According to the annual report from the Global CCS Institute, an Australian think tank, globally planned carbon capture and storage (CCS) projects have reached 111 million tonnes per year as of the end of September. This marks a significant 52% increase from the 73 million tonnes per year reported at the close of 2020. The current operational CCS capacity stands at 40 million tonnes.
A decade ago, higher capacity increases were envisioned, but many projects did not proceed due to high costs. However, in recent years, the cost of CCS has decreased while the urgency to cut emissions has intensified.
Critics argue that CCS merely prolongs the use of fossil fuels. On the other hand, advocates, including the International Energy Agency (IEA), view CCS as essential to achieving net-zero targets.
Planned capacity growth is primarily concentrated in North America, partly attributed to tax credits for CCS. Over 40 projects have been announced in the region this year alone. In Europe, 35 projects are currently under development, with the UK, Belgium, and the Netherlands collectively announcing 17 new projects this year. In the Asia-Pacific region, projects linked to gas developments in Indonesia and Malaysia have recently been approved, while other projects in the region await regulatory clarity on compliance regulations before proceeding.
Supporters of CCS believe that the outcomes of COP26 may enhance the business case for such projects if governments agree on a framework that recognises and values CCS alongside other sources of emissions reduction. The discussions and agreements at COP26 could significantly shape the future trajectory of CCS implementation worldwide.
