CCUS INDUSTRY ENHANCES EXISTING EFFORTS IN MALAYSIA'S RACE TO NET ZERO - NIK NAZMI

PUTRAJAYA, July 18 (Bernama) -- The Carbon Capture, Utilisation and Storage (CCUS) industry should not be seen as the sole or even main decarbonisation lever, but rather as complementing existing efforts in Malaysia’s race to net zero, said Natural Resources And Environmental Sustainability Minister Nik Nazmi Nik Ahmad.

He said it is vital to stress that CCUS is just one part of a wide range of strategies and activities that Malaysia is pursuing to address climate change as well as to carve a space for the country in the green economy.

“While not a new technology, its widespread deployment is still limited mainly due to its high costs. It must also be acknowledged that there has been extensive debate over CCUS’ limitations, considering it requires a large amount of energy to operate,” he said in a statement today.

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Economy Minister Rafizi Ramli reportedly said that CCUS is among the pilot projects under the National Energy Transition Roadmap (NETR) and the high-impact industry is expected to economically benefit the states concerned.

The government has so far identified Terengganu, Pahang, Sabah, and Sarawak as industry drivers due to their inactive oil wells and existing terminal facilities to conduct CCUS activities.

While Nik Nazmi welcomed Rafizi’s statement, he added there is a risk of potential environmental damage from the leakage of the carbon dioxide being stored.

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“These challenges can be addressed through technological advancements, establishing strong regulatory frameworks, and providing suitable incentives to the industry and implementing carbon pricing initiatives to make it financially viable,” he said.

CCUS is a key lever in the NETR and Long Term Low Emission Development Strategy (LT-LEDS).

These two documents highlighted CCUS as one of the important initiatives that would support Malaysia’s aspiration to achieve net zero emissions by 2050.

“As has been stated, the four above mentioned states are promising due to the presence of decommissioned oil wells and other infrastructure suitable for CCUS activities in their areas,” Nik Nazmi said.

He added that a comprehensive analysis from the Intergovernmental Panel on Climate Change’s (IPCC’s) Sixth Assessment Report (AR6) has described CCUS as an essential technology for reducing GHG emissions, particularly in sectors that are difficult to decarbonise, such as heavy industry (cement and steel) as well as some chemical processes.

-- BERNAMA