The next few years are shaping up as a watershed in merchant CO2 supply, set against the growth in CO2 sequestration to support climate action.
What’s happening to stir things up exactly? CO2 has always been a complicated space compared with others, reflecting its status as a by-product gas derived from a range of sources, and with an ever-present tension between peak demand often coinciding with shutdowns at plants that are primarily in the business of producing something else.
But next to this, the regulatory context in the US has created a parallel opportunity in sequestering CO2 to address global heating and the climate emergency. And there are contexts now, in 2024, where it looks like that emerging market space is poised to divert a significant proportion of CO2 that would have been destined for the merchant market, putting a squeeze on already straitened supply.
It all points to a future where new sources of CO2 will be needed to deliver a stable market – and there are quite a few contenders in the mix.
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