GHGT-17: Panel Discussion 3 – What is Needed to Make CCS a Success Across Regions?

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By Keith Burnard

23 October 2024

On Day 2 of the 2024 GHGT conference, a compelling panel session delved into the narratives driving CCS around the world, highlighting regional differences and shared challenges. The discussion was led by Sean McCoy (University of Calgary) and Matthias Raab (CO₂CRC), with contributions from Carl Greenfield (IEA), Mark McCallum (LETA), Belladonna Troxylon Maulianda (Indonesia CCS Center), Candice Paton (Enhance Energy), and Sarah Forbes (US DOE). These experts shared their perspectives on the future of CCS deployment and what it will take to achieve success globally.

Regional Progress and Drivers of CCS

The panel recognized the significant influx of investment in the U.S., via the Bipartisan Infrastructure Law and the Inflation Reduction Act, which has driven a surge in CCS projects. A high proportion of these projects involve enhanced oil recovery (EOR), especially in the U.S. and Canada. EOR is seen as a stepping stone toward broader carbon management efforts, with Alberta playing a key role by combining EOR with permanent storage initiatives.

Globally, the CCS project pipeline is diversifying, with 90% of future projects focusing on CO2 storage. This progress is largely supported by policy incentives like the 45Q tax credit in the U.S., the EU Innovation Fund, and Canada’s investment tax credits. These frameworks are enabling governments to harness CCS as a vital tool for carbon management, which is leading to increased deployment. For instance, while the EU’s current operational CCS capacity is only 5% of the global total, this is expected to rise to 25% by 2030.

Indonesia is emerging as a frontrunner in CCS, with its vast storage capacity of 577.8 gigatonnes, a strong industrial base, and a strategic location that positions it as a potential CCS hub for the Asia-Pacific region. Collaborations with the U.S. and Singapore, such as the landmark cross-border CCS agreement between Indonesia and Singapore, underline the importance of regional cooperation in advancing decarbonization efforts.

Australia is also embracing a regional approach, working with Japan on capture technologies and Indonesia on storage resources. Large-scale CO2 shipping efforts are being explored to transport CO2 from countries with limited storage capacity to those with larger storage potential, improving overall efficiency in carbon management across the Asia-Pacific.

Key Challenges and Pathways to Success

In the second half of the panel, attention turned to the hurdles and opportunities for scaling CCS deployment. Several critical points were raised:

  • Demonstration and Cost Reduction: While investment and research in CCS are progressing, there is a need to demonstrate its effectiveness in hard-to-abate sectors. Reducing costs and de-risking technologies will be essential for widespread adoption.
  • A Suite of Decarbonisation Tools: No single technology will solve the climate crisis. A mix of decarbonization strategies, tailored to the specific needs of each region, will be crucial to achieving net-zero goals.
  • Collaboration and Knowledge Sharing: International partnerships are key. Sharing knowledge and expertise across borders can accelerate deployment and overcome barriers.
  • Private Investment in Developing Regions: In countries without strong government subsidies, private sector investment will be vital for CCS deployment.
  • Misinformation: Public misunderstandings about CCS can stall projects, making clear communication and transparency essential.
  • Understanding Local Contexts: Local politics, perspectives, and community engagement are critical. Public education and demonstrating tangible benefits to communities can help build support for CCS projects.

In summary, the session highlighted both the exciting progress in CCS deployment and the challenges that lie ahead. With the right combination of investment, technology, policy support, and collaboration, CCS can become a cornerstone of global carbon management efforts.

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