A comprehensive Carbon Capture and Storage (CCS) Roadmap will be developed, outlining the strategies and actions necessary to realize the full potential of the carbon CCS value chain in Sarawak.
According to the Sarawak Premier during the Asia Carbon Conference this year, the implementation of CCS in Sarawak offers three significant benefits to the region.
Significant benefits of CCS to Sarawak;
- commercialization of stranded sour gas reserves that contain high levels of carbon dioxide in the natural gas mixture, primarily offshore Sarawak
- long-term energy and gas supply security for Sarawak
- the base CCS infrastructure established by the sour gas field development can be further expanded to allow other carbon dioxide emitters to capture and store CO2, presenting business opportunities for local resources to operate CCS infrastructures
(Source: Sarawak Premier speech during Asia Carbon Conference 2023)
In 2022, it was said that the global carbon capture and storage market size was valued at USD 3.28 billion and is expected to grow a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030.
Sarawak nature landscape
Sarawak presents itself as one of the potential regions for the carbon capture industry due to its geological structures that are suitable to store carbon dioxide.
Sarawak has approximately 7.7 million hectares of forest cover areas, in which 7 million hectares is allocated for sustainable forestry and conservation under the Sarawak Land Use Policy.
Of these, 6 million hectares are Permanent Forests, and 1 million hectares are Totally Protected Areas.
According to the Sarawak Premier, Sarawak has the potential to create carbon sinks from the Permanent Forests, promote carbon sequestration, and undertake tree planting schemes for carbon credits, providing a new source of revenues ranging from RM315 million to RM1.039 billion annually.
Aside from that, Sarawak has an estimated 30 trillion cubic metres of carbon storage capacity in the seabed of its continental shelf.
Adding more, he said that Sarawak offshore depleted or abandoned petroleum fields are ideal for secured and permanent storage of captured carbon dioxide.
Land Code (Amendment) Bill, 2022 and Forest (Forest Carbon Activity) Rules, 2022
The Land Code (Amendment) Bill, 2022 was unanimously passed in the Sarawak Legislative Assembly in May, 2022.
The bill seeks control over Sarawak’s airspace, the emission of carbon dioxide and the possible monetisation of carbon dioxide.
The bill would also provide for the use of land, both onshore and offshore, for the storage of carbon dioxide.
Aside from that, the government has also amended the and gazetted the Forest (Forest Carbon Activity) Rules, 2022, which provide a legal framework to regulate forest produce that covers carbon stocks in the forest ecosystems.
PETROS to manage carbon storage in Sarawak
This year, it was announced that Sarawak owned oil and gas company, Petroleum Sarawak Berhad (PETROS) to be in charge for Sarawak’s Carbon Capture and Storage (CCS) agenda.
Being appointed as the strategic role as resource manager for CCS in Sarawak, PETROS has received the first licence for carbon storage.
The licence was issued by the state Land and Survey Department in March 2023, covering an area located in the North Luconia province, offshore from Bintulu.
In this regard, the Sarawak government had recently updated the Sarawak Land Code Ordinance and developed the Carbon Capture and Storage Standards to include legislation regulating this new business opportunity.
Aside from that, in 2022, PETROS has signed a Memorandum of Understanding with POSCO Group to jointly conduct a feasibility analysis on a ground-breaking carbon capture and storage project.
