ReleasedattheGlobalCleanEnergyActionForum,Pittsburgh21September2022Withkeyinputby:ContentsSlide3Welcome4Indexofcountryslides5-29CCUSprogrammeandpolicydevelopmentsinCEMCCUSInitiativeMembersandselectedothercountries30-34KeymessagesfromCarbonSequestrationLeadershipForum(CSLF)TechnicalGroup35-40OverviewoftheCEMCCUSInitiative41ContactdetailsGlobalCCUSPolicyDevelopmentsDearreader,Thisslidedeckcontainsasnapshotofcarboncapture,useandstorage(CCUS)policyandprogrammedevelopmentsacrossseveralcountries,bybothCEMCCUSInitiativeMembersandbeyond.Tocombatclimatechange,CCUStechnologiescanplayasignificantroleindecarbonizingseveralindustrialandenergysectors,andinprovidingthenecessaryremovalofCO2fromtheatmosphere.DeployingCCUSwillhoweverrequiresignificantgovernmentprogrammes,tokickstarttheCCUSindustry.SeveralcountrieshaveenactedCCUSprogrammesandpolicies,andthisdocumentprovidesahigh-levelsnapshotintotoday’sstatus.ThedocumentalsoincludesabriefsummaryofprogresstowardstheCCUSRoadmapbytheCarbonSequestrationLeadershipForumTechnicalGroup,akeypartneroftheCEMCCUSInitiative.Ifyouareinterestedinthesedevelopments,orintheworkoftheCEMCCUSInitiative,wewouldbedelightedtohearfromyou.Pleaseemailusatinfo@cemccus.org.IndexofcountryslidesSLIDECOUNTRY5-6Australia7Canada9China9EuropeanCommission10Japan11-16Netherlands17Nigeria18Norway19SaudiArabia20SouthAfrica21-22UnitedArabEmirates23UnitedKingdom24UnitedStatesSLIDECOUNTRY25Denmark26Finland27Germany28Indonesia29SwedenAustraliaLARGE-SCALECCUSPROJECTS•Current:GorgonCO₂InjectionProject(ChevronAustralia):over6MtofCO₂equivalentstoredsinceAugust2019.Thesystemwillcaptureupto4MtofCO2annuallyandreducegreenhousegasemissionsbymorethan100Mtovertheprojectlife.•Future:MoombaCCSHubProject(Santos):MoombaCCSHubProject(SantosandBeachEnergy):SantoshasannouncedithasmadeafinalinvestmentdecisiontodevelopaCCSplantintheonshoreCooperbasininSouthAustralia.Expectedbeoperationalin2024andstore1.7MtpaofCO₂.ClimateChangePolicies•ClimateChangeBill2022:Toenshrineintolawemissionsreductionstargetsof43percentbelow2005levelsby2030,andnetzeroemissionsby2050.oThisBillpassedintoParliamentandenshrinedintolawon8September2022.CurrentgovernmentstrategyforCCUS•TheGovernmentisinterestedinalltechnologiesandtoolsthatcanassistustoachieveournetzeroambitions,recognisingthatCCUSisapartofthemixoftechnologiesneededtohelpabateemissions.•DecarbonisingtechnologiessuchasCarbonDioxideRemoval,includingDAC;Cementsectordecarbonisation.Deploymentpoliciesandprogrammesinplace•$50millionCCUSDevelopmentFundGranteeprojectsareongoing.oGranteesincludeBoral,CTSCo,CorporateCarbon,MCi,EDLandSantosCCSprojects,whichareprogressingpastpre-commercialphase,andacceleratingpilotprojectstowardscommercialscale.•Adecisionhasnotyetbeenmadeonthe$250millionCCUSHubsandTechnologyProgram.•ThegovernmentreleasesoffshoreareasforCO2storagethroughanannualGreenhouseGasOffshoreAcreageRelease.TheseprovideakeymechanismtosupportinvestmentinAustralia’sCCUSprojects,whilealsosupportingthereductionofemissions.•Areanominationsforthe2022Releaseclosedon31July2022.oPublicconsultationproposedinSeptember2022;releasescheduledonDecember2022.•Fivepermitshavebeenawardedfrom2021Release.oINPEX,WoodsideandTotalEnergiesJVforanareaintheBonaparteBasin(NT).oWoodsidefortwoareasintheNorthernCarnarvonBasin(WA),andBrowseBasin(WA).oSantosfortwoareasinBonaparteBasin(NT)andNorthernCarnarvonBasin(WA).Prioritiesgoingforward•PoweringAustralia–createjobs,lowerpowerbills,reduceemissionsbyboostingrenewableenergy.•Withthechangeingovernment,AustraliacurrentlyconsideringitsoptionsgoingforwardonCCUS.Australia–MapofProjectsCurrentGovernmentApproachtoCCUS•Contributeto“net-zeroby2050”goalsandthe2030EmissionsReductionPlan(Apr2022),whichprojectstherewillbeopportunitiesforCCUStoreduceemissionsby19.4Mt(12.9%ofdomesticreductionstargets),withanother1.3MtfromCCUS-enabledhydrogenproduction,and0.5MtfromDACby2030.•BuildonCanada’sCCUSadvantages,includingdomesticprojectsthathavealreadycapturedandstoredmillionsoftonnesofCO2.FederalPolicies/Funding•CCUSInvestmentTaxCredit(ITC)forprojectswhichpermanentlystoreCO2indedicatedgeologicalstorageorinconcrete.Tocomeintoeffectin2022,budgetedatCAD$2.6B/5yrs.DraftlegislationreleasedforconsultationinAug2022.o2022-2031rates:60%forDAC;50%forcaptureequipmentinallotherprojects;37.5%fortransportation,storage,andutilization.oWillapplytoeligibleexpensesincurredbefore2041butreducedby50%in2031(toincentivizeprojectsthisdecade).•ThefinalCleanFuelRegulationscameintoforceinJune2022.CCUS-relatedopportunitiesforcreditcreation:CCSandCO2-EORprojectsthatreducethelifecyclecarbonintensityofliquidfossilfuels,DAC-to-fuels,andcleanH2thatdisplacestraditionalliquidorgaseousfuels.•CarbonPricingSystems(federalorprovincialequivalents):The2022federalcarbonpriceis$50/tandwillriseto$170/tin2030aspertheStrengthenedClimatePlan.•Budget2022announcedthe$15BCanadaGrowthFundtospeedprivateinvestmentindecarbonization/cleantechprojects;expectedFall2022;andexpandedtheroleoftheCanadaInfrastructureBank(CIB)toinvestinprivatesector-ledinfrastructureprojectsthatwillaccelerateCanada’stransitiontoalow-carboneconomy,includingCCUS.FuturePriorities•ACCUSStrategyforCanadaisindevelopment,tobereleasedin2022.CCUSisexpectedtobecriticaltosixkeypathwaystoaprosperousnet-zeroeconomyforCanada:decarbonizingheavyindustries,oil&gas,andthepowersector;enablinglow-carbonH2production,negativeemissionstechnologiestosupportCDR,andCO2basedindustries.•Canada’sGHGOffsetCreditSystemRegulations:ADACCSprotocolisunderdevelopment,andBECCShasbeenidentifiedasapriorityforthenextroundofprotocoldevelopment.CanadaLARGE-SCALECCUSPROJECTS-CURRENT•AlbertaCarbonTrunkLine:240-kmpipelinedelivering~1.6MtofCO2/yearfromafertilizerplant&newrefineryforEOR–upto14.6Mt/yearcapacity•Quest:>6MtCO2captured&storedat3hydrogenproductionunitsatoilsandsupgradersince2015•BoundaryDam:>4Mtcapturedviapost-combustioncapturetechnologyatcoal-firedpowerplant,operatingsince2014•Weyburn-Midale:>40MtstoredviaCO2-EORproject(since2000)PLANNEDPROJECTS&HUBSAspartof$319MbeingprovidedforCCUSRD&D/7years:o11successfulapplicantsforCanada’sCCUSRD&DFEEDstudiescallwereannouncedinJuly2022andarecurrentlyunderreview.oSecondcall(2022-2023)tosupportearlier-stageRD&Dacrosscapture,storage/sequestration,andutilization.DeadlineforcapturefocusareaapplicationsisOct3,2022.PhaseIofAlberta’sCarbonSequestrationTenureManagementCompetitionresultedin6proposedhubsthatwillfurtherevaluateiftheycansafelyandpermanentlystoreCO2emissionsfromAlberta’sindustrialheartlandregionnearEdmonton.PhaseIIlookstodevelopcarbonstoragehubsintherestofAlberta.Projectsareunderreviewandresultsexpectedin2022.POTENTIALFUTUREPROJECTS•OGCI&CNPCXinJiangCCUSHub•CNOOCDaYaBayCCUSCluster•HuaNengGroupZhengNingPowerPlantPost-CombustionCCUSProject•CementPlantCCUS(Hailuo,Jinyu)•SteelPantCCUS(Baogang,HBIS)•DunHuaPetroleumXinJiangHydrogenEnergyCCUSProjectCurrentgovernmentstrategyforCCUS•National14thFive-yearPlan•OpinionsoftheCentralCommitteeoftheCPCandtheStateCouncilonCarbonDioxidePeakingandCarbonNeutralityinFullandFaithfulImplementingoftheNewDevelopmentPhilosophy•ActionPlanforCarbonDioxidePeakingBefore2030•ScientificandTechnologicalDeploymentStrategyforCarbonDioxidePeakingandCarbonNeutrality(2022-2030)•ImplementationPlanforSynergeticReductionofPollutionandCarbonEmissions•ImplementationPlanforCarbonPeakingintheIndustrialSectorDeploymentpoliciesandprogrammesinplace•CCUSresearchprojectssupportedbytheNationalKeyR&DProgramme•ChinaCarbonEmissionTradeExchange(CCETE)officiallylaunched•NationalguidanceforpromotingCCUSdemoprojectsPrioritiesgoingforward:•CO2utilisation•CO2captureinindustrialsectors•OffshoreCO2sequestration•Emissionrestrictive&CCUSincentivepolicy•Large-scaleintegrateddemonstrationandpipelinesystem•Opportunitiesforlow-carbonhydrogenproductionwithCCUSinChina(ACCA21&IEA)ChinaCURRENTLARGE-SCALECCUSPROJECTS•SinopecShengLiOilField1Mt/aCCUSProject•CNPCJiLin0.4Mt/aCO2-EORCommercialProject•YanChangPetroleumYanAn0.3Mt/aFull-ChainCCUSproject(EOR)•CHNEnergyJinJie150Kt/aPowerPlantFull-chainCCUSProject•QiangNaiJiaozuo10KtCO2toConcreteProjectCCSandCCUprojectssupportedfromtheInnovationFund:•Kairos-at-C,PortofAntwerp–CO2capturefromhydrogen,ammoniaandethyleneoxideproduction(Belgium),BECCSStockholm-Bio-energyCO2captureataCHPplant(Sweden),K6–CO2captureatcementplant,reuse&storage(France),SHARC-GreenhydrogenandbluehydrogenwithCCS(Finland)•C2B:Carbon2Business-OxyfuelCO2captureanduseformethanolproduction(Germany),ANRAV:Oxy-fuelincementproduction(Bulgaria),CodaTerminal:CO2mineralstoragehubinonshorebasaltformation(Iceland),AIR:Methanolproductionfromrenewablehydrogenandcarboncapture(Sweden),HySkies:SustainableAviationFuelfromRESH2andCCU(Sweden),GO4ECOPLANET:CryocapCO2captureincement(Poland),CalCC:CO2captureinlimeproduction(France)CurrentgovernmentstrategyforCCUS•EUfinancialsupporttoCCUSresearch,innovationanddemonstrationDeploymentpoliciesandprogrammesinplace•InnovationFund,TEN-EandConnectingEuropeFacility,Horizon2020andHorizonEurope,Recovery–NextGenerationEU,SustainablecarboncyclescommunicationPrioritiesgoingforward:•Fosterthedeploymentoflarge-scale,innovativeprojects•Proposecertificationofcarbonremovals(2022)•PublishstrategicCCUSVisionPaper(2023)•AssessCO2infrastructureinvestmentneedsandCO2infrastructureregulatoryneedsEuropeanUnionCURRENTLARGE-SCALECCUSPROJECTSCurrentlytherearenolarge-scaleCCUSprojectsrunningintheEUPOTENTIALFUTUREPROJECTSCO2transportationprojectsincludedinthe5thlistof“ProjectsofCommonInterest”:•CO2TransPorts,partofPORTHOS(Netherlands),Northernlightsproject(Norway),ATHOS(Netherlands),Aramisproject(Netherlands),Dartagnanproject(France),EUCCSInterconnector(Poland)POTENTIALFUTUREPROJECTS•SummarizepossiblegovernmentsupportforCCSprojects•PromptlegislationofdomesticlawsgoverningCCSbusinessKeyclimatepolicytargets•Achievecarbonneutralityin2050•ReduceJapan’sGHGemissionsby46%inFY2030fromitsFY2013levelCurrentgovernmentstrategyforCCUS•IntermediateSummaryonunupcomingCCSlong-termroadmap(releasedonMay27)•ImproveabusinessenvironmenttowardthestartofCCSbusinessby2030•The6thStrategicEnergyPlan(approvedbytheCabinetonOct.22)•ContinuetoincorporateCCUSintosociety•IntroduceCCSby2030premisedonitscommercializationDeploymentpoliciesandprogrammesinplace•EnhanceJOGMEC’sfunctionsthroughanamendmenttotheJOGMEClaw•InvestmentanddebtguaranteeservicesforCCSandgeologicalsurveys•R&DsonsafetyevaluationtechnologiesandCO2capturetechnologies•InvestigationofpotentialCO2storagesitesPrioritiesgoingforward:•LaunchtwoworkinggroupsinpreparationforthelegislationofdomesticlawsgoverningCCSbusinessanddiscussingcurrentcostsandfuturecosttargetsintheentireCCSvaluechainaswellasidealsupportfromtheGovernment•SupportCCSdeploymentinAsiathroughAsiaCCUSNetwork•EstablishliquefiedCO2shiptransportationtechnology•FormulatearoadmapforCCSdeploymentinJapanJapanCURRENTLARGE-SCALECCUSPROJECTS•TomakomaiCCUSdemonstrationproject(Post-injectionmonitoringongoing)•LiquefiedCO2shiptransportationdemonstrationproject•FeasibilityStudyonJCM-CCSatGundihGasFieldinIndonesiaCCUScountryoverview–TheNetherlandsCEMCCUSInitiativeAnnualMembers’meetingWednesday21September2022Emissionsandstoragecapacity16,97,94,5121,212companiesareresponsiblefor75%oftotalindustrialCO2emissions1.ShellRefinery(14%)2.TataSteel(13%)3.DowChemicals(8%)4.Yara(8%)5.Sabic(6%)6.ExxonMobilRefinery(5%)7.BPRefinery(4%)8.AirLiquide(4%)9.OCI(4%)10.TotalRefinery(3%)11.AkzoNobel(2%)12.AirProducts(2%)•Dilemma:cost-efficientvs.bridgingtechnology•CCScontroversialtopicduringnegotiationsOftheClimateAgreement–stronglyopposedbyENGO’s•CCSinindustrysectorsonly(e.g.steel,refinery,hydrogen,fertilizer,wasteincineration)–wherenocost-effectivealternativesexist•Capex+OpexsubsidyforindustrialCCS(SDE++)•CCSnotforeseeninpowersector→pre-combustionCCSwithhydrogenorbiomassinthefuture•CCSlimitedin3ways:–Capon#MtonCCSsubsidized(8,7Mton+3Mton)–CCSonlysubsidizedifnocost-effectivealternatives–After2035nonewsubsidiesgrantedtofossilCCSprojects•Negativeemissions(DAC’s+BECCS)after2030•CCUcouldhavesubstantialpotentialonthelongerterm,focusisnowonagriculturaluse(horticulture)•StorageofCO2→offshore•Offshorestoragecapacity~1700MtonTheroleofCCSinclimatepolicy•SDE++subsidyavailableforCCSsince2020•Coverspostandpre-combustionprojectsatexistingandnewindustrialinstallations•Capex/Opex15years•Projectwithlowestreductioncostshavehighestchanceofsubsidy•Projectshavetoberealisedwithin6yearsfromsubsidyapproval•ExportofCO2forstorageoutsideNLcurrentlynotapplicableSDE++subsidyforCCSPorthos–2024/25–2.5Mt/aAramisCCSProject–2026/27–5Mt/a+POTENTIALFUTUREPROJECTS•CCUSgasdevelopment–bluehydrogen,•carbondioxideremovalKeyclimatepolicytargets•RevisedNDCupdate:20%unconditionaland47%conditionaltargetsby2030.•NetZerotarget(EnergyTransition)by2060.•Long-TermEmissionsReductionPlantoachieve50%by2050usingaclimatetechnologyledapproach.CurrentgovernmentstrategyforCCUS•identifynear-termneedsandopportunitiesforCCUSdevelopmentanddeploymentthatareconsistentwithNigeria’snetzeroemissiontargetby2060•Creatinganenablingenvironmentthroughidentifyingstorageresources;matchingemissionpointsourcesandindustrialclusterswithCO2storage;developinglegalandregulatoryframeworks;performingtechno-economicassessments;engagingwithstakeholders;supportingcapacitydevelopment;andultimatelypilotinganddemonstrationofCCUSinindustrialsettings•NationalCCUSCentreofExcellenceDeploymentpoliciesandprogrammesinplace•EnergyTransitionPlan•ClimatetechnologyNeedAssessment.•ClimateChangeBillPrioritiesgoingforward:•IndustrialCO2CCUSDiagnosticandScopingStudy•LegalandRegulatoryAssessment&frameworks•InstitutionalcapacitydevelopmentNigeriaCURRENTLARGE-SCALECCUSPROJECTSN/APOTENTIALFUTUREDEVELOPMENTS•NorthernLightspart2•DevelopadditionalCCSprojects•2newexplorationpermitsforCO2storageacreage,intheNorthSeaandtheBarentsSearespectivelyCurrentgovernmentstrategyforCCUS•Cost-effectivedevelopmentofCCUSprojects•Facilitatelarge-scalestorageopportunitiesatNCS•FocusondecarbonizationofindustryandlowcarbonH2•EstablishopenaccessCO2infrastructure•ShareknowledgeandexperienceDeploymentpoliciesandprogrammesinplace•CO2taxandtheEuropeanTradingScheme•RatifiedtheamendmenttotheLondonProtocolanddepositedadeclarationonprovisionalapplication•FinancialsupportfortheLongshipprojectPrioritiesgoingforward:•EstablishabusinesscaseforCO2-storage•EstablishbilateralagreementswithrelevantcountriesasforeseenundertheLP•NewacreageforCO2storageNorwayCURRENTLARGE-SCALECCUSPROJECTS•Sleipner(1mill.tonsperyear)•Snøhvit(0.8mill.tonsperyear)PROJECTSUNDERDEVELOPMENT•ThefullchainCCSproject:“Longship”(start2024)•Captureatacementplant(Norcem),awasteincinerationplant(Celsio)andYaraintheNL•TheNorthernLights(transportandStorageattheNCS)POTENTIALFUTUREPROJECTS•Kingdomambitiontargetplantocapture44MtpaofCO2by2035asannouncedduringtheSaudiGreenInitiative(SGI)heldbyOctober2021.•DuringSeptember2021,SaudiAramco,throughitsindustrialinvestmentprogram,AramcoNamaat,havesignedthreeseparatenon-bindingMoUstoevaluateCarbonCapture&Sequestration(CCS)opportunitiesandpotentialpartnerships.TheconsortiumsareworkingtofinalizethefeasibilityandthescopeoftheCCS.CurrentManagementstrategyforCCUS•CarbonCapturestrategyidentified20initiativesacrossCCUSvalueChain;thisinclude:o12TechnicalInitiativeo4Regulation/GovernanceInitiativeso2R&DInitiativeso2EnablersInitiativesDeploymentpoliciesandprogramsinplace•MinistryofEnergyestablishedCircularCarbonEconomyNationalProgram(CCE-NP)tosupervisingimplementationacrossHydrogenandCarbonmanagementwithasteeringCommitteefromgovernmententities,researchinstitutesandnationalchampiontoenableCCUS.Prioritiesgoingforward:•CarbonManagementisoneofthefocusareasintheCircularCarbonEconomynationalprogramanditskeyobjectivesaretoreviewinitiativesimplementation,provideguidance&facilitationandensurealignmentinCCUS.•Implementationprocessactivated12dedicatedtaskforcesalignedwithmajorKSAstakeholders(governmententities,researchinstitutesandnationalchampion)•RaiseCCUSprofiletoG20leadersSaudiArabiaCURRENTLARGE-SCALECCUSPROJECTS•SaudiAramco‘UthmaniyahandHawiyahNGLfacilitiestoReuseCO2asEOR(0.8MtCO2/year)•United,aSABICaffiliate,toReuseCO2asChemicals(0.5MtCO2/year)CurrentstrategyforCCUS•CCUSidentifiedasakeyenableroftheJustTransitioninSAaspartof2050developmentalgoals.•Apilotprojectisinitiated,targetedfinalisationinthe2023/24financialyear.SouthAfricaPrioritiesfortheimplementationofCCUS•Integratedgeoscienceresearchandfocusonutilisationandsocioeconomicaspects.Futureprogrammes•Basalticinjectionnearmajorpoint-sourceCO2emittersandlargecoalfields.Regionalmapofpilotsite,Mpumalanga,SouthAfricaOverviewofCO2projectionsforSouthAfricaPOTENTIALFUTUREPROJECTS•ADNOCexpansionofCCUSinitiatives•Shahgasplant,whichhasthepotentialtocapture2.3milliontonnesofCO2peryear•Habshan-Babgasplant,whichhasthepotentialtoenablethecaptureof1.9milliontonnesofCO2peryear•TheequivalentofaforestareathatistwicethesizeoftheUAE.Keyclimatepolicytargets•UAENetZeroby2050strategicinitiativeandcurrentlyUAEworkingontheNationalNetZeroStrategy2050•2ndNationallyDeterminedContribution–NDCon2020withUnitedArabEmirates(UAE)presentsaneconomy-wideemissionreductiontargetrelativetoBAU.ThecountryprojectstheBAUscenariotoreach310MtCO2in2030.Thecountryaimstoreduce23.5%by2030,relativetotheBAUscenario(UAENDC,2020).•2022-UAEisontracktosubmititsrevised3rdNationallyDeterminedContribution(NDC).•HydrogenLeadershiproadmap(2021)CurrentgovernmentstrategyforCCUS•HostedaCCUSWorkshopthatbroughttogetherthefinancesectoraswellasindustrytoacceleratefinancinganddeploymentofCCUSprojects.•InvestmentinR&D.•2021-UpdatingtheNationalEnergyStrategy2050inpartnershipwithKhalifaUniversity(KU)andtheInternationalRenewableEnergyAgency(IRENA)•2022-NationalHydrogenStrategywhichwillincludetheCCUS/CCShubs(anticipatedtobepublishedlater2022)•2021-HydrogenRegulatoryframework(ongoing)Deploymentpoliciesandprogrammesinplace•ADNOCAnnouncesComprehensive2030SustainabilityGoalsandCCUSexpansioncapacityof500%inthenext10years.Prioritiesgoingforward:•DevelopmentofCCUSPolicy.•ContinuoussupporttowardstheCCUSInitiative.UnitedArabEmiratesCURRENTLARGE-SCALECCUSPROJECTS•AlReyadahPlant:whichisthelargestcarboncapturesteelproject,thatcaptures800,000tonnesofCO2thatisinjectedforEOR.HydrogenandCCUSInitiativesQ12022111213141516BarakahPlant:UAEcanproduce1milmt/yearofhydrogenfromnuclearunitsatfullcapacity16CurrentgovernmentstrategyforCCUS•TheUKhaspotentialtostoremorethan78billiontonnesofcarbondioxide(CO₂)initscontinentalshelfwhichisoneofthelargestpotentialstoragecapacitiesinEurope.•TheUKiscommittedtoprogressingCCUSaspartofour2050NetZeroStrategy,utilisingindustrial"clusters"tocaptureandstore20-30MtCO2peryearby2030.Deploymentandprogrammesinplace•Initiatedthe"ClusterSequencing"process,firstTrack-1clustersannouncedasHyNetandECC(Oct'21),projectsshortlistedforTrack-1confirmedwithinPhase-2announcement(Aug'22).•PublishedtheCCUSInvestorRoadmap(Apr'22),summarisingthegovernmentandindustry’sworkonCCUS,outliningopportunitiestodriveinvestmentforCCUS.•DesignedtheCCUS(ICC,Power,TransportandStorage)andhydrogenbusinessmodelstoprovideclearandlong-termsightofrevenuemodels,aswellprovideastableinvestmentenvironmentforinvestment(updatedin2022).Funding•TheUK's£1billionCarbonCaptureandStorage(CCS)InfrastructureFundwillhelpestablishCCUSinatleastfourUKindustrialclusters,twobythemid-2020'sandanothertwoby2030.•Upto£170mfromtheIndustrialDecarbonisationChallengeFundbeingdeliveredbetween2021-2024throughtheIndustrialDecarbonisationChallenge.Upto£100mfundingtoresearchanddevelopDirectAirCapturetechnologyandotherGreenhouseGasRemovaltechnologies,withinitialprojectsreceivingfunding.£140mtosetuptheHydrogenRevenueSupportScheme.•£20mCarbonCapture,UsageandStorage(CCUS)Innovation2.0competition.Prioritiesgoingforward•WehavecommittedtoannouncingnextstepsonTrack2clustersshortly,startingduediligenceonP2projectsforTrack1clustersandcontinuinginternationalcollaborationthroughACT,CEM,ECCSELetc.UnitedKingdomGrangemouth4.2MtCO2eTeesside3.8MtCO2eHumberside8.8MtCO2eBlackCountry0.5MtCO2eSouthampton3.3MtCO2eSouthWales9.1MtCO2eMerseyside5.2MtCO2eMapofmajorUKindustrialclusteremissionsfromlargepointsources(2019).Source:NAEI2019data.Doesnotcapturenon-ETSemissionsinacluster.Track-1clustersReserveTrack-1clusterOtherindustrialclustersThereareotherareasofindustrialactivityacrosstheUKwithaninterestindevelopingCCUSPOTENTIALFUTUREPROJECTS•Manyprojectsannouncedsincethe45Qtaxcreditvalueswereincreased•Projectsareinvariousstagesofdevelopment,rangingfromearlyplanningstagestothosereadyforconstructionKeyclimatepolicytargets:Newclimategoals:50%emissionsreductionby2030,100%cleanelectricityby2035,andnet-zerocarbonemissionsby2050CurrentgovernmentstrategyforCCUS•NewgoalsonjusticeandequityandcommunityengagementDeploymentpoliciesandprogrammesinplace•InflationReductionAct:Reducegreenhousegasemissionsbyabout1gigatonin2030,orabillionmetrictons•Includesenhancementsto45Qtaxcredit(e.g.,creditvalueincreases,directpay,extensionofcommenceconstructionwindow,lowercapturethreshold)•CHIPSandScienceAct:$1billionforcarbondioxideremovalRD&D($67billiontotalforDOE)•BipartisanInfrastructureLaw:$12billionforcarbonmanagementapproaches•Enhanced45Qtaxcredits,loanprograms,andstatepolicies/mechanisms•RegionalInitiativetoAccelerateCCUSDeployment,CarbonStorageAssuranceFacilityEnterprise(CarbonSAFE),CCUSDemonstrations,andFEEDStudiesPrioritiesgoingforward:•Point-sourcecarboncapture,hydrogen,carbondioxideremoval,industrialdecarbonizationUnitedStatesCURRENTLARGE-SCALECCUSPROJECTS•AirProductsPortArthurProject:8millionmetrictonnesofCO2captured(June2022)•IllinoisICCSProject:2.7millionmetrictonnesofCO2injected(June2022)•Over35activeCCUSprojectsintheU.S.•Onvarietyofapplications—power,ethanol,industrialprojects,andDACPOTENTIALFUTUREPROJECTS(NorthSea)•ProjectGreensands(INEOSandpartners),storagecapacityof0,5-1,5mio.tonCO2/yin2025and4-8mio.tonCO2/yin2030.•Bifrost(TotalEnegiesandpartners),storagecapacityof3mio.tonCO2/yin2027andalongtermpotentialof16mio.tonCO2/y.•PilotatStenlille(on-shore),storagecapacityof0,5mio.tonCO2/yin2025,totalpotentialof2,5mio.ton.Keyclimatepolicytargets•70%reductiontargetby2030andclimateneutralityby2050•CCSimportanttechnologytoreduceemissionsinotherwisehardtoabatesectorse.g.cement,heavyindustry,wasteincineration•CapturepotentialoflargeemittersinDenmarkisestimatedat4,5-9mio.tonspr.yearin2030,butgeologicalstoragecapacityupto400-700ofyearlyDKemissions•GoaltobecomeaNordicHubforCCS,storingnotonlyfromDKbutalsoothercountriesCurrentgovernmentstrategyforCCUS•Part1:Storage(June2021)•Part2:Captureandtransportation(Dec.2021)•Part3:PtXstrategy(March2022)•Part4:StateparticipationinCCSstorageactivities(June2022)(Importantrelateddevelopment:CarbontaxationreforminJune2022)Deployment•CombinedfundingforCC(U)S37,2bill.DKKapprox.5bill.EUR,allin2022-priceswithatotalreductionestimateof3,2mio.tonCO2yearlyfrom2030•Threecompaniespree-qualifiedforfirsttenderroundofCCUSfundsforreductionof0,4mio.tonyearlyfrom2026,winnerwillbeannouncedapprox.primo2023•From15thofAugust2022ithasbeenpossibletoapplyforlicensesforinvestigationofandstorageofCO2inanareaoftheNorthSea(deadline1stofOctober2022)•Processtomatureotherstructuresnear-shoreandon-shorehasbegun.Prioritiesgoingforward:•EnablingtransportationofCO2acrossDenmarkandacrossboarders,bilateralagreements,focusonpromotingholisticCCSapproachintheEUDenmarkRadicalCCUinnovations•Finlandcurrentlyhostsanactivebusinessclusterandinvestmentportfolioofcarboncaptureandutilisationprojects(e.ge-fuelsproduction).Alsoopportunitiesforlong-termstorageandpermanentstorage(CCS)arebeingstudiedbythecompanies•Investmentpipelineisaround20projectscorrespondinginvestmentsofapproximately1billioneuros.Manyinvestmentsincludehydrogenproduction.•Examples•AFinnishstart-upisconstructingaplanttoproduceproteinsoutofthinairthusutilisingCO2intheair•Anotherstart-upisdevelopingCCUsolutiontobeinstalledtoHVACsystemsinbuildingsKeyclimatepolicytargetsandCCUS-relateddeployment•Climateneutralityby2035•TheSustainableGrowthProgrammeforFinlandallocatedEUR150milliontohydrogenandcarboncaptureandutilisationprojects.•E-fuelswillbeincludedinthetransportfueldistributionobligationfromthebeginningof2023.•GovernmenthasinitiatedastrategicresearchprojectforcarbonuseandremovalsCurrentClimateandEnergyStrategy(2022)includesCCUS•Thedevelopmentanduseofcarboncaptureandutilization(CCS/CCU)technologiesandsolutionswillbeaccelerated.•E-fuelswillamountto3percentofalltransportfuelsby2030.•ThelegislativeframeworkforCCS/CCUregulationattheEUlevelwillbepromoted.•CCS/CCUtechniquestoreduceCO2emissionscausedbywasteincinerationwillbepiloted.•Legislativeframeworkforcarbondioxideremovalsolutions,willbeassessed.FinlandStudies,Smallscaleprojectsandfuturelargescaleprojects•FundingforCDRR&D(10Researchnetworks,21Mio.€)•StudybyCapTransCO2:NetworkoftheChemicalIndustryinthecenterofGermany–CCU/CCSincludingTotal,Lindeetc•HeidelbergCement(Leilac2,100.000tCO2/a),Cementindustryasawholeveryactive•Carbon2Chem-(ThyssenKruppetal)usingcarbonfromsteelproductionforchemicalmaterials,100MioinR&DPhase,1BioinCommercialisationPhase•HyScale100(HolcimCementPlantcapture1MiotCO2/aforMethanolfromgreenhydrogen)Keyclimatepolicytargets•ClimateLaw:65%by2030,ClimateNeutralityby2045andnegativeemissionfrom2050CurrentgovernmentstrategyforCCUS•CoalitionAgreement:“Weacknowledgetheneedalsofortechnicalnegativeemissionsandwilldevelopalong-termstrategyfordealingwiththeapproximately5percentofunavoidableresidualemissions.”Deploymentpoliciesandprogrammesinplace•OnState(Länder)-levelNorthRhine-WestphaliareleasednewCarbonManagementStrategyinOct.2021Prioritiesgoingforward:•EvaluatingcurrentlegalframeworkinGermanytilltheendof2022•ClarifygovernmentpolicyonCCU/CCSanddraftaCarbonManagementStrategyonfederallevelaccordinglyin2023GermanyPotentialFutureCCS-CCUSProject▪PTPertaminaEPGundihCCUS-EGRProject(2027),PotentiallyreduceCO23MTfor10years,withincrementalproduction13.89BSCFand110TSTB▪PTPertaminaEPSukowatiCCUS-EORProject(2031),PotentiallyreduceCO210MTfor15years,withIncrementalproduction37.7MSTB▪RepsolSakakemangCCSProject,PotentiallyreduceCO230MTfor15years,withproposedproduction450mmscfd(tobeinjectedunderotherPSC).▪InpexAbadiCCSProject,PotentiallyreduceCO22.8MTPAor70MTfor25years,withproposedproduction150mmscfdand9.5MTPALNGsince2027.▪BlueAmmonia+CCSCentralSulawesi(PTPAU,JOGMEC,Mitsubishi&ITB),▪CCUSforCoaltoDME(PTPertamina&Chiyoda),▪ArunCCS(ODIN&PEMA),▪RambaCCUS(Pertamina),▪CentralSumateraBasinCCS/CCUSHubs(Pertamina&Mitsui),▪EastKalimantan&SundaAsriBasinCCS/CCUSHubs(Pertamina&ExxonMobil),CCUSStudy(Pertamina&Chevron),▪EastKalimantanCCS/CCUSStudy(KaltimParnaIndustri&ITB),▪CCUtoMethanolRUV(Pertamina&AirLiquide)Keyclimatepolicytargets▪NZE2060▪ModelingroadmapNZE2060,inbalanceofhighambition,scienceandtherealeconomy▪Inter-ministerialdiscussiononLongTermStrategyforLowCarbonandClimateResilient(LTS-LCCR)fortargetcarbonemissionfromenergysector.▪IncludeCCSoptionincarbonemissionstrategyforsteelandcementindustry.▪NDC2021forcarbonemissionreductionby2030•Alignmentstrategicplan2030intoenergysectorlongtermstrategyNZ2060•2021-2022outlookofCO2emissionfromupstreamoilandgas(UOG)around20MTPA•2030netzeroroutineflaringpolicyforUOGactivitiesCurrentgovernmentstrategyforCCS-CCUS▪InvolvingresearchinstitutionsascenterofExpertsonCCS-CCUS▪StrengtheningcooperationtodeployCCS-CCUSprojectDeploymentpoliciesandprogrammesinplace▪Carbonpricingsystem,capandtrade,capandtaxschemeinplace,•IssuanceActNo.7Yearof2021regardingHarmonizedTaxation,•IssuancePresidentialRegulationNumber98of2021regardingcarbonpricing.▪CurrentPSCsschemeaccommodateCCS-CCUSfromupstreamoilandgasPrioritiesgoingforward:▪Legislationprogram▪FinalizingdraftministerialregulationonCCS-CCUSprogram▪IncludeCCS-CCUSactivitiesintorevisionofOilandGasAct▪IncludeCCS-CCUSoperatingcostchargeswithinpetroleumoperationcost▪MultipointsourcesforCCS-CCUS▪Considerintegrationwithupstreamoilandgaswhichhavenaturesink▪EstablishinginternationalcooperationonCCS-CCUSimplementationIndonesiaApprovedPlanCCS-CCSProject▪CCUSProjectUCCProjectbyBPBerauLtd.,UbadariandVorwataEGRFielddevelopmentwithonshorecompressionandCCUS,toincreaseproduction0,5TSCFby2045andreduceCO2emission33MTby2045▪LookingforwardforCCSopportunityMT=milliontons;MTPA=milliontonsperannumFutureandongoingprojects•StockholmExergifullscalebio-CCSfacilityabout800000tonnesp.a.•Severalfeasibilitystudiesonbio-CCS–firststeptoparticipateinauction,mainlyCHPandWtE•TestfacilitiesonplantsKeyclimatepolicytargets•85%reductiontargetby2045,baseline1990,after2045negativeemissions•CCSimportanttechnologytoreduceemissionsinotherwisehardtoabatesectors•Bio-CCSimportantassupplementarymeasure,mostlikelythebiggestsource–largepotentialatleast10millionstonnesp.a.2030GovernmentactionsandassignmentsCCS•NationalcentreforCCSasapartoftheSwedishEnergyAgency•TreatywithNorway–Londonprotocol•Reportingandaccounting(SwedishEnergyAgency&TheSwedishEnvironmentalProtectionAgency)Deploymentpoliciesandprogrammesinplace•TheIndustrialLeapshallsupporthugeandcomplextechnologyleaps,focusoncarbondioxideintensiveindustries,longterm2018-2040.70million€/year2020-2022whereof10million€/yeartobio-CCS.•Supportschemeforbio-CCS.Reverseauctionsfirstauction2023.Prioritiesgoingforward:•Reportingandaccounting,Article6,facilitateamarketforCDR-allconnected.SwedenRaffinaderi=RefineryPappersmassa=PulpandpaperKemi=ChemistryStål/Järn=Iron/steelKraft/Värme=Heat&PowerCement=Cement(FromJohnsson&Kjärstad,2019)Swedentotalemission51MtCO2eKeymessagesfromCSLFTechnicalGroup(1/5)AcceleratingCarbonCapture,UtilisationandStorageTheCarbonSequestrationLeadershipForum(CSLF)TechnicalGroupbringstogethercountriestoshareexperienceoncarboncapture,utilisation,andstorage(CCUS)atthetechnicallevel.TheTechnicalGroupprovidesrelevanttechnicalbackgroundfortheworkoftheCleanEnergyMinisterial(CEM)CCUSInitiative,whoseaimistoaccelerateCCUSstrategiesandpolicies.TheCSLF2021TechnologyRoadmap(TRM2021)stressedthechallengingdeploymentpathwayforCCUSinthecomingdecades,basedontheIEASustainableDevelopmentScenario(SDS):•By2030:CO2captureandstorageshouldincreasebyafactorof10–15fromthe2020levelof40mega-tonnes(Mt)ofCO2peryear.•By2050:CO2captureandstorageshouldincreasebyafactorof100ormorefromthe2020level.TomeetthesechallengestheTRM2021recommendedeffortsinthefollowingkeyareas:•Technologydevelopment,innovation,andcostreduction.•Strategicbuild-outofCCUSprojectsandhubs.•Developmentofstrategy,policy,legal,andfinancialframeworks.ThefollowingslidescontainhighlightsregardingtheprogresstowardsthekeyRecommendationsonCCUSintheCSLFTechnologyRoadmap2021.KeymessagesfromCSLFTechnicalGroup(2/5)1.Technologydevelopment,innovation,andcostreduction–investmentsincrease:a)SeveralCSLFmembersaswellasinternationalpartnershipshaveallocatedsignificantfundingtoResearch,DevelopmentandDemonstration(RD&D)forCCUS.b)Transferringknowledgeiscontinuouslytakingplace,amongstotherinnumerousworkshops,forexampletheCSLFTechnicalGroupmeetinginBergen,Norway,June2022.c)TherehasbeensignificantincreaseinactivitiesandfundingforpilotsonCarbonDioxideRemoval(CDR)andGreenhouseGasRemoval(GGR)technologies.TheprogressisratedasgoodandcontributestomeetingthechallengesintheCSLFTRM2021.KeymessagesfromCSLFTechnicalGroup(3/5)2.Infrastructureprojectsandhubsaremovingforward:a.Oneadditionalprojecthasbegunconstruction(NorthernLightsinNorway)andthreeothershavereceivedsignificantprivateandpublicfundingtoproceedtoFinalInvestmentDecision(FID):theEastCoastClusterandtheHynetprojectintheUnitedKingdom,andthePorthosprojectintheNetherlands.b.Thenumberofinfrastructureprojectsandhubsinplanninghasincreasedbyafactoroftwo.ThehubscanserveasanenablerforindustrieswithouttechnicalcapabilityforCO2storage,andthediversityofindustriesthatarenowplanningCCUSisincreasing.c.NewfundshavebeenmadeavailableforinfrastructureandhubsprojectsinUSA,Canada,andEurope.d.InCanada,theprovinceofAlbertaisleadingacompetitiveprocesstoallocateCO2porespacetohuboperatorse.TheOilandGasClimateInitiative(OGCI)haslaunchedTheCCUSHubPlatform,atooltohelpindustrialemittersandtransport&storageoperatorstoidentifypotentialhubsandlearnlessonsonhowbesttosetthemupfromthemostadvancedhubs.Progressisencouragingasanextensivenumberofpotentialhubsandclustershavebeenidentified,andseveralareinearlyplanning.However,theprogressisinsufficienttomeetthechallengeofa10-15-foldincreaseincapturedandstoredCO2by2030.MoreprojectsneedtoentertheFront-EndEngineeringandDesign(FEED)phaseandmakethefinalinvestmentdecision.KeymessagesfromCSLFTechnicalGroup(4/5)3.Developmentofstrategy,policy,legal,andfinancialframeworksshowprogressa)123countrieshavesubmittedupdatedNationallyDeterminedContributionstotheUNFCCCbutjust16includeCCSandthreeimplicitlyincludeCCS.COP26adoptedtheGlasgowClimatePactandimportantchangestoArticle6oftheParisAgreement.b)InadditiontotheUNFCCCagreements,severalbilateral,multilateral,andglobalagreementshavecomeintoplacec)NationalorregionalCCUSstrategies,incentiveframeworks,businessmodels,risk-sharingmechanisms,andlegal,regulatory,andaccountingframeworksarebeingimplementedinseveralcountries,includingAustralia,Brazil,Canada,China,Denmark,Indonesia,Japan,theNetherlands,Nigeria,Norway,SaudiArabia,SouthAfrica,UnitedArabEmirates,UnitedKingdom,andUnitedStates.Progressisencouragingbutinsufficienttomeetthechallengeofa10-15-foldincreaseincapturedandstoredCO2by2030.Morecountriesneedtoputthenecessaryregulationsandfinancialframeworksinplace.KeymessagesfromCSLFTechnicalGroup(5/5)4.OverallconclusionThedeploymentofCCUSlagsbehindwhatisneededtomeetthechallengetoincreaseCCUSdeploymentbyafactorof10-15above2020level(40MtCO2/year)by2030.•DeploymentofCCUSatscaleisnotpossiblewithoutsupportivepolicysettings,long-termpoliticalcommitment,publicengagement,andtheappropriatefinancialsupportforearlyandlong-termCCUSdeployment.•TheCSLFTechnicalGroupinvitesallitsmembers,CleanEnergyMinisterialMembers,andallotherrelevantcountries,aswellasindustryandthefinancialsector,tojoinforcestoworktogethertoachieverapidandtangibleprogressontheabovepathway.•TheCSLFwillcontinuetoofferaplatformforitsmembergovernments,industryandthefinancialsectortocometogethertoidentifybothimmediateandlonger-terminvestmentopportunitiesandtoaccelerateCCUSdeployment.•TheCSLF2021TechnologyRoadmapisavailableat:www.cslforum.orgCleanEnergyMinisterialCCUSInitiativeOthercountriesandPartners:Linkstofurthercountries:Bahrain,Denmark,Germany,India,Indonesia,Ireland,Malaysia,Nigeria,Singaporeetc.Industry:OilandGasClimateInitiative,GlobalCementandConcreteAssociation,worldsteelFinancialinstitutions:MultilateralDevelopmentBanks,privatebanks,investmentfirmsOrganizations:CarbonSequestrationLeadershipForum(CSLF),InternationalEnergyAgency(IEA),IEAGreenhouseGasR&DProgramme(IEAGHG),MissionInnovation(MI),GlobalCCSInstitute(GCCSI)FourteenMemberCountries:LeadcountriesParticipatingMembersAustraliaNigeriaEUCommissionChinaCanadaJapanNetherlandsMexicoSouthAfricaUnitedArabEmiratesNorwaySaudiArabiaUnitedStatesUnitedKingdom1324CEMCCUSInitiative:acceleratingCCUStogetherby:Bringingtogethergovernments,theprivatesectorandtheinvestmentcommunity.Facilitatingidentificationofbothnearandlonger-terminvestmentopportunities.DisseminatingbestpracticeinCCUSpolicy,regulationandinvestment.ActivelyincludingCCUSwithinCleanEnergyMinisterialagendaandglobalcleanenergydiscussions.DisseminatingcountryexperienceandfacilitatingdialogueREGIONALWORKSHOPSWEBINARS:TODISSEMINATEEXPERIENCEMEMBERS’MEETINGS:MONTHLYANDANNUALhttps://www.linkedin.com/company/clean-energy-ministerial-ccus-initiative/@ccusceminfo@cemccus.orghttps://www.youtube.com/user/cleanenergypolicy/playlists