We all know that there are several solutions to the challenge of transitioning to a low-carbon society. Instead, we need a broad portfolio of technologies as well as new approaches and business models. Carbon capture is often seen as a potential game-changing solution that can help with the transition to net zero, promote circularity, and boost energy efficiency. But capturing CO2 and storing it securely presents a big logistical challenge. So, what needs to be done?

Despite an increasing use of renewable energy and more sustainable building materials, the global economy still relies on the carbon-intensive industrial processes that produce cement and steel or extract oil and natural gas. Reducing the carbon emissions of these heavy-duty industries is an essential part of reducing the impacts of climate change; and carbon capture, utilization, and storage (CCUS) could be one of the ways we achieve it.

How does carbon capture work?

Carbon capture is the process of preventing the CO2 emissions of industrial processes or power generation from entering the atmosphere. 

While carbon capture is a complex and technological process for humans, it is important to note that the underlying idea takes its cue from the natural world. In fact, over half of the excess CO2 produced by human activity is already absorbed by plants and the ocean. And it’s a process that has been happening long before humans too. Scientists found a store of CO2 that has been locked away in the Colorado Plateau under the Rocky Mountains in North America for over a million years.

There are three main ways to capture carbon. First, the CO2 can be removed post-combustion. This is the primary method for retrofitting existing power plants and is currently used in a number of industrial applications. Secondly, it can also be extracted pre-combustion by partially burning fossil fuel. Finally, oxyfuel combustion burns the fuel in pure oxygen to create waste that is predominantly CO2 and water vapor.

What is the current state of CCUS?

According to the Global CCS Institute, there are 30 large-scale carbon capture projects currently in operation globally. Additionally, there are 11 more under construction and 153 in development. Collectively, these facilities are currently capable of capturing 244 million tons of CO2 each year – up 44% over 12 months. This includes our work to develop a sustainable aviation fuel (SAF) plant underpinned by CCUS infrastructure in the UK by 2035. The Lighthouse Green Fuels project will not only create 10% of the UK’s demand for SAF by 2030 – it will also create over 900 jobs and bring £1 billion of investment to the area. Clearly, there is not only an appetite for CCUS, but confidence in its potential too.

An example of just what CCUS looks like in practice can be found in the Saudi Aramco CO2 Enhanced Oil Recovery (EOR) project at its Uthmaniyah and Hawiyah NGL facilities. The first project of its kind in the Middle East, the project captures around 40 million standard cubic feet per day (SCFD) of CO2 that is then stored in four injector wells. Projects like this will form an important part of the Circular Carbon Economy announced by King Salman during the country’s G20 residency.

But despite the success of projects like EOR, a more widescale implementation of CCUS still presents some significant challenges.

Is it economically feasible?

One of the core arguments against CCUS is that it is incredibly expensive. The actual costs involved vary quite significantly by sector and use case. Figures from the IEA show that while Direct Air Capture currently has a cost of between $130 - 345/ton, this comes down to $40 - 100/ton for iron and steel production and $15-25/ton for natural gas processing. The costs of scaling up the technology to capture more of the 34 billion tons of emissions released annually from burning fossil fuels are likely going to differ substantially by sector. This is likely to change as the technology continues to improve, but for now, CCUS is simply out of reach for many. The recent history of renewable energy may provide some insight here – with the huge adoption rate over the last decade leading to costs dropping too.

Not all CCUS applications have the same cost, of course. The International Energy Agency (IEA) notes that the costs can vary significantly. The IEA also points out that the technology is currently also more feasible for different industries. For cement production, two-thirds of emissions currently result from chemical reactions related to heating limestone. Incorporating pre-combustion CCUS would lead to an estimated cost increase of under 10%. Using other approaches, however, would raise costs by up to 70%, making carbon capture the most cost-effective option.

Is it logistically feasible?

While CCUS can provide a real benefit to carbon-intensive industries, there are doubts that it can be scaled effectively. Some estimates show that CCUS uptake needs to grow 120 times to at least 4.2 gigatons to achieve the right level of global emissions reductions. To accomplish this, the costs of the technology need to come down, but governments also need to play a part through subsidies or other support measures.

But there is reason to be hopeful. A report by the World Economic Forum (WEF) points towards increased collaboration at every point in the CCUS value chain – including contractors engaging with owners and investors on how best to use government incentives and secure funding. In particular, it highlights the way partnership between technology companies and piping and pump suppliers is already reducing project footprints by 30% in some cases.

Only one part of the solution

CCUS is an important tool in the goal to limit the most destructive impacts of climate change. As industry, governments and global developers continue to support and build capabilities around the technology, the costs could come down as it becomes more widely applicable. At Alfanar Projects, we have extensive experience of working as part of public-private partnerships, such as our work alongside the UK Government, to help ensure the success of ambitious and large-scale projects.