Global energy majors Exxon Mobil (XOM.N), opens new tab and Shell (SHEL.L), opens new tab will work with Singapore to develop a cross-border carbon capture and storage (CCS) project, both companies said on Friday.

The Singapore-based units of the two companies, ExxonMobil Asia Pacific Pte. Ltd. and Shell Singapore Pte. Ltd., have formed the S-Hub consortium to work with the Singapore government as lead developers for the CCS project to reduce the country's carbon dioxide (CO2) emissions.

"S-Hub and the Singapore Economic Development Board (EDB) signed a memorandum of understanding in December 2023 to coordinate the planning and development of a CCS project, capable of capturing and permanently storing at least 2.5 million tons of CO2 a year, by 2030," they said in a joint statement.

The project will store CO2 emissions from Singapore deep underground or under the seabed. The storage sites will be selected after undergoing analysis to ensure suitability, it added.

by reuters