The urgency of addressing climate change has never been more apparent. As signatories to the Paris Agreement strive to limit global warming on an industrial level, renewable electricity alone will not suffice. A diverse portfolio of technologies, including low-carbon hydrogen, bioenergy, and Carbon Capture Usage and Storage (CCUS), must play a significant role in achieving these ambitious targets.
Hard-to-abate emissions coming from industries such as O&G, steel, aluminum, or cement production can benefit from CCUS. By 2050, up to 10 billion tons of CO2 will need to be removed from the atmosphere annually, according to the median estimates of several 1.5oC pathway scenarios considered by the Intergovernmental Panel on Climate Change.
Despite the potential of CCUS, deployment has lagged behind expectations.
CCUS technology has been around for decades, but it is only in the last ten years that countries have made significant progress in implementing and advancing this technology. Despite the advancements, there is not yet a clear, internationally accepted technical framework for the widespread adoption of CCUS. This can be attributed to various factors, including the high costs associated with implementing CCUS technologies, the lack of comprehensive government policies and incentives, and the need for further research and development to improve efficiency and reduce costs.
Currently, there are around 300 projects in various stages of development across the CCUS value chain. Of these, only 35 are in commercial operations, capturing 45 mt CO2. This represents approximately 0.12% of the total global CO2 emissions for 2022 when global energy-related CO2 emissions reached a new high of over 36.8 gt.
With multiple projects under development, the capacity for the nascent climate mitigation technology is on track to reach about 300 million tons per year (Mtpa) of CO2 abatement by 2035. This amount is almost ten times the operational CCUS capacity today, but it falls far short of the approximately 4,000 mtpa of CO2 of capacity that the International Energy Agency (IEA) estimates will be required by 2035 to achieve a 1.5oC pathway.
The Roadmap to CCUS Innovation
Qatar has established an ambitious national goal to reduce its greenhouse gas (GHG) emissions by 25% by 2030. This target has become one of the main priorities of the country’s National Vision 2030, which focuses on sustainable development and the transition to a diversified, knowledge-based economy. By adopting this goal, Qatar demonstrates its commitment to addressing climate change and reducing its environmental impact.
Qatar, as a major player in the global energy industry, has a unique opportunity to lead the way in CCUS deployment. Qatar is making significant strides in the field of CCUS. Recently, local energy leaders joined forces with global giants to develop a carbon capture roadmap. Additionally, the first MENA CCUS forum currently took place in Qatar, highlighting the country’s commitment to this technology. To control carbon emissions and support decarbonisation initiatives, Qatar is investing heavily in large-scale Carbon Capture and Storage (CCS) facilities. It is planning to store more than 11 million tons of CO2 per year by 2035. With this impressive capacity, these facilities are expected to play a crucial role in the country’s decarbonisation efforts. According to a key local sustainability report in 2022, the country has accumulated 3.8 million tons of CO2 since 2019. As of the end of 2021, the capacity stands at 2.2 million tons per annum (mtpa).
By developing a comprehensive CCUS roadmap, Qatar can not only reduce its carbon footprint but also contribute to regional and international cooperation toward CCUS development. This roadmap should include a focus on research and development, public-private partnerships, and the integration of CCUS within existing industries. Additionally, Qatar could leverage its position as a global leader in natural gas production to encourage the adoption of blue hydrogen, further reducing emissions and promoting clean energy alternatives.
The development and deployment of CCUS technologies are crucial to achieving the goals of the Paris Agreement. Qatar has the potential to become a leader in this field, but it requires commitment from both policymakers and industry stakeholders. By developing a CCUS deployment roadmap and fostering regional and international cooperation, Qatar can make significant strides toward a more sustainable future.
To scale up CCUS projects, policymakers and companies in Qatar need to collaborate with partners globally to accelerate activity in four key areas:
- Create an attractive marketplace: Policymakers must support a robust yet streamlined approach to regulation and licensing. While key value chain entities should increase development efforts to collaborate where existing regulations and incentives are available. Globally, governments can accelerate CCUS deployment by offering tax incentives, grants, and other financial support measures, as well as streamlining permitting processes by providing regulatory certainty.
- Value & stimulate global demand for low-carbon products & services: Global cooperation and government action are necessary to create stable environments for CCUS investments, achieved through strong regulation. Our research shows that valuing low-carbon products and services can be achieved via a global focus on product carbon intensity, which will act as a catalyst & key enabler in deep decarbonization across full-sector supply chains.
- Collaborate to accelerate: As CCUS hubs and shared ecosystems expand globally, forming partnerships, alliances, and joint ventures quickly will be critical to success. It is recommended that collaboration between governments, investors, and industry players can help to share risks, pool resources, and create economies of scale, ultimately accelerating the development and deployment of CCUS.
- Focus on technology innovation: As CCUS deployment expands, it will be critical to see cost reduction in the technologies used to separate CO2 from other greenhouse gases. A strong focus needs to be applied to the energy consumed by CCS technologies, specifically when applied to atmospheric flue gas streams, and this is likely to require innovative technologies beyond today›s chemistry. R&D will play a critical role in defining the next generation of breakthrough technologies.
As the world grapples with the challenge of climate change, countries like Qatar need to continue leading in promoting and implementing innovative solutions like CCUS. Furthermore, countries need to collaborate on research and development efforts, sharing knowledge and best practices to accelerate progress in this field. Ultimately, the widespread adoption of CCUS technology will require a global effort, with countries around the world working together to reduce carbon emissions and combat climate change. By adopting a proactive approach and fostering a spirit of collaboration, Qatar can pave the way for a cleaner, greener, and more sustainable future for generations to come.