(Yicai Global) Nov. 4 -- Petroleum giant Royal Dutch and German chemical titan BASF will partner with China’s largest petrochemical firm and steel company to build a 10-million-ton carbon dioxide recycling project to help achieve China’s carbon emission reduction goals.

Royal Dutch, BASF, Sinopec, and Baowu Steel Group penned a memorandum of understanding in Shanghai today to build a project to capture, use and store carbon dioxide (CCUS) in East China, Shanghai Securities News reported.

CCUS refers to the capture and utilization of carbon dioxide from industrial emissions, or storing it in underground structures to cut carbon dioxide emissions. The technology has the potential to reduce emissions on a large scale and is an important way to achieve the goal of carbon neutrality, the report said.

After completion, the project will provide industrial companies in East China with integrated solutions to cut carbon emissions. For example, it will recycle by shipping carbon dioxide discharged by steel mills, chemical engineering factories, power and cement plants along the Yangtze River and transport carbon dioxide to storage facilities by pipelines.

East China is one of the most economically active regions in China, boasting many national-level industrial parks. Building CCUS projects in the region can achieve economies of scale and significantly improve the efficiency of decarbonization operations, the report noted.

According to China’s carbon reduction targets proposed in September 2020, the world’s largest carbon emitter will peak its carbon emissions by 2030 and achieve carbon neutrality by 2060.

Editor: Peter Thomas