Three energy companies announced a major partnership on Tuesday to evaluate the potential for carbon capture and storage (CCS) in offshore Malaysia.

PETRONAS, ADNOC, and Storegga signed a joint study and development agreement to assess the suitability of saline aquifers for storing carbon dioxide emissions in the Penyu basin, located off the coast of Peninsular Malaysia.

The companies aim to develop a CCS facility with a capacity of at least 5 million tonnes per year by 2030. 

The project will include studies on CO2 shipping and logistics, geophysical and geomechanical modeling, reservoir simulation, and containment research, and explore the use of artificial intelligence to enhance storage capacity.

Nora’in Md Salleh, CEO of PETRONAS CCS Solutions, said the partnership aligns with PETRONAS’ goal of establishing Malaysia as a regional CCS hub.

"Malaysia is interested in intensifying bilateral economic partnerships with the UAE in the fields of economy, tourism, entrepreneurship, SMEs, fintech, innovation, transportation, and renewable energy," Nora’in said.

He added that Malaysia is also seeking to intensify bilateral collaborations  with UAE in logistics, agriculture, food security, environment, and infrastructure within the Malaysia-UAE Joint Committee for Cooperation (JCC) framework.

ADNOC, the Abu Dhabi National Oil Company, is also targeting a carbon capture capacity of 10 million tonnes per year by 2030.

Tim Stedman, CEO of Storegga, said the partnership represents a combined intent to act now to tackle climate change.

"Storegga's experience from other leading CCS regions, plus the expertise of our partners, represent a combined intent to act now to tackle climate change," Stedman said.

The joint study and development agreement is expected to begin later this year.