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 CO2captured, as the drive to decarbonize gathers pace.
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 net-zero scenario.
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.
European capacity is projected to hit 222 million tpa by 2030, a sizeable jump from the 7 million tpa of CO2 captured today.
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.