KUALA LUMPUR (July 18): The carbon capture, utilisation and storage (CCUS) industry should not be seen as the sole or even main decarbonisation effort by the government, according to the Ministry of Natural Resources and Environmental Sustainability (NRES).
Its minister Nik Nazmi Nik Ahmad said CCUS is just one part of a wide range of strategies and activities that Malaysia is pursuing to address climate change, adding that the widespread deployment of CCUS technologies is still limited, mainly due to its high costs.
CCUS refers to a suite of technologies that enable the capturing of carbon dioxide emissions from large point sources, such as power plants, refineries and other industrial facilities, to either be utilised for other purposes, such as manufacturing building materials, or to be permanently stored under the ground, so as to keep it from entering the atmosphere.
"It must also be acknowledged that there has been extensive debate over CCUS’ limitations, considering it requires a large amount of energy to operate," the minister said in a statement on Thursday.
"Furthermore, there is a risk of potential environmental damage from the leakage of the carbon dioxide being stored," he added.
However, Nik Nazmi maintained that the 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.
"Overall, CCUS should not be seen as the sole or even main decarbonisation lever, but rather as complementing existing efforts. Indeed, it is a lever that must be present in Malaysia’s race to net zero," he added.
Nevertheless, Nik Nazmi welcomed the recent statement by the Minister of Economy Rafizi Ramli that the federal government has identified the states of Terengganu, Pahang, Sabah and Sarawak as potential leaders in the CCUS industry.
The NRES minister said a successfully realised CCUS industry is a potential means for the states of Malaysia to take part in the green economy, climb the value chain and raise their level of development as well as the welfare of the people.
"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," he added.
Nik Nazmi pointed to the comprehensive analysis from the Intergovernmental Panel on Climate Change’s (IPCC’s) Sixth Assessment Report (AR6) which has described CCUS as an essential technology for reducing greenhouse gas (GHG) emissions, particularly in sectors that are difficult to decarbonise, such as heavy industries like cement and steel as well as some chemical processes.
"Moreover, UNFCCC (United Nations Framework Convention on Climate Change) COP28 (28th Conference of the Parties) in Dubai emphasised the importance of low-carbon technologies and engineering-based GHG removal technologies such as CCUS to support global efforts to limit global warming to 1.5 degrees Celsius, in accordance with the goals of the Paris Agreement," he added.
Rafizi on Sunday said the Economy Ministry is collaborating with the four identified states to ensure smooth implementation of CCUS activities. He noted that CCUS, one of the pilot projects in the National Energy Transition Roadmap, is a high-impact industry which is expected to bring economic benefits to the states involved.
"Terengganu has the potential to be a leading state in implementing the CCUS, considering its offshore oil wells and existing terminal facilities in Kerteh," Rafizi said on Sunday, as quoted by Bernama.
According to Rafizi, the government is finalising a CCUS-related bill to be tabled in the Parliament this November, before key decisions on the industry can be made next year.