Japanese trading house Sumitomo and the UAE's Sharjah state-owned oil company SNOC are planning to explore the possibility of developing a carbon capture and storage (CCS) project by utilising mature gas reserves in Sharjah.
Sumitomo and SNOC have signed an initial agreement to carry out a joint feasibility study for the CCS project, aiming to capture carbon dioxide (CO2) from emitters in Sharjah and neighbouring emirates, then transport and store the CO2 into an onshore gas field owned by SNOC.
The gas field could be a competitive carbon sink for sequestration, given its large storage capacity of over several hundred million tonnes of CO2 and an ideal location near multiple CO2 sources such as power plants and other industrial plants, Sumitomo said. The project is also expected to generate and trade carbon credits.
Sumitomo will use its expertise in energy and infrastructure sectors and its trading network of low-carbon products and carbon credits, while taking advantage of SNOC's gas management, subsurface capability and know-how relating to the mature gas field.
The companies aim to set up a large-scale CCS hub centred in Sharjah in the future. This is in line with the Japanese government's Global Green Energy Hub concept, which aims to make the Middle East a global clean energy and decarbonisation centre.
The latest deal was signed during the Japan-UAE business forum held on 17 July in Abu Dhabi in the presence of Japan's prime minister Fumio Kishida and Sheikh Hamed bin Zayed Al Nahyan, a managing director of the Abu Dhabi Investment Authority. Kishida visited the UAE, as well as Saudi Arabia and Qatar, over 16-18 July, together with around 30 Japanese firms, the state-owned Japan Bank for International Cooperation and state insurance agency Nexi.
SNOC has committed to reach net zero emissions at its own operations by 2032, while Sumitomo is aiming to achieve carbon neutrality by 2050.
