Carbon capture and storage sector sees record growth in 2024

The Global CCS Institute has released the Global Status of CCS 2024 Report, highlighting a year marked by significant milestones and growth in the Carbon Capture and Storage (CCS) sector. As global efforts to achieve net-zero emissions intensify, CCS has emerged as a pivotal technology for reducing carbon emissions across various sectors. The report provides an in-depth analysis of the latest advancements, opportunities, and challenges faced by the industry.

Record Growth in CCS Projects

Over the past year, the CCS industry has seen remarkable growth, with the number of projects in the development pipeline hitting 628—a 60% increase from the previous year. This surge underscores the escalating global recognition of CCS as a vital component in combating climate change. Of these projects, 50 facilities are operational, while 44 are under construction. This influx of new projects is poised to significantly enhance global CO₂ capture capacity, which is expected to double in the near term. Facilities currently under construction are projected to add 51 million tonnes per annum (Mtpa) of capacity to the existing operational capacity of 51 Mtpa.

The Rise of Direct Air Capture Technologies

An exciting trend within the CCS sector is the increasing emphasis on Direct Air Capture (DAC) technologies. DAC systems enable the extraction of CO₂ directly from the atmosphere, making them an essential addition to the existing array of carbon capture solutions. Presently, there are three commercial DAC facilities in operation, with another 16 projects in various stages of development, offering promising potential for addressing emissions that are challenging to mitigate through traditional methods.

Regional Advancements in CCS

The report highlights significant regional developments as countries worldwide accelerate efforts to establish CCS infrastructure. In North America, the United States leads with considerable governmental backing for CCS projects, committing US$10 billion to carbon management and clean hydrogen hubs, which is fuelling project development. Meanwhile, in the Asia-Pacific region, countries such as Malaysia, Japan, and South Korea are collaborating on cross-border CCS projects and value chains aimed at managing emissions on a regional scale, crucial for the decarbonisation of this heavily industrialised zone.

China is integrating CCS into its climate policies, with plans to incorporate the technology in reducing emissions from coal-fired power plants by 2027, marking a major step for the world's largest emitter. In Europe, the European Union is championing decarbonisation efforts through the Net-Zero Industry Act, where CCS is highlighted as a cornerstone technology in the transition to a more sustainable economy.

Middle East and Africa's CCS Initiatives

In the Middle East and Africa, Saudi Arabia and the United Arab Emirates (UAE) are at the forefront of CCS development. The UAE has set forth an ambitious target of achieving 43.5 Mtpa of CCS capacity by 2050, while Saudi Aramco aims for 14 Mtpa by 2035. In Africa, Kenya is advancing in the deployment of CCS technologies with the announcement of a Direct Air Capture project with a capacity of 1 Mtpa. These developments underscore the increasing acknowledgement of CCS as an essential tool for emission reductions in both oil-rich and emerging economies.

Collaboration, Policy, and Public-Private Partnerships

The advancement of CCS has been significantly propelled by enhanced collaboration between governments and the private sector. The report mentions that more than 50 memorandums of understanding (MOUs) or agreements concerning CCS have been established since 2020. Public-private partnerships are crucial in driving CCS technologies forward, with multilateral initiatives like the Clean Energy Ministerial playing a pivotal role in advancing CCS research, reducing costs, and expediting project execution.

Regulatory and Community Engagement

The effective deployment of CCS technologies necessitates not only technological progress but also robust regulatory frameworks and proactive community engagement. Governments globally are becoming increasingly aware of the imperative to ensure that CCS projects adhere to regulations and that local communities are informed and involved in these endeavours.

Outlook for CCS

The Global Status of CCS 2024 Report presents an optimistic forecast for the future of carbon capture and storage. With a record number of projects in development, the ascendancy of technologies like DAC, and a surge in global collaboration, CCS is poised to play a central role in the global journey toward net-zero emissions. While challenges in scaling remain, the continued advancements and growing commitments from both the public and private sectors signal a promising trajectory for CCS.

Source: Noah Wire Services