The Carbon Corner - Issue #69

Welcome to the 69th issue of The Carbon Corner!

From Thailand to Malaysia, companies and governments are actively pursuing CCS solutions to combat carbon emissions. In the UK, a groundbreaking decision greenlights a significant CCS project, while Mitsubishi and Kansai Electric in Japan join forces for an advanced CO2 capture pilot plant. These initiatives are all covered in this week's read! We hope you enjoy!

PTTEP Collaborates with Inpex for Joint Carbon Storage Study in Thailand

PTT Exploration and Production (PTTEP) has taken a significant step in its commitment to carbon capture and storage (CCS) initiatives. The company recently signed an agreement to conduct a joint carbon storage study in partnership with Japan's Inpex, part of an international collaboration between the Thai Department of Mineral Fuels (DMF) and Japan Organization for Metals and Energy Security (JOGMEC).

This study, expected to provide valuable insights, will contribute to Thailand's CCS development plan in the Gulf of Thailand and support efforts to reduce industrial carbon emissions in the Eastern Economic Corridor (EEC).

PTTEP is already advancing its first CCS project in Thailand at the Arthit gas field in the Gulf of Thailand, targeting the reduction of 700,000 to 1,000,000 tons of CO2 emissions annually from gas production, with operations set to commence in 2027 following the completion of the front-end engineering design (FEED) phase.

Drax Power Proposes Carbon Capture Technology at Biomass Units

Drax Power Limited has submitted a proposal to install post-combustion carbon capture technology at the Drax Power Station in the UK. The project aims to capture carbon dioxide emissions from up to two existing biomass units at the facility.

The proposal includes the construction and operation of carbon capture technology and associated equipment, integrating the units into the existing infrastructure at the power station. The application was submitted to the Planning Inspectorate in May 2022, accepted for examination in June 2022, and recommendations were made to the Secretary of State in October 2023 following a public examination.

This marks the 130th Nationally Significant Infrastructure Project and the 76th energy application examined by The Planning Inspectorate in accordance with the Planning Act 2008.

Mitsubishi Heavy Industries to Establish CO2 Capture Pilot Plant for Next-Gen Technology Development

Mitsubishi Heavy Industries (MHI) has announced plans to install a CO2 capture pilot plant at the Himeji No.2 power plant in Japan. The pilot plant will be used for research and development of CO2 capture technology and will have a capture capacity of approximately 5 tons per day, utilizing flue gas from the gas turbine at the Himeji No.2 Power Station. MHI aims to start operation of the pilot plant in the fiscal year 2025.

This initiative is part of MHI's efforts to achieve carbon neutrality by 2040 and develop a CO2 solutions ecosystem that integrates carbon capture, utilization, and storage (CCUS) technologies. MHI has been working on next-generation CO2 capture technology in collaboration with ExxonMobil since 2022, aiming to reduce environmental impact and costs. The company will also implement a remote monitoring system to enhance operational efficiency.

Oil India Advances Environmental Commitment with Carbon Capture and Storage Project

Oil India is taking steps toward environmental sustainability with a carbon capture and storage project. The initiative aims to capture carbon dioxide (CO₂) emissions from the company's natural gas field in Rajasthan and store them in nearby dry wells, aligning with Oil India's goal of achieving net-zero emissions by 2040.

To maximize the market value of the gas extracted from the Jaisalmer field, which has a significant CO₂ content, Oil India plans to establish a gas-sweetening plant to extract CO₂. The company's extensive subsurface knowledge and access to suitable dry wells position it well for these carbon sequestration efforts. Preliminary studies have been conducted, and a consultant will develop a feasibility report outlining the carbon capture, transportation, storage, and monitoring processes.

While acknowledging the importance of carbon capture, utilization, and storage technologies, Oil India recognizes the associated costs and the financial challenges faced by similar initiatives in India. Despite these challenges, international companies like ExxonMobil and ADNOC are investing in carbon capture to reduce emissions while sustaining fossil fuel production.

UK Approves Drax Power Station's Carbon Capture Project Despite Controversy

The UK Energy Secretary, Claire Coutinho, has given the green light to a plan that would equip a power station in Yorkshire, run by Drax, with carbon capture units. Once operational, each unit will be capable of preventing 4 million tons of carbon pollution from entering the atmosphere annually. The captured carbon will be stored beneath the North Sea to mitigate global warming.

Drax, which switched from coal to biomass in 2019, argues that this technology, known as "bioenergy with carbon capture and storage" (BECCS), will make it carbon negative by removing more carbon pollution from the atmosphere than it emits by burning biomass. However, BECCS has faced criticism from some climate experts who consider it unproven and costly. Some scientists doubt the climate benefits of burning biomass, as it takes decades for the released carbon to be reabsorbed by new trees. Concerns have also been raised about the sustainability of wood sourcing for biomass. Drax has received substantial government subsidies over the years, and the project's cost has drawn scrutiny. Despite the controversy, the UK government sees it as a significant step in building carbon capture storage infrastructure to support its net-zero emissions target by 2050.

McDermott Secures Offshore Contract for Malaysia's First Carbon Capture and Storage Project

McDermott has been awarded an offshore contract by Malaysia Marine and Heavy Engineering (MMHE) for the first carbon capture and storage project located offshore Malaysia. The contract involves the transportation and structural installation of a 138-kilometer pipeline section, a 15,000 metric tonne CCS platform jacket, and a bridge connecting to the existing central processing platform for the Kasawari project.

The installation work will be carried out using one of McDermott's heavy-lift and pipelay vessels. The Kasawari CCS project, operated by Malaysia's Petronas, is set to be one of the world's largest offshore CCS projects, aiming to reduce carbon dioxide emissions from flaring by 3.3 million metric tons per annum. The extracted gas will be separated into CO2-rich steam and hydrocarbon gas, with the CO2 transported for storage in a nearby depleted gas field via submarine pipelines.

Schaper Energy Consulting is a professional engineering firm offering carbon strategy services to CCS site developers. Check out some examples of our projects here:

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We hope you enjoyed reading this week and hope to see you back next week for more!

Schaper Energy Consulting

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