US-based industrial conglomerate Honeywell said the Chinese renewable energy sector's rapidly growing momentum and future growth potential have persuaded it to deepen its cooperation in the country, in order to continue promoting the application of its technologies in carbon capture, utilization and storage (CCUS) and hydrogen.

As China goes full throttle on its energy transition with the aim of becoming carbon-neutral before 2060, Honeywell is anticipating more growth as well as local partnership opportunities in China, said Liu Maoshu, vice-president and general manager of Honeywell Performance Materials and Technologies Asia-Pacific, a strategic business group of the global parent company.

China's energy transition is expected to provide massive opportunities for global energy corporations like Honeywell, Liu said on the sidelines of the first China International Supply Chain Expo in Beijing on Tuesday.

Honeywell is optimistic about the opportunities brought by the development prospects of China's energy, aviation, building and petrochemical sectors. There is inherent potential for technological innovation and applications, which these sectors have sought to harness in recent years, he said, adding Honeywell will continue tapping the CCUS sector in China, given its massive market potential.

According to the latest China-US statement on enhancing climate cooperation, the two countries aim to advance at least five large-scale cooperative CCUS projects each by 2030, including from industrial and energy sources. This is where Honeywell sees huge potential and plans to continue promoting the application of its technologies in China to tap the potential with local partners, Liu said.

"Our CCUS solutions are already under commercial application in China and we are looking forward to more cooperation with Chinese partners in the years to come."

Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute, said, "Fossil fuels will still be playing a key role in both developing and developed countries in the years to come. As renewable energy still cannot replace the traditional fuel in the short term, CCUS offers a way to reduce emissions from sectors that are hard to decarbonize."

According to a report released by Shell, China, with an estimated 2,400 gigatons in storage capacity, has significant geological potential for storing carbon, second only to the United States.

Honeywell has signed an agreement with Sennics Co Ltd, a subsidiary of Sinochem International Corp, to provide processing technologies and services to Sennics' coal hydrogenation and CCUS projects. The two sides will jointly push forward the commercialization of CCUS and coal hydrogenation in China.

"The surging demand for CCUS in China provides Honeywell with a substantial opportunity to grow its energy transition and sustainability business. We firmly believe that this will further help integrate and scale up our growing low-carbon energy offerings in the country," said Liu.

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