Sumitomo Corporation, together with its subsidiary Sumitomo Corporation Middle East FZE, has signed a memorandum of understanding (MOU) with Sharjah National Oil Corporation (SNOC), a leading energy producer in the United Arab Emirates. The MOU aims to conduct a joint feasibility study regarding carbon capture and storage (CCS) in Sharjah and neighbouring Emirates.
The CCS project’s objective is to capture CO2 emissions from sources in Sharjah and nearby areas, transporting and storing the captured CO2 in an on-shore mature gas field owned and operated by SNOC. The plan is to offer CCS as a service to CO2 emitters and potentially trade carbon credits. The ultimate vision is to establish a large-scale CCS Hub centred in Sharjah.
Sumitomo Corporation will collaborate with SNOC to assess the viability of the CCS project through the joint feasibility study. This analysis will encompass various aspects, including the applicability of Japanese technologies related to carbon capture, transport, and storage, identification of business models, and evaluation of regulatory frameworks.
By leveraging Sumitomo Corporation Group’s expertise in project development, energy, and infrastructure sectors, along with its global trading network of low-carbon products and carbon credits, alongside SNOC’s gas management and subsurface capabilities, the two parties aim to accelerate the decarbonisation of local industries and contribute to the UAE Government’s Net Zero by 2050 goal.
Mr. Hajime Mori, Managing Director of Sumitomo Corporation Middle East FZE, commented, “We are delighted to cooperate on the development of a CCS value chain in the Northern Emirates with SNOC. We believe there is big potential for CCS in the Middle East, as it is a key technology to materialise energy transition. In line with our basic environment policy that aims to make the Sumitomo Corporation Group carbon neutral by 2050, we would like to pursue this business with our partner to achieve our common goal.”
Mr. Hatem Al Mosa, CEO of SNOC commented, “We are pleased to sign the MOU with Sumitomo and look forward to the next steps. As part of the joint feasibility study we will collaborate with industry leaders, environmental organisations and regulators with the aim of developing a viable project which adheres to the highest standards. SNOC has committed to reach net zero on its own operations by 2032 and CCS has the potential to support this goal and beyond. The time to start is now.”
Sumitomo Corporation prioritises climate change mitigation and aims to achieve carbon neutrality by 2050. Sumitomo Corporation recognises that CCUS is a key technology to combat climate change. This new team will capitalise on existing resources to establish new business along the whole CCUS value chain, including CO2 separation and capture, transport and storage and utilisation of the captured carbon.
