Let Sabah manage carbon activities – Jeffrey

KOTA KINABALU (July 16): Deputy Chief Minister I Datuk Seri Dr Jeffrey Kitingan, expressing agreement with Economy Minister Rafizi Ramli that Sabah is one of the four states that can potentially become leaders in carbon capture, utilisation, and storage (CCUS), said the industry is indeed a promising endeavour.

The Sabah Agriculture and Food Industry Minister said potential economic benefits from such high-impact projects are undeniable, and they could significantly contribute to the state’s development and financial health.

However, he said, it is crucial to emphasise that the regulation and implementation of CCUS activities in Sabah must fall under the jurisdiction of the Sabah government.

“It is essential that we have the authority to regulate and manage these activities to ensure they align with our state’s specific needs and priorities,” he said in a statement on Tuesday.

On Sunday, Rafizi said the government has identified Terengganu, Pahang, Sabah and Sarawak as potential leaders in the CCUS industry because the four states have decommissioned oil wells and existing terminal facilities suitable for CCUS activities.

Jeffrey said by taking control of the CCUS industry, Sabah can ensure that the economic benefits directly contribute to the well-being of the people, while creating a robust regulatory framework tailored to the state environmental and economic context, attracting both local and international investments.

Additionally, he said, the carbon credits generated through successful CCUS projects could provide a significant new revenue stream, further enhancing Sabah’s financial independence and sustainability.

Under the National Energy Transition Roadmap, Malaysia aims to establish three CCUS hubs by 2030 with a shared storage capacity of up to 15 million tonnes per annum (mTpa) — about 300,000 barrels per day (bpd).

Malaysia has identified 16 depleted fields suitable for CCUS, which is a set of methods to stop carbon dioxide from reaching the atmosphere or remove what is already there.

These fields offer a total estimated storage capacity of 46 trillion cubic feet for safe carbon storage. Among these, 11 are offshore in Sabah and Sarawak, while the remaining five are offshore in Peninsular Malaysia.