Carbon capture, utilisation, and storage (CCUS) technologies are becoming increasingly vital in the global efforts to reduce carbon emissions and combat climate change. These technologies play a crucial role in removing carbon dioxide (CO₂) from industrial emissions or the atmosphere, either storing the gas underground or repurposing it for industrial use. As the world races to meet net-zero emissions targets, the momentum behind CCUS technologies is growing.
The Evolution of CCUS Technologies
A recent report by IDTechEx has shed light on how CCUS technologies are evolving to meet the growing demands of the market and advancements in technology. One significant shift within the industry is the increasing focus on CO₂ storage over utilisation. Traditionally, around 75% of CCUS projects have relied on CO₂ utilisation, particularly through enhanced oil recovery (EOR), which involves increasing oil extraction while storing CO₂ underground. However, projections indicate that by the end of this decade, dedicated geological storage will surpass EOR as the primary method for managing captured CO₂. It is estimated that by 2045, global CO₂ storage capacity will reach 1.6 gigatonnes per year.
The Economic Viability of CO₂ Storage
The transition towards CO₂ storage is being driven by evolving carbon markets and pricing mechanisms that provide new financial incentives. Unlike utilisation, storing CO₂ underground does not generate a direct product. Still, the implementation of carbon pricing has made storage more economically viable. For instance, systems like the EU’s Emission Trading System (ETS) impose costs on greenhouse gas emissions, encouraging companies to reduce their carbon footprints. As carbon pricing expands and prices increase, the cost of emitting CO₂ often exceeds the cost of capturing and storing it. In the United States, the 45Q tax credit offers additional incentives for large-scale CO₂ storage projects. Major oil and gas companies like Shell and Chevron are now investing in CO₂ storage facilities, leveraging their expertise in subsurface geology to develop projects in saline aquifers.
The Importance of CO₂ Storage for Climate Goals
Permanently storing CO₂ offers greater sustainability benefits compared to utilisation, especially in meeting climate targets. Stored CO₂ leads to net-zero or even net-negative emissions, while utilisation often results in the gas being released back into the atmosphere after short periods, such as when synthetic fuels made from CO₂ are burned. Moreover, the global CO₂ storage capacity is substantial, estimated at over 15,000 gigatonnes—significantly more than the world’s current annual emissions of about 40 gigatonnes. This vast potential highlights the promise of storage as a long-term solution for reducing emissions.
Despite the increasing emphasis on storage, CO₂ utilisation continues to play a vital role, especially as a transitional solution. Existing fossil fuel infrastructure will not disappear overnight, and certain sectors such as aviation and shipping face challenges in transitioning to electrification. For these industries, low-carbon fuels made from captured CO₂, known as e-fuels, offer a decarbonisation pathway in the near term. In some applications, CO₂ can be permanently stored in products like concrete through processes that chemically bind the CO₂. These applications may receive regulatory support similar to geological storage, with incentives provided under systems like the EU ETS. Additionally, these uses of CO₂ can generate revenue, as the products, such as concrete additives, can be sold commercially.
A significant hurdle in the widespread adoption of CCUS technologies is the lack of infrastructure for large-scale CO₂ storage. While notable projects like the Northern Lights Longship initiative are expected to be operational by 2024, many regions still lack the necessary pipelines and storage facilities to support extensive CCUS networks. In the interim, CO₂ utilisation offers a practical solution, allowing existing carbon capture technologies to be deployed while storage infrastructure is developed. As these projects come online, CCUS technologies will play a central role in helping industries and nations meet their emissions reduction goals.
In conclusion, CCUS technologies are becoming essential in the global fight against climate change. While CO₂ utilisation remains important, the trend is shifting towards permanent storage, driven by carbon pricing, government incentives, and the vast potential of underground storage. As infrastructure expands, CCUS will be critical in achieving global decarbonisation targets and reducing atmospheric CO₂ levels. The evolution of CCUS technologies underscores the significant strides being made towards a more sustainable future.