KUCHING: Petroleum Sarawak Berhad (PETROS) has signed a memorandum of understanding (MoU) with South Korea’s POSCO Group to develop carbon capture and storage (CCS) business in Sarawak.
The signing ceremony at Wisma Bapa Malaysia today (Dec 12), was witnessed by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
PETROS, as the resource manager for the CCS business in Sarawak, inked the collaboration agreement with POSCO Holdings, POSCO International, and POSCO Engineering and Construction Co Ltd.
The four companies will conduct a joint study on:
- potential carbon storage sites in Sarawak based on available data provided by PETROS;
- transportation of carbon dioxide (CO2) from Korea to CCS hub in Sarawak;
- CO2 injection and sequestration, solutions to reduce, mitigate and or avoid Green House Gas (GHG) emissions arising from the CCS opportunities; and
- the technical and commercial feasibility of the CCS business.
The Premier said the MoU signing between PETROS and POSCO Group is a step in the right direction – further solidifying the relationship while playing a role to create a sustainable energy future for the benefit of future generations.
“We are glad to be working with a like-minded corporation that places emphasis on sustainable development,” he said.
Abang Johari, who is also Finance and New Economy Minister, added there must be a balance between building the economy and mitigating the impacts on the environment and society.
“As Sarawak transforms and pushes towards a high-income prosperous state, environmental sustainability is vital and instrumental in our ability to secure both thriving human communities and abundant and healthy natural ecosystems.
“Many assume that economic interests and environmental interests are in conflict. But new discovery and research make the case that this perception of development versus conservation is not just unnecessary but actively counterproductive to both ends,” he said.
He added that Sarawak welcomes sustainable partnerships across the value chain.
“I am eager and also looking forward to seeing this partnership develop further, with the anticipation of witnessing sustainable green growth towards net zero emissions targets. Thus, I believe this signing ceremony today marks the beginning of a robust collaboration between Sarawak and the Republic of Korea in sustainability. The future is bright,” he said.
Meanwhile, PETROS board chairman Tan Sri Datuk Hamid Bugo said the collaboration between PETROS and POSCO Group is another testimony and marks another milestone for Sarawak and the country whereby the companies sealed its second collaboration to embark in an MoU for a joint conceptual and feasibility study for CO2 storage as well as utilisation.
“During PETROS’s 5th anniversary dinner recently, the Premier had mentioned that Sarawak is blessed with geological structures that are suitable to store CO2 and that Sarawak should venture into Carbon Capture Utilisation and Storage (CCUS) has a very big potential even at a world scale.
“We share this confidence and believe in our potential in this CCUS arena and of course with the support and right collaborations, we can truly make Sarawak achieve a worldwide and world-class endeavour into CCUS,” he said.
POSCO Holdings executive vice president and hydrogen business office head Cho Ju Ik, meanwhile, said that POSCO Group is the sixth conglomerate in Korea and its steelmaking arm, POSCO, is the number one emitter of CO2 in Korea due to the carbon-intensive nature of the industry.
“Therefore, we made a pledge to become carbon neutral by 2050. Our plan is to transition from blast furnace steelmaking to hydrogen-based steelmaking (hydrogen reduction steelmaking). At the same time, we will adopt CCS to directly reduce CO2 emissions.
“To that end, we are making group-wide effort to seek CCS opportunities. Against this backdrop, I find this MoU with PETROS truly encouraging and inspiring, and have great hopes for our CCS cooperation.
“With that, we will set up a dedicated committee. It will be headed by POSCO Holdings and will involve POSCO, POSCO International, POSCO Engineering and Construction and research laboratories to fully support this CCS project at the group level,” he said.
At the MoU signing, PETROS was represented by its acting senior vice president (Sarawak Resource Management) Anyi Ngau; POSCO Holdings, by Cho Ju Ik; POSCO International, by its hydrogen business unit head Yu Yang Jae; and POSCO Engineering and Construction Co Ltd, by its hydrogen business unit head Jeong Woo Sik.
