Latest news with #CCUS
Time of India
2 hours ago
- Business
- Time of India
Godrej to supply largest carbon capture unit for European CCUS facility
New Delhi: Godrej Enterprises Group 's Process Equipment business has secured an international order to manufacture and supply its largest-ever equipment for a carbon capture , utilisation and storage (CCUS) facility in Europe. The equipment, designed for high-efficiency carbon dioxide separation and capture, surpasses all previous equipment delivered by the company in both scale and complexity. The deal highlights India's growing presence in global precision heavy equipment manufacturing , with 70 per cent of Godrej Process Equipment's revenue currently derived from export markets. The company is diversifying its global footprint amid rising demand for clean energy technologies and environmental infrastructure . In recent years, the Process Equipment unit of Godrej Enterprises Group has emerged as a key supplier of critical equipment to global energy and industrial players. The latest CCUS order strengthens the company's position in the international clean energy market. 'Securing this prestigious order in carbon capture technology, alongside our recent CII GreenCo Platinum recognition, reflects our unwavering commitment to building a cleaner, more resilient future for generations to come,' said Hussain Shariyarr , Executive Vice President and Business Head, Process Equipment, Godrej Enterprises Group. The order is aligned with the Government of India's ' Make in India for the World' initiative, which aims to promote India as a trusted manufacturing partner for advanced environmental technologies.
Malaysian Reserve
9 hours ago
- Business
- Malaysian Reserve
Carbon capture law needs more guadrails
In Asia, govts are already moving to integrate carbon capture, utilisation and storage into national climate plans through a combination of incentives and regulatory mandates by AUFA MARDHIAH MALAYSIA'S newly introduced carbon capture, utilisation and storage (CCUS) legislation may accelerate investment in low-carbon technologies — but climate experts caution that the country must chart its own course, rather than becoming a repository for foreign emissions. Seen as a key instrument in Malaysia's net-zero roadmap, the CCUS Act is expected to establish a regulatory framework for businesses seeking to invest in carbon capture projects. But its success will depend on how effective it is implemented, and who it truly benefits. An outfit for carbon capture and storage (CCS) has noted that investors are increasingly viewing CCUS as a necessary component of climate risk mitigation rather than a last resort. Investors are investing in CCUS because they recognise it as an essential technology for the mitigation of climate change,' Global CCS Institute strategic advisor for emerging CCS markets Alex Zapantis told The Malaysian Reserve (TMR). Zapantis pointed out that since 2017, global investment in CCUS has grown steadily, supported by stronger policy signals and the need to reduce exposure to future regulatory and market risks. In Asia, governments are already moving to integrate CCUS into national climate plans through a combination of incentives and regulatory mandates. However, Malaysia finds itself in a different position. Although the CCUS Act was passed in early 2025, no operational CCUS projects have been launched to date. Petroliam Nasional Bhd (Petronas), the national oil company and the country's most advanced player in the field, remains focused solely on carbon storage, with no utilisation element in its current commercial ventures. Nationwide, efforts are still concentrated on permanent geological storage, while carbon utilisation remains limited to early-stage studies and pilot-scale initiatives. This places Malaysia behind countries such as Japan and Singapore, which already have mature CCUS roadmaps supported by carbon pricing instruments, bilateral agreements and targeted investment incentives. While the legislative structure is in place, the broader ecosystem — including regulations, pricing mechanisms and industrial readiness — is still under development. The challenge ahead lies not in passing laws, but in establishing the policy, financial and technical frameworks required to enable real-world deployment. There is the need for regulatory readiness and technical capacity before Malaysia begins storing imported CO2 at scale, says Theseira (Source: CCUS Needs More Than Legislation Climate scientist Dr Gary Theseira warned that without strong governance, Malaysia risks repeating past environmental injustices, such as the mismanagement of plastic waste imports. He stressed the need for regulatory readiness and technical capacity before Malaysia begins storing imported CO2 at scale. 'If we import CO2 and we are compressing it, pumping it and transporting it — what happens if there is an accident and we discover toxic gases inside? Do we have the capacity to monitor and investigate this properly?' he said, highlighting the concern during the National Climate Governance Summit (NCGS) 2025. He pointed out that while the act provides a starting point, critical safeguards still need to be enforced — especially regarding cross-border liability, pipeline routing and environmental protection. 'If your governance is good, then I trust the people handling the CO2 pipeline. But if a gas pipe suddenly appears behind someone's house, there will be backlash,' he said, emphasising the importance of land-use planning and biodiversity protection. Theseira also explained the technical complexity of CCS operations, noting that CO2 must be pressurised to nearly 1,000 atmospheres to become a supercritical fluid suitable for injection. This process, he said, requires high levels of engineering expertise, robust infrastructure and strict safety protocols. From a policy standpoint, he warned that many CCS projects worldwide are limited to storage rather than utilisation, and may even be linked to enhanced oil recovery (EOR) — where CO2 is injected into wells to extract additional fossil fuels. He called for corporate accountability at the board level, urging that any special purpose vehicles or joint ventures managing CCS projects must include experts from different fields, such as geology, marine biology, safety engineering and sociology. 'Safety is most important, and audits must be in place to show there are no leaks. Otherwise, there will be allegations of green-washing,' he said. Moreover, Theseira said the carbon market's credibility depends on companies going beyond basic rules and adopting clear, inclusive governance. 'This has to be something the rakyat is comfortable with. It is about equity and fairness,' he said. Petronas Leads Malaysia's CCS Rollout Several large-scale CCS projects are progressing, with Petronas taking the lead as the primary developer. The company's Kasawari CCS in Sarawak is currently the most advanced, with carbon injection expected to begin by the end of 2025. Designed to store up to 3.3 million tonnes of CO2 annually, it is set to become the world's largest offshore CCS facility by volume. Other developments include the Lang Lebah-Golok CCS project by Thailand's PTTEP plc and the BIGST high-CO2 gas cluster off Terengganu, led by Petronas and JX Nippon Oil & Gas Exploration Corp. Feasibility work is also ongoing for several regional storage hubs aimed at servicing foreign emitters from Japan, Korea and Singapore. There is the Penyu Basin facilities, a joint venture between Petronas, Abu Dhabi National Oil Co (ADNOC) and Storegga Geotechnologies Ltd. There is also the Petronas-Japan Petroleum Exploration Co Ltd (Japex) consortium. Although these initiatives focus primarily on carbon storage, Malaysia currently has no commercial projects that convert captured carbon into usable products. The sole announced CCUS project with a utilisation component is a planned CO2- to-syngas plant in Bintulu, a collaboration between Petronas LNG and US-based HYCO1 Inc, which is expected to become operational by 2029. Petronas is leading Malaysia's efforts in carbon storage, aiming to create a regional CCS hub by 2030. The company is investing in CO2 transport, offshore storage and partnerships with foreign firms, while researching ways to use captured carbon. However, Malaysia's CCUS industry is still in its early stages, with most projects still being planned or studied. Biochar is one of Malaysia's most overlooked tools for carbon management — a low-cost, carbon-rich material produced from biomass that could play a vital role in strengthening climate resilience (pic: Bloomberg) CCUS, Renewables Can Coexist Addressing concerns that CCUS may delay the energy transition or lock in fossil fuel use, Zapantis emphasised that carbon capture technologies can complement, not compete with, renewables. 'Power plants equipped with CCUS can supply flexible low-carbon electricity that complements the variable nature of renewables like solar and wind,' he said. This is especially relevant for energy systems in South-East Asia, which continue to rely on coal and gas for baseload generation. Without CCUS, he said, these plants would continue emitting CO2 at unsustainable rates. Additionally, Theseira highlighted biochar as one of Malaysia's most overlooked tools for carbon management — a low-cost, carbon-rich material produced from biomass that could play a vital role in strengthening climate resilience. When applied to soil or coastal areas, biochar can boost evaporation and trigger the release of natural compounds that promote cloud formation, helping to offset dry spells caused by El Niño. Beyond short-term climate adaptation, Theseira believes biochar could support the growth of future industries built around high-value carbon materials like activated carbon, carbon nanotubes, graphite and graphene. He framed biochar as a practical alternative to costly, infrastructure-heavy CCS technologies — offering a more accessible and scalable option for carbon removal in a country rich in biomass and rural land. 'When it comes to cost per tonne of CO2 equivalent, even with eyes closed, biochar wins,' he said. Building Investor Confidence Through Transparency Zapantis said a key way to boost CCUS investment is by improving how companies report their climate actions and following trusted global standards. He encouraged Malaysian firms to use frameworks like the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures, which help companies measure carbon reduction, understand climate risks and explain how CCUS fits into their plans to cut emissions. He added that being open and clear is important not just for investors but also to build trust with policymakers, regulators and the public. Clear carbon accounting ensures that emissions reduction claims — particularly those involving carbon capture and storage — are verifiable and credible. 'As environmental, social and governance (ESG) reporting frameworks improves, CCUS will gain further recognition as a viable and bankable climate solution,' he said, adding that investors now see it not as a last option, but as an important tool to manage climate risks early. Petronas Positions CCS as New Growth Engine Petronas has emphasised its commitment to responsible management, assuring that Malaysia's carbon storage initiatives will be carefully regulated and subject to strict oversight. During its CCS media dialogue, held recently in conjunction with Energy Asia 2025, the national oil company stressed that any cross-border CO2 storage arrangements would be governed by bilateral agreements and mutual accountability. Beyond its climate role, Petronas sees CCS as an industrial catalyst. The company believes that strong carbon storage infrastructure could attract industries such as blue hydrogen, blue ammonia and low-carbon steel — generating new jobs and investment. Petronas Carbon Management Department senior GM Emry Hisham Yusoff said with CCS infrastructure, Malaysia can attract low-carbon industries. 'That is the new economy,' he said. Still, the company acknowledged that CCS is complex. It involves a full value chain — from carbon capture at the source to pipeline transport, liquefaction, shipping and offshore injection. To support this, Petronas is developing the world's first large-scale liquefied CO2 vessel in partnership with global shipping firms. While the CCUS Act is in place, Petronas continues to call for clearer domestic regulations, particularly regarding environmental impact assessments, cross-border liability and CO2 classification under the Department of Environment (DOE). At present, CO2 is not classified as a scheduled substance, which means environmental impact assessments are not mandatory— a regulatory gap that the company is urging authorities to address. Petronas is also developing key storage sites including Kasawari, Duyong, Lawit and Penyu, each backed by over RM4 billion in investment. These sites are expected to store up to 80 million tonnes of CO2 annually — serving both domestic emitters and regional partners. Apart from that, Petronas has forged strategic partnerships with international players including Mitsui & Co, TotalEnergies SE, Storegga Geotechnologies and a Japan-led consortium, aiming to provide CCS as a commercial service to heavy industries across Asia. Still, the company stressed that CCS is a developing business, not a replacement for its core oil and gas (O&G) operations. 'This is a new business. Whether this is going to be our main (income), I don't think so, but it will be one of the businesses that we will do,' Emry Hisham said. He added that, as seen in the UK and Europe, early CCS projects often rely on government support, a reality Malaysia is also likely to face. Ensuring Fair Transition Theseira highlighted that the growth of green industries, including CCS, must not deepen existing social inequalities. He urged the government to prioritise job creation in these sectors for the unemployed and underemployed, particularly in rural areas, to ensure inclusive economic benefits. 'You have to be sure that the industry does not perpetuate a pattern of socioeconomic influence that ends up pushing the Gini coefficient to greater and greater inequality,' he said. He also believed that the energy transition must be accompanied by educational reform. Schools should evolve into digital hubs offering access to global learning tools, while teachers must be equipped with digital teaching methods. Ultimately, he urged Malaysians to abandon limiting beliefs and imagine bold futures. With its abundance of sunlight, water and land, Malaysia could become a global centre for food, clean energy and climate innovation — if it invests wisely and plans ahead. 'Only we ourselves can put the barriers in our heads,' he said. Theseira even suggested that, in a climate-altered world, underground or undersea living could become necessary — enabled by nuclear energy and advanced technologies. Chance to Lead, Not Blindly Follow As the CCUS legislation takes shape, experts offer contrasting yet complementary views. Zapantis highlighted investor readiness and international momentum while Theseira emphasised equity, environmental justice and long-term credibility. Meanwhile, Petronas aims to respond to growing climate expectations by developing commercially viable solutions, while adapting its business model to support long-term sustainability. If Malaysia is to lead in the carbon management space, it must balance commercial ambition with responsible governance. That means building a CCUS ecosystem that not only stores carbon — but creates value, protects communities, and earns public trust. This article first appeared in The Malaysian Reserve weekly print edition
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Petros looking to develop CCUS hubs in Sarawak
Petros plays a key role in transforming Sarawak into a low-carbon economic hub, said the company's senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin. (Petros pic) PETALING JAYA : Petroleum Sarawak Bhd (Petros) is working on developing two carbon capture, utilisation and storage (CCUS) hubs in the Bornean state. Petros senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin, said the two hubs would be part of efforts to prepare infrastructure to allow for low-cost CCUS. 'Sarawak is focused on developing infrastructure. The purpose of these hubs is to provide shared infrastructure so we can achieve economies of scale. 'That way, CCUS will become more affordable,' he said, according to state-owned broadcaster TVS. Abang Arabi said while CCUS technology had long existed, resources needed to be used and optimised to reduce costs and make it more affordable. 'Clarity in terms of policies and regulations is also very important because investors investing in CCUS need some certainty as to how business is done here. 'This includes whether they will need a licence and permit, because CCUS investments are long-term in nature,' he said. He added that Petros played a key role in transforming Sarawak into a low-carbon economic hub. Abang Jo eyes sovereign wealth fund role for Petros Several days ago, Nikkei Asia quoted Sarawak premier Abang Johari Openg as saying he envisioned Petros playing the role of a sovereign wealth fund with investments in sectors beyond oil and gas. The Gabungan Parti Sarawak chairman said he was taking a leaf out of Singapore and the city-state's funds, Temasek Holdings Pte Ltd and GIC Pte Ltd. 'If Petros (has) the strength, the muscle, why not invest in other areas?' he was quoted as saying. He also said this would be more of a business decision by the company than a state government decision. Abang Johari said portions of Petros's revenue from its ventures should naturally be channelled back to the state, since it was fully owned by the Sarawak government. The premier launched the Sarawak Sovereign Wealth Future Fund last year, with the state government to set aside RM400 million to RM600 million annually for the fund. In May, it was given the go-ahead from the relevant authorities to make global investments, which Abang Johari described as crucial for diversifying the fund's portfolio.
Daily Express
5 days ago
- Business
- Daily Express
Petros looking to develop CCUS hubs in Sarawak
Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 By: FMT Reporters Text Size: Petros plays a key role in transforming Sarawak into a low-carbon economic hub, said the company's senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin. (Petros pic) PETALING JAYA: Petroleum Sarawak Bhd (Petros) is working on developing two carbon capture, utilisation and storage (CCUS) hubs in the Bornean state. Petros senior vice-president of Sarawak resource management, Abang Arabi Abang Narudin, said the two hubs would be part of efforts to prepare infrastructure to allow for low-cost CCUS. Advertisement 'Sarawak is focused on developing infrastructure. The purpose of these hubs is to provide shared infrastructure so we can achieve economies of scale. 'That way, CCUS will become more affordable,' he said, according to state-owned broadcaster TVS. Abang Arabi said while CCUS technology had long existed, resources needed to be used and optimised to reduce costs and make it more affordable. 'Clarity in terms of policies and regulations is also very important because investors investing in CCUS need some certainty as to how business is done here. 'This includes whether they will need a licence and permit, because CCUS investments are long-term in nature,' he said. He added that Petros played a key role in transforming Sarawak into a low-carbon economic hub. Abang Jo eyes sovereign wealth fund role for Petros Several days ago, Nikkei Asia quoted Sarawak premier Abang Johari Openg as saying he envisioned Petros playing the role of a sovereign wealth fund with investments in sectors beyond oil and gas. The Gabungan Parti Sarawak chairman said he was taking a leaf out of Singapore and the city-state's funds, Temasek Holdings Pte Ltd and GIC Pte Ltd. 'If Petros (has) the strength, the muscle, why not invest in other areas?' he was quoted as saying. He also said this would be more of a business decision by the company than a state government decision. Abang Johari said portions of Petros's revenue from its ventures should naturally be channelled back to the state, since it was fully owned by the Sarawak government. The premier launched the Sarawak Sovereign Wealth Future Fund last year, with the state government to set aside RM400 million to RM600 million annually for the fund. In May, it was given the go-ahead from the relevant authorities to make global investments, which Abang Johari described as crucial for diversifying the fund's portfolio. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
O&G players worldwide cutting costs amid triple-threat
While the oil and gas sector may be experiencing job losses now, industry experts anticipate a resurgence of opportunities, particularly in greener sectors such as Carbon Capture, Utilisation and Storage (CCUS), within the next two to three years. (Evanto Elements pic) PETALING JAYA : The oil and gas industry, once stable and resistant to change, is now under intense pressure to rethink how it operates. Shifting global demand, ongoing political conflicts and volatile commodity markets are forcing the sector to adapt like never before. Recently, major international corporations such as Shell, BP and Chevron have undertaken comprehensive operational restructuring, including significant workforce reductions. Investment strategies are being reshaped by the triple-threat of rising operational expenses, tougher environmental regulations, and the substantial cost of adopting advanced technologies—resulting in significant adjustments to workforce size and structure. Out-of-commission oil fields Operating costs have risen, especially in upstream exploration and production. With the easier- to-reach resources fast depleting, oil companies must now tap into the more difficult reserves like sour gas and deepwater projects, which require higher investment. As a result, oil companies have begun re-evaluating their corporate investment plans, with a projected 6% decline in upstream oil investment projected in 2025—the first year-on-year reduction since 2020. Oil companies are struggling as drilling costs rise and price forecasts weaken. Active rigs are drilling at significantly lower levels slowing upstream activity. With oil prices hovering around US$63 per barrel, shrinking profit margins are forcing firms to delay or cancel projects. Earlier this year, ConocoPhillips exited its joint-venture with Petronas in the US$3.3 billion (RM13.7 billion) Salam-Patawali deepwater oil and gas project, first discovered in 2018. The company has also announced plans to shrink its global workforce by end-2025. They are also reportedly eyeing the sale of assets in the Permian Basin worth over US$1 billion (RM4.2 billion). They are not the only ones. US-based Chevron plans to cut 15% to 20% of its global workforce, potentially impacting 6,000 to 8,000 employees, over the next year. Meanwhile, ExxonMobil will release nearly 400 workers in 2026 following its merger with Pioneer Natural Resources. BP, based in the UK, is in the midst of plans to eliminate 4,700 jobs and 3,000 contractor positions by 2026 as part of a US$2 billion cost-cutting drive. In the UK's North Sea, Spain's Repsol is also looking to shrink its workforce through field decommissioning, potentially impacting 2,000 jobs. These layoffs reflect a broader industry trend of adapting to economic uncertainties, declining output from maturing fields, and the increasing focus on cost optimisation and energy transition. Impact of green regulations Adherence to environmental compliance is also becoming increasingly capital-intensive. More stringent global regulations concerning carbon emissions, flaring and methane management are obliging companies to allocate significant investment toward monitoring systems, equipment upgrades and cleaner processes. This includes a growing focus on Carbon Capture, Utilisation and Storage (CCUS) projects, which are projected to experience a tenfold increase in investment by 2027. Non-compliance with these evolving environmental, social and governance (ESG) criteria pose significant business risks, such as limited access to funding and reputational damage. To manage these rising obligations, many entities are streamlining their workforces in high-carbon divisions. Heavy upfront costs Companies are investing more in advanced technologies like automation, artificial intelligence (AI) for data analysis and compliance, and monitoring systems powered by the Internet of Things (IoT) to improve efficiency and meet regulatory demands. While these technological upgrades may yield long-term cost reductions, their implementation necessitates substantial upfront capital expenditure, such as modernising rigs with automation capabilities or deploying sophisticated AI-driven monitoring systems. Widespread adoption of AI alone could potentially lead to cost savings ranging from 10% to 20% by 2025. This shift toward technology-driven models is streamlining operations, replacing traditional roles with automated solutions, and consolidating functions to boost productivity and financial stability—rather than simply expanding existing setups. Prominent industry participants such as Exxon and Chevron are focussing production growth in more efficient regions like the Permian basin, leveraging consolidation and technology-driven improvements to manage costs amid declining upstream investment. Petronas, for its part, is focusing on innovation, sustainability and human capital development to support Malaysia's net-zero commitment involves not only accelerating investments in renewable energy and advanced low-carbon technologies, but also cultivating a forward-thinking workforce equipped to tackle the dynamic challenges of the global energy landscape. By nurturing talent, fostering a collaborative culture, and prioritising digital transformation, Petronas aims to drive meaningful progress towards environmental goals while securing long-term business growth. Enhanced partnerships, research initiatives, and community engagement will be central to this strategy, positioning the company as a leader in sustainable energy and responsible corporate stewardship for Malaysia's future. Where do we go from here? The overarching imperative is clear: oil and gas companies are re-conceptualising business practices to better navigate current cost pressures and align with future energy demands. Strategic actions are already evident at major international corporations like BP, Shell and Chevron. These are not merely reactive measures to short-term market changes, but critical strategic decisions made to ensure that the energy industry remains future-ready. This trajectory implies a reduction in traditional employment opportunities within the short term. However, that is on account of the evolution of industry operations, not a disappearance of energy demand. Industry experts expect jobs to re-emerge in greener fields, including CCUS-management projects, within the next two to three years, once cost savings are realised.
