Sinopec, Shell, BASF and China Baowu have joined hands to build large-scale projects

On November 4, Sinopec, Shell, China Baowu and BASF signed a memorandum of understanding in Shanghai, under which the four parties will jointly launch China's first open 10-million-ton CCUS (carbon dioxide capture, utilization and storage) project in East China to build a low-carbon product supply chain
.
The project will lead the development of China's CCUS industry and help achieve the "
dual carbon" goal.

CCUS, or carbon dioxide capture, utilization and storage, is the process of
reducing carbon dioxide emissions by capturing carbon dioxide from industrial emission sources and using it or injecting it into geological structure storage.
CCUS is a technology with the potential for large-scale emission reduction, an important technical component to achieve carbon neutrality, and is figuratively called the "carbon catcher"
.

It is reported that the project will provide an integrated carbon dioxide emission reduction solution
for industrial enterprises in East China.
This project transports carbon sources from industrial enterprises along the Yangtze River, such as steel factories, chemical plants, power plants, cement plants, etc.
, to the CO2 receiving station through tankers, and then transports the CO2 from the receiving station to onshore or offshore storage points through pipelines with short distances, providing flexible, effective and integrated CO2 emission reduction solutions
for industrial enterprises along the Yangtze River in East China.

East China is economically active, and the development of CCUS meets the region's decarbonization needs
.
Taking Jiangsu Province as an example, there are many national industrial parks such as Nanjing Economic Development Zone, Yangzhou Economic Development Zone, Suzhou Industrial Park, and Nantong Economic Development Zone along the river, and the deployment of CCUS cluster projects in this area can effectively reduce decarbonization costs and significantly improve overall operational efficiency
.

Sinopec, Shell, China Baowu and BASF can be said to be the leading enterprises
in the industry.
Sinopec took the lead in building China's first million-ton CCUS project, with CCUS industry chain technology and practice; Shell has the technical capabilities covering the entire industry chain and experience in the commercial operation of international projects; China Baowu is the world's largest steel enterprise and the first domestic enterprise to release a carbon neutral metallurgical technology roadmap to the world; BASF is one of the world's largest industrial companies, and has an international influence
in establishing industry standards and certification.

According to reports, the four enterprises will form a strong alliance through the project to decarbonize existing industries, build a low-carbon petrochemical, steel and other product value chain, develop a low-carbon product market system, unlock the added value brought by low-carbon products, and promote the development of
a green and low-carbon circular economy.

How the four companies will cooperate in the future

Ma Yongsheng, Chairman and Party Secretary of Sinopec:

Sinopec, together with Shell, China Baowu and BASF, will jointly expand the path of commercial decarbonization, actively promote the development of the entire CCUS industry chain, and contribute to the green development not only in China but also around the world
.

Sinopec will continue to promote mutually beneficial relationships with global partners, fulfill the requirements of high-level opening up and green development, and make positive contributions
to actively and steadily promoting carbon peaking and carbon neutrality.

Shell Group Director Downstream Haibo:

Carbon capture and storage provides an effective way to
reduce carbon emissions in industries that are difficult to reduce emissions.
Shell is actively pursuing relevant business opportunities
with partners.

This project is well aligned with Shell's decarbonisation strategy to provide customised decarbonisation solutions for different sectors and will contribute to
our goal of at least 25 million tonnes of carbon capture and storage capacity per year by 2035.

Hou Angui, deputy general manager of China Baowu and member of the Standing Committee of the Party Committee:

In the future, steel will enter the low-carbon era, which is a subversive revolution in the traditional steel value chain, which can be completed by the strength of one enterprise, and requires the joint efforts of
steel enterprises and upstream and downstream enterprises in the industrial chain.

China Baowu sincerely hopes to cooperate with all parties to uphold its original intention in the journey of green and low-carbon development, and work together to build a beautiful earth home
.

Member of the Executive Board of BASF SE, responsible for Asia Pacific

Dr.
Kelly Markus Kamieth）：

Climate protection is an important part of BASF's strategy, and we want to achieve net-zero global CO2 emissions
by 2050.
Working with partners to develop and use existing and new technologies, such as CCUS, is essential
to accelerate the green and low-carbon transition across industries.

We look forward to exploring these opportunities with our Chinese partners to help achieve a more sustainable and climate-neutral future
.
"