Carbon Capture and Storage

For ages, human progress has been fuelled by the might of fossil fuels—namely oil, coal, and gas—propelling incredible advancements and growth. However, this progress comes at a staggering cost, one that profoundly affects the health of the planet and ultimately, human survival. To mitigate the effects of fossil fuels on our planet and human existence, world leaders came together to create a legally binding international treaty on climate change - the Paris Agreement.

The enormity of climate change marks it as the paramount issue of our time, shaping a significant shift in public perception regarding its imminent impact on our shared environment. The urgent challenge to fight the climate crisis and limit global temperature rise to 1.50 C to pre-industrial level as laid out in the Paris Agreement, through carbon emissions reduction requires more than a single solution. Most climate scientists, and many top organisations such as the Intergovernmental Panel on Climate Change (IPCC), UK’s Committee on Climate Change, and International Energy Agency (IEA) have all agreed that the 2015 Paris Agreement cannot be met without carbon capture and storage (CCS).

But Why have they made such a statement? The primary reasons are that some sectors such as aviation, shipping, cement, and steel, are hard to decarbonize as all emit CO2. Therefore, we not only need to intensify efforts to reduce emissions, but we also require technologies to remove emissions from the atmosphere. The only available and proven technology for these industries is CCS. As such, CCS is a necessity, not an option in reducing gas emissions and reaching net zero emissions goals.

So, what is CCS? And how does it work?

CCS refers to the combination of technologies aimed at capturing and depositing carbon dioxide deep underground, thus hindering its release into the atmosphere. In short, CCS are technologies that capture and store carbon dioxide. The technologies comprise of four stages. The stages involve separating CO2 from other gases produced in industrial processes or power generation, compression and transport through shipping or pipelines, and injection or deposition into geological formations (depleted oil reservoirs, depleted gas reservoirs, aquifers ) for storage. The final stage is the monitoring and verification (ensuring permanent storage).

Where has CCS been implemented and what's currently in progress?

The 2023 Globa CCS Institute report indicated a notable surge in large-scale CCS facilities worldwide, totalling 392 by year-end (up from 194 in 2022). This is a 102% year-on-year increase in the number of CCS facilities across the world. Among these, 61 new facilities entered the project pipeline that year. Presently, 11 projects are commencing operations, 15 are under construction, and the remainder are in various stages of development.

In total, 204 of the 392 facilities are in early development, 121 in advanced development, 26 in construction and 41 operational.

The Americas, chiefly the U.S., host 202 projects, while Europe, including 45 in the UK, accommodates 119. Meanwhile, the Asia-Pacific region boasts 54 projects.

The collective CO2 capture capacity of these developing CCS facilities reached 361 million tonnes per annum in 2023 ((Mtpa), marking a remarkable 48% increase during the year.

Where was the first CCS facility?

Historically, since 1972, Carbon Capture and Storage (CCS) technology has been active in the United States. Multiple natural gas plants in Texas have effectively captured and stored over 200 million tons of CO2 underground. The first large-scale Carbon Capture and Storage (CCS) facility was the Sleipner project, located in the North Sea, operated by Equinor (formerly Statoil). It began operations in 1996.

Shell Quest Carbon Capture and Storage (CCS) Quest facility in Canada, the first of its kind has shown that large-scale CCS is a proven technology and can be a safe and effective approach to reducing carbon emissions. As of the end of 2022, the Quest, CCS has captured 7.7 million tonnes of CO2.

What is happening in the UK?

The number of CCS projects in the UK has increased by 67% over the last year (2022 to 2023). In fact, the UK is number 3 among the top countries around the world with active CCS projects.

Recently, the UK planning inspectorate accepted Harbour Energy and BP applications for the Viking CCS onshore CO2 transportation pipeline. The Viking CCS will store around 10 million tonnes per annum of CO2 emissions. According to the CCS director Graeme Davies: “This is another critical step forward towards delivering our Viking CCS project, which will create thousands of jobs in the Humber region and is targeting 10 million tonnes per annum of CO2 emissions reduction by 2030, vital for the UK to deliver its climate ambitions”. Another important CCS project is the Acorn CCS by Storegga in partnership with Harbour Energy, Shell and other North Sea Midstream Partners. The acorn facility is set to become operational in 2024.

The UK government's pledge to capture and store millions of tons of CO2 yearly by 2035 underscores its importance. The UK Energy Secretary recently set out a plan (the CCUS Vision) to make the UK a global market for Carbon Capture and Storage. This represents the most recent stride in advancing CCUS (Carbon Capture, Utilization, and Storage) technologies, targeting the storage of 20-30 million tons of CO2 annually by 2030. This initiative also aims to bolster 50,000 jobs by 2030, supported by an investment commitment of up to £20 billion.

UK companies are gearing up to vie for the construction of carbon capture facilities, aiming to market their services on a global scale and be at the forefront of this technology.

Future Of CCS technology

Many top organisations such as the Intergovernmental Panel on Climate Change (IPCC), UK’s Committee on Climate Change, and the International Energy Agency (IEA) have all agreed that the world needs CCS technology if our society is to achieve net zero emissions by 2050. Governments need to incentivize investment in identifying and appraising storage resources to ensure their availability. Developing geological storage is critical to meet net-zero emission targets.

While some regions have regulations established years ago, others lack legislation, prompting renewed focus. Clarity on long-term management is crucial for investments in emerging projects. Policymakers and regulators face challenges in managing risks throughout the CCS project lifecycle. Establishing practical methods to address harm from CCS activities is pivotal, as liability regimes significantly impact public confidence in this technology. Apart from ensuring practical methods for addressing or remediating any harm caused by CCS activities, liability regimes can significantly impact reinforcing public confidence in this technology.