storing carbon, with an estimated 2,400 gigatonnes (Gt) in storage capacity, second only to the USA. It currently has more than 40 CCUS pilot projects with a total capacity of 3 million tons. Many of these projects are small developments linked with enhanced oil recovery. This will need to scale up significantly over the next four decades.
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