- Dec 5, 2022 4:56 pm GMT
CCUS is recognized as a necessary and relatively low-risk piece of the decarbonization puzzle, but the technology is not moving fast enough to achieve a 1.5° or even 2.0° pathway.
KEY CHALLENGES TO CCUS COMMERCIALIZATION & UPSCALING
- Policy is uneven and uncertain
- Revenue streams are not well established
- Projects are large and unproven
- Cost benefits of scaled projects come with coordination complexity
- Controversial public perception.
ACTIONS THAT CAN HELP
The following actions can help industry players, regulators, and investors determine the next steps:
- CCUS business cases need to rely on more than just subsidies
- Need to collaborate and coordinate
- Reduce capture costs.
- Advocate for carbon taxes, higher ETS levels, or other tariff barriers
- Decide whether CCUS can be a major feature of industrial policy
- Create the regulatory, tax, and reporting frameworks that will allow the industry to scale
- Accept that early projects will need subsidies and direct support
- Insist on bold ESG commitments from the companies they invest in
- Understand how investing in CCUS can create value
BOTTOMLINE - NOT MENTIONED IN ARTICLE
Industry need to abate about 40 GTonne per annum globally to achieve net-zero by 2050. Most of it should come from Avoidance projects (solar, wind, Hydrogen etc) and Reduction projects (efficiency) and only about ~5 Gt/y can be avoided from Removal projects (CCS i.e underground storage). Only hard to abate industries (cement, steel, refining etc.) that have no other alternatives should target CCS (emissions ~about 3.5 Gt/y). The low cost and profitable capture industries (Ex: natural gas processing, ethanol, hydrogen, fertilizer etc) although have a small foot print (~ 0.5 Gt/y), will also benefit. The power generation industry, that has massive emission foot print (~ 12 Gt/y) should look for other alternatives; focus on avoidance and reduction projects, only a small fraction (~about 1.0 Gt/y) can benefit from CCS.
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