{"id":83387,"date":"2024-04-02T00:00:00","date_gmt":"2024-04-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2024\/04\/02\/oil-giants-are-relying-on-ccs-in-southeast-asia\/"},"modified":"2024-04-02T00:00:00","modified_gmt":"2024-04-02T00:00:00","slug":"oil-giants-are-relying-on-ccs-in-southeast-asia","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2024\/04\/02\/oil-giants-are-relying-on-ccs-in-southeast-asia\/","title":{"rendered":"Oil giants are relying on CCS in Southeast Asia"},"content":{"rendered":"

CCS in Southeast Asia is big oil\u2019s next attempt at going green:<\/strong> Major global oil companies are looking to Southeast Asia as the most viable destination to capture carbon emissions underground, Bloomberg<\/a> reports. ExxonMobil has already claimed exclusive rights to CO2 storage sites in Malaysia and Indonesia, CEO Darren Woods told Bloomberg. Shell has inked agreements on site exploration with Malaysian state-owned oil company Petronas, while Chevron is eyeing a project in Indonesia. France\u2019s TotalEnergies is considering the region\u2019s storage potential as well.<\/p>\n

And SEA countries are welcoming them with open arms:<\/strong> Indonesia began permitting its carbon capture and storage (CCS) operators to set aside 30% of their storage capacity for carbon from overseas<\/a> last February. The new regulation also allows oil and gas companies to use depleted reservoirs or aquifers in their blocks for CCS operations. However, Japan, South Korea, Taiwan and Singapore lack the subsoil characteristics to permanently store enough CO2 underground, meaning they\u2019ll need to export it elsewhere in the region, Bloomberg writes, citing analysts comments. <\/p>\n

But it isn\u2019t a perfect fix:<\/strong> If CCS is widely used, companies would only be able to maintain up to 20% of current oil and gas demand until 2050 without exceeding global warming targets outlined in the Paris Agreement, Bloomberg writes. A number of factors hinder CCS\u2019s capabilities, such as its high cost and potential environmental damage to residents near the storage sites.<\/p>\n

ALSO- ExxonMobil hit with greenwashing allegations over CCS plan:<\/strong> ExxonMobil subsidiary Esso has yet to make good on its plans to capture and trap carbon emissions at an oil refinery and petrochemical complex in the UK and store it under the seabed of the English Channel, the Guardian<\/a> reports, citing an investigation by independent media platform openDemocracy<\/a>. A lack of funding and licensing has prompted greenwashing accusations as Esso shows little progress in getting the initiative off the ground, making it unlikely that it will see the light of day, the media platform concluded. <\/p>\n

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-<\/strong><\/p>\n