Sumitomo and SNOC sign MOU for CCS Collaboration in the Northern Emirates

Sumitomo Corporation, through its wholly owned subsidiary Sumitomo Corporation Middle East FZE, has signed a memorandum of understanding (the "MOU") with Sharjah National Oil Corporation ("SNOC"), a leading energy producer in the Emirate of Sharjah ("Sharjah"), the United Arab Emirates ("UAE"), to conduct a joint feasibility study related to the potential for carbon capture and storage ("CCS") in Sharjah and beyond.

Project Overview

The CCS project aims to capture CO2 from emitters in Sharjah and neighboring Emirates, transport and store the CO2 into an on-shore mature gas field owned & operated by SNOC, in order to provide CCS as a service to CO2 emitters and/or to generate and trade carbon credits (including carbon removal credits (*1)), with an ambition to establish a large-scale CCS Hub centered in Sharjah in the future.

The mature gas field of SNOC is potentially a competitive carbon sink for sequestration, due to its large storage capacity of over several hundred million tons of CO2 and an ideal location which is not far from multiple large-scale CO2 sources such as power plants and other industrial plants.

Upon signing the MOU, Sumitomo Corporation will conduct the joint feasibility study with SNOC to assess the viability of the CCS project, covering a techno-economic analysis including but not limited to the applicability of Japanese technologies relevant to carbon capture, transport and storage, identification of business models, and assessment of regulatory frameworks.

Collaboration with SNOC

Sumitomo Corporation has been looking for partnerships with companies who have competitive carbon storage capacity, in order to develop CCS projects globally, whilst SNOC has been working on re-purposing its mature gas reservoirs in Sharjah, and both parties mutually agreed to execute the MOU after a series of discussions.

Leveraging Sumitomo Corporation Group's project development and management expertise in energy and infrastructure sectors as well as global trading network of low-carbon products & carbon credits, and, SNOC's gas management, subsurface capability and know-how relating to the mature gas field, both parties aim to accelerate the decarbonization of local industries and contribute to "The UAE Net Zero by 2050" targeted by the UAE Government.

The MOU Signing Ceremony

The MOU was signed and exchanged between Sumitomo Corporation and SNOC at "UAE - Japan Business Forum" which was organized by the Ministry of Economy of UAE and held on the 17th of July 2023, in the presence of Mr. Fumio Kishida, Prime Minister of Japan and H.H. Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority.

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 materialize 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 organizations 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's CCUS (*2) Initiatives

Sumitomo Corporation has highlighted mitigation of climate change as one of its key areas of focus, and has committed to being carbon neutral by 2050. Sumitomo Corporation recognizes that CCUS is a key technology to combat climate change, and in January 2023 established a dedicated global CCUS team within the Energy Innovation Initiative. This new team will capitalize on existing resources to establish new business along the whole CCUS value chain, including CO2 separation and capture, transport and storage and utilization of the captured carbon.

1. Carbon removal credits: Tradable carbon credits representing quantities of CO2 removed from the atmosphere.
2. CCUS: Carbon Capture, Utilization and Storage.

About SNOC