How the race to net-zero is accelerating carbon capture and storage technology

How the race to net-zero is accelerating carbon capture and storage technology

The total capacity of carbon capture and storage (CCS) facilities operating and under development grew by 33% world-wide over the last year. And right now, there are a total of 65 commercial CCS facilities in various stages of development globally.

So, what is driving this growth? A number of key factors are at play.

1.       Net Zero Climate Targets

One of the largest factors supporting the scale-up of CCS is the recognition that achieving net-zero emissions is urgent yet unattainable without CO2 reductions from energy intensive sectors.

Commitments to reach net-zero emissions saw significant support over the last year from governments and businesses alike, spearheading CCS investment.

In 2020 alone, Japan, South Korea and China made announcements to legislate net-zero targets. With China being the world’s largest emitter, solidified climate efforts by China has the potential to put international net-zero targets into full gear.

In North America, Canada announced plans to legislate net-zero, tabling a bill that will be put to a parliamentary vote. While the United States has yet to formally introduce net-zero legislation, President-elect Biden has vowed to join the international Paris Agreement once in office, inching the country closer to a carbon neutral future.

2.       Funding and investment

As CCS and net-zero policy commitments gain ground globally, as does the funding that will support its development.

The recently published Global Status of CCS Report shows that the US, which is already home to the highest number of operational CCS facilities, continues its lead in the global CCS league, hosting 12 of the 17 new commercial facilities added to the 2020 project pipeline.

The US has some of the most advanced supportive policies for CCS of any country in the world, including the 45Q tax credit California’s Low-Carbon Fuel Standard – and those supports are not without funding. The United States Department of Energy (DOE) has been steadfast in its commitment to support CCS and industrial decarbonization efforts. In April of this year, the US DOE invested $131 million towards CCS research and development. By December, the US Congress passed the comprehensive Energy Act of 2020, which will drive the scale-up of CCS through a two year extension of 45Q, along with additional funding supports for large scale CCS projects.

2020 also saw increased ambition and support for CCS in Europe. The Norwegian Government announced its green light for the Longship Project, while in the UK funding for CCS infrastructure was earmarked in the government’s Spring Budget with the goal of developing four hubs and clusters within the decade. Elsewhere in Europe, the first call of EU’s €10 billion Innovation Fund was launched which is expected be a major source of funding for CCS projects, whilst the Porthos Project in Netherlands is scheduled to take a final investment decision in 2021.

3.      Increased partnerships and knowledge sharing among regions

Regional collaboration between countries and businesses continue to gather pace in 2020, helping to advance technical understanding and develop clear regulatory frameworks. Asia Pacific is one such as example,  with Australia and Japan making notable progress in terms of policy developments and CCS investments

Strong partnerships provide opportunities to select regions where CO2 storage is either not suitable or underdeveloped to collaborate with neighboring jurisdictions where storage development is already underway or more feasible. Singapore – which has lauded CCS as a strategic tool needed to reduce industrial emissions – is exemplary, with the country moving forward with climate mitigating efforts beyond the confines of its borders, including a newly signed MOU with Australia that places low emissions technology at the forefront.

4.      Greater public awareness

As CCS becomes increasingly integrated in the climate action efforts of governments around the globe, public dialogue around the climate technology is gaining ground. Although narratives about CCS have yet to reach mainstream status, a marked shift in dialogue over the last year indicates that will likely change for CCS sooner rather than later.

 Government leaders and high-profile climate advocates have played a key role in supporting awareness of CCS among the wider public. This is especially apparent across Europe  where elected members have begun leading the charge in announcing CCS initiatives and funding. Coupled in these announcements are leaders reiterating the substantiated fact that net-zero goals will be nearly impossible to reach without carbon capture and storage projects.

Further, CCS discussions are being poised less as an antithesis of other critical climate action efforts and beginning to be seen as one of many tools needed to tackle climate change. Consumption of CCS related insights and publications has been on the rise among the wider public and those in industry;  a promising start to what will hopefully be a continued upward trajectory.

While there is undoubtedly still a lot of work to do to heighten public awareness of the value of CCS, the progress in the last few years is one to note.

What’s next?

Even as the year comes to a close, commitments to reach net-zero climate targets and scale up climate mitigating technologies continue to build momentum. 

But the work has only just begun. Although acceleration of CCS is promising, deployment of the technology is not happening quick enough to reach 2050 climate goals. 

CCS facilities will need to increase by more than a hundredfold by mid-century to enable this versatile technology to play its vital part in enabling the world to reach carbon neutrality by mid-century. Through continued policy and funding commitments, and real tangible efforts made by governments and industry to rapidly develop and deploy CCS projects, a net zero future is within reach.

Where countries like India interpreted the emission cut with GDP, CCS would become inevitable to continue with coal based power plants after 2020 or at the maximum by 2030. The cost of shut down is heavy otherwise, no incentivize can help the sector.

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Shkelqim Bozgo

Management and Energy Consultant

3y

Thanks Guloren, very interesting report. CCS is expected to play a crucial role in meeting the CO2 emissions reduction targets.

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