Decarbonisation Technology - August 2024 Issue

Point-source carbon capture for industry decarbonisation Compact, modular units bring carbon capture within the reach of more companies and hard-to-abate industries with their seamless integration

Prateek Bumb Carbon Clean

P oint-source carbon capture is the most efficient and cost-effective technology to decarbonise hard-to-abate sectors, which account for around 30% of global CO₂ emissions. The technology is available, but current adoption levels are not on track to meet global net zero targets. This article discusses the current rapid growth of carbon capture and storage (CCS) globally, along with the challenges and opportunities across markets, and how modular carbon capture technology will help deliver the transition of industry to reach net zero. Introduction To keep global warming to no more than 1.5˚C, as called for in the Paris Agreement, emissions need to be reduced by 45% by 2030 and reach net zero by 2050 (UN, 2024). However, the UN recognises that we are not on track and that there is a rapidly narrowing window to achieve this. We need to raise global ambition while recognising this is a serious challenge that requires a multifaceted approach because there is no silver bullet to decreasing emissions across all industries. This urgency is particularly relevant and important in heavy industry. Sectors like cement, oil and gas, shipping, steel, and industrial power are crucial for society, growth, and the global economy. However, these industries, which together account for 30% of global emissions, face some of the biggest hurdles to decarbonising their output. With their significant operational footprint, high energy intensity, and technical processes, the challenge at hand is no easy feat. The ongoing costs companies in these

sectors must grapple with means the pathway to decarbonisation offered by some solutions is too expensive and, therefore, not viable to adopt. Within this context, demand is rapidly increasing across global economies for products compatible with, or contributing to, net zero targets, such as green steel. The enablers of these types of products? Today, they include green hydrogen, electrification and biomass, and carbon capture, utilisation and storage (CCUS), Offered as a key decarbonisation solution for heavy industry, CCUS is now available to the market and is increasingly recognised as one of the only commercially viable options for managing emissions. The difficulty is that adoption levels are currently not on track, with the International Energy Agency (IEA) and others calculating that global CCUS deployment must be 100-120x greater to reach current net zero targets. A rapidly growing market This surge in awareness and urgency has helped propel the CCUS sector into a phase of growth. Data published by McKinsey expects average annual investments in CCUS to reach up to $175 billion by around 2035 and could surpass today’s gas investments by as early as 2026 (McKinsey & Co, 2022). This shift in expectations is already being reflected in the capital the industry has been able to attract, with investment having almost doubled from $6.4 billion in 2022 to a record high of $11.1 billion in 2023. Carbon Clean, which is focused on decarbonising hard-to-abate industries through carbon capture, serves as a prime example of