In the face of climate change carbon capture technology is emerging as a possible solution in the fight against climate catastrophe.
Carbon capture, utilization, and storage (CCUS) technologies involve capturing carbon dioxide emissions from industrial processes, power plants, and other sources, and then either storing them underground or using them in other applications. One of the key benefits of CCUS technologies is that they can enable us to continue using fossil fuels while still reducing greenhouse gas emissions.
This is particularly important in sectors like transportation and heavy industry, where decarbonization is more challenging. By capturing and storing carbon dioxide emissions, we can significantly reduce our overall carbon footprint and mitigate the worst effects of climate change.
The Promise of CCUS Technologies
According to the International Energy Agency, CCUS technologies could play a critical role in achieving net-zero emissions by 2050. The agency has projected that CCUS technologies will need to capture more than 7 billion tonnes of carbon dioxide per year by 2030, up from the current rate of around 40 million tonnes per year.
To support the development and deployment of CCUS technologies, a growing number of countries are implementing carbon pricing schemes and establishing carbon markets. According to projections by the World Bank, the size of the global carbon markets could reach $50 billion by 2030, up from $214 million in 2019.
The recent growth of carbon markets is creating new opportunities for investors who are looking to support the transition to a low-carbon economy. By investing in CCUS technologies, investors are not only looking for a financial return but are taking a calculated risk on the urgent transition to a sustainable energy future.
According to projections by the World Bank, the size of the global carbon markets could reach $50 billion by 2030, up from $214 million in 2019.
In the United States, the Petra Nova in Texas is the largest post-combustion carbon capture facility in the world, capturing approximately 1.6 million tonnes of carbon dioxide per year from a coal-fired power plant. Built at a cost of $1 billion, the facility was shut down in 2020 due to plunging oil prices. Its restart gives a new lease of life to a project that was the technology flagship of the industry but also garnered new criticism from carbon capture critics that see the technology as a multi-billion dollar waste that fixes little.
In the European Union (EU) the Port of Rotterdam CO₂ Transport Hub and Offshore Storage (Porthos) project is an innovative CCUS project being developed near Europe’s biggest port Rotterdam in South Holland, Netherlands. The project's goal is to collect carbon dioxide from industry in the Rotterdam port area and transport it to storage locations under the North Sea.
Porthos will act as an open-access utility for industries that have no viable decarbonization alternatives, such as refineries and the chemical sector. Four companies in the port area – Air Liquide, Air Products, ExxonMobil and Shell – will capture 2.5 million tonnes per year of carbon dioxide. Porthos aims to build the infrastructure that will pipe carbon dioxide from these companies out to the North Sea. Initial storage sites, depleted gas fields designated P18, are 20 km offshore and more than 3 km beneath the seabed. The gasfields have a capacity of 37 million tonnes.
Clearly despite the promise of CCUS technologies, there are still significant challenges that need to be addressed. These include the high cost of capturing carbon dioxide emissions, the limited availability of suitable storage sites, the need for continued innovation and research and economic viability.
Overall, carbon capture technology represents a promising solution to the urgent challenge of climate change, and the growth of carbon markets is creating new opportunities for investors to support the development and deployment of these critical technologies.
As we work to build a more sustainable future, carbon capture technology will likely be one the technologies that play a role in mitigating the worst effects of climate change and helping us avoid a catastrophic future.
