Shell said it signed an agreement with Chinese state refiner Sinopec and steel group Baowu as well as German chemical giant BASF to study a carbon capture, utilization and storage project (CCUS) in East China.
They will conduct a joint study to assess the technical solutions and develop a commercial model as part of the memorandum of understanding for the project, Shell said in a news statement.
Shell said the study will explore establishing a low-carbon product supply chains and propose enabling policies.
It will be China’s first large-scale CCUS. The project potentially will be able to store tens of million tonnes of carbon dioxide annually, Shell said.
The CCUS project will be targeting not only emissions from the parties involved but also industries in the East China region. In addition, the CO2 captured could be shipped to a receiving terminal in a CO2 carrier before being transported into storage sites both onshore and offshore through short pipelines, Shell said.
In June, Shell, ExxonMobil and China’s CNOOC entered a similar MOU to evaluate a CCUS project in an industrial park in southern Guangdong province, that could potentially capture 10 million tonnes of CO2 a year.