Carbon storage set to outpace utilisation: IDTechEx report
Carbon dioxide storage capacity estimated to surpass 15 trillion tonnes
With global carbon dioxide storage capacity estimated to surpass 15 trillion tonnes, its potential far exceeds that of utilisation. This immense capacity underscores the crucial role of CO2 storage in shaping future carbon management strategies and addressing climate change effectively.
According to a press statement, CO2 utilisation can serve as a transitional solution, as the infrastructure for large-scale CO2 transportation and storage is not yet available in many regions.
It adds that many CO2 storage projects are set to begin before 2030, including the Northern Lights Longship project, expected by the end of 2024.
It adds that with global CO2 emissions around 40 billion metric tonnes annually, the potential for storage vastly exceeds utilisation markets, even considering emerging uses like CO2-derived chemicals and concrete.
The statement adds that while sequestering CO2 underground, typically in saline aquifers, yields no tangible product, rising carbon markets and pricing mechanisms have created a viable business model for CO2 storage.
It adds that carbon pricing, such as the EU, Emission Trading System (ETS), makes emitting CO2 more costly than capturing and storing it, creating a business model where Carbon Capture, Utilisation, and Storage (CCUS) can thrive.
CO2 storage projects are set to begin before 2030, including the Northern Lights Longship project, expected by the end of 2024
It further adds that carbon pricing has broadened across sectors and regions over the last decade, with higher prices and new incentives like the US 45Q tax credit supporting.
The report says that this economic drive for CCUS has spurred project development, with major firms like Shell, Equinor, and Chevron using their subsurface expertise to develop large-scale CO2 storage in saline aquifers.
It adds that permanently storing CO2 has better sustainability credentials than utilisation, as it is a net-zero process and better meets emission reduction targets compared to short-term CO2 returns from utilisation.
The statement adds that while fossil fuel infrastructure will not disappear immediately, existing assets can be decarbonised. Future CCUS enhanced oil recovery projects are anticipated due to their lower carbon footprint compared to traditional extraction.
It adds that CO2-derived e-fuels are emerging as low-carbon alternatives for sectors like aviation and maritime, where full electrification is not yet feasible.
