According to a new report from the Global CCS Institute, the world needs to broaden the commercial development of carbon capture and storage (CCS) projects across industries, geographies and technologies in order to accelerate deployment.
The report was commissioned by the Global CCS Institute to characterise an ‘ideal portfolio’ of projects that have the potential to contribute to large-scale commercial CCS deployment by 2020.
As part of its drive to increase CCS knowledge, bring down costs and build public confidence in the technology, the Global CCS Institute would use an ideal portfolio as one of its tools to prioritise support for projects. The majority of the Global CCS Institute’s AUD$100m annual budget will be focussed on taking large scale CCS projects forward.
Based on analysis and consultation with global experts prepared by LEK Consulting, the report details a diverse but deliberate combination of 26 priority projects that together would ensure the world is best placed to address the different hurdles facing CCS today.
The creation of the ideal portfolio recognises the importance of the largest CO2 emitting sectors, and allocates six projects to the iron and steel, and cement industries, singling them out as sectors whose technological progress and contribution is underestimated.
Nick Otter, CEO of Global CCS Institute, said: “The iron and steel, and cement industries are responsible for over 20% of the world’s CO2 emissions. If CCS is to contribute to the deep cuts in emissions the world needs, then industry must be part of the solution.
“Deploying CCS is about deploying technology. If we want rapid deployment we must build on the technology set and take advantage of the regulatory conditions that exist in those countries that have been part of the advance guard.”
The report prioritises the power generation sector, given its own contribution to global emissions and the scale and effort it is putting into CCS, recommending a minimum of 17 projects types but spreading them across different fuel and technology combinations.
The report recognises that some industry sectors already carry out CO2 separation while representing only a small share of global emissions, including gas extraction and processing. These industries can provide early opportunities for CCS development, and are also prioritised in an ideal portfolio due to their ability to accelerate deployment.
The report also provides the Global CCS Institute with a suggested framework for deciding which projects it should support, and the means by which support should be provided.
It is recommended that the majority of projects in an ideal portfolio be located in North America, Europe and China due primarily to their share of global emissions. Australia and Japan are also classified as priority regions with an allocation of approximately 15% of projects, due to their favourable policy and regulatory environments.