The Sleipner subsea gas field in the North Sea captures and stores around 1 million tons of CO2 annually. (Image: Equinor ASA)
Malaysia, a major oil-producing country, has used carbon capture and storage (CCS) technology to enhance oil recovery and generate foreign exchange. As the world moves toward energy transition, CCS has emerged as a key decarbonization technology.
The Malaysian government has passed the legislation to support CCS development. RECCESSARY takes a closer look at Malaysia’s CCS ambitions, highlighting the country's advantages, emerging challenges, and what Taiwan can learn from global frontrunners.
Carbon capture, utilization and storage (CCUS) is one of the key technologies to achieve net-zero emissions, and for fossil fuel-reliant countries like Taiwan, it plays an indispensable role in the transition process. As many countries around the world actively invest in CCUS projects, Taiwan can draw on experiences of early adopters like Norway and Denmark to advance carbon storage practices and strengthen environmental risk management.
North Sea becomes a carbon storage hotspot as Norway and Denmark take the lead
CCUS involves complex technologies and requires stringent control at every stage—from the real-time capture of industrial carbon emissions to safe transportation, and ultimately to the permanent storage or reuse—to prevent any leakage of the captured CO2 into the atmosphere.
Currently, commercial CCUS operations are concentrated in Northen Europe. Norway initiated the Sleipner subsea oil field project in 1996, the world’s first operational carbon storage facility. It has been running for nearly 30 years and storage around 1 million tons of CO2 per year, injecting it into saline aquifers beneath the North Sea for long-term storage. Following this, Norway launched the Snøhvit carbon storage project in 2008, which has stored 6.5 million tons of CO2 by 2019.
Denmark, on the other hand, has introduced policy incentive to promote CCUS development. Recognizing CCUS as a key tool for achieving its climate goals, the country has actively welcomed companies interested in participating. This year, its carbon capture and storage fund reached DKK 28.7 billion (USD 4.4 billion), attracting applications from 16 companies, with 10 to be selected.
Denmark invested a total of DKK 37.5 billion (USD 5.8 billion) over the 2020-2022 period in the hope to cut 3.2 million tons of carbon emissions through CCUS initiatives. Starting 2030, the CCS fund is expected to help Denmark reduce carbon emissions by 2.3 million tons annually, equivalent to around 5% of the country’s total yearly emissions.
Thanks to its legacy of oil and gas extraction, the North Sea has become a central hub for carbon storage in Europe. The region’s depleted fields backed by extensive geological surveys and existing infrastructure offer ideal conditions for the development of CCS.
CCUS technology also plays a role in supporting a just transition for the oil and gas industry, offering sustainable employment opportunities for its workforce. According to the International Energy Agency (IEA), if CCUS deployment in the energy sector falls short of expectations, many coal- and gas-fired power plants may be forced into early retirement to meet long-term climate goal, posing significant risks of stranded assets and large-scale infrastructure write-offs.
CCUS emerges as crucial climate solution as Asia remains heavily dependent on fossil fuel
For Taiwan, which is heavily reliant on fossil fuel and generate 80% of its electricity from coal and gas, CCUS could become a key technology in the country’s energy transition. According to an IEA report, CCUS can help address emissions from existing fossil fuel power plants, especially in Asia where many countries depend heavily on fossil energy. Without CCUS, progress on emissions reduction could be constrained.
Taiwan’s state-owned utility Taipower is actively advancing carbon capture efforts. It has completed a small-scale pilot project capable of capturing 6 tons of CO2 annually at the Taichung Carbon Reduction Technology Park and is now expanding the facility into a test plant with a target capacity of 2,000 tons per year. Meanwhile, cement producer Taiwan Cement is developing new carbon capture technology in collaboration with German company tkPOL, with an aim to capture up to 100,000 tons of CO2 per year by 2030.
However, not every country can rely on natural advantages and established infrastructure, making cross-border carbon storage an emerging trend. Malaysia, for example, is working to develop cross-border services to attract foreign companies to transport and storage CO2 in the country. It has already begun collaborating with Japan and South Korea, with operations expected to begin as early as 2030.
The Longship project, initiated by the Norwegian government, is the world’s first cross-border carbon storage initiative. In April last year, Denmark, Norway, Belgium, the Netherlands and Sweden signed an agreement to enable the cross-border transport and permanent geological storage of CO2. The initial capacity is set at 1.5 million tons annually, with plans to scale it up to 5 and 7 million tons in the second phase.
Denmark is now actively advancing the Project Greensand, which is scheduled to begin operation between 2025 and 2026. The facility aims to store around 1.5 million tons of CO2 per year in its initial phase. Starting in 2030, the facility is expected to store up to 8 million tons of CO2 annually after expansion, equivalent to a 40% reduction in the country’s carbon emissions.
Storing CO2 underground continues to spark debate. (Source: Equinor ASA)
Experts urge stronger third-party oversight amid concerns over carbon storage risks
With rapid development of the CCS industry in recent years, risks and uncertainties have also emerged, including the impact of CO2 on geological formations, the potential to induce seismic activity, and concerns over “carbon colonialism.”
Despite being one of the earliest adopters of CCUS, Norway has also faced criticism. Grant Hauber, strategic energy finance consultant at the Institute for Energy Economics and Financial Analysis (IEEFA), pointed out that the Sleipner and Snøhvit projects, while often regarded as successful, should not be considered definitive models for CCUS due to persistent uncertainties surrounding underground storage.
Hauber, after reviewing decades of technological research and academic literature from the 1990s to the 2020s, pointed out that even with the most advanced data, scientific understanding, and monitoring systems, the risks associated with underground environments remain unpredictable. Issues such as geological shifts can reduce the effectiveness of carbon storage or even lead to CO2 leakage. This, he argued, highlights the need for operators and governments to develop detailed contingency plans and set aside sufficient funding to manage potential problems.
“Even experts admit,” Hauber said, “that there’s no way to fully predict how CO2 will behave underground before it is injected.”
What is certain is that the CCUS industry will play an increasingly important role in the future. Regulations and certification form the foundation of trust and requires extensive validation, independent verification, and technical expertise. Projects such as Greensand and Longship have engaged the third-party organization DNV to conduct safety and environmental assessments, including the verification of CO2 storage sites, transport processes, and carbon quality standards.
The experiences of Denmark and Norway demonstrate that the development of CCUS relies on advanced technology, geological data, third-party verification and consistent policy support. Only with a comprehensive regulatory framework can CCUS become a truly viable solution for carbon-intensive industries aiming for net zero.
Source: Energistyrelsen, Longship, IEA, Project Greensand, invest in dk
'Carbon storage unlocked' special series
- Carbon storage unlocked: Malaysia’s CCS market valued at $250 billion, draws cross-border interest
- Carbon storage unlocked: Malaysia bets on CCS, but challenges loom behind the boom
- Carbon storage unlocked: Lessons from Norway, Denmark, and subsurface risks to watch
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