ExxonMobil, Shell to Pursue Carbon Capture and Storage Hub in China

July 4, 2022 by Dan McCue
ExxonMobil, Shell to Pursue Carbon Capture and Storage Hub in China
Dayawan Petroleum Industrial Park (Government of Dayawan)

IRVING, Texas — ExxonMobil and Shell are partnering with two Chinese entities — the China National Offshore Oil Corporation and Guangdong Provincial Development and Reform Commission — to evaluate the potential for a world-scale carbon capture and storage project in China.

The joint study seeks to identify carbon capture and storage opportunities at the massive  Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province.

If the joint study meets expectations, the partners believe it could pave the way for the industrial park to capture as much as 10 million metric tons of CO2 per year.

In addition to assessing the commercial opportunity for carbon capture and storage in one of China’s largest industrial areas, the companies will also evaluate the emissions-related policies currently in place in China and propose amendments that would support the deployment of carbon capture and storage in the industrial park.

The project could also serve as a model for the chemical industry as one of the first petrochemical projects to be decarbonized.

In the meantime, China reportedly considers it an important step toward its goal of achieving carbon neutrality by 2060. 

“Collaboration with government and industry is an important part of unlocking future carbon capture and storage opportunities, with the potential for large-scale reductions of emissions from vital sectors of the global economy,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions, in a written statement. 

“Well-designed government policies will help accelerate the broad deployment of lower-emissions technologies in support of society’s net-zero ambitions,” he said.

In a joint press release, all of the partners emphasized that renewable energy technologies will be an important part of reaching society’s net-zero objectives.

However, they also stressed they see carbon capture and storage as “a safe, proven and consistent technology” that can enable some of the highest-emitting sectors such as manufacturing, power generation, refining, petrochemical, steel and cement industries to reduce their emissions. 

“The prospect of bringing together public and private entities to utilize carbon capture and storage collectively to reduce industrial emissions offers tremendous opportunity,” they said.

On a related note, ExxonMobil said it is also pursuing strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for hard-to-decarbonize sectors of the global economy.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue

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  • carbon capture
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