CCU faces policy vacuum despite economic promise

Carbon capture and utilisation (CCU) technologies are facing a policy vacuum in the UK, despite their economic potential and role in achieving Net Zero emissions. This disparity between promise and policy was highlighted in a recent gasworld webinar by Despoina Tsimprikidou, Policy Officer at the Carbon Capture and Storage Association (CCSA).

“There is one thing that clearly stands out from the narrative so far, and that is the lack of clear targets and ambitions for CCU in public policy currently,” Despoina revealed, indicating a major gap in the country’s decarbonisation strategy. 

This policy vacuum exists despite the UK government’s recent £22bn ($28.4bn) commitment to establish five carbon capture and storage (CCS) projects, aiming to capture and store 20-30 million tonnes of CO2 annually by 2030.

The lack of CCU-specific policies stands in stark contrast to the economic promise of these technologies. CCU offers potential revenue streams for industrial facilities, providing funds for investment in broader carbon capture, utilisation and storage (CCUS) infrastructure. This aspect is particularly valuable for dispersed sites not located near industrial clusters.

Despoina outlined four key steps needed to advance CCU projects:

1. Developing a business model for CCU
2. Providing clarity on funding envelopes
3. Enabling CCUS infrastructure
4. Developing low carbon product markets

She stressed the need for “clear targets and ambitions for CCU in public policy” to signal its importance in industrial decarbonisation.

The policy vacuum in the UK is particularly notable when compared to European progress. The EU’s Net Zero Industry Act and Industrial Carbon Management Strategy are driving advancements in CCU incentives and pathways, while new utilisation methods, such as the production of synthetic fuels and chemicals, are emerging as key players in emissions reduction.

Representing 120 member companies, the CCSA views CCUS as a crucial component in achieving Net Zero emissions by 2050. Despoina explained that “CCUS encompasses the entire value chain, including capture, transport, storage and utilisation of CO2,” highlighting its versatility across various industrial applications.

While permanent CO2 sequestration remains vital for meeting Net Zero targets, CCU technologies can serve as a valuable interim solution. 

“CCU technologies that can be deployed now can help rate the capture part of the value chain until permanent geological storage and pipeline transport becomes available in the UK and elsewhere,” Despoina said.

“This can act as a stepping stone and it can keep the momentum up in getting to gigatonne capacity of capture, transport and storage of CO2.”

She stressed the importance of a holistic assessment of CCU’s value in achieving Net Zero goals and carbon budgets and called for a regulatory framework to include CCU in carbon markets, in addition to increased R&D and innovation funding to drive technological solutions.

As industries and governments worldwide grapple with decarbonisation challenges, CCUS technologies are poised to play an increasingly significant role. However, the success of these initiatives, particularly in the UK, will depend on addressing the current policy vacuum surrounding CCU.

The industrial gas industry will be watching closely to see how policymakers respond to this challenge. Clear policy direction, coupled with continued investment and technological innovation, could unlock the full potential of CCU technologies, bridging the gap between their economic promise and current policy landscape.