Petronas Inks MoU for Nature-Based Solutions, Carbon Credits

Petroliam Nasional Bhd. (Petronas) and the Sarawak Forestry Corporation, a statutory body of the Sarawak Government, have signed a memorandum of understanding (MoU) to explore and develop Nature-based Solutions (NbS) projects in Sarawak, Malaysia.

Under the MoU, both parties will identify and explore potential sites in Sarawak for developing NbS projects that will generate and provide co-benefits to local communities and biodiversity. The collaboration will also prioritize the development of local capabilities and knowledge required to implement the NbS projects, Petronas said in a news release. NbS are activities related to the conservation and restoration of natural ecosystems to remove greenhouse gas emissions.

Carbon credits generated through NbS are integral for Petronas to offset residual and hard-to-abate emissions, complementing the company's Net Zero Carbon Emissions by 2050 Pathway, it said.

Petronas Vice President and Chief Sustainability Officer Charlotte Wolff-Bye said, “Malaysia is one of the world’s most biological diverse countries. As we progress in our journey towards net zero carbon emissions by 2050, it becomes imperative to seek collaborative efforts in Nature-based Solutions that help to sequester carbon emissions and support Malaysia’s forests. We are delighted to work together with the Sarawak Forestry Corporation to facilitate the development of NbS projects. This collaboration allows Petronas to unlock the potential of NbS in Sarawak, and use it to sustainably support the natural environment, address emissions, and uplift local communities”.

Sarawak Forestry Corporation General Manager Tuan Abang Arabi Abang Aimran stated that this collaboration is a good start to a potential medium-term collaboration on identifying NbS sites. “Conservation is a marathon that requires not only scientific expertise, but also commitment and sustained conservation funding. Petronas has collaborated with us on several conservation projects over the years including two coral reef conservation projects – the Beacon project in Bintulu and Miri-Sibuti Coral reef conservation project in Miri”, Abang Arabi said. “We look forward to continuing this partnership with Petronas and working together to protect the natural habitats through this NbS exploration in Sarawak”.

In another net zero development, Petronas recently secured land to progress its Southern Carbon Capture and Storage (CCS) hub project in Pahang. The company secured the land through a rental agreement between its unit Petronas CCS Solutions Sdn Bhd (PCCSS) and Kuantan Port Consortium Sdn Bhd, it said in an earlier news release.

The first injection at the hub is expected to take place in 2029. The company said the project will play a key role in reducing carbon emissions for hard-to-abate industries, both locally and internationally. The hub's location suits an integrated CCS value chain and future growth, it said.

Petronas said it is advancing CCS as a key solution to address emissions from its operations and other industries within the Asia Pacific. Forming strategic partnerships is Petronas' strategy for building a resilient and sustainable portfolio while accelerating its NZCE 2050 commitment pathway.

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