The Global CCS Institute examines the rapid growth of carbon capture and storage (CCS) around the world, highlighting increasing number of projects, regional innovation and global collaboration as keys to reaching net-zero climate targets.
Globally, we are at a pivotal moment for the adoption and deployment of carbon capture and storage as countries around the world are trying to achieve net-zero emissions and climate goals. CCS plays an important role in helping to achieve these ambitions due to its versatility. This is a commercially available capture technology available in almost any carbon dioxide source.
This means that CCS can be applied to a wide range of emissions-intensive industries, including power generation, cement and steel, fertilizers, chemicals, and hydrogen production. Furthermore, when applied to other carbon dioxide removal (CDR) techniques, such as direct air capture (DACC) using CCS, carbon dioxide can be removed directly from the atmosphere using CCS.
The Global CCS Institute has seen a steady increase in CCS momentum over the years.
Global momentum of CC seen compared to previous year
The Institute’s 2024 CCS Report Global Status reported a 60% increase from the previous year for projects at various development stages across the CCS value chain. It’s an additional 15% increase since the release of this report.
The Institute currently operates 65 CCS facilities, allowing it to store and store 57 million tonnes of carbon dioxide per year.
Included in facilities that have started operation since the last status report.
Santos Moomba CCS (Australia) China National Energy Ningxia and Xinjiang Jinlong Shenwu (China) Eni Casolborsetti Natural Gas Plant and Eni Ravenna Hub (Italy) Northern Light Transport and Storage (Norway)
Based on momentum, 42 more facilities are under construction, with about 272 being advanced development.
Additionally, two new countries in the CCS industry have been added to the database. Slovakia and Vietnam.
Areas of promoting CCS with an appropriately targeted approach
In promoting CCS deployment and scale-up, countries around the world are overcoming barriers and are taking large-scale projects with an optimal approach to local needs and resources.
Globally, China has emerged as a leader in CCS, driving large-scale projects like the Huaneng Longdong project, which plans to acquire 1.5 MTPA carbon dioxide from local coal-fired power plants. It is expected to be operational this year, making it the world’s largest coal power CCUS project. China is also promoting international research cooperation to accelerate industrial decarbonization.
Elsewhere in Asia, cross-border CCS projects accelerate and drive regional development, with carbon transport and storage networks appearing in these jurisdictions, serving multiple markets. Countries such as Japan, South Korea and Singapore are actively looking for storage solutions due to limited geological capabilities at home. In response, countries such as Indonesia and Malaysia with sufficient storage resources are rapidly implementing policies and legal frameworks to promote cross-border CCS value chains and markets.
In the Americas, Brazil has moved forward with the Milestone CCS Act, where “future bill fuel” was signed into law, continuing to make CCS operations successful in the forward salt reservoir of the Petrobras Santos Basin.
In the US, stable federal government policies and bipartisan support continue to support the CCS investment environment, allowing EPA Class VI, with 45Q tax credits continuing the remaining 45Q tax credits for major drivers across the country.
Looking at the UK and Europe, CCS’ business cases continue to be strengthened, with net zero targets in law, implementing support policies, legal and regulatory frameworks, and financing arrangements. Important of these is mandatory that oil and gas companies produced in the European Union contribute to the EU-wide goal of 50 MTPA carbon dioxide injection capacity by 2030.
The UK government is helping to deliver four CCUS clusters with target capture capacity of 20-30 MTPA. In October 2024, £21.7 billion in funding was announced to support the UK’s East Coast (Teasside) and West Coast (HY-NET) clusters.
In the Middle East, countries such as Saudi Arabia and the United Arab Emirates have established leaders in CCS by establishing large carbon hubs and pursuing cross-border projects. Notable initiatives include Saudi Aramco’s goal of expanding CCS capacity in Jubail and ADNOC expanding the development of CCS networks in the UAE.
CCS encourages the development and diversification of low carbon industries
On the road to Net-Zero, the lab is now increasing the diversity of industries where CCS is applied.
Currently, there is a surge in projects in industrial pipelines, including cement, bioenergy/ethanol, hydrogen/ammonia/fertilizer production.
This further strengthens the multi-purpose role of CC not only as an important tool for emission reduction, but also as a strategic tool for economic resilience, energy security and maintaining industry competitiveness in decarbonization markets.
For example, hydrogen can play an important role in reaching Net-Zero as a carbon-free energy carrier. Low-carbon hydrogen produced using CCS helps decarbonize the transport sector and is used for power generation. It can also be used to produce other low-carbon products such as ammonia, urea, and fertilizers.
Furthermore, with more renewable power sources built into the grid, the fossil fuel power fleet remains important to maintain the resilience and reliability of the grid. Power plants equipped with CCS can supply solidly dispatchable low-carbon electricity to complement the various properties of renewable energy such as solar and wind power generation.
Progress in CCS is encouraging, but there is still much work left
The progress seen in the CCS project year over year is encouraging, but to achieve global climate targets, annual carbon dioxide capture and storage rates must be reached by 2030 to reach approximately 1 Gigatonne per year. Currently, the operational CCS project capture capacity is 57 MTPA.
The deployment of CCS faces many challenges. However, the CCS business case remains important. Not all jurisdictions have established the strong and supportive policy and regulatory frameworks needed to create a robust business case for CCS. Further progress is needed in government climate policy and carbon markets to promote an investable and scalable CCS business case.
The Institute highlights the need for robust and supportive policies from the government that provide clear guidelines and incentives for implementing CCS. A comprehensive policy framework should include mechanisms that assign value to carbon emission reductions, such as carbon taxes, carbon transactions, and tax credits.
Additionally, a combination of incentives and regulations is required to encourage investment. Without these measures, the private sector will not deploy CCs on the scale necessary to achieve climate change mitigation targets.
Investment challenges such as political uncertainty and increased inflation-driven costs add to even more complex issues. As countries go through periods of inflation similar to many large infrastructure projects, including CCS, there is an increase in the cost of experience.
Other important factors in the successful deployment of CCS are social considerations, particularly as public perceptions and acceptance of CCS may change. Engagement with affected stakeholders, including local communities, should be an integral part of every project from the start.
Global collaboration key to CCS success
Progressing CCS at the required scale and speed cannot be done alone. The value of CCS is globally recognized and global collaboration is essential to moving us forward.
As a starting point, we have learned decades of research and lessons from our management projects. Knowledge that sharing can dramatically shorten the deployment window for emerging CCS areas.
Based on this, there are several collaborative platforms around the world, including the Asian CCUS Network, the Carbon Management Challenge, the Minister of Clean Energy and Mission Innovation. These prove to be extremely useful in driving ambition and sharing knowledge.
Beyond that, many bilateral agreements have been introduced, particularly important for the development of cross-border value chains, highlighting the acceleration of intergovernmental cooperation. The Institute has identified more than 50 bilateral agreements or Mouss implemented by national governments since 2020, including CCs within that scope.
There are also many strong examples of public-private partnerships to develop CCS facilities that appear in all jurisdictions.
By continuing to promote and build these collaborations, we can challenge this pivotal moment of challenge for carbon capture and storage and its role in achieving global zero emissions and climate targets.
About Global CCS Research Institute
The Global CCS Institute is an international think tank whose mission is to tackle climate change and accelerate the deployment of carbon capture and storage, a key technology that provides climate neutrality. Headquartered in Melbourne, Australia, the institute has offices in Abu Dhabi, Beijing, Brussels, London, Tokyo and Washington, DC. https://www.globalccsinstitute.com
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