Carbon capture utilization and storage

What Is Carbon Capture Utilization and Storage?

Carbon capture utilization and storage (CCUS) is a suite of technologies that captures carbon dioxide (CO₂) emissions from large point sources, such as power generation plants and industrial facilities, before they are released into the atmosphere. The captured carbon dioxide is then either used in various applications or permanently stored deep underground in suitable geological formations. This process falls under the broader category of Environmental Finance, as it involves significant investment and policy considerations aimed at mitigating climate change by reducing greenhouse gases. CCUS is considered a critical technology for achieving global emissions reduction targets, particularly for hard-to-decarbonize sectors. The International Energy Agency (IEA) describes CCUS as having a diverse role in meeting global energy and climate goals.

⁴³, ⁴⁴## History and Origin

The concept of carbon capture and storage originated in the mid-20th century within the oil and gas industry, initially used to enhance oil recovery by injecting CO₂ into oil fields to increase pressure and facilitate the extraction of additional crude oil. Thi⁴²s process, known as enhanced oil recovery (EOR), proved successful, leading to millions of tonnes of CO₂ being piped and injected into oil fields annually.

The ⁴¹formal development and widespread adoption of carbon capture utilization and storage technologies gained traction in the late 20th and early 21st centuries as concerns about climate change intensified. A sig⁴⁰nificant milestone occurred in 1996 with the commissioning of the Sleipner project in Norway, the first large-scale CO₂ capture and injection project with dedicated storage and monitoring, which has since stored over 20 million tonnes of CO₂ in a deep saline formation. Since 199³⁹7, the U.S. Department of Energy (DOE) has significantly advanced the CCUS knowledge base and technology development through a diverse portfolio of applied research projects. The Globa³⁸l CCS Institute, an international membership organization, was established in 2009 with initial funding from the Australian Government to accelerate the global development and deployment of CCUS.

Key T³⁶, ³⁷akeaways

• Carbon capture utilization and storage (CCUS) involves capturing CO₂ from large emission sources, transporting it, and either reusing it or storing it permanently underground.
• CCUS is a crucial technology for reducing greenhouse gases from industries that are difficult to electrify or decarbonize through other means.
• While components of CCUS have been used for decades, its integrated application for climate mitigation has gained significant momentum in recent years, with over 700 projects in various stages of development globally as of early 2024.
• Funding³⁵ from governments, such as the United States and the European Union, is boosting CCUS project development and aiming to scale up deployment.
• Despite³⁴ its potential, CCUS faces criticisms regarding its cost, energy intensity, and the permanence and safety of CO₂ storage.

Interpreting Carbon Capture Utilization and Storage

Carbon capture utilization and storage is interpreted as a vital tool in the global effort to decarbonize economies and achieve net-zero emissions reduction targets. It allows industries heavily reliant on fossil fuels, such as cement, steel, and chemical production, to significantly reduce their environmental impact. The International Energy Agency (IEA) highlights CCUS as the only group of technologies that contributes both to directly reducing emissions in key sectors and to removing CO₂ to balance unavoidable emissions. Its successful ³³implementation helps bridge the gap for sectors where immediate and complete transition to renewable energy is not yet feasible, providing a pathway for continued industrial activity with lower carbon footprints.

Hypothetical Example

Consider a large steel manufacturing plant that currently emits a significant amount of carbon dioxide as a byproduct of its operations. To reduce its environmental footprint and comply with evolving emissions regulations, the company decides to implement a carbon capture utilization and storage system.

First, the plant installs capture technology to separate CO₂ from its flue gases. This captured CO₂ is then compressed. Instead of releasing it into the atmosphere, the company explores utilization options. For instance, a portion of the captured CO₂ could be transported via pipeline to a nearby facility that uses CO₂ as a feedstock for producing synthetic fuels. The remaining, larger portion, which cannot be immediately utilized, is transported to a designated, secure underground geological formations, such as a depleted natural gas reservoir, for permanent storage. This strategic investment decision allows the steel plant to continue its operations while drastically reducing its atmospheric CO₂ emissions, showcasing CCUS in action for industrial decarbonization.

Practical Applications

Carbon capture utilization and storage is applied across various sectors to mitigate greenhouse gases. Its primary applications include:

• Power Generation: Capturing CO₂ from coal-fired and natural gas-fired power generation plants. The U.S. Department of Energy (DOE) supports demonstration projects for carbon capture at such facilities.
• Industrial Processes:³¹, ³² Decarbonizing heavy industries like cement, steel, chemical production, and hydrogen manufacturing, which are challenging to abate otherwise. The IEA notes that more tha²⁹, ³⁰n half of new CCUS projects expected by 2030 are in hydrogen production, carbon dioxide removal (CDR), and hard-to-abate industrial sectors.
• Bioenergy with CCS (B²⁸ECCS) and Direct Air Capture (DAC): Integrating CCUS with biomass energy for negative emissions or directly removing CO₂ from the atmosphere. The first megatonne-scale DAC²⁷ plant is expected to start operations in the United States in 2024.
• Enhanced Oil Recovery (²⁶EOR): Utilizing captured CO₂ to increase oil extraction from existing wells, though this application is sometimes criticized for extending fossil fuels production.

Governments and industry are i²⁴, ²⁵ncreasingly investing in the infrastructure needed for CCUS, with the United States announcing billions in funding for carbon capture demonstration projects and direct air capture hubs. Globally, around 45 commercial ²², ²³CCUS facilities were in operation as of early 2024, with over 700 projects in various stages of development. The International Energy Agency²¹ maintains a comprehensive database tracking these projects worldwide.

Limitations and Criticisms

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Despite its potential, carbon capture utilization and storage faces significant limitations and criticisms. A primary concern is the high cost and substantial energy requirements associated with capturing, compressing, transporting, and storing CO₂. Critics argue that the technology¹⁷, ¹⁸ remains expensive and energy-intensive, with some analyses suggesting it can increase air pollution and is not efficient enough at reducing atmospheric carbon compared to direct renewable energy deployment.

There are also concerns about th¹⁶e long-term permanence and safety of CO₂ storage in geological formations. While proponents assert that CO₂ can be safely and permanently stored, critics point to potential risks such as leakage, seismic activity induced by injection, and unpredictable chemical reactions with underground minerals. The geographical distribution of suit¹⁴, ¹⁵able storage sites is also limited, potentially necessitating long-distance CO₂ transportation, which adds to costs and risks within the supply chain.

Furthermore, some environmental groups¹³ and researchers criticize CCUS as a "dangerous distraction" that could prolong reliance on fossil fuels rather than driving a faster transition to truly clean energy. They suggest that focus and funding sho¹²uld primarily be directed towards scaling up proven solutions like renewable energy and energy efficiency. Current operational CCUS plants capture¹¹ only a small fraction of global emissions reduction from fossil fuels, and a significant portion of captured carbon has historically been used for enhanced oil recovery, which then leads to more oil production.

Carbon Capture Utilization and Stor¹⁰age vs. Carbon Offset

Carbon capture utilization and storage (CCUS) and a carbon offset are distinct but related concepts in the broader landscape of sustainable investing and environmental mitigation.

Carbon capture utilization and storage is a direct technological process aimed at preventing CO₂ from entering the atmosphere from point sources or removing it directly from the air, followed by its utilization or permanent storage. It physically intervenes in the emissions stream or directly extracts CO₂.

In contrast, a carbon offset is a measurable, verifiable reduction in greenhouse gases to compensate for emissions occurring elsewhere. When an entity purchases a carbon offset, it funds a project that reduces or removes greenhouse gas emissions from the atmosphere, such as reforestation, renewable energy projects, or methane capture from landfills. The offset does not necessarily involve a direct technological intervention at the emitter's site but rather a financial transaction to balance emissions. While CCUS is a specific technology, a carbon offset represents a credit for an emission reduction achieved by another party.

FAQs

How does carbon capture utilization and storage work?

Carbon capture utilization and storage (CCUS) involves three main steps: first, capturing carbon dioxide (CO₂) from industrial exhaust gases or directly from the air; second, transporting the captured and compressed CO₂ via pipelines or ships; and third, either utilizing it for various purposes (e.g., in industrial processes or synthetic fuels) or injecting it deep underground into secure geological formations for permanent storage.

Is carbon capture utilization and storage ⁸, ⁹a new technology?

While the integrated application of carbon capture utilization and storage for large-scale climate change mitigation is relatively recent, the individual components of CCUS have been utilized in industries for decades. For instance, CO₂ capture technology has been used since the 1920s in natural gas processing, and CO₂ injection for enhanced oil recovery began in the early 1970s.

What are the main challenges for carbon captur⁷e utilization and storage?

The primary challenges for carbon capture utilization and storage include its high capital and operating costs, the significant energy required for the capture process, and the need for extensive infrastructure for CO₂ transport and storage. Additionally, concerns exist regarding the long-term integrity of underground storage sites and public perception of the technology.

Where is carbon capture utilization and storage ⁵, ⁶being implemented?

Carbon capture utilization and storage projects are being developed and operated globally, particularly in regions with large industrial emissions and suitable geological storage sites. Notable progress has been seen in the United States, Europe, Canada, Australia, and China, with projects applied to power generation, cement, steel, and chemical production, among others.

Can carbon capture utilization and storage achie², ³, ⁴ve net-zero emissions alone?

No, carbon capture utilization and storage is considered a crucial part of a broader portfolio of solutions to achieve net-zero emissions reduction, but it is not a standalone solution. It complements the widespread deployment of renewable energy, energy efficiency measures, and other decarbonization strategies, especially for sectors where direct electrification is difficult.¹