Carbon Capture and Storage (CCS) is an emissions mitigation technology that will play an important role in limiting global warming and decarbonizing hard-to-replace industries such as gas-fired power plants. However, the company notes that even though CCS complements renewable energy, hydrogen and nuclear power in curbing global carbon emissions, high cost will hinder its adoption.
According to GlobalData’s report, ‘Carbon Capture and Storage (CCS) – Thematic Intelligence’, there were more than 30 commercial-scale CCS projects active globally as of October 2022, with a cumulative capacity of nearly 40 million tpy. In the past two years alone, several oil and gas and electricity producers have revealed plans to install CCS units within their facilities to reduce emissions. Assuming that all proposed projects come online, global CCS capacity in the energy sector could increase to approximately 130 million tpy in 2025 and then over the next five years to approximately 300 million tpy by 2030.
Ravindra Puranik, oil and gas analyst at GlobalData, comments: “Currently, around 300 industrial sites are being assessed to install carbon capture technologies. This includes more than 160 oil and gas and hydrogen production facilities, with carbon dioxide (CO)2) by 2030. Power plants and biorefineries add another 100 to this count, while cement, iron and steel, and direct air capture plants make up the remainder.
In its Sixth Assessment Report released in March 2022, the Intergovernmental Panel on Climate Change (IPCC) suggested several pathways to achieve the goal of limiting global warming to 2 °C above pre-industrial levels. Most of these included CCS. Leading oil and gas companies have taken a keen interest in CCS technology development to support their net zero goals. However, their efforts to deploy CCS on a large scale have been largely hampered by the cost incurred to set up and operate these plants.
Puranik continues: “The pace of CCS adoption is hindered by the high cost and identification of storage sites for permanent injection of CO.2, With the advancement of technology, these challenges can be overcome in due course. Until then, government incentives such as in the US will be necessary for the deployment of CCS in industries.
The processes involved in CCS – gas separation, compression, transportation and injection into an underground structure – are familiar concepts to executives in the oil and gas industry. Oil field workers have the necessary skills and technical know-how to implement these processes.
Puranik concluded: “Several companies, including ExxonMobil, Occidental and Equinor, are already using CO.2 Removal technologies in their features. This makes them strong contenders to lead the global CCS market. ExxonMobil and Equinor are at the forefront of decarbonizing major industrial groups in the US and Norway, respectively, while Occidental is playing a key role in commercializing direct air capture CCS plants.
Read the article online at: https://www.hydrocarbonengineering.com/the-environment/21122022/globaldata-ccs-will-be-instrumental-in-reducing-global-carbon-emissions/