Installed carbon capture and storage (CCS) project capacity is on track to double to 100 million tonnes per annum (Mtpa) according to a Global CCS Institute report.
The Global Status of CCS 2024 report finds a significant uptick in CCS activity as governments and industry collaborate to reduce greenhouse gas emissions and reach Net Zero targets.
It found 628 projects are now in the pipeline, up 236 on 2023, and facilities currently in operation have a capacity to capture and store 51 Mtpa of carbon dioxide (CO2). However, only 50 commercial CCS projects are operating globally.
Jarad Daniels, CEO of the Global CCS Institute, said the CCS industry is rapidly maturing and evolving, catalysed by global collaboration, sustained government policy support, and industry action built on decades of shared learnings.
He said, “This is testament to the urgency with which governments and industries are seeking to address climate change, while continuing to supply the world’s growing population with necessary energy services and commodities.”
Mitigating climate change will require massive infrastructure investments, including new transmission grids for low-carbon electricity generation, as well as pipelines and shipping for both CO₂ and low-carbon energy carriers such as hydrogen in various form, he added.
“Carbon management hubs and networks can help bring economies of scale to this required new infrastructure,” he said.
The Americas continue to lead the world in CCS facility deployment, catalysed by sustained policy support and funding incentives, with 27 projects in operation, and 18 starting construction across the US, Brazil and Canada.
Across Asia, storage hubs and cross-border CCS projects are a major focus and dominant trend, as nations with limited geological storage resources explore opportunities with nations that have large storage resources, to store their CO2.
In China, Carbon Capture Utilisation and Storage (CCUS) forges ahead, spurred by climate policy progress, CCUS project deployment, and increased international collaboration. Huaneng’s integrated 1.5 Mtpa coal power CCS project is expected to be operational by the end of this year, becoming the world’s largest coal power station.
Across Europe and the UK, decarbonisation policies and anticipation of a robust CCS market are driving new projects: 191 projects are at various stages of development in the region, including five in operation and 10 in construction.
And in the Middle East and Africa (MEA), CCS project development has evolved from application in enhanced oil recovery to a focus on industrial decarbonisation and low-carbon fuel development, the report states.
Source: Global CCS Institute
The 2024 status report notes 222 transport and storage projects, which currently do not include an associated capture facility.
This number has more than doubled over 12 months and underscores ‘the predominance of new carbon management business models and the anticipated market for these services’, according to the report.
Despite the positive forecasts, and recent encouraging policy moves such as the UK recently pledging £22bn to drive CCUS and hydrogen development, the sector continues to attract scrutiny from environmentalists and commentators, and push back from communities over CO2 pipelines.
Critics question if CCS can be implemented quickly and efficiently at scale, and whether the fossil fuel industry is using CCS as a shield for renewables investment. Inflationary and cost pressures are other challenges to financing capital-intensive projects.
Read more on CCUS, and our exclusive interview with the Carbon Capture & Storage Association, in the technology-themed November issue of gasworld global
