Carbon Capture and Storage (CCS) is a crucial technology for mitigating carbon dioxide (CO₂) emissions and addressing climate change. With carbon capture and storage set to quadruple by 2030, this blog examines its definition, significance, growth projections, leading regions and sectors, and the challenges it presents.

What is Carbon Capture and Storage (CCS)?

With carbon capture and storage set to quadruple by 2030, CCS captures CO₂ from industrial sources, such as power plants and factories, or directly from the atmosphere via Direct Air Capture (DAC). The captured CO₂ is compressed, transported through pipelines or ships, and stored in deep underground geological formations, such as depleted oil reservoirs or saline aquifers, to prevent global warming. CCS’s flexibility enables it to tackle emissions from high-polluting sectors, such as cement production, and historical atmospheric CO₂, positioning it as a cornerstone of climate mitigation strategies.

Source: Congressional Budget Office

Also Read: The Future Of Carbon Capture And Renewable Energy Integration

Why is CCS Crucial for Climate Change Mitigation?

With carbon capture and storage expected to quadruple by 2030, CCS is an essential component for decarbonizing industries that are difficult to abate, such as cement, steel, and chemicals, where CO₂ is emitted as a byproduct of chemical processes rather than solely due to energy use. In cement production, for example, CO₂ is released during the calcination of limestone, and CCS can help to mitigate this process.

Technologies such as DAC and Bioenergy with CCS (BECCS) can achieve harmful emissions in cases by actually removing more CO₂ than is released, to support net-zero emissions goals. The International Panel on Climate Change (IPCC) has stated that CCS will be vital if we want to limit global warming to 1.5°C or 2°C. Critics argue that a reliance on CCS may detract from or delay the transition to renewable energy, requiring a portfolio approach to develop a balanced decarbonization strategy that considers a range of options.

Also Read: Carbon Capture And Land Use: Can It Help Restore Ecosystems?

How Much Will CCS Capacity Grow by 2030?

With carbon capture and storage set to quadruple by 2030, global capacity is expected to expand significantly. The facilities that utilize carbon capture and storage (CCS) are capturing more than 50 million tonnes of CO₂ equivalent each year. This number is expected to increase to over 435 million tonnes by 2030, as a result of $80 billion in global investment in the next five years (in large part, but not solely, by governments).

The increase in investment indicates a fundamental commitment to CCS; however, 435 million tonnes falls short of the requirement of the Net Zero Scenario, which states that CCS will need to operate at 1 billion tonnes by 2030. Meeting that challenge will require a rapid expansion of capacity, technological development, and clear regulations and climate policies to manage the expansion.

Source: IEA

Also Read: Carbon Capture And Industrial Transformation: How It’s Changing Manufacturing

Which Regions and Sectors are Leading in CCS Development?

Source: DNV

As carbon capture and storage are set to quadruple by 2030, key regions and sectors are driving progress:

• North America: The United States leads with 23.7 million tonnes capacity in 2022, bolstered by the 45Q tax credit ($85 per tonne for CCS, $180 per tonne for DAC), with over 100 projects in development.
• Europe: The European Union aims for 50 million tonnes of CO₂ injection capacity by 2030, supported by the Net-Zero Industry Act and the UK’s £21.7 billion investment in CCS clusters.
• Asia Pacific: Japan targets 13 million tonnes and China over 15 million tonnes by 2030, contributing to a regional capacity of 50 million tonnes.

Source: DNV

Also Read: Top Carbon Capture & Storage Companies Leading The Charge In Environmental Protection

Leading Sectors

The table below outlines anticipated CCS capacities by 2030:

Source: DNV

Hydrogen and power generation are dominant due to the demand for low-carbon fuels and electricity, while cement, steel, and DAC are gaining momentum.

Also Read: Understanding The Basics Of Carbon Capture Storage: Key Insights And Innovations

What are the Challenges Facing CCS Adoption?

Despite carbon capture and storage set to quadruple by 2030, challenges remain:

• Long Timelines: CCS projects require up to 6 years for development, necessitating streamlined permitting processes.
• High Costs: DAC costs can exceed $300 per ton, although innovations may lower this to below $100 per ton by 2050.
• Uneven Distribution: In 2024, 288 projects are concentrated in North America and Europe, requiring technology transfer to developing nations.
• Policy Concerns: Critics fear CCS may extend fossil fuel reliance, underscoring the need for policies like the 45Q tax credit to align with broader decarbonization efforts.

Source: DNV

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Frequently Asked Questions

• What is the projected global CCS capacity by 2030?

Global CCS capacity is expected to grow from 50 million tonnes of CO₂ annually in 2024 to approximately 435 million tonnes by 2030.

• Which industries benefit most from CCS?

Cement, steel, chemicals, hydrogen production, and power generation benefit due to high emissions and limited decarbonization alternatives.

• What are the primary obstacles to CCS implementation?

Challenges include lengthy timelines (6 years), high costs (over $300 per tonne for DAC), uneven global adoption, and concerns about prolonging the use of fossil fuels.

• How does CCS support net-zero goals?

CCS enables the capture of harmful emissions through DAC and BECCS, capturing CO₂ to meet 1.5°C or 2°C targets, thereby complementing renewable energy transitions.

Also Read: UK Government Commits £200 Million To Acorn Carbon Capture Project In Aberdeenshire