The snowball effect is only set to build in the coming years as countries and companies rush to meet 2030 net-zero targets by reducing and offsetting their carbon footprint
Oslo, April 27 - Neftegaz.RU.
As the energy transition
quickens, global carbon capture, utilization and storage (CCUS
) projects are on track to pull more than 550 million tonnes of CO2
out of the atmosphere every year by 2030, Rystad Energy research shows.
This capacity growth represents a more than tenfold increase over today’s 45 million tonnes per annum (tpa) of CO2
captured, as the drive to decarbonize
Project announcements surged in 2021, with the current pipeline containing more than 200 developments, 3 times more than are currently in operation globally.
Based on learnings from current developments and expected economies of scale, CCUS project cost is anticipated to range between $75-$100 per tonne of CO2
captured by 2030, meaning the total market value of the sector could reach $55 billion annually by 2030.
However, even with this rise, total carbon capture
capacity could fall far short of the levels needed to limit global warming to meet Rystad Energy’s 1.6°C climate scenario or the IEA
Both scenarios require carbon capture of close to 8 gigatonnes of CO2 by 2050, a significant ramp up from the 550 million tpa predicted by 2030.
If the world is to meet these targets, aggressive investment and deployment of CCUS technology will be required from 2030 onwards.
As a result of supportive policies and incentives, Europe and North America will dominate the CCUS market by 2030, contributing 450 million tpa of capture capacity, more than 80% of the projected global total of 550 million tpa.
capacity is projected to hit 222 million tpa by 2030, a sizeable jump from the 7 million tpa of CO2
In North America, Canada recently announced a tax credit scheme in this year’s budget, 50% for traditional capture technology and a 37.5% credit for CCUS transportation and storage equipment.
This will significantly improve CCUS economics for projects in Canada, coming closer to the nation’s current average cost of emitting CO2
of $30 per tonne.
In the US, the tax credit provided under Section 45Q will increase from $50 to $85 per tonne of CO2
if the Build Back Better bill is passed by the Senate.
Economic and financial
constraints are the main reason for CCUS projects not moving ahead as planned, but more countries are starting
to see the importance of providing support to such projects.