Ramping up CCUS commercial deployment requires ecosystem collaboration

‍What will it take for CCUS commercial deployment? 

Implementing an energy transition that effectively addresses climate change requires more than just technological advancements, investment, or policy changes. To make CCUS a viable commercial enterprise, ramping up infrastructure investment involves more than physical components like hardware and equipment. It encompasses technical, commercial, legal, business development, upskilling, and policy aspects, which need to work in sync. Success in this endeavor requires strategic foresight in integrating these initiatives into a harmonious and interconnected whole.

Targeted policy measures involving grants and specific CCUS application support beyond carbon pricing are critical. These should go hand in hand with incentives for carbon capture and storage, emission reduction targets, and long-term certainty for investors. Public-private partnerships and large-scale industrial hubs with shared CO2 transportation and storage infrastructure are essential, especially in hard-to-abate sectors. 

Most CCUS growth is expected to happen in the latter half of the next decade due to the time it takes to develop CO2 transport and storage infrastructure. Hence, early investment is critical for meeting the projected capacity. Governments, private sector, and international organizations must collaborate to provide financial support for R&D, demonstration, and deployment of CCUS technologies, to identify suitable storage locations, develop transport infrastructure, and ensure safe and efficient CO2 storage. Large industrial clusters with shared CCUS infrastructure can also enhance cost-effectiveness and promote technology diffusion. 

Creating market demand for carbon capture and storage services is crucial for the commercialization of CCUS technologies. Industries seeking to decarbonize, investors looking for sustainable opportunities, and carbon offset markets can all drive the demand for CCUS solutions. Developing business models that capture the value of carbon mitigation and provide revenue streams for CCUS projects is essential for their long-term viability.

Tackling supply chain challenges is equally important with potential risks for long lead items (compressors, pumps) and steep pipes due to competition from multiple projects. Identifying suppliers, assessing delivery capacity at an early stage, and developing alternate suppliers as backups are critical. In tackling the “great crew change”, upskilling and reskilling are equally important, requiring active engagement between educational institutions & employers. 

CCUS Deployment Scenarios – Regional Advantages and Challenges

A recent white paper by the University of Houston’s Center for Carbon Management in Energy titled ‘CCUS Infrastructure – Preparing for the Future of Houston’ offers a comprehensive analysis conducted on behalf of the marketplace participants. In the United States, The Greater Houston Gulf Coast region is poised to take the lead with large scale CCUS projects. The region covers eight counties on the Gulf Coast and addresses four workstreams: pipeline, storage, electricity, and water. It has a large network of chemical and manufacturing facilities producing between 90 and 110 million metric tons of carbon emissions each year, with six CCUS projects Expected to come online in the area by the end of the decade.

Its deployment is planned over three phases and with three scenarios: a reference case, 2023 – 2030, with 10-20% CO2 capture; an accelerated case, 2030 – 2040, with 40-50% CO2 capture; and a Net Zero case, 2040 – 2050, with 90-100% CO2 capture from industrial sources

But even in Houston, proudly called the ‘energy capital of the world’ due to its traditional focus on oil and gas exploration, challenges are abundant. In spite of the availability of skilled labor, the current available workforce is sufficient only in the reference case CCUS deployment scenario. For the accelerated and Net Zero cases, a significant increase in manpower (~50 to 100%) will be required - especially high-and-medium skilled workers. 

Climate change is a global challenge that requires coordinated action on an international scale. Collaborative initiatives, knowledge sharing, and technology transfer between countries are needed to accelerate CCUS deployment worldwide. International partnerships and agreements can facilitate funding, regulatory alignment, and capacity-building efforts for CCUS projects globally.