Shell has signed a non-binding Memorandum of Understanding (MoU) with Sinopec, Baowu and BASF to explore the feasibility of developing an open-source carbon capture, utilisation and storage (CCUS) project in the East China region. An open-source project could potentially offer industrial companies in the middle and lower reaches of the Yangtze River contractual opportunities to capture and store their CO2 emissions.
The four parties intend to conduct a joint study to assess the technical solutions and develop a commercial model for the project. The study will also explore to establish high-integrity and verified low-carbon product supply chains and propose enabling policies. If successful, it will be China’s first large-scale open-source CCUS project with a potential capacity of tens of million tonnes of CO2 per year.
If successful, this project could lead to the capture of CO2 emissions from industrial companies in the East China region. These emissions could then be shipped to a receiving terminal on CO2 carrier ships, before being transported to onshore and offshore storage sites through short pipelines. This could offer a flexible, efficient, and integrated decarbonisation solution for companies in the region.