China Launches First Offshore CO₂ Storage Project at Dongfang 1-1 Gas Field

Introduction

On April 12, 2026, China's first offshore carbon capture, utilization, and storage (CCUS) project commenced at the Dongfang 1-1 gas field in the waters off Hainan Island. The project, with an annual CO₂ storage capacity exceeding 1 million tons, is set to impact tropical fruit, vegetable, and aquatic product export industries by integrating carbon footprint management. This development is particularly relevant for businesses navigating EU CBAM and UKCA green certification requirements.

Event Overview

The Dongfang 1-1 gas field CCUS project officially started operations in April 2026. It aims to capture and store over 1 million tons of CO₂ annually. The initiative will collaborate with Hainan's export-oriented industries, including tropical fruit and aquatic processing, to pilot a carbon footprint management system covering energy reduction, processing-side accounting, and export-side certification.

Industries Affected

Tropical Fruit and Vegetable Exporters

Producers and exporters of Hainan's tropical fruits and vegetables will need to align with the new carbon accounting framework. The project's integration with EU CBAM and UKCA standards means these businesses must prepare for stricter carbon disclosure requirements in key export markets.

Aquatic Product Processors

Seafood processing companies in the region will face increased pressure to track and reduce emissions throughout their supply chains. The CCUS project's linkage to export certification creates both compliance obligations and potential marketing advantages for low-carbon products.

Carbon-Intensive Manufacturers

Local manufacturers using energy-intensive processes may benefit from the project's CO₂ storage capacity to offset their emissions, particularly those supplying to environmentally conscious markets.

Key Considerations for Businesses

Monitor Certification Requirements

Companies should track evolving EU CBAM and UKCA implementation timelines to ensure compliance with emerging carbon reporting standards.

Assess Supply Chain Emissions

Businesses must begin mapping their carbon footprints across production, processing, and transportation to meet the new integrated accounting system.

Explore Carbon Reduction Partnerships

The CCUS infrastructure presents opportunities for collaboration on emission offsetting, particularly for companies targeting green certification.

Prepare Documentation Systems

Export-oriented firms should invest in systems to track and verify carbon data, anticipating increased scrutiny from international buyers.

Industry Perspective

From an industry viewpoint, this project represents more than just carbon storage infrastructure—it signals China's strategic approach to combining emission reduction with export competitiveness. While the full impact will depend on implementation, the initiative demonstrates how environmental compliance is becoming integrated with trade policy. The pilot's success could lead to similar models being adopted in other export-focused regions.

Conclusion

The Dongfang 1-1 CCUS project marks a significant step in China's decarbonization efforts, particularly for export-oriented industries. Businesses should view this development as both a compliance requirement and an opportunity to enhance their sustainability credentials in international markets. The project's true test will be its ability to deliver practical, scalable solutions for carbon management in industrial supply chains.

Source Information

Primary source: Official announcement of Dongfang 1-1 CCUS project commencement. Note: The actual implementation timeline and certification details require ongoing monitoring as the project progresses.