The importance of CCUS<\/h3>\n
But what exactly is carbon capture, utilisation, and storage (CCUS), and why is it so important? At its core, CCUS is an important decarbonisation technology. It works by capturing CO\u2082 emissions from major sources like fossil fuel fired power plants or refineries, then either storing them underground or repurposing them for industrial applications. The \u2018U\u2019 in CCUS stands for utilisation, which involves using captured carbon in industries such as chemicals, food and beverage, and even oil recovery. This turns them into economic opportunities, unlocking new areas for growth.<\/p>\n
While CCUS technology has been around for more than 30 years, the sector is currently gaining commercial traction and secures political support. So, why is this happening now? The answer lies in the energy transition \u2013 a global shift as transformative as the Industrial Revolution. As the world moves from fossil fuels to low-carbon energy systems, we must balance the rising global demand for energy with the urgent need to cut carbon dioxide emissions and fight back global warming. CCUS has a key role to play.<\/p>\n
CCUS plays a particularly important role in decarbonising hard-to-abate sectors such as steel and cement production, chemical manufacturing, oil and gas processing, and even heavy transport. According to the International Energy Agency (IEA), CCUS has the potential to reduce energy-related emissions by 13%<\/a>. And it can create new revenue streams across industries, proving that sustainability and economic growth can go hand in hand.<\/p>\n Today, there are around 50 commercial CCUS facilities operating globally<\/a>, some dating back to the 1970s and 1980s. Deployment has long trailed expectations, but that\u2019s changing. There are around 700 projects in various stages of planning and development<\/a>. The International Energy Agency (IEA) projects capture capacity will grow 35% by 2030, with storage capacity by 70%. If these targets are met, CCUS could capture 435 million tonnes (Mt) of CO\u2082 annually by the end of the decade.<\/p>\n CCUS works in two ways: pre-combustion capture, and post-combustion capture. The first, which is the most common until now, removes CO\u2082 before combustion during the hydrocarbon processing by means of gas separation and usually also chemical absorption. The second removes CO\u2082 from exhaust gases after fossil fuels are burned, primarily through chemical absorption. Here\u2019s a simple breakdown: industrial flue gas passes through an amine solution that binds to the CO\u2082. When heat is applied, the CO\u2082 is released as a gas, ready for capture, transport, and storage. Think of it as a molecular sieve \u2013 simple in theory, but challenging and expensive to scale.<\/p>\n Once captured, the CO\u2082 must be transported to a storage site. Pipelines are the most common method, with around 50 CO\u2082 pipelines spanning over 6,500km<\/a> in the US alone, transporting roughly 68 million tons annually. When compressed to a supercritical state, CO\u2082 has the density of a liquid but the viscosity of a gas, making it ideal for pipeline transport. The final step is storage, where CO\u2082 is injected into underground rock formations, staying securely locked away for millions of years. To prevent leaks, CCUS teams monitor pressure, water contamination, and seismic activity.<\/p>\n Norway\u2019s Sleipner facility has been safely storing 0.9 million tonnes of CO\u2082 annually since 1996, while Brazil\u2019s Petrobras Santos Basin stores 10.6 million tonnes per year through Enhanced Oil Recovery (EOR) \u2013 a testament to CCUS\u2019s long-term feasibility. Despite the progress, we\u2019re still far from where we need to be. More than 90% of industrial CO\u2082 emissions could be captured<\/a>, yet many projects remain stalled due to cost and infrastructure challenges.<\/p>\n Another challenge is public perception. While CCUS is effective, some critics argue that it prolongs the use of fossil fuels instead of accelerating a full transition to renewables, especially where it is used to justify new large-scale greenfield or brownfield developments. Others worry about safety, despite decades of successful storage projects. Addressing these concerns will be key to widespread adoption.<\/p>\n Traditional carbon capture and storage (CCS) focused solely on locking CO\u2082 away underground \u2013 which is the main goal of those initiatives. CCUS, however, adds the \u2018usage\u2019 element \u2013 finding ways to monetise captured carbon and make the process financially viable. For example, in construction, CO\u2082 can be used to produce concrete while locking away carbon. In chemical production, it serves as a feedstock for synthetic fuels. And in food and beverage, it is used for carbonation and preservation.<\/p>\n New startups are cropping up to make use of this captured carbon. Clean O2<\/a>, based in Calgary, uses carbon captured from industrial flues for biodegradable liquid hand soap. Econic in the UK turns CO\u2082 into polyurethane-based (plastic) products, used in everything from footwear to car parts. Research is even exploring CO\u2082\u2019s use in boosting crops, decaffeinating coffee and tea, and even as a solution in fire suppression systems.<\/p>\n However, it\u2019s in hard-to-abate industries that carbon capture is really finding its legs. Sectors such as steel and cement can\u2019t be easily and completely electrified, making carbon capture one of the key building blocks for decarbonisation. Companies like Luxemburg-based steel production company ArcelorMittal are leading the charge. In 2022, it launched a multi-year feasibility project to integrate carbon capture into its steel plants, including its five-million-tonne facility in Gent, Belgium, and another in North America. The project aims to explore the potential of capturing significant amounts of CO\u2082 from blast furnaces, starting with an initial phase that captures 300kg of CO\u2082 daily. This initial phase is a critical step in demonstrating the practicality and scalability of carbon capture technologies, paving the way for more substantial reductions in the future as the project progresses and expands.<\/p>\n Adoption, however, faces barriers. High costs, market demand, and technological readiness are just a few of the concerns. Because CCUS is energy-intensive, it\u2019s often compared unfavourably to alternative decarbonisation methods like renewables or hydrogen that completely eliminate direct carbon emissions. And because some projects have underperformed \u2013 Al Reyadah in the UAE, the world\u2019s only commercial-scale CCUS project for steelmaking, captured just 26.6% of emissions in 2023<\/a> \u2013 there is some scepticism.<\/p>\n So, what\u2019s holding CCUS back? Investment and policy support. CCUS is lagging not because the technology doesn\u2019t work, but the sector is still in its early stages. Despite promising use cases, clear revenue streams remain elusive, infrastructure is underdeveloped, and commercial projects require significant upfront capital. Many countries still do not have regulations in place ensuring the safe storage of CO2. It needs the right financial and regulatory frameworks to scale.<\/p>\n Markets such as the UK are stepping up. In 2019, the UK\u2019s independent Climate Change Committee concluded that CCUS was \u201ca necessity, not an option\u201d for the UK\u2019s goal for net zero and, in 2024, UK government committed to an ambitious funding package for CCUS, totalling up to \u00a321.7bn over 25 years<\/a>. The EU\u2019s 2024 Net Zero Industry Act (NZIA) now requires oil and gas companies to store at least 50 million tonnes of CO\u2082 annually by 2030<\/a>.<\/p>\n To really take off, McKinsey says CCUS need development in these four areas: tax credits, direct subsidies, and price support mechanisms; the growing demand for lower-carbon products; the potential to use CO\u2082 as a valuable feedstock; and the rise of voluntary carbon markets.<\/p>\n When it comes to collaboration between public and private entities, The Acorn Project<\/a> in northeast Scotland proves it can be done. This repurposing of gas pipelines for CCUS transport saw the Scottish Government put \u00a32m into pipeline exploration and pledged \u00a380m contingent on the success of stage one. Acorn has also been shortlisted for a share of the UK\u2019s \u00a31bn Track 2 CCS fund, with further backing expected from the UK\u2019s \u00a320bn CCS package announced in March 2023<\/a>. While the project is still awaiting final confirmation of UK funding under the \u2018Track-2 progress\u2019, the commitment from both the Scottish and UK governments underscores the potential for significant progress in CCUS infrastructure.<\/p>\n Mostly, it is the infrastructure challenge \u2013 transportation and storage \u2013 that needs solving. But it is not just about pipes and tanks, and there are many tech advancements offering opportunities. For instance, pumps and systems play a crucial role across CCUS applications, from amine solvent pumps in CO\u2082 capture to liquid CO\u2082 transport. Minimising multi-phase flow is also critical during transport, as CO\u2082 behaves differently at varying temperatures. Advanced technologies, such as multi-phase centrifugal pumps, can stabilise flow and ensure reliable transport.<\/p>\n Right now, the industrial sector is one of the biggest carbon emitters, and CCUS is the only scalable solution available today to cut those emissions. For decades, mass adoption has seemed just around the corner. But the next few years will be crucial: the UK Department for Energy Security and Net Zero (DESNZ) estimates the global CCUS market could reach \u00a3260bn by 2050<\/a>. While the outlook is positive, as it has been for years, this decade will determine whether CCUS finally becomes viable.<\/p>\nHow does CCUS work and where do we stand?<\/h3>\n
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<\/p>\nExpanding CCS into CCUS<\/h3>\n
The role of regulation and investment<\/h3>\n
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