Shell collaborates with CNOOC, Guangdong Government, and ExxonMobil on a Chinese offshore carbon capture and storage hub
Shell has signed a Memorandum of Understanding (MoU) with CNOOC, the Guangdong Provincial Development and Reform Commission, and ExxonMobil to investigate the feasibility of establishing a carbon capture and storage (CCS) center in Huizhou, Guangdong Province, China.
The four parties want to study the creation of a CCS hub capable of capturing up to 10 million tonnes of CO2 per year. If it is successful, it will be China’s first offshore large-scale CCS hub, helping to eliminate major CO2 emissions from the Daya Bay National Economic and Technological Development Zone while also serving the decarbonisation needs of the area’s industries.
Following the MoU, parties will seek to conduct a joint study to assess the technical solutions develop the commercial model; and work with government to develop 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.”
CCS provides a method for reducing emissions from difficult-to-decarbonise sectors. Shell’s CCS Strategy is a crucial pillar of their climate goal of being a net-zero emissions energy company by 2050, with a goal of having access to at least 25 million tonnes of CCS capacity by 2035.
