Carbon Capture and Storage: Towards Sustainable Innovation in the Global Energy Context

In a constantly evolving global context, over 400 carbon capture, utilization, and storage (CCUS) projects have been launched in the last 3 years in more than 45 nations.

The International Energy Agency's (IEA) new guide aims to materialize the ambitions of CCUS project designers, outlining effective policies for establishing a robust commercial market.

Carbon Capture and Storage: New Business Models and Perspectives

These developments mark an important turning point, introducing new business models and players shaping the environment for future projects and opening new investment prospects. The IEA report, 'CCUS Policies and Business Models: Building a Commercial Market,' highlights the importance of CCUS implementation this decade, essential to align with the net-zero emissions goals outlined in the IEA's Net Zero Roadmap.

The upcoming COP28 climate conference in Dubai is a crucial opportunity for governments to intensify efforts in this sector and for the oil and gas industry to demonstrate a concrete commitment to reducing emissions.

Despite early CCUS projects' success due to cost-reduction policies, these approaches have been limited by their focus on low-cost applications, unsuitable for extending CCUS to other areas. Consequently, governments are exploring new policy strategies, drawing inspiration from other energy system sectors to adapt to emerging business models.

Traditional CCUS business models focused on a whole-chain approach, dominated by the oil and gas industry, with a particular focus on CO2 use for oil extraction. Today, however, new 'partial-chain' models are emerging, with separate entities specializing in different stages of the CCUS process. This shift involves not just the oil and gas sector but also encourages new players to offer specific expertise, foster innovation, and reduce costs across the entire value chain.

Innovation in Carbon Capture and Storage Projects is Necessary

Innovation in CCUS projects is urgently needed: about ¾ of the capture capacity projected in the IEA's Net Zero Roadmap by 2050 depends on technologies and applications still in the demonstration or prototype phase.

It is crucial to reduce the energy consumption and costs of CCUS applications, which remain high. New business models can help mitigate these challenges, but also introduce additional complexities, requiring greater government coordination along the value chain.

The IEA's recent report and policy toolkit aim to guide governments in creating favorable conditions to attract private investments in CCUS, while addressing the economic, temporal, innovative, and complex challenges associated with its implementation.