Expansion of Carbon Capture and Storage Projects Expected to Reach Fourfold by 2030
Carbon Capture and Storage (CCS) technology, a critical tool in the fight against climate change, is poised for significant growth over the next eight years. The leading regions driving this growth are North America and Europe, together accounting for approximately 80% of all upcoming CCS capture and storage capacity.
North America currently dominates the scene, capturing around 62 million tonnes of CO2 annually, mainly from natural gas processing and enhanced oil recovery. Europe also holds a substantial share, although other regions like China and the Middle East are gradually catching up.
The energy sector, particularly oil and gas companies, is the primary driver of CCS growth. Over 80% of operational and planned carbon capture facilities as of 2024 are in this sector. CCS is essential for decarbonising hard-to-abate industries such as cement manufacturing, steel production, refining, and thermal power generation.
By 2030, global CCS capacity is projected to quadruple from around 50 million tonnes of CO2 captured annually today to approximately 430 million tonnes. This growth is supported by about $80 billion in investment over five years. Storage capacity might reach up to 670 million tonnes, primarily facilitated by geological formations like saline aquifers and depleted oil and gas fields, predominantly found in North America.
The expansion of CCS capacity is driven by regulatory support, technological advances, and economic incentives. Policy frameworks like the US 45Q tax credit, the EU Emissions Trading System, and Canada’s carbon pricing mechanisms are pivotal in scaling CCS projects economically.
However, concerns have been raised about CCS potentially extending fossil fuel reliance. While it does not reduce the carbon emissions at the source, CCS supports net-zero goals by capturing CO2 to meet 1.5°C or 2°C targets.
The following table outlines the anticipated CCS capacities by 2030 across various sectors:
| Aspect | Details | |-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------| | Leading Regions | North America (dominant), Europe (significant), emerging catch-up in China and Middle East | | Top Sectors | Energy sector (oil and gas), cement, steel, refining, thermal power | | Capacity Growth | From ~50 Mt CO₂/year now to ~430 Mt CO₂/year by 2030 | | Investment Scale | Estimated $80 billion over next five years | | Key Drivers | Policy incentives (e.g., US 45Q tax credit, EU ETS), geological storage availability, heavy industry decarbonisation needs |
This growth marks a transition from small pilot projects to commercial-scale deployment across multiple sectors and regions. As the world moves towards achieving net-zero emissions, CCS will play a crucial role in achieving these ambitious goals.
- Environmental science and climate-change courses are gaining traction in various educational institutions, as the world prepares for a significant increase in the use of Carbon Capture and Storage (CCS) technology over the next eight years.
- With the projected growth of CCS, renewable-energy and green technologies are expected to see a boost, as the industry aims to decarbonise hard-to-abate industries like manufacturing and energy.
- As the CCS technology evolves, financial institutions are increasingly incorporating Environmental, Social, and Governance (ESG) reporting into their investment strategies, recognising the importance of sustainable practices in the energy sector and beyond.
- To ensure a smooth transition towards a net-zero emissions future, a combination of science, technology, and industry expertise will be essential in scaling up CCS projects and reducing reliance on fossil fuels.
- The energy sector, particularly oil and gas companies, have a critical role in driving CCS growth, with approximately 80% of operational and planned carbon capture facilities as of 2024 in this sector.
- As North America dominates the CCS scene with around 62 million tonnes of CO2 captured annually, environmental science will be key in identifying strategies for maximising the use of geological storage capacity, particularly in saline aquifers and depleted oil and gas fields.
- In the forthcoming decadal shift, it is crucial for industries to adapt and contribute to the growth of green technologies, as CCS technology emerges as a critical tool in meeting global climate-change targets and achieving net-zero emissions.
