CCUS

There are numerous CO2 capture, utilization, and storage solutions, each with their own technical (efficiency, safety, adaptability, etc.), economic, or regulatory advantages and disadvantages. It is important for every industry or organization intending to invest in CCUS technology to be able to identify projects that are suitable for their activities and needs, and to analyze their overall relevance.

Should I invest in CCU or CCS? What are the most advanced and promising methods to consider in my context?

Many CCUS projects still need to be improved to be properly valued. Indeed, using often energy-intensive solutions to capture CO2 can, in some cases, not be beneficial from a carbon perspective and could even be counterproductive. It is necessary to improve the efficiency of these solutions and identify the outlets and sectors where the use of these carbon capture and storage processes makes the most sense.

An entity aiming to develop or commercialize carbon management solutions must thoroughly understand the market’s needs and expectations to adapt its value proposition and identify the sectors and stakeholders to target. Given the number of existing or upcoming devices, it is also crucial to analyze competing offers in order to differentiate oneself and adjust positioning to remain competitive in this growing technology market.

What positioning should I adopt to meet the market’s needs and expectations? Who are the potential users of my devices, and how can I valorize my offer?

Per-Olof Granström, EU Director of the “Zero Emission” platform, announced in October 2022 that Europe has “a great storage potential” but that “adoption is too slow, and we are facing the chicken-and-egg problem.” Indeed, industries where capture is necessary are not specialized in CO2 transport and storage, and many projects struggle to start because the capture facilities cannot operate until the captured CO2 can be transported and stored. On the other hand, storage site developers are waiting to know the volume of CO2 to be stored before investing.

Therefore, it is necessary to establish a structured industry to enable the large-scale development of CCUS in Europe. The approach should facilitate the connection of CO2 emitters, transportation and storage stakeholders, the EU, and member states, so that projects can develop as a whole. These considerations should also focus on local valorization of CO2 to integrate various CO2 capture approaches into an optimal circular economy framework.

What are the CO2 valorization pathways in my region, and what roadmap should be adopted to develop a structured industry? Which local stakeholders should be involved in strategic discussions to create such industries?

Currently, the cost of CO2 capture technology is still significantly higher than carbon taxes, which does not necessarily incentivize industries to adopt CCUS solutions, nor encourage investors and developers of carbon dioxide capture devices to commit significant resources to infrastructure and capture site investments.

However, as of late 2022, price gaps of only 20% were observed between the cost of CO2 capture projects and carbon taxes, making CCUS technology increasingly economically appealing. In the near future, they could become profitable.

Given the current climate situation, the acknowledged interest of industries and institutions in these techniques, and their growing techno-economic relevance, the CCUS market holds promise, and the use of these processes should be considered in the action plans of all organizations.

How can carbon reduction approaches using CCUS technology be integrated into my climate plans and business model? How and where should investments be made?

There are social concerns today about the sustainability of CO2 capture and storage devices, as the concept of burying CO2 in the ground is not seen as a viable solution by some. In addition to these concerns regarding the very principle of burial techniques, there are fears related to potential CO2 leaks.

It is therefore necessary to ensure that the proposed carbon dioxide reduction techniques using CCUS technology will be accepted by engaging in social dialogues with various stakeholders, especially with the local populations hosting these CO2 storage sites. These considerations must be taken into account in the selection of technologies to be deployed, and it is important to ensure, through technical studies and the development of innovative methods, that these technologies are safe. This includes ensuring that there will be no CO2 leaks in the storage sites through the use of effective monitoring tools.

Which greenhouse gas emission capture devices using CCUS technology garner the greatest social acceptance? Which ones are best suited to prevent and detect potential leaks in CO2 storage infrastructure?