[the_ad id="121217"]

popular articles

Decarbonization Strategies in Asia-Pacific: A Shift Towards Carbon Storage Hubs

Carbon capture and storage (CCUS) projects are expanding in Asia-Pacific. Several countries are stepping up efforts to create regional hubs despite regulatory complexities and financial challenges.

Please share:

Carbon capture, utilization, and storage (CCUS) is becoming a key technology for Asian countries seeking to reduce CO2 emissions while supporting the growth of their energy industry. However, the development of these infrastructures remains in its early stages due to uneven regulatory frameworks and limited incentives compared to the United States or Europe. Several countries in the region, including Australia, China, Indonesia, and Malaysia, have adopted strategies to accelerate storage and carbon transport projects by focusing on international collaborations and multi-industrial hub models.

Governments are strengthening their decarbonization policies, but funding is insufficient to support costly capture technologies. Ongoing projects are structured around regional hubs capable of consolidating emissions from multiple sectors and ensuring secure storage. Unlike Europe, where CCUS hubs are encouraged by dedicated infrastructures, Asia-Pacific is developing a more fragmented approach, relying heavily on bilateral agreements for cross-border CO2 transportation.

Australia: A Comprehensive Regulatory Framework for CO2 Storage

Australia has a structured legislative framework, with major ongoing projects. The Gorgon carbon capture project, led by **Chevron Corporation**, has already injected more than 7 million tons of CO2 into saline aquifers. At the same time, the country has implemented a carbon credit system (Australia Carbon Credit Unit), offering 25-year credit periods for eligible projects. This system has unlocked investments in projects like Moomba, operated by **Santos**, which aims to inject up to 1.7 million tons of CO2 per year into depleted fields.

However, offshore projects face delays due to land rights complications and storage permit regulations. Australia has also set up an exploration permit system to evaluate storage potential in the North West Shelf region, a strategic basin for developing future multi-industrial hubs.

China: Expanding Assisted Recovery Projects

China is positioning itself as a regional leader in terms of the number of pilot projects, primarily focused on enhanced oil recovery (EOR). Major state-owned enterprises, **China National Petroleum Corporation (CNPC)**, **CNOOC**, and **Sinopec**, have incorporated CCUS into their energy transition plans, with strategic collaborations such as those with **Shell** and **ExxonMobil** to set up hubs in key industrial areas.

In 2021, China launched its National Emission Trading Scheme, initially limited to the power sector, and plans to expand it to other high-emission industries by 2025. Meanwhile, companies are assessing the feasibility of storage hubs in regions such as Guangdong, where joint ventures with **CNOOC** aim to capture up to 10 million tons of CO2 per year.

Indonesia and Malaysia: Storage and Cross-Border Cooperation

Indonesia, rich in mature basins, recently adopted two CCUS-friendly regulations, positioning itself as a potential regional storage player. **Pertamina** leads several assisted recovery projects, while **BP** plans to integrate CCUS into the Tangguh gas project, aiming to re-inject up to 25 million tons of CO2 into gas reservoirs. The government has established a framework allowing operators to allocate up to 30% of their storage capacity to imported CO2 under specific conditions.

Malaysia is turning to CCUS to extend the life of its high-CO2 oil and gas fields. The Kasawari project, led by **Petronas**, which aims to store 3 million tons of CO2 annually, is crucial for maintaining the country’s liquefied natural gas capacity. Amendments to the Petroleum Income Tax Act in 2023 are expected to facilitate the integration of new fiscal incentives for investment in capture technologies.

Towards Regional Hubs and Cross-Border CO2 Transport

Cross-border CO2 transportation is emerging as a solution to overcome storage capacity limitations in countries such as Japan and South Korea. Both countries, with limited storage capacity, have started discussions with Australia and Malaysia to import CO2 by sea. Japan has signed an agreement with Malaysia to explore cross-border CO2 transportation to offshore reservoirs, while Indonesia has entered a partnership with Singapore to develop joint storage infrastructures.

These initiatives indicate a shift towards regional cooperation, with centralized hubs capable of connecting multiple industrial emission clusters. Australia, with its legislative amendments to allow cross-border CO2 transportation, could serve as a model for other countries in the region.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Occidental Petroleum, in partnership with Enterprise Products Partners, is setting up a CO₂ pipeline network in Southeast Texas to transport captured emissions, thus supporting carbon capture and storage projects in the Houston area.
The European Union's Carbon Border Adjustment Mechanism (CBAM) could have little effect on Asia’s voluntary carbon market and minimal impact on finished product prices, according to experts at the Asia Climate Summit.
The European Union's Carbon Border Adjustment Mechanism (CBAM) could have little effect on Asia’s voluntary carbon market and minimal impact on finished product prices, according to experts at the Asia Climate Summit.
With growing emissions in the oil and gas sectors, the Asia-Pacific is exploring carbon capture and storage (CCS) solutions to meet climate goals, but the lack of a unified strategic framework hinders progress.
With growing emissions in the oil and gas sectors, the Asia-Pacific is exploring carbon capture and storage (CCS) solutions to meet climate goals, but the lack of a unified strategic framework hinders progress.
The Pycasso project, aimed at storing CO2 to decarbonize industry in the Lacq Basin, has been abandoned. A lack of dialogue and risks to existing industries were key factors in this controversial decision.
The Pycasso project, aimed at storing CO2 to decarbonize industry in the Lacq Basin, has been abandoned. A lack of dialogue and risks to existing industries were key factors in this controversial decision.
[the_ad id="121209"]
[the_ad id="121211"]
Japan is projected to become the leading hub for captured carbon (CO2) trade in the Asia-Pacific region by 2050, according to Wood Mackenzie, with government investment and policy support being crucial to this goal.
Singapore is stepping up its efforts to achieve carbon neutrality by 2050 by co-funding feasibility studies on carbon capture and storage (CCS) in its power plants. This key project aims to reduce emissions while ensuring the country's energy security.
Singapore is stepping up its efforts to achieve carbon neutrality by 2050 by co-funding feasibility studies on carbon capture and storage (CCS) in its power plants. This key project aims to reduce emissions while ensuring the country's energy security.
Malaysia will introduce a carbon tax in 2026 targeting the steel, iron, and energy industries, in line with its emission reduction ambitions. This measure aligns with the EU's Carbon Border Adjustment Mechanism.
Malaysia will introduce a carbon tax in 2026 targeting the steel, iron, and energy industries, in line with its emission reduction ambitions. This measure aligns with the EU's Carbon Border Adjustment Mechanism.
Industrial carbon capture and storage (CCS) initiatives have seen significant growth in 2024, reaching 628 global projects. This expansion is supported by public policies and strengthened international collaboration.
Industrial carbon capture and storage (CCS) initiatives have seen significant growth in 2024, reaching 628 global projects. This expansion is supported by public policies and strengthened international collaboration.
[the_ad id="121213"]
[the_ad id="121214"]
The body overseeing Article 6.4 of the Paris Agreement has adopted unprecedented standards for project methodologies and carbon removals, facilitating the operationalization of global voluntary carbon markets.
A Rockefeller Foundation-led initiative aims to prematurely close coal-fired power plants in developing countries using carbon credits to reduce CO₂ emissions.
A Rockefeller Foundation-led initiative aims to prematurely close coal-fired power plants in developing countries using carbon credits to reduce CO₂ emissions.
Large international companies are intensifying their investments in Chinese carbon credits, attracted by the extension of the national system and the growth potential of new projects.
Large international companies are intensifying their investments in Chinese carbon credits, attracted by the extension of the national system and the growth potential of new projects.
COP28 President Sultan Al Jaber calls on governments to submit ambitious NDCs to accelerate global decarbonization, relying on technology investment and innovation to reach the 1.5°C climate target.
COP28 President Sultan Al Jaber calls on governments to submit ambitious NDCs to accelerate global decarbonization, relying on technology investment and innovation to reach the 1.5°C climate target.
Norway has launched the world's first commercial CO2 transport and storage service, marking a milestone in the management of industrial emissions in Europe thanks to the Northern Lights project.
Colombia, Kenya, Cambodia, Mexico and Peru are the leaders in the voluntary carbon credit market, thanks to regulatory advances and investor-friendly policies.
Colombia, Kenya, Cambodia, Mexico and Peru are the leaders in the voluntary carbon credit market, thanks to regulatory advances and investor-friendly policies.
Large companies are reducing their investments in decarbonization due to geopolitical tensions, although regulations and consumer expectations continue to push them towards better management of their emissions.
Large companies are reducing their investments in decarbonization due to geopolitical tensions, although regulations and consumer expectations continue to push them towards better management of their emissions.
The development of carbon capture technologies is crucial to achieving decarbonization targets, but projects are not progressing fast enough according to experts.
The development of carbon capture technologies is crucial to achieving decarbonization targets, but projects are not progressing fast enough according to experts.
[the_ad id="121219"]
More than half the world's companies are committed to carbon neutrality, but experts condemn the lack of concrete action to achieve this goal, despite ambitious announcements.
The price of Australian Carbon Credit Units is set to jump by 56% between now and 2025, according to ANZ forecasts. Prices in New Zealand and China remain stable, in the face of less restrictive policies.
The price of Australian Carbon Credit Units is set to jump by 56% between now and 2025, according to ANZ forecasts. Prices in New Zealand and China remain stable, in the face of less restrictive policies.
Despite the war, Ukraine continues its industrial decarbonization efforts with innovations supported by EBRD and the EU. Pipes.one and Carbominer focus on manufacturing and agricultural efficiency through emission-reducing technologies.
Despite the war, Ukraine continues its industrial decarbonization efforts with innovations supported by EBRD and the EU. Pipes.one and Carbominer focus on manufacturing and agricultural efficiency through emission-reducing technologies.
Ørsted is committed to supplying 330,000 tonnes of CO2 removal credits to Equinor over a ten-year period, supporting its biomass carbon capture and storage projects.
Ørsted is committed to supplying 330,000 tonnes of CO2 removal credits to Equinor over a ten-year period, supporting its biomass carbon capture and storage projects.
Regulated carbon markets saw their prices rise in August, while the voluntary market faced difficulties linked to the quality of credits and a lack of liquidity.
Germany blocks emission reduction certificates for projects in China after detecting irregularities, calling into question the reliability of carbon offsets on the European market.
Germany blocks emission reduction certificates for projects in China after detecting irregularities, calling into question the reliability of carbon offsets on the European market.
Haffner Energy and IðunnH2 partner to use biocarbon in Iceland's 65,000-tonne e-SAF project, in response to carbon supply challenges.
Haffner Energy and IðunnH2 partner to use biocarbon in Iceland's 65,000-tonne e-SAF project, in response to carbon supply challenges.
Eni and Snam are implementing a carbon capture and storage (CCS) project in the Adriatic Sea to reduce industrial CO2 emissions in Italy.
Eni and Snam are implementing a carbon capture and storage (CCS) project in the Adriatic Sea to reduce industrial CO2 emissions in Italy.

Advertising