Business Models for CCS Hubs | MENA
This new report from the Global CCS Institute offers valuable insights for our Hydrogen Working Group, especially those interested in the MENA region:
✳ MENA's CCS Potential is HUGE:
Untapped Resource: The region boasts excellent geological CO₂ storage potential in depleted gas fields and saline formations, particularly along the Gulf Coast. This offers vast opportunities for CCS hub development.
Emission Hotspots: Dense industrial clusters exist across the region, creating ideal conditions for shared infrastructure and cost-effective CO₂ transport and storage.
Strategic Location: MENA could become a global CO₂ storage hub, providing services to other regions with limited storage capacity and generating significant revenue.
✳ New Business Models are Emerging:
Beyond "Full Chain": The report highlights the shift from traditional, single-entity CCS projects to "part chain" models. This allows for specialization and risk reduction, opening doors for new players and service providers.
Unlocking Growth: These emerging models, coupled with CCS hubs, can enable smaller emitters to access CCS, accelerating decarbonization across a broader range of industries.
✴ Challenges & Recommendations:
Data Transparency: The region needs more publicly available geological data and storage resource assessments to attract investment and facilitate project development.
Regulatory Frameworks: MENA countries need to develop robust CCS-specific laws and regulations, addressing long-term storage liability and financial assurance.
Incentivize Action: Implementing carbon pricing mechanisms, green procurement policies, and government funding programs is crucial to stimulate CCS demand.
International Collaboration: Participating in international coalitions like the Carbon Management Challenge can accelerate knowledge sharing, technology transfer, and funding opportunities.
The report underscores the importance of CCS as a crucial technology for meeting net-zero targets. MENA, with its unique advantages, is poised to become a leader in CCS deployment, creating new economic opportunities and contributing to global climate action.
This report provides:
Strategic Insights: Understanding the different CCS business models, challenges, and opportunities for developing successful projects in the MENA region.
Networking Potential: Identifying potential collaborators and partners in the region for joint ventures and service provision.
Policy Advocacy: Informing discussions with policymakers and stakeholders on the need for supportive regulations and incentives.
