Japan-based Sumitomo, through its wholly-owned subsidiary Sumitomo Corporation Middle East FZE, and UAE energy producer Sharjah National Oil Corporation (SNOC), have signed a memorandum of understanding (MOU) to assess the feasibility of carbon capture and storage (CCS) in Sharjah and beyond.
The CCS project aims to transport and store the CO₂ captured from emitters in Sharjah and neighbouring emirates into an SNOC-owed on-shore mature gas field located not far from several large-scale CO₂ sources in the UAE.
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Sumitomo said the mature gas field holds large storage capacity in excess of several hundred million tonnes of CO₂, making it potentially ‘a competitive carbon sink for sequestration’.
The two companies will undertake a joint feasibility study, using Japanese technologies, on the entire CCS value chain including transport, storage, business models and assessment of regulatory aspects.
In a press statement, Sumitomo said: “Sumitomo Corporation has been looking for partnerships with companies who have competitive carbon storage capacity, in order to develop CCS projects globally, whilst SNOC has been working on repurposing its mature gas reservoirs in Sharjah, and both parties mutually agreed to execute the MoU after a series of discussions.”
SNOC CEO Hatem Al Mosa said the CCS has the potential to support the company’s aim to reach net zero in its own operations by 2032.
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By GlobalDataSumitomo and SNOC will collaborate with industry leaders, environmental organisations and regulators during the feasibility study to develop a viable project.
Sumitomo Corporation Middle East FZE managing director Hajime Mori said: “We believe there is big potential for CCS in the Middle East, as it is a key technology to materialise energy transition.
“In line with our basic environment policy that aims to make the Sumitomo Corporation Group carbon neutral by 2050, we would like to pursue this business with our partner to achieve our common goal.”
