Carbon capture, utilisation, and storage (CCUS) is gearing up for a significant leap forward, and the momentum is palpable. With Worley at the forefront, the company is involved in numerous CCUS initiatives worldwide. The landscape is changing rapidly, fueled by a decade of pre-FEED and FEED projects that have amassed a wealth of experience and data. This foundation is crucial as the sector gears up for a wave of new projects, particularly as investments in carbon capture surged to a staggering $6.4 billion between 2022 and 2023, according to Bloomberg.
Historically, carbon capture began as a method to enhance oil recovery, but its scope has expanded dramatically. Recent policy shifts, including specific CCS targets, carbon trading mechanisms, and direct government funding, are creating a fertile ground for growth. North America currently dominates the active CCUS capacity with a 64% share, but Europe is set to experience the most significant growth, with a projected compound annual growth rate of 66% from 2023 to 2030. Asia is also in the mix, ready to ramp up its share of active capacity, signaling a robust future for the industry.
What’s more, the tightening of carbon markets and the introduction of mechanisms like the EU Industrial Carbon Management Strategy are accelerating this momentum. Take the Middle Arm Sustainable Development Precinct in Australia, for instance; it’s a pioneering approach to industrial decarbonisation through shared infrastructure. This kind of innovation is not just a flash in the pan; it represents a shift in how industries are thinking about sustainability.
Emerging markets present another layer of opportunity. Countries like Japan and South Korea, facing a scarcity of suitable storage sites, are now looking at liquefying CO2 from their industrial sectors for transport and sequestration elsewhere. The collaboration between Santos and SK E&S to secure additional CO2 storage and develop a transboundary business model is a prime example of this new wave of thinking.
In 2023 alone, nearly ten capture facilities commenced operations, and about 20 projects reached final investment decisions, as reported by the IEA. This kind of activity is indicative of a sector that is no longer just dipping its toes in the water but is ready to dive in.
With the spotlight on CCUS brighter than ever, the industry is racing to mature the technology. Worley, for instance, boasts over 100 CCUS specialists, each bringing unique expertise to the table. This diversity of knowledge is invaluable, particularly as CCUS projects in the APAC region draw insights from European designs and vice versa. The cross-pollination of ideas is a game-changer, ensuring that lessons learned are not confined to geographical boundaries.
Standardisation continues to evolve, particularly in pipeline design and construction. The adaptation of existing standards to accommodate CO2 pipelines is critical, especially given the corrosive nature of CO2. Engineers are now focused on selecting the right materials and compressors early in the project lifecycle, which can significantly impact the overall design and efficiency.
As the industry tackles these challenges, it’s becoming clear that resourcing projects from the get-go is essential. A shift in mindset is needed, moving away from traditional oil and gas development approaches to a model that prioritises early engagement of subject matter experts. This proactive strategy will facilitate smoother project execution and ultimately contribute to the broader goal of achieving net-zero emissions.
The early CCUS projects may have faced numerous hurdles, but they’ve also laid the groundwork for a robust repository of expertise. As the sector transitions from hesitant implementation to full-scale acceptance, the potential for CCUS to play a pivotal role in decarbonising hard-to-abate industries becomes increasingly evident. The future is not just on the horizon; it’s being built right now.
