GLOBALSTATUSOFCCS2022GLOBALCCSINSTITUTEREPORTBUILDINGMOMENTUMASWESHIFTINTOAPHASEOFACTIONCONTENTS1.FROMTHECEO2.AMBITIONTOACTION3.GLOBALSTATUSOFCCS4.REGIONALOVERVIEW5.ANALYSIS6.APPENDICES2022STATUSREPORT2022STATUSREPORTFROMTHECEOCHAPTER12022STATUSREPORTINTRODUCTIONJARADDANIELS“AMBITIONMUSTNOWTRANSLATETOURGENT,BROAD,ANDLARGE-SCALEACTIONIFWEARETOMAINTAINALIVABLECLIMATE.”CEO,GlobalCCSInstituteAswedelivertheGlobalStatusofCCS2022,itisclearerthaneverthatCCSisoneofthecriticaltoolswemustusenowtoaddresstheclimatecrisis.Infact,withoutCCS,reachingoursharedclimategoalsispracticallyimpossible.Whenitcomestolimitingglobalwarming,thelastfewyearshavebeenmarkedbygrowingambitionfrombothcountriesandcompaniesalike.Thatambitionmustnowtranslatetourgent,broad,andlarge-scaleactionifwearetomaintainalivableclimate.Inthesolutionspace,themomentumbehindcarboncaptureandstoragehascontin-uedtobuild.Asamature,well-understoodtechnology,companiesseekingtodeployCCShaveembracedrobustpolicytostrengthenthebusinesscasefordoingso.AswepublishtheGlobalStatusofCCSreportthisyear,thereareover190facilitiesintheprojectpipeline.In2022,we’veseenCCSbecomingincreasinglycommercialandcompetitiveinmanycountries.Weexpecttoseemorestrategicpartnershipsandcollaborationdrivingdeployment,particularlythroughCCSnetworks.Cleanhydrogenandotherlow-carbonfuelsarealsopartoftheCCSgrowthstory,withdozensofbluehydrogenprojectsnowindevelopmentaroundtheworld.Thisyearwe’vealsoseenunprecedentedinterestandengagementindirectaircap-turewithCCSorDACCS,withbillionsofdollarsinfundingallocatedtoscale-upthisessentialtechnology.TheoutlookforCCShasneverbeenmorepositive,whichisgoodnewsmorebroad-lyforclimatechangemitigation.However,globaleortstoreduceemissions,includinginvestmentinCCS,arestillgrosslyinadequate.PrivatecapitalmustbemetwithgovernmentpolicytounlockthefullpotentialofCCSandkeepglobalwarmingbelow1.5degrees.Putsimply,wemustmovefromambitiontoaction.CHAPTER2AMBITIONTOACTION2022STATUSREPORTSECTION22.1AMBITIONTOACTIONThepastfewyearshavewitnessedanescalationinthelanguageofclimatechange.Transformingtheglobaleconomytoachievenet-zerogreenhousegasemissionsbymid-centuryisnowacceptedastheobjectiveintheglobalclimatechangediscourse.Thislevelofambition,essentialtoavoiddangerousanthropogenicinterferencewiththeclimatesystem,requiresanaccelerationininvestmentinnear-zeroemissionstechnologiesofalltypesacrossallsectors.Putsimply,theglobalresponsetoclimatechangeisadvancingfromambitiontoactionandthisisclearlyevidentindataonthelevelofinvestmentincarboncaptureandstorage(CCS).ThesignificantincreaseinactivitytodevelopcarboncaptureandstorageprojectsreportedintheGlobalStatusofCCS2021reporthascontinuedthroughoutthisreportingperiod.AsofSeptember2022,thetotalcapacityofcommercialCCSprojectsinthepipeline(operational,indevelopment,andtwowithoperationssuspended)was243.97milliontonnesperannum(Mtpa)ofcarbondioxide(CO2)-anincreaseof44percentoverthepast12months,asshowninFigure1.Figure1:CommercialCCSFacilities2021-20222021(using2022approach)20220102030405060708090100110CAPTURECAPACITY(Mtpa)•OPERATIONAL•INCONSTRUCTION•ADVANCEDDEVELOPMENT•EARLYDEVELOPMENT•OPERATIONSUSPENDEDThisgrowtharisesfromtheprivatesector'sresponsetotherisingexpectationsofcivilsocietytomovetoanet-zeroemissionsfutureandtheevolutionofgovernmentpolicyandregulationthatisstrengtheningthebusinesscaseforinvestmentinCCS.Thebusinessrisksandopportunitiescreatedbyclimatechangearereceivingcloseranalysis.Forsomebusinesses,CCSisacriticaltoolinreducingtheirexposuretoCO2emissions,eitherdirectlyorintheirvaluechain,mitigatingastrategicbusinessrisk.Forothers,CCSisanopportunitytosupplyanewandgrowingindustry.Similarly,governmentsseekingtochartthelowest-cost,mostefficientpathwaytowardnet-zeroareidentifyingCCSalongsideallothermitigationoptionsasessentialtomeetingclimatetargets,whileensuringajusttransitionfortheircommunities.Iftheprovisionofemissionreductionservicesisconsideredinthesamewayasthemarketforanyotherservice,investmentinCCSwouldbeexpectedtocontinuetogrow.Demandforemissionreductionservicesisrisingasthecarbonbudgetconsistentwithclimatetargetsisdepleted.Futuredemandisprojectedtoriseevenmoresteeply,creatinganexpectationofarapidlygrowingindustrytomeetthatdemand.Simultaneously,demandforenergyandtheessentialmaterialsandproductsuponwhichmodernsocietyisbuilt,suchasfertiliser,steel,chemicalsandcement,isalsorisingasemergingeconomiesdevelopandtheirstandardoflivingmovestowarddevelopedeconomies.CCSisatthecentreoftheVenndiagramofthesedemanddriversandeconomicgrowth,deliveringemissionreductionservicesinessentialindustrieswhilesupportingemploymentandeconomicprosperity.FIGURE2:DemanddriversforCCS~00(0000O]DEMANDFORENERGY,FERTILISER,STEEL,CEMENT,CHEMICALSETCDEMANDFORECONOMICPROSPERITYANDAJUSTTRANSITIONDEMANDFORGREENHOUSEGASEMISSIONREDUCTIONSERVICESRecognisingthepotentialofCCS,governmentpolicycontinuestostrengthen,whichisincentivisinggreaterlevelsofinvestmentbytheprivatesector.NorthAmerica,EuropeandtheUK,regionscontainingestablishedleadersinCCS-relevantpolicy,maintainedorstrengthenedtheirpositionsoverthepast12months.Developmentsaredescribedingreaterdetailinlatersectionsofthisreport,buthereareafewexamples.IntheUS,theInfrastructureInvestmentandJobsAct(US)passedintolaw,providingoverUS$12billionforCCSandrelatedactivities,including:•$2.5billionforcarbonstoragevalidation•$8billionforhydrogenhubs,includingbluehydrogen•over$200millionannouncedorawardedbytheUSDepartmentofEnergyforCCStechnologydevelopment.TheUSalsoenactedthehistoricInflationReductionAct,whichincludesenhancementstothe45QtaxcreditandacceleratesthedeploymentofCCSbyextendingthestartofconstructiontiming,loweringcapturethresholds,andexpandingtransferability.USstates,notablyPennsylvania,WestVirginia,NorthDakota,andCalifornia,advancedlegislationrelatedtoCO2storage,and/orproposedorestablishedprogramstosupportCCS.CanadaestablishedaC$2.6billiontaxcreditforCCSprojectsandSaskatchewanextendedits20percenttaxcreditundertheprovince'sOilInfrastructureInvestmentProgramtopipelinescarryingCO2.InEurope,Denmarkannounced€5billioninsubsidiesforCCS,NorwayannouncedNOK1billion(US$100million)tosupportthreelargebluehydrogenprojects,andfourofthesevenprojectsselectedforgrantpreparationunderthefirstcalloftheEuropeanUnion'sInnovationFundwereCCSprojects.TheseprojectsareabioenergywithCCSfacilityinStockholm;acementfacilityinFrance;ahydrogenproductionfacilityinFinland;andahydrogen,ammoniaandethyleneplantinBelgium.AfurthersevenCCSprojectswereselectedinthesecondcalloftheInnovationFund.TheUKGovernmentreleaseditsCCUSInvestorRoadmapsettingoutitsapproachtodeliveringfourCCUSlow-carbonindustrialclustersby2030,andselectedthefirsttwoclusters-EastCoastandHyNet.NorthAmericaandEuropehostthemostrobustclimateandCCSpolicymechanisms,butpolicyisalsoadvancingintheAsia-Pacificregion.TheAustralianGovernmentreleasedadditionalacreageforgeologicalstorageofCO2,approvedamethodtoallowCCStocreateAustraliancarboncredits,andannouncedoverA$200millioninfundingtosupportCCS.TheJapaneseGovernmentapproveditsSixthStrategicEnergyPlandescribinghowJapanwillachievenet-zeroemissionsby2050,inwhichCCShasaprominentrole.TheChineseStateCouncilhasnowissuedmorethan10nationalpoliciesandguidelinespromotingCCS,includingtheOutlineofthe14thFive-YearPlan(2021-2025)forNationalEconomicandSocialDevelopmentandVision2035ofChina.BothIndonesiaandMalaysiatookstepstodeveloplegislationforthegeologicalstorageofcarbondioxideandthegovernmentofThailandindicatedthatitwillalsodeveloplegislation.Thisobservedramp-upofpolicyandlegislationbynationalgovernmentsisconsistentwithagrowingsenseofurgencytodrasticallyreducegreenhousegasemissions.Inchartingacoursetonet-zerogreenhousegasemissionsby2050,theyear2030hasbecomeasignificantmilestoneininternationalclimatenegotiationsandnationalemissionreductiontargetsetting.InadditiontothefundamentalrelationshipbetweenatmosphericCO2concentrationandglobalaveragetemperature,thesechallengingtargetsrecognisethatachievingnet-zeroemissionsby2050requiresanation'semissionstobewellonthatglidepathby2030.Whereashistorically,publicdiscussionofemissionreductiontargetswasalmostexclusivelyconcernedwith2050,theendofthisdecadeisnowreceivinggreaterfocus.Insomerespects,2030hasbecomethenew2050.TheoutlookforCCShasneverbeenmorepositive.However,globaleffortstoreduceemissions,includinginvestmentinCCS,remaingrosslyinadequate.FollowingtheCOVIDshocktotheglobaleconomy,emissionshavereturnedtotrend.Near-zeroemissiontechnologiesmustbedeployedatunprecedentedratestoceasethesteadyriseinemissions.Whiletheprivatesectorhasthecapital,theresources,andtheexpertisetomeetthatchallenge,governmentshavethecapacitytounleashthatpotentialanddriveinvestmentinCCSthroughpolicy.GLOBALSTATUSOFCCSCHAPTER32022STATUSREPORTSECTION3NEWCCSPROJECTSHAVEBEENANNOUNCEDEACHMONTHIN2022.ASOFSEPTEMBER2022,THEREARE196PROJECTSINTHECCSFACILITIESPIPELINE.3.1FACILITIESANDTRENDSNewCCSprojectshavebeenannouncedeachmonthin2022.AsofSeptember2022,thereare196(includingtwosuspended)projectsintheCCSfacilitiespipeline.Thisisanimpressivegrowthof44percentinthenumberofCCSfacilitiessincetheGlobalStatusofCCS2021reportandcontinuestheupwardmomentuminCCSprojectsindevelopmentsince2017.FIGURE3-PipelineofCommercialfacilitiessince2010bycapturecapacity(Mtpa)2021capacitiesadjustedtoreflectthisyear'schangetohowcapacitytonnagesareinterpreted,tofacilitatecomparisonwith2022figures.300'iii"S-250~IN0u1/)200wj::::::;uIif150II1/)IIuuIIL100I0I~I■I~III■■--■■Ia;50---a--I----I-III---■■■■I0-■■2010201120122013201420152016201720182019202020212022YEAR•EARLYDEVELOPMENT•ADVANCEDDEVELOPMENT•INCONSTRUCTION•OPERATIONALFigure3showstheincreaseinthecapacityofCCSprojectsfrom2010untilSeptember2022(thefinalbarrepresentstheprojectdevelopmentstatusasofmid-September2022).In2022,theInstitutehasformallyadoptedarevisedapproachtoestimatingtotalCCScapacity(seebelow).FIGURE4-CommercialCCSFacilitiesbynumberandtotalCO2capturecapacity(mid-September2022)IOPERATIONALINADVANCEDEARLYOPERATIONTOTALCONSTRUCTIONDEVELOPMENTDEVELOPMENTSUSPENDEDINUMBEROF301178752196FACILITIESlCAPTURE42.589.6397.691.862.3243.97CAPACITYThefacilitycountsinFigure4alsoincludetransportandstorageprojectsthatdonotincludecapture.Theseprovideessentialinfrastructurefortheindustrytodevelop.Asexplainedinthenotesbelow,theydonotcontributetocapturecapacitytonnagefigures,toavoiddouble-countingofprojectcapacities.Notableprojectdevelopmentsinthe12monthssincethelastGlobalStatusreportinclude:•DraxPowerStationintheUKannouncedtheworld'ssinglelargestbioenergywithCCS(BECCS)project,withaworld-scale8.0Mtpacapacityacrosstwounits.•TheKlemetsrudWaste-to-EnergyCCSprojectinNorwaymovedtoInConstruction,havingsecuredfunding.Thisisthefirstcommercial-scaleCCSprojectappliedtoawaste-to-energyfacility.•GlacierCCSProject-capturetechnologyfirm,Entropy,commissionedaCO2capturefacilityonanaturalgas-firedreciprocatingengine,thefirstofitskindatcommercialscaleandanimportantmilestonegiventheimportanceoffuturecapturefromnaturalgascombustionstreamsworldwide.•AirProductsannounceditsworld-scalebluehydrogenprojectinLouisiana,incorporatingautothermalreforminghydrogenproductiontofacilitateCO2•ORCA,theworld'sfirstcommercialdirectaircapturewithcarbonstorage(DACCS)facility,wascommissionedinIceland.Itsfollow-up,theMAMMOTHproject,wasthenannounced.InAustralia,theBayu-UndanprojectbySantoshasmovedintoFrontEndEngineeringandDesign(FEED).ThisprojectwillcaptureCO2fromLNGproductioninDarwinandtransportitviapipelineacrossthemaritimeborderbetweenAustraliaandTimor-Lesteforoffshoregeologicalstorage.AkeyfeatureofthisprojectisrepurposinganexistingnaturalgaspipelineforCO2Occidental,inpartnershipwithDACCStechnologycompanyCarbonEngineering,announcedthatconstructionwillcommenceona500ktpadirectaircaptureprojectinthePermianBasinintheUS.Theplantissaidtobecapableofscalinguptoa1Mtpacapacity.ThisisinthecontextofOccidental'sstatedplanstodevelopafleetofupto70suchfacilitiesaroundtheworldby2035.MEASURINGGLOBALCCSCAPACITYBYCAPTURECAPACITYInprioryears,mostCCSprojectswerefull-valuechain.ThismeanstheytendedtoincorporateasingleCO2captureplantwithitsowndedicatedCO2compression,transport(usuallypipeline)andstoragesystems.ThismeantthatwhendescribingtheCO2flowcapacity(intonnesperyear)ofthesesystems,thecapacityofthecaptureplant,transportandstoragesystemswereallalignedandoperatingasasingleintegratedsystem.Today,CCSnetworksarebecomingthepredominantmethodofCCSdeployment.CCSnetworksinvolvetheuseofsharedtransportandstorageinfrastructure.SomeCCS-relateddevelopments,suchasshippingprojects,pipelines,ornewstoragefacilities,donotinvolveCO2captureatall,andhandleCO2capturedbythirdparties.IftheCO2flowcapacitiesofthesenon-capturesiteswerecountedinourstatistics,therewouldpotentiallybeadouble-countingofglobalCCScapacity,asCO2capacitywouldhavealreadybeenincludedinourfiguresforcaptureplantsupstream.Toavoidthisproblem,andensurecompatibilitywithourhistoricalcapacitystatistics,onlyCO2capturecapacitywillbeincludedwhendeterminingglobalCCSsystemcapacity(Mtpa).Thisiswhyprojectpipelinechartsandfiguresnowexplicitlyreferto'bycapturecapacity',achangefromtheearliertitle"CapacityofCCSfacilities".Dedicatedtransportand/orstorageprojectswillstillbecountedintotalfacilitynumbers,butwillnotcontributetoglobalCCSsystemcapacity.Facilitycountscanbesomewhatarbitrarydependinguponwheretheboundariesbetweentransportandstoragefacilitiesinnetworksaredrawn.Therefore,totalsystemcapacityisabetterguidetothegrowthoftheCCSsectorthanfacilitycounts.NOTEONTHECHANGETOTHEINTERPRETATIONOFCAPACITYTONNAGESIN2022Historically,GlobalStatusofCCSreportshavereportedtonnageinmillionsoftonnesperannum(Mtpa)basedonthemeanoftheproponent-reportedrangeofplantcapacities.Forexample,ifaproponentsaiditwastargeting1-1.3Mtpaforitsproject,ourreportshavestatedthisas1.15Mtpa.ForprojectsintheEarlyDevelopmentstage,suchrangesareoftenprovidedbecausethereisuncertaintyaboutthefinalspecificationsfortheproject.However,asprojectsprogresstolaterstagesandtoconstruction,designcapacitiesaretypicallylockedintoasingledesigncapacityfigure.Thiscanmaketheserangesmisleading,especiallyifthelower-endestimateiscarriedoverfromearlierprojectstages.TheeffecthasbeenanoverallunderstatementofCO2capturecapacityforthesectorasawhole.Beginningwiththisreport,designcapacities(upperendofranges,ifgiven)willbeused.IfarangeisrevisedwhenmovingfromEarlyDevelopmenttoAdvancedDevelopment,forexample,thenewcapacityfigurewillbeusedandthefacilityentryupdatedaccordingly.Thismaymeanagivenproject'sstatedcapacitywillbeadjustedoneormoretimesovertheprojectlifecycle.Oneeffectofthischangeisthatthe2022capturecapacityintheprojectpipelinebarchartisnotdirectlycomparablewithpreviouscapturecapacities.Aportionoftheincreasefrom2021to2022isduetothismeasurementchange,andaportionisduetogrowthinprojects.Theprojectpipeline,intermsoffacilitynumbersandcapturecapacity,isnowatarecordhigh.Since2017,capturecapacityhasgrownatacompoundrateofover34percentperannum.Capturecapacity(ona2022basis-seeexplanatorynoteabove)inthepipelinehasgrownsubstantiallyinthepast12months.Thisincludesanimpressivenear-doublingofcapturecapacityintheAdvancedDevelopmentstate(projectsundergoingFrontEndEngineeringDesign),from49.4Mtpain2021to97.6Mtpain2022.AdvancedDevelopmentmeansprojectshavereceivedsignificantfundsforengineeringdevelopment,demonstratingahigherlevelofcommitmenttoprojectdevelopmentandahigherprobabilityofmovingtofundingapprovalandconstruction,sothisincreaseissignificantforfutureprojectgrowth.Byfacilitycountgrowth,theUScontinuestoleadthewayglobally,with34newprojectssince2021[1l.OtherleadingcountriesinthepastyearincludeCanada(19newprojects),theUK(13),Norway(8),andAustralia,theNetherlandsandIceland(6each).FIGURE5:WorldMapofCCSFacilitiesatVariousStagesofDevelopmenteOPERATIONAL'~'(\,-i.'-,-i:J'(C~>/l/j,--lt'-·'-;,--/eEARLYDEVELOPMENTeADVANCEDDEVELOPMENTe1NCONSTRUCTIONSignificantcontributorstothegrowthofEarlyDevelopmentandAdvancedDevelopmentpipelinesarefeaturedinthetablesbelow.FIGURE6-SignificantcontributorstoEarlyDevelopmentgrowthin2021-22COUNTRYINDUSTRYCAPTURECAPACITY(MTPA)THEILLINOISCLEANFUELSPROJECTusChemicalProduction8.1DRAXPROJECTBECCSUKPowerGeneration8MEDWAYHUBPOWERSTATIONSUKPowerGeneration7.6NETZEROTEESSIDE-BPH2TEESSIDEUKHydrogenProduction2CYCLUSPOWERGENERATIONusBioenergy2SOUTHEASTAUSTRALIACARBONCAPTUREAustraliaNaturalGas2HUBProcessingÝFIGURE7-SignificantcontributorstoAdvancedDevelopmentgrowthin2021-22COUNTRYIINDUSTRYCAPTURECAPACITY(MTPA)BAYU-UNDANCCSTimor-LesteNaturalGasProcessing10DEERPARKENERGYCENTRECCSPROJECTusPowerGeneration5FEDERATEDCO-OPERATIVESLIMITEDCanadaEthanolProduction3HUANENGLONGDONGENERGYBASECARBONChinaPowerGeneration1.5CAPTUREANDSTORAGEFEDERATEDCO-OPERATIVESLIMITED(REFINERY)CanadaOilRefiningFOOTNOTES1.Thisincludesdedicatedtransportandstorageprojects.3.2POLICY,LEGAL,ANDREGULATORYTRENDSTheglobalpolicy,legalandregulatoryenvironmentforCCSremainsdynamic,withsignificantdevelopmentsinmanyjurisdictionsoverthepastyear.Whileanumberofearly-movernationshaveadoptedarenewedfocustowardaddressingtheseissues,severalcountriesarenowintheinitialstagesofdevelopingtheirpolicyresponsetosupportandfacilitatethetechnology'sdeployment.CLIMATEPOLICYTRENDSANDANALYSISThepublicationofthemuchanticipatedIntergovernmentalPanelonClimateChange(IPCC)WorkingGroupIll(WG3)Report,MitigationofClimateChange,hasincreasedawarenessoftheneedforCCS,illustratingitseffectivenessandviabilitythroughwidescaledeploymentacrossvariousscenariosandsectors.However,whilelarge-scalefossil-basedenergyandindustrysourcesareposedtoincreasinglyincludeCCSinmodelledpathwaystolimitwarmingto1.5C,currentratesofdeploymentarefarbelowthosefoundinthemodelledpathways.TherelationshipbetweenCCSandtechnology-basedcarbondioxideremoval(CDR)ishighlightedincounterbalancingemissionswheretheycannotbemitigated.Wideningthelenstoconsideroverallsocial,environmentalandeconomicimpactsacrossmitigationoptions,ananalysisoftherelationshipofCCStothesustainabledevelopmentgoals(SDG)foundsynergiesingoals3,7,8,9and12.AbriefpublishedbytheGlobalCCSInstitutediscussesinfurtherdetailthekeytakeawaysforCCSintheWG3report(1).FIGURE8:TheUNSustainableDevelopmentGoals(source:TheUnitedNations)SUSTAINABLEDEVELOPMENTGOALSIncurrentinternationalclimatenegotiations,Articles6(marketmechanismsandnon-marketapproaches)and14(globalstocktake)oftheParisAgreementremainthemostrelevantforCCS.AsArticle6matureswithsignificantdevelopmentsinthetechnicalworkandtheestablishmentofitssupervisorybody,clarityisstillneededonthetransferofexistingCCSmethodologiesfromtheCleanDevelopmentMechanism(CDM)totheupcomingmechanismunderArticle6.LookingatArticle14,theglobalstocktake(GST)-whichrunsuntil2023andrepeatsinfive-yearcycles-presentsatimelyopportunityforCCSexpertstoengageintechnicaldialogues(TD)withpartiesthatcouldinformupdatednationallydeterminedcontributions(NDC)attheheartofachievingtheobjectivesoftheParisAgreement.FIGURE9:CCSinCountryNDCsandCCSInternationalLegislationYEARI1NDCIFIRSTNDCIFIRSTNDCUPDATEISECONDNDCAUSTRALIABAHRAINCANADACHINAEGYPTELSALVADORICELANDIRANIRAQJAPANMALAWIMONGOLIANORWAYPAKISTANQATARSAUDIARABIASOUTHAFRICAUAEUNITEDSTATESKUWAITTOGOTUNISIA■NDCMENTIONSCCS■NDCDOESNOTMENTIONCCSNOTAVAILABLETOWARDCLOSERREGIONALCOOPERATIONTheroleofcloser,regionallyfocusedcooperationinachievingCCSdeploymenthasarisenasafurtherandimportantconsiderationforbothgovernmentsandindustryoverthepast12months.TheemergenceofnewmarketsandapplicationsforCCStechnologies,enhancednationalcommitmentstoachievingnet-zeroandthecommercialopportunitiesposedbythedeploymentofCCSnetworks,hasledtogreaterscrutinyofopportunitiesbeyondnationalboundaries.FurtherprogresswithprojectsunderdevelopmentintheNorthSea,aswellasproposedactivitiesinSoutheastAsiaandthewiderAsia-Pacificregion,areindicativeofthisapproach.Tosupportthisambition,attentionhasinevitablyturnedtotherequirementsnecessaryforachievingthemand,inparticular,thedevelopmentofasupportivepolicy,legalandregulatorylandscape.Nationalgovernmentsandcorporationswithaninterestindevelopingprojectswithatransnationalelementarenowactivelyconsideringandpromotingissuessurroundingtransboundaryregulation,aswellasthedevelopmentofregionalframeworksandmechanismsthatwillsupportthedevelopmentofCCSnetworks.ThechallengesassociatedwithamoreregionallyfocusedapproachareparticularlysignificantwhereCO2istransportedfromonecountryforstorageinanothernation'sterritory.Theabilityofprojectproponentstofullyrecognisethecontributionofthesetransboundarystorageactivitieswithinnationalandinternationalaccountingandcreditingschemeshasbeenraisedbyseveralgovernmentandindustrypartiesasanimportantissuetobeaddressed.Similarly,theabsenceofdetailedlegalandregulatoryregimesforthetechnologyinmanynationsworldwidealsocreatesuncertaintyastohowstorageoperationswillberegulated.Inaddition,thesetransboundarystorageprojectswillalsocallintoplayseveralwiderinternational,regionalanddomesticlegalframeworksthatwillallrequirecarefulnavigationtoensuretheydonotunwittinglyposefurtherbarrierstoproposedactivities.FewexamplesexistwheretheseCCS-specificissueshavebeenaddressed.However,theconsiderationoftransboundaryissueswithintheinternationalmarineagreementsprovidesanimportantmodel.TheamendmentstotheLondonProtocolandtheapproachadoptedbythepartiestodate,areindicativeoftheneedtoswiftlyaddressthesechallenges.The2019agreementbythepartiestotheprotocol,toallowfortheprovisionalapplicationofa2009amendmenttoArticle6,finallyenablespartiestoavailthemselvesofprovisionsexplicitlyaimedatsupportingthetransboundarytransportationofCO2forthepurposesofgeologicalstorage.Todate,however,onlytheRepublicofKorea,Denmark,theNetherlandsandNorwayhaveformallysubmittedadeclarationontheprovisionalapplicationofthe2009amendment.Thelnstitute'sownanalysisdemonstratesthereissignificantpotentialforfurtheractivitywithintheauspicesoftheLondonProtocoltoaddressthesechallengesanddriveregionalcollaboration(2).Anincreasingfocusonthedevelopmentofregionalnetworksorindividualprojects,whichinmanyinstanceswillrequirethetransportationofCO2acrossinternationalmaritimeboundaries,emphasisestheneedforarenewedfocusontheroleofthetreatyandthenationalframeworksinsupportingdeployment.REGIONALPOLICY,LEGALANDREGULATORYDEVELOPMENTSTheglobalpolicy,legalandregulatoryenvironmentforCCSremainsdynamic,withsignificantdevelopmentsinmanyjurisdictionsoverthepaf'tyear.Whileanumberofearly-movernationshaveadoptedarenewedfocustowardaddressingtheseissues,severalcountriesarenowintheinitialstagesofdevelopingtheirpolicyresponsetosupportandfacilitatethetechnology'sdeployment.InNorthAmerica,regulatorsandpolicymakershavecontinuedtostrengthentheirexistingCCS-specificframeworkstoofferfurtherfinancialincentivesandprovidenewandadditionalregulatoryframeworks.Canada'srobustpolicyandregulatoryenvironmenthasbeenfurtherstrengthenedbyaproposedfederalinvestmenttaxcreditforCCS,whileintheUS,thefederalgovernmenthascommittedfurtherproject-specificandinfrastructurefundingthroughitsInfrastructureInvestmentandJobsAct(US).AdditionalenhancementstotheUS'ssuccessful45QtaxcreditschemeweremadethroughtheintroductionoftheInflationReductionAct(US)of2022,whileexpansionofthenation'sCCS-specificlegislationalsocontinues,withplannedstate-levellegislationandnewfederallegislationtoregulateleasingandprovideoversightofoffshoreCCSoperations.TheannouncementofprojectsupportthroughtheEU'sInnovationfundforCCS,coupledwithabuoyantEUEmissionsTradingScheme(EUETS)andfurtherpolicyinitiativesfromindividualmemberstates,continuestostrengthenthesupportivepolicyenvironmentforthetechnologyinEurope.Severalcountrieswithintheregionhavesoughttobuilduponthismomentum,announcingnewinitiativesandcommittingfurthersupporttoprojects.IntheUK,thegovernmenthasprogresseditspost-Brexitplanforenergytransition,announcingtwoinitialhubsandfurtherrefiningitsbusinessmodelfortransportandstorage.NorwayandtheNetherlandshavealsosoughttostrengthenpolicyandregulatorycommitmentstothetechnologyandthetwonationswerethefirsttodepositdeclarationsontheprovisionalapplicationoftheLondonProtocolamendments.Onanotherpositivenote,severalothermemberstatesarealsoseekingtore-engagewithCCS,tocompleteregulatoryframeworks,removebarriersandprovidepolicysupport.Recentpolicy,legalandregulatorydevelopmentsacrosstheAsia-Pacificregionhighlighttheincreasingfocusofgovernmentandindustryonthetechnologyaswellasthesignificanceoftheseissuesinsupportingitsmorewidespreaddeployment.InAustralia,thenewLaborgovernmenthascommittedtostrengtheningbaselinesformajoremittersundertheexistingsafeguardmechanism,adecisionthatmayofferfurthersupporttoCCSprojects.ThedevelopmentcomplementstheearlierreleaseoftheCCS-specificmethodologyunderthenationalEmissionReductionFund,whichwillprovideaformalrevenuepathwaythroughthegenerationofcarboncreditunits.ThegovernmentsofJapanandChinahavealsotakenfurtherstepsinthepastyear,introducingnewclimateandenergypoliciesandinthecaseofJapan,announcingacommitmenttothedevelopmentofaCCS-specificregulatoryframework.SignificantregionalpotentialforthetechnologyhasledtoseveralimportantdevelopmentsinSoutheastAsia.ThegovernmentsofIndonesiaandMalaysiahavemadeseveralpolicyannouncementsinlinewiththeircommitmentstosupportingmorewidespreaddeployment.ThegovernmentofIndonesiahasreleasedadraftofitsregion-firstCCS-specificlegalandregulatoryframework,withMalaysiaalsoindicatingthatittooisintheprocessofdevelopingaCCS-specificregulatoryregime.Whileothercountrieswithintheregionhaveannouncedprojectsortakententativestepstowarddeployment,theirpolicyandregulatoryregimesremainunderdevelopedandwillrequirefurtherinterventiontosupportmorewidespreaddeployment.REFERENCES1.AlAmer,N.(2022)CCSinthelatestIPCCreport"MitigationofClimateChange".2.Havercroft,I.andConsoli,C.(2022)DevelopmentsandOpportunities-AReviewofNationalResponsestoCCSUndertheLondonProtocol.REGIONALOVERVIEWCHAPTER42022STATUSREPORT~~~~~~~~~~~~~~I===================================================================================================================ISECTION44.1THEAMERICASTheAmericas,particularlyNorthAmerica,continueleadingtheworldinCCSdeployment.IntheUS,theBidenadministrationfindsthatachievinganequitabletransitiontoanet-zeroeconomyby2050mustincludepoliciesthatprovidesignificantfundingforcutting-edgetechnologiestosafelyandefficientlycapture,remove,andstorecarbondioxide.CarboncaptureandstoragehasbipartisanpoliticalsupportintheUS.Likewise,inCanada,CCUSiscriticalinitseconomicandenvironmentalpathtomeetingitsnet-zeroby2050objective.Theroleofenvironmental,social,andgovernance(ESG)principlescontinuestoincrease.OVERVIEWCANADA'S2022FEDERALBUDGETSTRONGLYSUPPORTSCCUSVIAANINVESTMENTTAXCREDIT.THETAXCREDITRATEIS60PERCENTFORDIRECTAIRCAPTUREPROJECTS,50PERCENTFORALLOTHERCARBONCAPTUREPROJECTS,AND37.5PERCENTFORTRANSPORTATION,STORAGE,ANDUSE.THEUSENACTEDTHEHISTORICINFLATIONREDUCTIONACT(US)OF2022,WHICHINCLUDESENHANCEMENTSTOINTERNALREVENUESERVICESECTION45QANDUS$369BILLIONINFUNDINGFORCLIMATEANDENERGY.INFRASTRUCTUREINVESTMENTANDJOBSACTINCLUDESOVERUS$12BILLIONTOBESPENTONCCSOVERTHENEXTFIVEYEARS.BRAZILCONTINUESPROGRESSINGTOWARDITSGOALOFINJECTING40MILLIONTONNESOFCO2BY2025.CANADAPOLICYInNovember2021,theProvinceofSaskatchewanannouncedtheeligibilityofpipelinestransportingCO2,whetherforCCUSorenhancedoilrecovery(EOR),fortheprovincialoilinfrastructureinvestmentprogram(OIIP)(1).TheprovinceofAlbertaalsoannouncedinthefourthquarterof2021theAlbertaHydrogenRoadmap,outliningAlberta'sintentiontobecomeaninternationalleaderincleanhydrogen.CCUSiskeyintheroadmap(2).Inthefirstquarterof2022,thegovernmentofCanadareleasedits2030EmissionsReductionPlan(3).Canada'sgoalistopositionitsindustriestobegreenandcompetitive,whichincludesdevelopingaCCUSstrategytoincentivisethedevelopmentandadoptionofthistechnology.TheplanprovidesaroadmapforhowCanadawillmeetitsenhancedParisAgreementnationallydeterminedcontributions(NDC)targettoreducegreenhousegasemissionsto40-45percentbelow2005levelsby2030acrosstheCanadianeconomy,andputsthecountryonapathtoachievingnet-zeroemissionsby2050.FIGURE10:CarbonPricingAcrossCanada■PROVINCIAL/TERRITORIAL■FEDERALBACKSTOPSYSTEMAPPLIESAPPLIESINPART■FEDERALBACKSTOPAPPLIESINFULLOUTPUT-BASEDPRICINGSYSTEM(OBPS),AREGULATORYTRADINGSYSTEMFORINDUSTRYFUELCHARGEFollowingthereleaseoftheplan,Canadaissuedits2022federalbudget,whichstronglysupportsCCUSviaaninvestmenttaxcredit(4).Thetaxcreditrateis60percentfordirectaircaptureprojects,50percentforallothercarboncaptureprojects,and37.5percentfortransportation,storage,andusefrom2022through2030.Afterthat,from2031to2040,thetaxratesdropto30percent,25percent,and18.75percent,respectively.Thetaxcreditcanbeclaimedbybusinessesthat,beginning1January2022,incureligibleexpensesrelatedtopurchasingandinstallingequipmentusedinasuitablenewprojectthatcapturesCO2emissions.Companiescanclaimthetaxcreditonlyiftheyagreetoabidebyavalidationandverificationprocess,provethattheprojectmeetsCO2storagerequirements,andproduceaclimate-relatedfinancialdisclosurereport.ENVIRONMENTAL,SOCIALANDGOVERNANCEInDecember2021,Canada'sPrimeMinister,JustinTrudeau,directedCabinetministerstomovetowardmandatoryclimate-relatedfinancialdisclosuresaspartofCanada'sstrategytotransitiontonet-zeroby2050(5).The2022BudgetincludedthismandatoryreportingrequirementacrossabroadspectrumoftheCanadianeconomy,basedontheinternationalTaskForceonClimate-relatedFinancialDisclosures(TCFD)framework(6).OTHERPROVINCES-ONTARIOHard-to-decarbonisesectorsofOntario'seconomy,suchassteelmakingandcement,donothaveobviouspathstoacarbon-neutralfuture.Inthesesectors,CCSlikelyprovidesthemostviabledecarbonisationoption.Therefore,thegovernmentisevaluatingCO2storageasadecarbonisationoption.Thelikelystorageareawillbeinthewesternpartoftheprovinceinsalineaquifers.Butexistinglawsprohibitstorage,sotheprovincemustrevisethegoverningstatutesbynarrowingtheprohibitionontheinjectionofCO2intoawellregulatedundertheOil,Gas,andSaltResourcesAct(Canada),andbyenablingauthorisationtostorecarbononCrownlandundertheMiningAct(Canada)(7).PROJECTSAlargepercentageofCCUS-specificactionandstrategyliesintheprovincesofAlbertaandSaskatchewan.AlbertaisdevelopingCanada'sfirstcarbonstoragehubstohelpcutclimate-warmingemissionsbypermanentlysequesteringCO2underground.InMarch2022,theprovinceselectedsixproposalstomoveforwardwithdevelopingCanada'sfirstcarbonstoragehubsservicingAlberta'sindustrialheartlandregionnearEdmonton.Theselectedproposalscamefrom:EnbridgeInc.;ShellCanadaLimited;ATCOEnergySolutionsLtd;SuncorEnergyInc.;WolfCarbonsSolutions;BisonLowCarbonVentures;EnhanceEnergy;andajoint-ventureprojectfromTCEnergyandPembinaPipelineCorp.(8,9).Alberta'sabundanceofgeologicalformationsforCO2storagemakesitanideallocationtodevelopaseriesofCCUShubs(10).EntropyInc.announcedthatithasbeguncommissioningitsfirstpost-combustionCCSprojectattheGlacierGasPlantinAlberta.Permanentgeologiccarboninjectionwilllikelystartduringthesummerof2022.Theprojectisconsideredtobetheworld'sfirstcommercialprojecttocaptureandstorecarbondioxidefromthecombustionofnaturalgas(11).ThegovernmentofSaskatchewan'sMinistryofEnergyandResourcesandotherswillsupportastudy,developedbytheTransitionAcceleratorandtheSaskatchewanResearchCouncil,toprovideinvestorswithananalysisofcommercial-scalehydrogenopportunitiesandsynergieswithCCUSinfrastructureinSaskatchewan.UNITEDSTATESPOLICYThenationalclimategoalsof100percentcleanelectricityby2035andachievinganet-zeroemissionseconomyby2050involvesignificantrelianceonCCS.Throughenactedlegislationinlate2021andduring2022,theUScommittedtorecordinvestmentsintocarboncapturetechnologies,whilealsoaddressingenvironmentaljusticeconcerns.LEGISLATIVEInNovember2021,theUSenactedtheInfrastructureInvestmentandJobsAct(IIJA)(US),whichincludedoverUS$12billiontobespentonCCSoverthenextfiveyears.ThelegislationincludesfundingforCCUSresearch,development,anddemonstration,CO2transportandstorageinfrastructure,carbonutilisationmarketdevelopmentandfourregionaldirectaircapturewithcarbonstorage(DACCS)hubs,andDACCScompetition(12).TheUSenactedthebipartisanCreatingHelpfulIncentivestoProduceSemiconductorsforAmericafundin2022,ortheCHIPSAct(US).CHIPSprovidesfundingforincreasedcarbonremovalresearch,developmentanddemonstration(13).TheUSalsoenactedthehistoricInflationReductionAct(US)of2022,whichincludesenhancementstoInternalRevenueServicesection45Q.ThelegislationacceleratesCCSdeploymentbyextendingthestartofconstructiontimingtotheendof2032;loweringcapturethresholds,includingdirectpay;andexpandingtransferability.TheActalsoincreasesthecreditamountpertonneforentitiessatisfyingprevailingwageandapprenticerequirements(14,15).POLICYGUIDANCEANDANNOUNCEMENTSTheCouncilonEnvironmentalQuality(CEQ)issuedguidancetopromotetheresponsibledevelopmentandpermittingofCCUSprojects.GuidanceelementsincludefacilitatingfederaldecisionmakingonCCUSprojectsandCO2pipelines,publicengagement,understandingofenvironmentalimpacts,andcarbondioxideremoval(16).TheDepartmentofEnergyOfficeofFossilEnergyandCarbonManagement(FECM)publisheditsstrategyforadvancingCCS.TheStrategicVisionestablishesaframeworkformakinginformedcarbonmanagementdecisionsregardingdeepdecarbonisationandaddressinglegacyemissions.FECMprioritisesjustice,labourandengagement;carbonmanagementapproachestowarddeepdecarbonisation;andtechnologiesthatleadtosustainableenergy(17).ThePipelineandHazardousMaterialsSafetyAdministration(PHMSA)announcednewsafetymeasuresforCO2pipelinesandinitiatednewrulemaking.PHMSAalsoissuedanupdatedadvisorybulletinaddressingissuesresultingfromgeologicalhazards(18).TheBureauofLandManagement(BLM)issuedguidanceforCO2storageinlinewiththeFederalLandManagementPolicyAct(US).BLM'sinstructionmemorandumaddressedcarbonstorageonpubliclands,includingporespacemanagedbyBLM(19).OFFSHORESTORAGETheIIJAlegislationamendstheOuterContinentalShelfLandsAct(US),directingtheDepartmentofInteriortodevelopregulationsforestablishingapermittingframeworkforoffshoreCO2storage.ENVIRONMENTAL,SOCIALANDGOVERNANCETheSecuritiesandExchangeCommissionproposedaruleaddressingclimate-relateddisclosures.Theproposedrulewouldrequirecompanydisclosureonhowitplanstoattainclimate-relatedtargets(suchasinvestinginrenewableenergyorcarboncapturetechnology).TheproposalrecognisesthatCCSwilllikelyhavearoletoplayinthegovernanceofsomecompaniesregardingESG(20).JUDICIALTheUSSupremeCourtissueditsdecisioninWestVirginiavUnitedStatesEnvironmentalProtectionAgency(USEPA),acasechallengingthe2015Obamaadministration'sCleanPowerPlan's(CPP)rule.ThecourtheldthattheUSEPAexceededitsstatutoryauthorityundertheCleanAirAct(US)inattemptingtoregulatethenation'senergysectorbyadoptingtheCPP.Thecourtruledthattheagencycouldnot"forceanationwidetransitionawayfromtheuseofcoal"(21).ThedecisionlimitstheUSEPA'sabilitytoregulategreenhousegases.StateswilllikelyusetheirauthoritytoregulateGHGs.STATESSeveralstatesareprogressingcarbonmanagementpolicies.TheCaliforniaAirResourcesBoard(CARB)releaseditsDraft2022ScopingPlanforcomment.TheScopingPlanpresentsapathforcarbonneutralityby2045,whilesupportingeconomic,environmental,energysecurity,justice,andhealthpriorities.TheScopingPlancallsforthedeploymentofCCStechnologyinsectorswherenon-combustionoptionsarenottechnicallyoreconomicallyviableformeeting2045goals(22).SeveralotherstateshaveenactedlegislationorpoliciescoveringCO2storage.TheseincludeIndiana,WestVirginia,andWyoming.Statescontinuetofacepermittingconcernswhereonlytwostates,WyomingandNorthDakota,haveprimacyforissuingpermitsundertheUndergroundInjectionControlProgram,whichcoversinjectionwellsforgeologicstorageofCO2.Theexistingpermittingprocesscantakeyears.ThestateofLouisianahasaprimacypermitapplicationpending.Texas,Arizona,andWestVirginiaareinthepre-applicationprimacyapplicationprocess.DIVERSEPARTNERSHIPSPROMOTECCSDEPLOYMENTSignificantmomentumforCCSprojectdevelopmentsandannouncementsinvarioussectorscontinues.ThehighlevelofactivityrelatedtoCCSprojectdevelopmentsislikelyduetoanumberofreasonsthatincludecollaborationandpartnershipsbetweencompanieswithdifferingcapabilitiesandrequirementsintheCCSvaluechain;policychangessuchasenhanced45Qtaxcredits;andinnovativepipelineservicechangesfromnaturalgastoCO2transportconversions.Examplesofsometheseinnovativeprojectsinclude:TalasEnergy,Carbonvert,andChevronannouncedanexpandedjointventuretodeveloptheBayouBendCCShub,withTalasbeingtheoperator(23).NEXTCarbonSolutionsandCaliforniaResourcesCorporationjointlyannouncedanagreementtoexplorefurtherthedecarbonisationofCRC'sElkHillsPowerPlant.ThecompaniesseektocaptureandutilisetheemissionsfromtheElkHillsPowerPlantforpermanentstorageinoil-producingreservoirs(24).CarbonAmericawillfinanceandoperatesystemsinColoradoethanolplantstocaptureandstoreunderground95percentofCO2emissionsfromtwoColoradoplants(25).TallgrassplanstoconvertitsTrailblazernaturalgaspipelinetotransportCO2capturedfromacarboncaptureprojectatanADMcornprocessingcomplexinNebraska.The400mile(644km)pipelineexpandsthereachofitsEasternWyomingSequestrationHub(26).TheRedTrailEnergyCCSprojectatitsethanolfacilitynearRichardton,NorthDakota,isofficiallyoperating.TheprojectisthefirstintheUStooperateunderastate-ledregulatoryauthorityforcarbonstorage.RedTrailisadvancingtheprojectutilisingthe45Qtaxcredit(27).MorecompaniesannouncedsupportforthemassivegrogosedcarboncagtureandstoragehubintheHoustonShipChannel,bringingthenumberofindustrialfacilitiesto14(28).Occidentalwillbuild70carboncapturefacilitiesby2035.Thefacilitiesareexpectedtoeachremoveasmuchas1MtpaofCO2directlyfromtheatmosphere(29).DEVELOPMEMNTSINBRAZILBrazilhostsanoperatingCCSfacilityintheSantosBasinwherePetrobrascontinuesprogressingtowarditsgoalofinjecting40milliontonnesofCO2by2025.SignificantpolicydevelopmentsregardingCCSdeploymentoccurredin2021and2022inBrazil.InadditiontoupdatingitsNDC,significantlegislationwasintroducedintoBrazil'slegislature(30).Bill1.425/2022establishesalegalframeworkforthegeologicalstorageofcarbondioxide,addressingporespacepropertyrights,long-termresponsibilitiesanditstransferfromprivatetopublicagent,thedefinitionofregulatoryagencies,andtheperiodofmonitoring.(31)Additionally,Decreto11.075/2022establishestheproceduresforthepreparationof"SectoralPlansforMitigationofClimateChange"andsetstheNationalSystemfortheReductionofGreenhouseGasEmissions(31).REFERENCES1.SpeerR.OIiinfrastructuretoSupportCC.2021[cited2022Aug12];Availablefrom:https://www.saskatchewan.ca/government/news-and-media/2021/november/04/oil-infrastructure-program-expanded-to-support-carbon-capture2.GovernmentofAlberta.IndustrialEnergyEfficiency,CarbonCaptureUtilizationandStorage[Internet].[cited2022Aug4].Availablefrom:https://www.alberta.ca/industrial-energy-efficiency-carbon-capture-utilization-and-storage.aspx3.GovernmentofCanada.2030EmissionsReductionPlan.2022[cited2022Aug12];Availablefrom:https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/erp/Canada-2030-Emissions-Reduction-Plan-eng.pdf4.InternationalCCSKnowledgeCentre.2022FederalBudgetSignalsStrongSupportforCarbonCaptureTechnologyinCanada.2022[cited2022Aug12];Availablefrom:https://www.globenewswire.com/en/news-release/2022/04/07/2418981/0/en/2022-Federal-Budget-Signals-Strong-Support-for-Carbon-Capture-Technology-in-Canada.htmI5.MarkSegal.CanadaMovesTowardsMandatoryClimateDisclosure.2021[cited2022Aug12];Availablefrom:8.https://www.esgtoday.com/canada-moves-towards-mandatory-climate-disclosures/6.GovernmentofCanada.2022Budget:Aplantogrowoureconomyandmakeourlifemoreaffordable.2022.7.GovernmentofCanada.DiscussionPaper:GeologicCarbonStorageinOntario.2022[cited2022Aug12];Availablefrom:https://prod-environmental-registry.s3.amazonaws.com/2022-01/Geologic%20Carbon%20Storage%20Discussion%20Paper%20-%20FinalENG%20-%202022-01-04_0.pdf8.WilliamsN.AlbertapickssixproposaltodevelopCanada'sfirstcarbonstoragehubs.2022[cited2022Aug12];Availablefrom:https://www.reuters.com/business/environment/enbridge-shell-among-projects-picked-explore-developing-canadas-first-carbon-2022-03-31/9.Cherniak-KennedyA.TheGovernmentofAlbertaandthefederalgovernmentadvancethepotentialdevelopmentofcarbonstoragehubs.2022[cited2022Aug12];Availablefrom:https://www.dentons.com/en/insights/articles/2022/april/11/the-government-of-alberta-and-the-federal-government-advance-the-potential10.Reuters.Factbox:ProposedcapitalprojectsrelyingonAlbertacarboncaptureandstoragebuild-out.2022[cited2022Aug13];Availablefrom:https://www.reuters.com/business/sustainable-business/proposed-capital-projects-relying-alberta-carbon-capture-storage-build-out-2022-04-05/11.EntropyInc.EntropyAnnouncesCommissioningoftheFirstPhaseofCCSProject.2022[cited2022Aug13];Availablefrom:https://carboncapturemagazine.com/articles/263/entropy-announces-commissioning-of-the-first-phase-of-ccs-project#:ru:text=ADVERTISEMENT-,Entropy%201nc.,%2C%20effective%20June%2027%2C%202022.12.CleanAirTaskForce.CarbonManagementProvisionintheInfrastructureInvestmentandJobsAct.2021[Internet].[cited2022Aug13];Availablefrom:https://www.catf.us/resource/carbon-management-provisions-in-the-infrastructure-investments-and-jobs-act/13.USCongress.CreatingHelpfulIncentivestoProduceSemiconductorsforAmericafund,ortheCHIPSAct,of2022.[Internet].2022[cited2022Aug13].Availablefrom:https://science.house.gov/imo/media/doc/the_chips_and_science_act.pdf?mc_cid=d904691b73&mc_eid=10a5ff616d14.RiddleJ.SchumerandManchin'sInflationReductionActIncludesSignificantTaxIncentivestoCombatClimateChange[Internet].2022[cited2022Aug13].Availablefrom:https://www.kirkland.com/publications/kirkland-alert/2022/08/schumer-manchin-inflation-reduction-act-climate-investment15.USSenate.InflationReductionAct[Internet].2022[cited2022Aug12].Availablefrom:https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf16.CouncilonEnvironmentalQuality.CarbonCapture,Utilization,andSequestrationGuidance.2022[cited2022Aug13];Availablefrom:https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance17.OfficeofFossilEnergyandCarbonManagement.FECM'sStrategicVision:AchievingNet-ZeroGreenhouseGasEmissions.2022;18.U.S.DepartmentofTransportation'sPipelineandHazardousMaterialsSafetyAdministration(PHMSA).PHMSAAnnouncesNewSafetyMeasurestoProtectAmericansFromCarbonDioxidePipelinesFailuresAfterSatartia,MSLeak.2022[cited2022Aug13];Availablefrom:21.https://www.phmsa.dot.gov/news/phmsa-announces-new-safety-measures-protect-americans-carbon-dioxide-pipeline-failures19.U.S.DepartmentoftheInterior-BureauofLandManagement.NationalPolicyfortheRight-of-wayAuthorizationsNecessaryforSiteCharacterization,Capture,Transportation,Injection,andPermanentGeologicSequestrationofCarbonDioxideinConnectionwithCarbonSequestrationProjects.2022[cited2022Aug13];Availablefrom:22.https://www.blm.gov/policy/im-2022-04120.SecuritiesandExchangeCommission.SECProposesRulestoEnhanceandStandardizeClimate-RelatedDisclosuresforInvestors.2022[cited2022Aug13];Availablefrom:https://www.sec.gov/news/press-release/2022-4621.King&Spaulding.WestVirginiav.EPA:TheForecastisCloudyforEnvironmentalandAgencyRegulation.2022[cited2022Aug13];Availablefrom:https://www.kslaw.com/news-and-insights/west-virginia-v-epa-the-forecast-is-cloudy-for-environmental-and-agency-regulation22.CaliforniaAirResourcesBoard.DRAFT2022SCOPINGPLANUPDATEMAY10,2022.2022[cited2022Aug12];Availablefrom:22.https://ww2.arb.ca.gov/sites/default/files/2022-05/2022-draft-sp.pdf23.Talos.TALOS,CARBONVERTANDCHEVRONANNOUNCECLOSINGOFPREVIOUSLYANNOUNCEDJOINTVENTUREEXPANSIONOFTHEBAYOUBENDCCSPROJECTOFFSHOREJEFFERSONCOUNTY,TEXAS.2022[cited2022Aug12];Availablefrom:https://www.talosenergy.com/investor-relations/news/news-details/2022/TALOS-CARBONVERT-AND-CHEVRON-ANNOUNCE-CLOSING-OF-PREVIOUSLY-ANNOUNCED-JOINT-VENTURE-EXPANSION-OF-THE-BAYOU-BEND-CCS-PROJECT-OFFSHORE-JEFFERSON-COUNTY-TEXAS/24.NextDecade.NEXTCarbonSolutionsandCaliforniaResourcesCorporationAgreetoFEEDStudy.2022[cited2022Aug12];Availablefrom:https://investors.next-decade.com/news-releases/news-release-details/next-carbon-solutions-and-california-resources-corporation-agree25.SweetC,KramerD.CarbonAmericatoConstruct,OwnandOperatetheFirstTwoCommercialCarbonCaptureandSequestrationProjectsinColorado.2022[cited2022Aug12];Availablefrom:https://www.businesswire.com/news/home/20220512005336/en/Carbon-America-to-Construct-Own-and-Operate-the-First-Two-Commercial-Carbon-Capture-and-Sequestration-Projects-in-Colorado26.Reuters.TallgrassEnergyPlanstoConvertNatgasPipelineintoCO2TransportSystem.2022[cited2022Aug12];Availablefrom:29.https://pgjonline.com/news/2022/may/tallgrass-energy-plans-to-convert-natgas-pipeline-into-co2-transport-system27.RedTrailEnergyLLC.RedTrailEnergybeginscarboncaptureandstorage.2022[cited2022Aug12];Availablefrom:https://ethanolproducer.com/articles/19447/red-trail-energy-begins-carbon-capture-and-storage28.KlingeN.ProposedHoustonCCShubgainssupermajorsupport.2022[cited2022Aug12];Availablefrom:https://www.upstreamonline.com/energy-transition/proposed-houston-ccs-hub-gains-supermajor-support/2-1-114939229.TakahashiP.OccidentalPlans70PlantstoCaptureCarbonFromAirby2035.2022[cited2022Aug12];Availablefrom:https://www.bloomberg.com/news/articles/2022-03-23/occidental-plans-70-plants-to-capture-carbon-from-air-by-203530.GovernmentofBrazil.FEDERATIVEREPUBLICOFBRAZILParisAgreementNATIONALLYDETERMINEDCONTRIBUTION(NDC).2022[cited2022Aug12];Availablefrom:https://unfccc.int/sites/default/files/NDC/2022-06/Updated%20-%20First%20NDC%20-%20%20FINAL%20-%20PDF.pdf31.BrazilianSenate.BillNo.1425,of2022.2022[cited2022Aug12];Availablefrom:https://www25.senado.leg.br/web/atividade/materias/-/materia/1533424.2ASIAPACIFICCCSintheAsia-Pacificregion,aspartofbroaderclimatemitigation,remainsacontinuingcontrastbetweensignificantdevelopmentandlaggingdeployment.Whilethepublicandprivatesectorsacrosstheregioncontinuetoreleaseclimatemitigationplansandrampupdecarbonisationefforts,muchmoreisrequiredandsoon(1).OVERVIEWTHEFIRSTCOMMERCIALPROJECTWASANNOUNCEDINTHAILAND.ON25FEBRUARY2022,THEWORLD'SFIRSTSHIPMENTOFLIQUIDHYDROGENINAPURPOSE-BUILTSHIP,FROMTHEPORTOFHASTINGSINVICTORIA,AUSTRALIA,WASSUCCESSFULLYUNLOADEDINKOBEJAPANSUCCESSFULLYCOMPLETINGTHEHYDROGENENERGYSUPPLYCHAINPROJECT.CHINA'SFIRSTMILLION-TONNECCUSPROJECTCOMMENCEDOPERATION.---JAPANESESHIPPINGCOMPANIESAREINCREASINGLYACTIVEINLIQUIFIEDCO2TRANSPORTATIONFORCCS,WORKINGONSHIPPINGTECHNOLOGYANDDEMONSTRATIONPROJECTS.PartofthecomplexityofregionalclimateambitionisthatmanyAsianeconomies,particularlythoseinSoutheastAsia,arereliantonfossilfuelstodrivetheirgrowth.Manyalsoremainhometoasubstantialportionoftheworld'semissions-intenseindustries,highlightingthenecessityofCCSinmanagingthedualchallengeofgrowthanddecarbonisation.Somenotableprogresshasbeenmadeoverthepast12months.Severalnewprojectshavebeenannounced,includingthefirstcommercialprojectinThailand,andinstitutionalmomentumisclearasCCSregulationsandpolicymechanismshavebeguntoemergeatnationalandsub-nationallevels.Collaborationcontinuestoaccelerate,withMOUsproliferatingacrossboththeprivateandpublicsectors.However,threebroadbarrierstoCCSremainacrosstheregiontovaryingextents-geologicalstorageresourcedata,legalandregulatoryframeworks,andincentivisingpolicy.FIGURE11:CCUSDeploymentinSoutheastAsiaintheSustainableDevelopmentScenario(Source:InternationalEnergyAgency2021)(note:valuesshownarefromthe/EASustainableDevelopmentScenario;correspondingCCUSdeploymentlevelsaregenerallyhigherintheNetZero2050roadmap)250---------------------------------------------------203020402050■FUELTRANSFORMATION■INDUSTRY■POWERMALAYSIAOVERVIEWMalaysia,inlargepartthroughitswell-establishedoilandgasindustry,ispositioningitselftobeaCCSleaderinSoutheastAsia.AtaGlobalCCSInstituteeventinApril,arepresentativefromMalaysiannationaloilandgasoperator,Petronas,statedthatthenationalvisionwastobecomeanoffshorestoragehubbytheendofthedecade(2).MPMSeniorVicePresident,MohamedFirouzAsnan,publiclysaidthat"sixtypercentofstoragecapacitywillbeallocatedtoMalaysia-forPetronasandourpartners-whiletheremaining40percentwillbemadeavailabletootherusers"(3).PROJECTSMoreinformationhasbeenreleasedregardingtheKasawariCCSproject,locatedoffshorefromSarawak.LinkedtotheKasawariPh2Field,theprojectformspartofastrategytomonetisehighCO2gasresourcesandpartoftheorganisation'sbroaderobjectiveofachievingnet-zeroby2050.Theprojectseekstocaptureapproximately4.5MtpaCO2,beginningin2025,transportedviapipeline135kmtoadepletedreservoirintheM1field(2).ThesecondprojectemerginginMalaysiaistheLangLebahCCSproject.OffshorefromSarawak,LangLebahisthelargestdiscoveryfromPTTEP,Thailand'snationaloiloperator(4).Thereservoirisestimatedtocontain17percentCO2,necessitatingCCS(5).POLICYInSeptember2021,duringthereleaseofthe12thMalaysiaPlan2021-2025,theMalaysianGovernmentcommittedtoachievingnet-zeroby2050'attheearliest',withacommitmenttoa45percentreductioninemissionsby2030,basedon2005levels(6).Thenationalcommitment,inlinewiththesamecommitmentfromPetronas,highlightsanecessaryroleforCCSfortheworld'sfourth-largestliqufiednaturalgas(LNG)producer(7).Inthesameplan,thePresidentannouncedtheintroductionofacarbonpricingmechanism(6).However,littleinformationhasbeenreleasedastoratesandadministration.Anationalclimatechangelegalframeworkisexpectedneartheendof2022.CCUSregulationsarebelievedtobeunderdevelopment.INDONESIAOVERVIEWIndonesiaremainsaCCSproponentandappearstobeadeploymentfrontrunnerinSoutheastAsia.LikeMalaysia,thebroadvisionforIndonesianCCSisdeliveringproject-levelabatement,whilealsoopeningtheopportunityforthecountrytobecomeastoragefacilityintheregion.TheIndonesianGovernmentisprogressingpolicyandregulatorydevelopmentasforeignoilandgasoperatorsdriveprojects.PROJECTSInlate2021,BPannouncedthattheIndonesianoilandgasregulator,SKKMigas,hadapprovedtheexpansionoftheTangguhLNGprojectandthedevelopmentoftheVorwataCCUSproject(8).Theproject,slatedforcompletionby2026or2027,willinjectupto4Mtpaforincrementalgasrecoveryandpermanentstorage(9).RepsolisplanningitsfirstinjectionatitsSakekamangCCSprojectby2027,whichisestimatedtobeabletopermanentlystore2.5Mtpa.InMay,PertaminaannounceditwouldcollaboratewithAirLiquideIndonesiatodevelopCCUStechnologyattheBalikpapanRefineryProcessingUnity,withCO2utilisedorstoredintheKutaiBasin(10).Elsewhere,fourorganisations,JapanOil,GasandMetalsNationalCorporation(JOGMEC);MitsubishiCorporation(MC);BandungInstituteofTechnology(1TB);andPTPancaAmaraUtama(PAU),haveagreedtoconductajointstudyontheproductionofammoniawithCCS.POLICYANDREGULATORYDEVELOPMENTSIndonesiaestablishedataskforceinmid-2021,coordinatedbytheMinistryofEnergyandMineralResources,todraftCCUSregulations.Theregulationsareexpectedtobedisseminatedbytheendof2022.ThePresidentialRegulation98/201ontheInstrumentfortheEconomicValueofCarbonfortheAchievementoftheNDCandControl,acarbonpricingmechanism,wasmeanttolaunchinearly2022,buthasbeendelayedseveraltimes.Themechanismeffectivelysetsupalegalframeworkforbothdomesticpricingandtradingofcarbonandwilloperateinconjunctionwiththecarbontaxsettobeimposedoncoal-firedpowerplants(atUS$2.09pertonne).AUSTRALIAPROJECTS-NEWANDUPDATEDPerhapsthemostsignificantdevelopmentintheAustralianCCSprojectlandscapehasbeentheprogressoftheMiddleArmSustainableDevelopmentPrecinct,anaturalgasprocessingandlow-carbonmanufacturinghubintheNorthernTerritory.TheMiddleArmhubisnowintheearlyplanningphases,havingreceivedprojectcommitmentsfromthepreviousfederalgovernment,aswellasmajornaturalgasoperatorsINPEXandSantos,inthepast12months.InNovember2021,SantosannouncedafinalinvestmentdecisiononitsMoombaCCSproject,whichwillcommenceoperationsin2024andinject1.7Mtpa(11).SantosenteredintotheFEEDphaseinMarchfortheproposedBayu-UndanCCSproject,locatedoffshorefromTimor-Leste(12).Bayu-Undancouldstoreupto10MtpaCO2,actingasaregionalstoragehub(12).InApril,ExxonMobil,throughEssoAustralia,signalleditwasundertakingpre-FEEDstudiestodeterminethepotentialforaCCShubintheGippslandBasin(13).Woodside,BP,andJapanAustraliaLNGareundertakingfeasibilitystudiesforaCCSnetworkontheBurupPeninsulainNorth-WestAustralia.(14)MitsuiE&PAustraliaisassessingthefeasibilityofcommercialisingtheMid-WestModernEnergyHub,anaturalgasprocessingandbluehydrogenfacility(15).POLICYANDREGULATORYDEVELOPMENTSNotably,anewAustralianGovernmentwaselectedinMay.TheLaborGovernmenthaspledgedtostrengthenbaselinesformajoremittersundertheexistingsafeguardsmechanism,effectivelymeaningthatcompanieswillbeabletoemitlesseachyearorelsepayforoffsets.SignificantlyforCCS,deploymentmaybespurredinhard-to-abateindustrialsectorsasaresult.Inlate2021,aCCSmethodologywasincludedundertheEmissionsReductionFund,allowingprojectstogenerateAustraliancarboncreditunits(ACCU)andtherebygenerateincome(16).InJune,theMinisterforClimateChangeandEnergy,ChrisBowen,announcedanindependentreviewintotheEmissionsReductionFund,highlightingCCSamongseveralrecentlyadoptedmethodologiesforspecificscrutiny.InMarch,theWesternAustralianMinisterforMinesandPetroleum,BillJohnston,approvedthedraftingoftheGreenhouseGasStorageandTransportBill,whichwillunderpintheregulatoryregimeforCCSinthestate(17).JAPANOVERVIEWArelianceonenergyimportsandlimitedCO2storagecapacity,coupledwithanet-zeroby2050commitmentandassociateddecarbonisationtargets,hasdrivenJapantoactasaconvenorforclimateandenergyintheregion.Inlinewiththis,JapancontinuestopromotebilateralandmultilateralCCUScollaborationintheAsia-Pacificregion.PROJECTSANDNOTABLEUPDATESJapaneseshippingcompaniesareincreasinglyactiveinliquefiedCO2transportationforCCS.JapanCCSisworkingwithKansaiElectricPoweronademonstrationprojecttotransportCO2fromKansaiElectricPower'scoal-firedpowercomplexinKyotototheTomokomaiCCSproject,commencingoperationin2027(18).NYKandtheKnutsenGrouphaveestablishedanewbusinessforliquefiedCO2transportationandstorage;MitsubishiShipbuildingisworkingontheconstructionofaCO2demonstrationship;andMOLandPetronashavesignedanMOUonliquefiedCO2transportationforCCUS(19-21).InJanuary,theSuisoFrontier,theworld'sfirstliquefiedhydrogencarrier,arrivedinVictoria,AustraliatotransporthydrogentoJapan(22).TheshipmentmarkedanimportantmilestonefortheHydrogenEnergySupplyChain(HESC),acoalgasificationhydrogenpilotproject.IftheHESCmovestothecommercialphase,capturedCO2willbestoredattheCarbonNetCCSproject.ElsewhereinAustralia,INPEXisplayingaleadingroleinthedevelopmentoftheMiddleArmCCShubinDarwin.J-POWERandENEOShaveannouncedafeasibilitystudyforadomesticCCSproject,withapotentialfinalinvestmentdecision(FID)projectedfor2026andsubsequentcommencementin2030(23).Theprojectaimstodecarboniseoilrefiningandcoal-firedandbiomass-firedplantsandstoredCO2inwesternJapan.POLICYANDREGULATORYDEVELOPMENTSAnewstrategicenergyplanwasapprovedbyCabinetinlate2021,mappingapathwaytowarda46percentgreenhousegasemissionsreductionby2030(basedon2013levels)andcarbonneutralityby2050.Hydrogenisexpectedtoplayakeyroleinachievingtheplan.TheMinistryofEconomy,TradeandIndustryhasdraftedalong-termCCSroadmap,aimingtostore120-240MtCO2offshorefromJapanby2050.CHINAOVERVIEWCCUShasbeenthesubjectofincreasingattentioninChinaoverthepast12months.ResearchhashighlightedthepotentialroleforCCUSunderthecarbonneutralitytarget,suggestingthetechnologysuitemayaccountforreductionsof0.6-1.45billiontonnesofCO2perannumby2050and1-1.82billiontonnesperannumby2060(24).FIGURE12:PotentialCCUSdeploymentChina(24)10001500...i!1000~500020302035-MIN-MAXPROJECTS2040YEAR20502060Majorstate-ownedenergycompaniesareleadingprojectdevelopment.China'sfirstintegratedmilliontonne(1Mtpa)CCUSproject,developedbySINOPEC,cameintofulloperationattheendofAugust2022.ThecapturedCO2fromQiluPetrochemicalplantistransportedtotheShengliOilFieldforEnhancedOilRecovery.Huanenghascommencedconstructionona1.5Mtpacoal-firedpowerCCUSprojectintheOrdosbasin,widelyanticipatedtobetheworld'slargestcoalpowerCCUSproject.CNPCplanstobegininjectingupto5MtpaCO2from2025.CNOOCisstartingChina'sfirstCO2offshorestorageinthemouthofthePearlRiver.OnJune27,ExxonMobil,ShellandCNOOCsignedaMoUwithGuangdongProvincialGovernmenttoevaluateaworld-scalehubprojectinDayawanPetrochemicalIndustryPark.Additionally,severalprivatecompanies,includingGuanghuiandHengli,haveannouncedCCUSprojects_l1lPOLICYANDREGULATORYDEVELOPMENTSIn2021,Chinaannouncedits30/60climatepolicyframework,outliningagoalofachievingcarbonpeakingby2030andclimateneutralitybefore2060PlThe1+NframeworklayssomeofthegroundworkforCCUSpolicydirections.ThePeople'sBankofChinalaunchedacarbonemissionsreductionfacility,astructuralmonetarypolicyinstrumentprovidingfinancialinstitutionswithlow-costloanstosupportdecarbonisationprojects,inwhichCCUSwasincluded(25).DespiteprogressandsomepolicydocumentsoutliningaroleforCCUS,lackofapolicy-based,sustainablebusinessmodelforCCUSremainsadeploymenthurdle.RESTOFASIAPACIFICTHAILANDInJune,Thailand'snationaloilandgasoperator,PTTEP,announcedthecountry'sfirstCCSproject[3l(26).Theproject,locatedattheArthitoffshoregasfield,hasenteredFEEDandisexpectedtocommenceoperationsin2026.PTTEPhasalsosignedanMOUwithJapan'sJGCHoldingsandINPEXontheThailandCarbonCaptureandStorageInitiative,afeasibilitystudyinvestigatingthepotentialfordeploymentacrossoilandgas,hard-to-abateindustrialsectors,andpowergeneration(27).SINGAPOREShellandExxonMobil(thelatterthroughitsLowCarbonSolutionsbusinessunit),bothwithoilrefiningandpetrochemicalmanufacturingplantsinSingapore,areinvestigatingregionalCCShubstocaptureCO2andtransportittonearbystorage(28).Capturecouldspanpetrochemicals,biofuels,refineries,andhydrogendevelopment(28).THEREPUBLICOFKOREAKoreanenergycompany,SKE&S,signedanMOUwithAustralia'sSantostosupportandcollaborateonthedevelopmentofCCSprojectsandhubsinAustraliaandatBayu-Undan(29).Korea'sdomesticpetrochemicalindustrycontinuestoinvestigateanddeployCCUSatfeasibilitystudyandpilotdemonstrationlevels.FOOTNOTES[1].GuanghuiIndustryInvestmentismainlyengagedinautomobiledealership,energy,realestate,andlogisticsbusinesses.HengliGroupproducesandsellscrudeoils,aromatics,purifiedterephthalicacids,polyester,andotherproducts.HengliGroupalsoproducestextilematerials.[2]."30/60"referstocurrentChina'sclimatetargets-peakingitsemissionsbefore2030andachievingcarbonneutralityby2060.The"1"referstothe"guidingopinions"thatsetouttheoverarchingprinciplesofallforthcomingclimatepoliciesthataimtofacilitateChina's30/60goal.The"N"standsforacombinationofsub-plans,startingwiththeActionPlanforCarbonDioxidePeakingby2030.[3]TheArthitprojectwasaddedtothedatabaseafterprojectnumberandcapacitieswerefinalizedforthisreportandconsequentlythisprojectisnotincludedinthosetotals.REFERENCES1.PwC.CodeRed-AsiaPacific'sTimetoGoGreen[Internet].2021Nov[cited2022Jui20].Availablefrom:https://www.pwc.com/gx/en/asia-pacific/net-zero/asia-pacific-code-red-to-go-green.pdf2.GlobalCCSInstitute.TheEmergenceofCCSinMalaysiaandIndonesia[Internet].GlobalCCSInstitute.2022[cited2022Jui1].Availablefrom:https://www.globalccsinstitute.com/resources/multimedia-library/the-emergence-of-ccs-in-malaysia-and-indonesia/3.BattersbyA.Malaysiarevsupcarbon,captureandstoragedevelopments[Internet].UpstreamOnline.2022[cited2022Jui1].Availablefrom:https://www.upstreamonline.com/field-development/malaysia-revs-up-carbon-capture-and-storage-developments/2-1-11599194.PTTEP.PTTEPconfirmsitslargest-evergasdiscoverywithLangLebah-2appraisalwelloffshoreMalaysia[Internet].PTTEPWebsite.2021[cited2022Jui20].Availablefrom:https://www.pttep.com/en/Newsandnmedia/Mediacorner/Pressreleases/5.JacobsT.WhatYouShouldKnowAboutOffshoreandSourGasCCS:HighCost,LeakMitigation,andTransportation[Internet].JournalofPetroleumTechnology.2022[cited2022Jui4].Availablefrom:WhatYouShouldKnowAboutOffshoreandSourGasCCS:HighCost,LeakMitigation,andTransportation6.YabDato'SriIsmailSabriYaakob.SpeechbythePrimeMinisterintheDewanRakyat:TwelfthMalaysiaPlan2021-2025.2021.7.PETRONAS.PETRONASDeclaresAspiration:Toachievenetzerocarbonemissionsby2050[Internet].2020[cited2022Jui4].Availablefrom:https://www.petronas.com/media/press-release/petronas-sets-net-zero-carbon-emissions-target-20508.BP.SKKMigasapprovedPlanofDevelopmentforUbadariFieldandVorwataCCUS[Internet].2021[cited2022Jui4].Availablefrom:https://www.bp.com/en_id/indonesia/home/news/press-releases/skk-migas-approved-plan-of-development-for-ubadari-field-and-vorwata-ccus.html9.ErwindaMaulia.BPunveilsupto$3bnCCUSprojectinIndonesia,country'sfirst[Internet].NikkeiAsia.2021[cited2022Jui4].Availablefrom:https://asia.nikkei.com/Spotlight/Environment/BP-unveils-up-to-3bn-CCUS-project-in-lndonesia-country-s-first10.Pertamina.Pertamina-AirLiquideAgreetoCollaborateinDevelopingCCUTechnologyattheBalikpapanRefinery[Internet].2022[cited2022Sep8].Availablefrom:https://www.pertamina.com/en/news-room/news-release/pertamina-air-liquide-agree-to-collaborate-in-developing-ccu-technology-at-the-balikpapan-refinery11.Santos.SantosAnnouncesFIDonMoombaCarbonCaptureandStorageProject[Internet].2021[cited2022Jui4].Availablefrom:https://www.santos.com/news/santos-announces-fid-on-moomba-carbon-capture-and-storage-project/12.Santos.GloballySignificantCarbonCaptureandStorageProjectaStepCloser[Internet].2022[cited2022Jui4].Availablefrom:https://www.santos.com/news/globally-significant-carbon-capture-and-storage-project-a-step-closer/13.ExxonMobil.TheSouthEastAustraliaCarbonCaptureHub[Internet].2022[cited2022Jui20].Availablefrom:https://www.exxonmobil.com.au/Energy-and-environment/Energy-resources/Upstream-operations/The-South-East-Australia-Carbon-Capture-Hub14.OilandGasToday.Woodside,BPandMIMItoexploreCCSprojectinWA[Internet].2021[cited2022Sep8].Availablefrom:https://www.oilandgastoday.com.au/woodside-bp-and-mimi-to-explore-ccs-project-in-wa/15.MEPAU.MEPAU'sMidWestModernEnergyHub[Internet].[cited2022Sep8].Availablefrom:MEPAU'sMidWestModernEnergyHub16.TaylorA.NewERFmethodand2022prioritiesannounced[Internet].2021[cited2022Jui4].Availablefrom:https://www.minister.industry.gov.au/ministers/taylor/media-releases/new-erf-method-and-2022-priorities-announced17.JohnstonB,WhitbyR.DraftBilltohelpWt\sresourcesindustryreduceemissions[Internet].MediaStatementfromtheGovernmentofWesternAustralia.2022[cited2022Jui20].Availablefrom:https://www.mediastatements.wa.gov.au/Pages/McGowan/2022/03/Draft-Bill-to-help-WAs-resources-industry-reduce-emissions.aspx18.JapanCCSCo.Ltd.AgroundbreakingceremonywasheldfortheCO2ShipTransportationProjectTomakomaiLiquefiedCO2ReceivingFacilityonMay23[Internet].JapanCCSCo.Ltd.Website.2022[cited2022Jui20].Availablefrom:https://www.japanccs.com/en/news/20220524/19.MitsuiOSKLines.MOLandPETRONASSignMoUonLiquefiedCO2TransportationforCCUS[Internet].2022[cited2022Jui4].Availablefrom:https://www.mol.co.jp/en/pr/2022/22019.html20.NYKKnutsenGroup.NYKandKnutsenGroupEstablishNewCompanyforLiquefiedCO2TransportationandStorageBusiness[Internet].2022[cited2022Jui4].Availablefrom:https://www.nyk.com/english/news/2022/20220118_02.21.MitsubishiHeavyIndustries.MitsubishiShipbuildingConcludesAgreementonConstructionofWorld'sFirstDemonstrationTestShipforLiquefiedCO2Transportation-ShipWillIntegrateCompany'sLiquefiedGasHandlingTechnologies,forTomorrow'sLong-distance,High-volumeLCO2TransportNeeds[Internet].2022[cited2022Jui20].Availablefrom:https://www.mhi.com/news/220202.html22.HESC.TheSuisoFrontierDepartsAustraliaforJapan[Internet].2022[cited2022Jui4].Availablefrom:https://www.hydrogenenergysupplychain.com/the-suiso-frontier-departs-australia-for-japan/23.J-POWERandENEOS.J-POWERandENEOScollaborateoncarbonneutralizationofenergysupply[Internet].2022[cited2022Jui4].Availablefrom:https://www.jpower.co.jp/english/news_release/pdf/news220510e.pdf24.CaiB,LiQ,ZhangX.ChinaCCUSAnnualReport2021-ChinaCCUSRoadmap.2021.25.ThePeople'sBankofChina.ThePeople'sBankofChinaLaunchestheCarbonEmissionReductionFacility[Internet].2021[cited2022Jui20].Availablefrom:http://www.pbc.gov.cn/en/3688006/3995557/4385345/index.html?&&&&&&&&&&header=false&footer=false&releatedlnsights=false&sharelnsights=true&xyz=154319045225526.PTTEP.PTTEPinitiatesThailand'sfirstCCSproject,pushingtowardsNetZeroGreenhouseGasEmissions[Internet].2022[cited2022Jui20].Availablefrom:https://www.pttep.com/en/Newsandnmedia/Mediacorner/Pressreleases/Pttep-lnitiates-Thailand-First-Ccs-Project-Pushing-Towards-Net-Zero-Green-House-Gas-Emissions.aspx27.PTTEP.PTTEP,INPEXandJGCPartnertoExploreCarbonCaptureandStorageProject[Internet].2022[cited2022Jui20].Availablefrom:https://www.pttep.com/en/Newsandnmedia/Mediacorner/Pressreleases/Pttep-1npex-And-Jgcpartner-To-Explore-Carbon-Capture-And-Storage-Project.aspx28.TanF.ExxonMobilkeentobuildcarbonstoragehubsinSEAsia,similartoHoustonproject[Internet].Reuters.2021[cited2022Jui20].Availablefrom:https://www.reuters.com/article/singapore-energy-exxon-mobil-idAFL4N2Rl2QM29.Santos.SantosandSKE&SSignMoUtoDevelopCCSProjectsinAustralia[Internet].2022[cited2022Jui20].Availablefrom:https://www.santos.com/news/santos-and-sk-es-sign-mou-to-develop-ccs-projects-in-australia/4.3EUROPEANDTHEUKForyetanotheryear,carboncaptureandstoragehasseenapromisingincreaseinprojectsacrosstheEuropeanregion.Today,thereare73CCSfacilitiesinvariousstagesofdevelopmentacrossEuropeandtheUK.OVERVIEW11CCS/CCUSPROJECTSFUNDEDBYTHEEUINNOVATIONFUND.DUTCHGOVERNMENTINCREASESSDE++BUDGETTO€13BN.UKAWARDSFUNDINGFORTWOCCSCLUSTERS.NotablefactorsdrivingCCSmomentumincludesupportiveclimatepolicyprogramsandmeasuresbytheEuropeanCommission,includinganincreasetothenumberofprojectsfundedthroughtheEUInnovationFund-agrantprogramlaunchedin2020thataimstosupporttheCommission's2050climateneutralitytargets(1).Similarly,intheNetherlands,theSustainableEnergyTransitionSubsidyScheme(SDE++),underwhichCCSprojectsareeligibleforfunding,increasedfrom€5billionto€13billionoverthelastyearalone(2)IntheUK,throughitsCCUSInfrastructureFund(CIF),thegovernmentcommittedtoestablishingtwoCCSprojectsbythemid-2020s,andtwomoreby2030(3).Thepast12monthshaveillustratedapromisingtrajectoryofindustrydeployingCCSprojectsonthefoundationofexistingpolicy.POLICYANDFINANCEDEVELOPMENTSLegislativeproposalsarebeingdevelopedtointroduceregulatorymechanismsintheEUthatcouldfurthersupportCCSdeployment,includingcarbonremovalcertification,whichremainsunderway.InDecember2021,theEuropeanCommissionreleasedaformalcommunicationonsustainablecarboncycles,whichaffirmedthatreachingclimateobjectiveswillrequireasignificantscale-upofcarbonremovalsolutions,particularlywithinthenext10years.TheCommissionfurtheracknowledgedthataccountingforCO2removalsaccuratelyandtransparentlywillbeneeded,andlegislated,ifcarbonremovaloptionsaretobefurtherrealised.ThecommunicationseekstoincorporateCDRintotheEU'sregulatoryandcomplianceframework,asitrelatestoEurope'sclimateneutralitytargets(4).EUROPEANUNIONCCSFUNDINGTheEUInnovationFund,whichaimstoinvestaround€38billionby2030towardinnovativecleantechnologiesinEurope(basedontheauctioningof450millionallowancesfrom2020to2030),announceditsfirstsuccessfulgrantrecipientsfollowingthefirstandsecondcallforprojects(5).Outofatotalsevensuccessfulapplicants,fourprojectsselectedinthe2021firstcallhadaCCScomponent.CCSfacilitiesinFinland,Belgium,SwedenandFrancewillallbebeneficiariesoffundingtosupporttheirCCSprojectsinhydrogen,chemical,bioenergyandcementproduction,respectively(5).Resultsofthesecondcallannouncedin2022sawsevenCCSandCCUprojectsawardedwithfunding.ProjectsinBulgaria,Iceland,Poland,France,SwedenandGermanyhavebeenselected,rangingfromlow-carboncementproduction,carbonmineralstoragesitedevelopmentandsustainableaviationfuelproduction(6).Theupcomingthirdcallwillhaveafundingpoolofaround€3billion,upfrom€1.5billionforthepreviouscall,inanefforttoaccelerategreentransition(7).FIGURE13:EUInnovationFundApplicationsandCCSContenders-FirstCall(numberofapplications/numberofpre-selectedproposals}ELIGIBLEPROPOSALSPRE-SELCTEDPROPOSALS7■RENEWABLEPOWER(15/1)■RENEWABLEHEAT(14/1)■RENEWABLEFUELS(12/1)■PRODUCTIONFACILITY(5/1)■STORAGE(16/0)■H2FORTRANSPORT(1/0)■GREENH2(19/2)■BLUEH2(4/2)■ccs(7/4)■ccu(12/1)■ELECTRIFICATION(7/1)BIO-BASED(12/1)■RECYCLING/REUSE(18/1)TRANSPORTMODALITIESThebroadeningofCO2transportmodalitiesintheTrans-EuropeanEnergyNetworksregulation(TEN-E),whichwouldincludeshipping,trainsandtrucks,didnotprogressfurtherin2021(8).AstheTEN-Egoesunderreview,CO2transportmodalitiesasidefrompipelinesarenotfavouredaccordingtoaprovisionalagreementandrecenttrialoguediscussionsbetweentheEuropeanCommission(EC),theCounciloftheEuropeanUnionandtheEuropeanParliament(EP).Consequently,CCSeffortslookingtobeincludedintheEU'sProjectsofCommonInterest-adesignationwhicheasespermittingprocesses,alongwithprovidingaccesstofunding-willnotbeexplicitinlegislation.REPOWEREUTheEuropeanCommissionhasrespondedtotheenergycrisispromptedbytheRussia-UkraineconflictthroughthedevelopmentoftheREPowerEUPlan.Undertheplan,theCommissionannouncedaimstoendtheEU'srelianceonRussianenergyresourceswhilealsotacklingclimatechange.AlthoughcarboncaptureandstorageisnotexplicitlymentionedintheREPowerEUcommunication,thecommissionnotesitsintentiontofurthersupportEurope'shydrogeneconomy.UNITEDKINGDOMFUNDINGPROGRAMSFollowinga£1billionannouncementin2020todevelopCCUSclustersthroughtheUKGovernment'sCCSInfrastructureFund,thefirsttworecipientsofthegrantwereannouncedinlate2021,withanexpectedcompletiondatebythemid-2020s.TheHyNetClusterconsortiumoperatinginNorthWestEnglandandNorthWestWales,andtheEastCoastClusteralongEngland'sNorthSeashorebyHumberandTeesside,willentertheTrack1projectnegotiationsaspreferredbeneficiariesoftheCIF(9).Scotland'sCCSproject,Acorn,hasbeenplacedonthe"back-up"totheTrack1clusters.ThroughtheCIF-selectedprojects,theUKGovernmentaimstocaptureandstore20to30MtpaCO2by2030onward(10).InAugust2022,aspartoftheTrack1clusteringprocess,theUKGovernmentannouncedtheshortlistof20CCUScaptureprojectsthatcanreceivepossiblesupportfromgovernment,onceithasestablishedthattheprojectsrepresenta"valueformoney"investmentforthetaxpayer.POLICYOverthelast12months,theUKGovernmentfocuseditsCCSpolicysightsonbuildingacadencearoundCCSfundingprogramsandpolicyannouncementsmadein2020.Thegovernment's10-PointPlanforaGreenIndustrialRevolutioncommittedtoinvestingincarboncaptureusageandstorage.ThisgavewaytoanumberofCCS-specificpoliciesandfunds,includingtheUKCCUSInnovationProgramme,whichaimstoenhanceCCSresearchandinnovationprogramsalongwiththeCCSInfrastructureFund,thatareintendedtosupportthedevelopmentoffourCCSnetworks(11).Tofurtherhighlightthebreadthofpublic-privatepartnershipsandfundingeffortsacrosstheUKregion-includingtheCIF,theUKCCUSInnovationFundandmore-theUKGovernmentreleasedaCCUSInvestorRoadmap,illustratingitsCCUSdeliveryplanfrom2021to2035(12).FIGURE14:UKGovernmentCCUSDeliveryPlanlQwt;::::,-'u:!a:I--Ill::::,C:1!:C)z2iz::::,u...1-zw:Eza:w~C)~::::,Track-1ClusterSequencingprocessTrack-1ClusterFEED►eAnnouncementofshortlistedCO2emittersthatwillproceedtonegotiationsTrack-1negotiationswithtransportandstoragecompaniesandemitters►►Track-1ClusterconstructioneAtleastonepowerCCUSplantbymid2020s►eCapture20-30MtCO2paby2030including6MtCO2fromindustrialCCSeDeployatleast5MtCO2ofengineeredgreenhousegasremovals(GGRs)by2030•►IeAtleasttwoclustersbythemid2020seDeliverafullydecarbonisedpowersystemby2035Track-2SecondClusterSequencingdevelopment,launch,negotiationsandconstructionLaunchPhase-2oftheClusterSequencingprocess•Designofhydrogenbusinessmodelcomplete•Launch£140mIndustrialDecarbonisation&RevenueSupportschemePublicationofUKHydrogenStrategy•Launch£240mNetZeroHydrogenFund(NZHF)••2022•Announcewinnersof£70mDACCS&otherGGRsinnovationprogramme•PublicationofT&S,ICCandpowerbusinessmodelupdates202320242025►•Upto1GWofCCUS-enabledhydrogene4CCUSclustersby2030•Upto10GWofhydrogenproduction2030eLegallybindingtargetof78%emissionsreductionsby20352035►GOVERNMENTACTIVITY►INDUSTRYACTIVITY►JOINTGOVERNMENT&INDUSTRYACTIVITY•GOVERNMENTTARGET•KEYMILESTONESFollowingtheannouncementofCIFrecipientsinScotland,whereHyNetandEastCoastClusterconsortiumswereselectedtoprogressaspartofTrack1projects,thenationalgovernmentincreaseditsCCUSfundingcommitmentandambitions.IfselectedaspartoftheCIF-awardedapplicants,theAberdeenshire-basedAcornprojectwillseetheScottishGovernmentprovide£80milliontolaunchtheinitiative-aproject,thegovernmentsays,thatisrequiredifScotlandistomeetitsnet-zerotargets(13).THENETHERLANDSIn2020,theDutchGovernmentestablishedtheSustainableEnergyTransitionSubsidyScheme(SOE++)tosupportrenewableenergyprojectsandC02reductionefforts,suchasCCS.In2022,theDutchGovernmentannounceditwouldmorethandoubletheannualbudgetfortheSOE++,increasingitfrom€5billionto€13billion(14).ThePorthosProject,whichaimstostoreC02intheNorthSeasub-surfaceandhadpreviouslybeenannouncedasagrantrecipient,wasawardednearlyhalfofthe2021budget(15).TheSOE++fundingcommitmentwillcontinueuntil2025.DENMARKThroughthreegovernmentprograms,theDanishGovernmentannounceditwouldinvestatotalof€5billioninsupportofcarbon,captureandstorageprojects(16).PartofthefundingwillberolledoutacrossaperiodoftenyearsundertheEnergyTechnologyDevelopmentandDemonstrationProgramme(EUDP),withProjectGreensandandTotalEnergies-ledBifrosthavingalreadyreceivedfundingfromtheDanishGovernment(16).TheEUDPaimstosupportDenmark'stargetofreducingemissionsby70percentby2030-Europe'smostambitious2030targetthusfar(17).Inadditiontofundingsupport,theDanishGovernmenthasenteredabi-lateralagreementwiththeBelgianGovernment,alongwithFlanders,whichaimstosupportcrossborderC02transportbetweenthetwocountries(18).ThemovefollowsEUInnovationFundingapprovaloftheKairos@Cproject-across-borderCCSeffortledbyBASF'sBelgianoperations,alongsideAirLiquide(19).Thebi-lateralagreementisexpectedtoleadthewayfortransboundaryCCS,bothinEuropeandbeyond.NEWCCSMARKETSSeveralcountriesinEuropeareenteringtheCCSmarketforthefirsttime,includingBulgaria,PolandandFinland.EnablingtheseprojectsistheEUInnovationFund'sgrantingprogram(19,20).EUINNOVATIONFUNDPROJECTS-LARGE-SCALECCSPROJECTS•HolcimDeutschland'sCarbon2BusinessprojectwillretrofititsGermancementplantwithCCStocaptureover1MtpaC02.•Thefull-scaleANRAVprojectwillcaptureC02fromcementfacilitiesinBulgariaandstoreitinanoffshorestoragesiteintheBlackSea.•CodaTerminal,byCarbfix,willdevelopamineralstoragehubinIcelandwiththecapacitytostore880milliontonnesofC02.•Perstorp'sProjectAirwilldevelopafull-scalefossil-freemethanolplantinSweden.•Shell'sHySkiesprojectwillproducesustainableaviationfuelthroughwaste-to-energyCCUSoperationsinSweden.•TheG04ECOPLANETprojectinPolandwillcaptureandstoreC02fromLarfargeCement'sKujawycementproductionoperations.•TheCaICCprojectinFrancewillcaptureC02emissionsfromexhaustgases,producedduringlimeproduction,forpermanentstorage.•Kairos-at-Cwillmitigate14.2milliontonnesofC02throughacross-borderCCSvaluechaininBelgium,theNetherlandsandNorway,whichincludesC02capturefromhydrogenandchemicalplants.•BECCS@STHLMwillcaptureandstore7.8milliontonnesofC02over10yearsfromExergi'sStockholm-basedbiomassplant.•TheK6PrograminFrancewillcapture8.1milliontonnesofC02fromitscementplant,tobestoredintheNorthSea.•TheSHARCeffortinFinlandwillreduceC02emissionsfromadieselrefinerythroughgreenandbluehydrogenproduction.NORTHSEAWithitssubstantialstoragecapacity,carboncaptureandstorageprojectsarebeingestablishedwiththeaimofstoringCO2beneaththeNorthSeabasin:•TheNorcemBrevikCementPlantinNorway,operatedbyHeidelbergCement,willcaptureandstore0.4MtpaCO2.Oncecompleted,itwillbethefirstcementplantwithafull-scaleCCSfacility(21).•TheUK'slargestpowerstation,Drax,seekstoretrofititsbiomass-poweredfacilitywithCCS.TheprojectwillbepartoftheZeroCarbonHumberconsortiumoperatingonEngland'sNorthSeacoast(22).•TheH21NorthofEnglandprojectwilldecarbonisepower,heatingandtransportacrossthenorthofEngland,andwillbeinclusiveofCCS.ItaimstoconverttheUKgasgridfromnaturalgastozero-carbonhydrogen.By2035,theprojectwillhavethepotentialtohaveoneoftheworld'slargestCCSschemes(23).REFERENCES1.EuropeanCommission.InnovationFund(lnnovFund)CallforproposalsInnovationFund.2022.2.MinistryofEconomicAffairsandClimatePolicy.SDE++2022StimulationofSustainableEnergyProductionandClimateTransition.2022.3.DepartmentofBusinessEandIS.GovernmentResponsetoCarbonCaptureUsageandStorage:MarketEngagementonClusterSequencing.2021.4.EuropeanCommission.CommunicationFromtheCommissiontotheEuropeanParliamentandtheCouncil:SustainableCarbonCycles.2021.5.EuropeanCommission.InnovationFund:KeyStatisticsfromtheFirstCallforLarge-ScaleProjects.Brussels:EuropeanCommission;2022.6.EuropeanCommission.InnovationFundSecondCallforLargeScaleProjects:ListofProposalsPre-selectedforaGrant.2022.7.EuropeanCommission.InnovationFund:EUinvests€1.8BillioninCleanTechProjects.2022.8.EuropeanCommission.QuestionsandAnswersontheEUTaxonomyComplementaryClimateDelegatedActCoveringCertainNuclearandGasActivities.2022.9.DepartmentforBusinessEandIS.Track-1ClustersConfirmed.2021.10.DepartmentforBusinessEandIS.TheCarbonCaptureandStorageInfrastructureFund:AnUpdateonitsDesign.2021.11.UKGovernment.CCUSInnovation2.0Call2Guidance.DepartmentofBusinessIndustryEnergy&IndustryStrategy.2022.12.UKGovernment.CCUSInvestorRoadmap:CapturingCarbonandaGlobalOpportunity.2022.13.ScottishGovernment.ScottishClusterSupport.https://www.gov.scot/news/scottish-cluster-support/.2022.14.NetherlandsEnterpriseAgency.SOE++2022:StimulationofSustainableEnergyProductionandClimateTransition[Internet].2022[cited2022Aug14].Availablefrom:https://english.rvo.nl/sites/default/files/2022/07/20220712-English-brochure-opening-round-2022_1.pdf15.PorthosCO2TransportandStorage.DutchGovernmentSupportsPorthosCustomerswithSDE++SubsidyReservation.2021.16.DanishEnergyAgency.InvitationtoSecondMarketDialogue-CCUSFund.2022;Availablefrom:https://ens.dk/sites/ens.dk/files/CCS/note_regarding_second_round_of_market_dialogue_-_07.03.2022.pdf17.EnergyTechnologyDevelopmentandDemonstrationProgram.AbouttheEUDP.18.TheDanishMinistryofClimateEandU.Denmark,FlandersandBelgiumsigngroundbreakingarrangementoncross-bordertransportationofCO2forgeologicalstorage.https://en.kefm.dk/news/news-archive/2022/sep/denmark-flanders-and-belgium-sign-groundbreaking-arrangement-on-cross-border-transportation-of-co2-for-geological-storage-.2022.19.EuropeanCommission.Commissionawardsover€1billiontoinnovativeprojectsfortheEUclimatetransition.https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2163.2022.20.EuropeanCommission.InnovationFundSecondCallforLargeScaleProjects:ListofProposalsPre-selectedforaGrant.2022.21.HeidelbergCementGroup.NorcemBrevik.https://www.norcem.no/en/NorcemBrevik_eng.2022.22.Drax.Draxsubmitsplanstobuildworld'slargestcarboncaptureandstorageproject.https://www.drax.com/press_release/drax-submits-plans-to-build-worlds-largest-carbon-capture-and-storage-project/.2022.23.H21NorthofEngland.RevolutionaryThinking.RealWorldInfrastructure.https://together.northerngasnetworks.co.uk/wp-content/uploads/2019/03/H21-NoE-Exec-Sum-Print-Final.pdf.H21NorthofEngland;20184.4MIDDLEEASTANDNORTHAFRICATheMiddleEastandNorthAfrica(MENA)isthelargestoil-exportingregionintheworld.Around85percentofthegreenhousegas(GHG)emissionsintheregioncomefromenergyproduction,electricitygeneration,theindustrialsector,anddomesticenergyconsumption.OVERVIEWTHEGULFCOOPERATIONCOUNCILSTATESAREPOISEDTOSEECCSTAKEOFFINTHECOMINGDECADE.GLOBALCCSINSTITUTEOPENSOFFICEINABUDHABI.THEPOTENTIALFORCCSGROWTHINTHEMENAREGIONISBEINGDRIVENBYCLIMATECOMMITMENTSANDTHEINCREASINGPOTENTIALTOACTASAHUBFORLOW-CARBONHYDROGEN.TheMENAregionisconsideredoneofthemostcarbon-intensive,withcountriessuchasQatar,Kuwait,theUnitedArabEmirates(UAE),Bahrain,andSaudiArabiaamongtheworld'stop10percapitacarbonemitters.Withoutachangeinenergypoliciesandenergyconsumptionbehaviour,MENA'senergy-relatedGHGemissionswillcontinuetogrow(1).ThefigurebelowshowstheGHGemissionsintheindividualMENAregioncountries(2).Moreover,theMENAregionholdsamajorstockoftheworld'soilandgasreservesandhasalwaysbeenakeyplayerinthegeopoliticsofenergy.Tomaintainthisposition,theregionisrequiredtoinvestindecarbonisationandcleanenergytechnologicaloptions.FIGURE15:GreenhouseGasEmissionsAcrosstheMENARegion■0-249■250-499■500-749■750-1000MtC02PACCSrepresentsanopportunityintheregiontoreducecarbondioxideemissions.ThreeoperationalCCSfacilitiesintheUAE,SaudiArabiaandQataralreadyaccountforaround10percentofglobalCO2capturedeachyear(3).Moreover,theregionhasextensiveexperienceinCO2injectionandstoragewiththeInSalahCCSprojectincentralAlgeriabeingaworld-pioneeringonshoreCO2captureandstorageproject,whichhasbuiltupawealthofexperiencehighlyrelevanttoCCSprojectsworldwide(4).ThepotentialforCCSgrowthintheMENAregionisdrivenbymultiplefactors:DifferentMENAcountriessuchasSaudiArabia,theUAE,Bahrain,Egypt,Iraq,andIranhaveexplicitlyincludedCCSintheirnationallydeterminedcontribution(NDC)registrymaintainedbytheUnitedNationsFrameworkConventiononClimateChange(5).Theannouncedcommitmenttonet-zeroandemissionstargets.TheUAEandSaudiArabiaannouncedtheirnet-zerotargetby2050and2060,respectively.Omanhassetanet-zerotargetby2050,Qatarhascommittedtoemissionsreductionsof25percentby2030andBahrain30percentby2035(6).ThelaunchoftheSaudiArabianandMiddleEastGreenInitiatives.TheincreasingpotentialfortheMENAregiontobeahuboflowcarbonhydrogen(7).Futureindustrialisationplanswithamajorfocusoncleanandsustainableindustries(8).TheregionhastherequiredgeologicalformationandexpertiseinmanagingsubsurfaceinjectionofCO2.PROJECTSCCSprojectactivityisspreadacrossQatar,SaudiArabia,andtheUAE-morespecificallyinAbuDhabi.Thecombinedannualcapturecapacityisaround3.7MtpaofCO2atthreeCCSfacilities:•QatarGascaptures2.2MtpaofCO2fromtheRasLaffangasliquefactionplant.•SaudiAramcocaptures0.8MtpaofCO2atitsHawiyahNaturalsGasLiquidsplant.TheCO2isusedtodemonstratetheviabilityofenhancedoilrecovery(EOR)attheUthmaniyahoilfield.•InPhaseI(ofatleastthreephases)ofAbuDhabiNationalOilCompany's(ADNOC)AlReyadahproject,0.8MtpaofCO2iscapturedattheEmiratesSteelplantinAbuDhabi.BoththeRasLaffanandAlReyadahprojectsarealreadydevelopingexpansionplans:•QatarGasexpectstoexpanditscapturerateto5Mtpaby2025(9).ThiscarboncapturenewphaseisexpectedtobeacceleratedaftertheannouncementthattheNorthFieldexpansionistheworld'slargestliquefiednaturalgas(LNG)project(10).•ADNOCestimatesthatPhaseIIandPhaseIllwillcaptureabout5MtpaofCO2before2030.Thisisexpectedtobecapturedfromtwosources:2.3MtpaofCO2fromtheShahsourgasplantandanother1.9MtpafromtheHabshanandBabgasprocessingfacility(11,12).TherearetworegionalCO2utilisationfacilities:•SaudiBasicIndustriesCorporationcaptures0.5MtpaofCO2atitsJubailethylenefacilityforuseinmethanolandureaproduction.•QatarFuelAdditiveCompanycaptures0.2MtpaofCO2atitsmethanolrefinery.AimingtodevelopafullyintegratedCCUSsupplychain,theMENAregionshowsaveryhighpotentialforCCUShubs.ArecentstudyconductedbyAFRYandGaffneyClineonbehalfoftheOilandGasClimateInitiative(OGCI)evaluatedthepotentialforcarboncaptureandCCUShubsintheGulfCooperationCouncil(GCC)countries(SaudiArabia,UAE,Qatar,Kuwait,Bahrain,andOman)(13).Withcurrentcarboncapturefacilities,industrialfacilities,availablenaturalCO2sinksandfutureplansintheGCCcountries,theGCCcountriescouldbeaworld-classhubforCCS.Inaddition,CCUShaspromisingapplicationsacrossmultipleindustrialactivitiesintheGCCcountriesandwillplayaroleinthedecarbonisationofhard-to-abateindustries.FIGURE16:GeologicalstoragemapinGCCregionSAUDIARABIAYEMEN■COREAREAOFSTORAGEPLAYAFRYandGaffneyClinehaverevealedthesignificantsubsurfacepotentialforstorageintheGCCcountries,bothindepletedgasreservoirsandsalineaquifers,withthegreatestopportunityfoundintheRub'alKhaliBasinandinthesequencesbeneathKuwait.Basedonthisstudy,thecurrentbest-guessstoragecapacityfortheGCCcountriesis170GtofCO2-seethefigureabove,whichshowspotentiallocationsforCO2geologicalstorageintheGulfCooperationCouncilregion.Moreover,theAFRYandGaffneyClinestudyrevealedthattheGulfCooperationCouncilregionhasthepotentialtodevelopactiveCCUShubsduetotheavailabilityofnaturalsinksandconcentratedsourcesofCo2emissions.Clustersofhigh-purity,low-costcaptureindustriescoupledwithnearbygeologicalstoragemakeitpossibletodevelophubsthatcouldbenefitfromeconomiesofscale.Thisstudyhasidentified10promisinghublocationswiththemostfavourablebeinginJubail(SaudiArabia),northernQatar,andAbuDhabi(seefigurebelow).FIGURE17:PotentialhubsacrosstheGCCcountries(source:EnergyReviewMENA}(10)KUWAITSAUDIARABIA68.8MtQ20.8Mt41.6MtUAEOMAN■ALUMINIUM■ETHYLENE■FERTILISERS■GTL■LNG■METHANOL■NGPROCESSING■OIL■POWER&WATER■PROPYLENE■STEELInadditiontotheGulfCooperationCouncil,othercountriesintheMENAregionandwiderAfricacouldformapotentiallocationforCCUShubs.TheregioninthenorthofEgyptwithitscurrentnaturalgasfacilitiesandgasreservoirshasgreatpotential.ThepotentialforCCSinEgypt,Nigeria,SouthAfrica,andothercountriesintheregionisbeingevaluated.TheWorldBankGrouphasbeenaidingitspartnercountriesoncarboncapturecapacity-buildingandtheevaluationofCO2geologicalstoragepotential.ThemostrecentstudyonthepotentialforCCSinNigeriawasannouncedin2022(14).POLICYMostcountriesintheMENAregionhaveintroducedclimatepolicies,butnotCCS-specificpolicies.AheadofCOP26inGlasgowinNovember2021,Lebanon,Israel,theUAE,andYemenpledgedtobecarbonneutralby2050,Turkeyby2053,andSaudiArabiaandBahrainby2060.Jordan,Morocco,Oman,Palestine,Tunisia,andQatarsubmittedmoreambitiousnationallydeterminedcontributionsandincreasedtheirgasemissionsreductiongoals(1).ThetrendofCCSgrowthintheregionisdrivenbythecommitmentsandvisionofnationalgovernments,whichmakesitlessdependentonpolicyincentivesthanotherpartsoftheworld.Thegovernmentsintheregionarefocusingontheenvironmentalimpactandstrategicgrowthofdecarbonisationtechnologies.Inaddition,thedeploymentofCCSintheregioncouldbedrivenbyEORvalue,low-carbonhydrogenproductionandthepotentialoftheregionasahubforCCUSandcarbontrading.SaudiArabia,theUAEandEgypthaveannouncedtheestablishmentofvoluntarycarbonmarketinitiativesandfullyregulatedcarbontradingexchangeandtradingschemes(15-17).Theestablishmentofsuchplatformsisexpectedtodrivethecarbonmarketintheregion,whichbenefitsalldecarbonisationtechnologies,includingCCS.OUTLOOKTheUNclimatechangepartnersorganisedthefirstMENAregionclimateweekin2022,withtheaimofenhancingregionalcollaboration(18).Inaddition,theregionwillalsowelcomeCOP27andCOP28,inEgyptandtheUAErespectivelyin2022and2023.Thiswillbringoutstandingopportunitiestopushforwardnegotiationsonvulnerabilitypointsforthetwocountries.Fromaregionalperspective,inOctober2021SaudiArabialaunchedthefirstMiddleEastGreenInitiative,whichgatheredleadersfromtheregionandforeignpartnerstoexchangeopinionsonregionalclimateaction.Withthecurrentinternationalgeopoliticalsituation,thegrowthinLNGexportsfromthedifferentcountriesintheregionpresentsanopportunityforlowcarbonfuelsandCCS.BeingoneofthemajorLNGexportersintheregion,QatarhasannouncedtheextensionoftheNorthFieldcapacitytoproduce126Mtpaby2027(10).ThisextensionwillalsobeintegratedwithCCStoreduceemissions(19).TheGlobalCCSInstitutehasbeenactivelymonitoringtheCCSdevelopmentintheMENAregion.Tobuildonthismomentumandfutureactivities,theInstitutehasestablisheditspresenceintheregionwitharegionalofficeinAbuDhabi.Inaddition,theInstituteisworkingonincreasingitsMENA-basedmembers.REFERENCES1.LienardC.MitigatingclimatechangeintheMENA:shiftingtoanewparadigm.2022.2.EmanMounir.Electricityhasthelargestshareofemissions.https://climatetracker.org/electricity-has-the-largest-share-of-emissions/.2022;3.StaibC,ZhangT,BurrowsJ,GillespieA,HavercroftI,RassoolD,etal.GlobalStatusofCCS2021.2021.4.RingrosePS,MathiesonAS,WrightIW,SelamaF,Hansen0,BissellR,etal.TheinsalahCO2storageproject:Lessonslearnedandknowledgetransfer.In:EnergyProcedia.ElsevierLtd;2013.p.6226-36.5.ZakkourP,HeidugW.AMechanismforCCSinthePost-ParisEra[Internet].Riyadh,SaudiArabia;2019Apr.Availablefrom:https://www.kapsarc.org/research/publications/a-mechanism-for-ccs-in-the-post-paris-era/6.HutchinsonG,SriramD.TheMiddleEast:COP26andthejourneytonetzero[Internet].2021[cited2022Sep5].Availablefrom:https://sustainablefutures.linklaters.com/post/102hes8/the-middle-east-cop26-and-the-journey-to-net-zero7.HamrakrouhaM,ParrisR,McCluskeyC,LaherI,NixonK.FOCUSONHYDROGEN:THENEWOILINTHEMIDDLEEAST?2021.8.UAEIndustrialStrategy.Operation300bn,theUAE'sindustrialstrategy[Internet].2022[cited2022Sep5].Availablefrom:https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/federal-governments-strategies-and-plans/the-uae-industrial-strategy9.ZeynepBeyzaKilic.Qatartostoremorethan5MtonsofCO2ayearby2025.https://www.aa.com.tr/en/energy/projects/qatar-to-store-more-than-5m-tons-of-co2-a-year-by-2025/26924.2019;10.EnergyReview.Qatar'sGiantGasProjectWelcomesaNewcomer[Internet].EnergyReviewMENA.2022[cited2022Sep6].Availablefrom:https://www.energyreviewmena.com/index.php/article/financial-news/item/1297-qatar-s-giant-gas-project-welcomes-a-newcomer11.TankNews.ADNOCMovingAheadwithPlanstoExpandItsCO2CapturetoBoostOilRecovery[Internet].2018[cited2022Sep6].Availablefrom:https://tanknewsinternational.com/adnoc-moving-ahead-with-plans-to-expand-its-co2-capture-to-boost-oil-recovery/12.AaeshaKhalfanAlKeebali.BuildingMomentumforCCUSintheGulfRegionandAroundtheGlobe:adnocandtheunitedarabemirates.GCCSIWebinar.2021.13.AFRY&GaffneyCline.CCUSdeploymentchallengesandopportunitiesfortheGCCAreportpreparedfortheOilandGasClimateInitiative.2022.14.HupartR,Adeyemo0,BeckB.DIAGNOSTICANDSCOPING:INDUSTRIALCCUSINNIGERIAINCEPTIONWORKSHOP.2022.15.ADGM.AbuDhabitolaunchthefirstregulatedcarboncredittradingexchangeandclearinghouseintheworld[Internet].2022[cited2022Sep6].Availablefrom:https://www.adgm.com/media/announcements/abu-dhabi-to-launch-first-regulated-carbon-credit-trading-exchange-and-clearing-house-in-the-world16.Enterprise.Whatcanweexpectfromtheplannedlocalcarboncreditexchange?[Internet].2022[cited2022Sep6].Availablefrom:https://enterprise.press/stories/2022/05/10/what-can-we-expect-from-the-planned-local-carbon-credit-exchange-70593/17.AI-ZayerF.KSA'svoluntarycarbonmarketinitiativeleadsthewaytoagreenereconomy.2022;18.MiddleEastandNorthAfricaClimateWeek2022.MiddleEastandNorthAfricaClimateWeek2022OutputReport[Internet].2022[cited2022Sep6].Availablefrom:https://unfccc.int/MENA-CW202219.PekicS.ShelljoinsQatarEnergy'sNorthFieldEastLNGexpansion.https://www.offshore-energy.biz/shell-joins-qatarenergys-north-field-east-lng-expansion/.2022.ANALYSISCHAPTER52022STATUSREPORT~~~~~~~~~~~~~~I===================================================================================================================ISECTION55.1CARBONMARKETSCarbonmarketsrefertothetradeofcarboncreditsbetweenpartiesandareeithercomplianceorvoluntary.Byleveragingmarketforces,carbonmarketsenableleast-costpathwaystowardemissionsreductionstargetsandincentiviseinvestmentinCCSinfrastructureandnetworks.Carbonmarketshavegrownconsiderablyoverrecentyears,andwithsuchrapidgrowth,thereisacurrentneedforcollectiveunderstandingofhowCCScanworkincurrentandfuturemarkets.COMPLIANCECARBONMARKETSCompliancecarbonmarkets(CCMs)areimplementedandregulatedbynationalorregionalauthorities.Compliancemarketstypicallyutilisecap-and-tradeschemes,wherebythecaprepresentsalimitofhowmanytonnesofCO2canbeemittedbytheindustriescoveredinthescheme.Thisleadstoaspecificnumberoftradeablecarbonallowancesgiventoeachcompanyoverafixedperiodoftime,givingthemthelegalrighttoemitanequivalentamountofCO2.Inprinciple,ifacompanyreducesitsemissionsbelowthelimit,unusedallowancescanbetradedwithothercompaniesthatrequireadditionalallowances.Thepriceofallowancesisdeterminedbythemarket,soemitterscanchoosethemostcost-effectiveapproachbetweenpurchasingallowancesandinvestingintechnologiestoreducetheiremissions.Overtime,governmentsmayreduceallowancesgiventoemitterstomeetmoreambitiousemissionstargets.Thisincreasesthescarcityofallowances,therebyincreasingtheirprice.Asthepriceofallowancesincreases,investingintechnologiessuchasCCSbecomeseconomicallymoreviableforemitters.Compliancemarkets,knownasemissionstradingsystems(ETS),areincreasinginnumberanddistribution.BasedondatafromtheInternationalCarbonActionPartnership,anestimated25nationalandsub-nationalETSsareinforce,nineareindevelopmentand14areunderconsideration(1).Currently,therearetwolargejurisdictionsforcompliancemarketsthatincludeCCSprotocols-theEUETSandtheCaliforniaLow-CarbonFuelStandard(2,3).Cap-and-tradesystemsinTokyoandQuebecdonothaveCCSprotocols,butsincetheyoperateincountrieswithCCSactivity,CCScouldpotentiallybeincludedinthefuture(4,5).ThiswasseeninCalifornia,whichinstitutedaCCSprotocolundertheLow-CarbonFuelStandardyearsafteritlauncheditsETS(3).Similarly,theEUETSadoptedaCCSdirectivesomeyearsafteritwaslaunched.VOLUNTARYCARBONMARKETSVoluntarycarbonmarkets(VCM)arecreatedbyprivateorganisationsandareself-regulated.VCMsunderwentrecordgrowthlastyear,andmarketcouldreachUS$50-100billionperyearby2030,drivenbynet-zerocommitmentsfromtheprivatesector(6).VCMsenableinvestors,governments,non-governmentorganisationsandbusinessestopurchasecarbonoffsets,calledverifiedemissionsreductions(VERs),fromprojectdevelopersandotherthirdparties.VERsaregeneratedbyprojectsthatareassessedusinggreenhousegas(GHG)reductionmethodologies.ProjectsarethenregisteredinaVCMregistry,whichtracksthegenerationofandtradeinVERs.Asorganisationsmakeincreasinglyambitiousclimatepledges,manyofthemhavefewcost-effectiveoptionstoreducetheiremissions.Carbonoffsetsprovidecompanieswithapracticalandscalablemeansthroughwhichtheycanachieveemissionsreductions.Inpractice,acompany'scarbonoffsetstrategyoperatesintandemwitheffortstoreduceemissionsdirectly.ÝFIGURE18:WorldwideCarbonMarkets-ComplianceandVoluntary(Source:WorldBank2022)NOVASCOTIA■ETSIMPLEMENTEDORSCHEDULEDFORIMPLEMENTATION■CARBONTAXIMPLEMENTEDORSCHEDULEDFORIMPLEMENTATION■ETS&CARBONTAXIMPLEMENTEDORSCHEDULEDTHEROLEOFARTICLE6~•SAITAUA■f..:;;,-TOKYO,..■ETSIMPLEMENTEDORSCHEDULEDFORIMPLEMENTATION,CARBONTAXUNDERCONSIDERATION■CARBONTAXIMPLEMENTEDORSCHEDULEDFORIMPLEMENTATION,ETSUNDERCONSIDERATION■ETSORCARBONTAXUNDERCONSIDERATIONCCMsandVCMsusedifferentstandardsandsystems,meaningthatprojectdevelopersmustsatisfytherequirementsofmultiplemethodologiesfordifferentsystems.Thisdiminishesthepotentialimpactofcarbonmarkets,increasingthecostofdecarbonisingtheworld'seconomy.Article6oftheParisAgreementhasthepotentialtoovercomethischallengebyincreasingcoordinationbetweengovernmentsandtheprivatesectortoharmoniseprojectmethodologies.Specifically,Article6enablescountriestotradewithoneanothertoachievetheirnationallydeterminedcontributions(NDC).IthasbeenestimatedthatUS$250billionperyearinsavingscanbeattainedby2030asaresultofArticle6,althoughthiswillbemuchdeterminedbyhowwellitfunctions(7).InJuly2022,thesupervisorybodyresponsibleforimplementingthemechanismfortradeunderArticle6wasoperationalised.Precedentsexistforsomemarketlinkages,suchasbetweenSwitzerland'sETSandtheEUETS,andbetweenQuebec'sandCalifornia'ssystems.Othertypesofoverlapsfoundinmarketstodayseeemissionallowancestradedalongsidecarbonoffsets.Forexample,California'sCap-and-TradeComplianceOffsetsProgramallowsentitiescoveredbythecaptosatisfyapercentageoftheirregulatoryobligationsthroughthetradeofVERsundertheVerraregistry.[1lTheneedtoincludeCCSinArticle6isunderpinnedbythefactthatcarbondioxideremoval(CDR)isvitaltounlockingthe'net'innet-zeroemissionsandachievingthe1.5CgoaloftheParisAgreement.TheuseofCCSnetworkscanfurtherstreamlinecostandresourceefficiency,especiallywhenplannedonaregionalorgloballevel.OUTLOOKFORCCSINCARBONMARKETSCCSplaysaversatileroleinsupplyingpoint-sourcecaptureandstorageaswellasCDR,whileofferingthecapacitytostoreCO2overlongerandmorepermanenttimeframesthanothermitigation/removaloptions.WhilethepriceofaCCScarboncreditwillbedeterminedbyunderlyingmarketsupplyanddemandinteractions,creditsgeneratedbyCCSprojectscouldattainhighervaluesbecausegeologicalstorageofCO2ismuchmoresecurethanstoragevianaturebasedsolutions(eg,storageintreesorsoil).PricesofCCS-generatedcreditscouldalsoincreaseifmarketparticipantswouldbewillingtopayapremiumforinnovativeandnovelsolutionssuchasDACCSandBECCS,whichcurrentlyhavenomethodologiesinplace.TofurtherunlockandscaleupCCS-relatedclimateactionincarbonmarkets,theccs+[2lInitiativeisworkingondeliveringanintegratedmethodologicalframeworkforgeneratingcarboncreditsforthefullsuiteofCCSactivitiesfortheVCMsandArticle6(8).TheupcomingyearswillindeedbecriticaltoestablishingwaystodirectinvestmentandclimatefinancetoCCS,withcurrentthoughtleadershipinacademicandindustrycirclesfocusingoncarbonsequestration/storageunits(CSU)andcarbonstorageobligations(CSO)/carbontakebackobligationsasasolutiontoenhancingtheexpectedvalueresultingfrompermanentgeologicalstorage(9-11).FOOTNOTES[1]VerraisoneoftheleadingVCMregistrieswithalmost1,600registeredprojects.[2][TheCCS+InitiativeincludestheplussigntoindicatetheuseofCCSatpoint-source,CCUSandCDRincarbonmarkets.REFERENCES1.InternationalCarbonActionPartnership.ICAPETSmap[Internet].[cited2022Aug4].Availablefrom:https://icapcarbonaction.com/en/ets2.EuropeanCommission.ImplementationoftheCCSDirective[Internet].ImplementationoftheCCSDirective.2022[cited2022Jun21].Availablefrom:https://ec.europa.eu/clima/eu-action/carbon-capture-use-and-storage/implementation-ccs-directive_en3.CaliforniaAirResourcesBoard.CarbonCaptureandSequestrationProtocolundertheLowCarbonFuelStandard.2018.4.BureauofEnvironment,TokyoMetropolitanGovernment.TokyoCap-and-TradeProgram[Internet].TokyoCap-and-TradeProgram.2022[cited2022Jun15].Availablefrom:https://www.kankyo.metro.tokyo.lg.jp/en/climate/cap_and_trade/index.html5.GouvernementduQuebec,Ministerede!'EnvironnementetdelaLuttecontreleschangementsclimatiques.TheCarbonMarket-aGreenEconomyGrowthTool![Internet].TheCarbonMarket-aGreenEconomyGrowthTool!2022[cited2022Jun14].Availablefrom:https://www.environnement.gouv.qc.ca/changementsclimatiques/marche-carbone_en.asp6.TheOxfordInstituteforEnergyStudies.TheEvolutionofCarbonMarketsandtheirRoleinClimateMitigationandSustainableDevelopment.NewOxfordEnergyForum.2022Jun;7.IETA.CLPC_A6summary_highresnocrops.2019.8.CCS+Initiative[Internet].[cited2022Aug12].Availablefrom:https://www.ccsplus.org/˚˚5.2CARBONREMOVALSCarbondioxideremoval(CDR)technologiesremovecarbondioxidefromtheatmosphere.TheIntergovernmentalPanelonClimateChange(IPCC)findsthatallscenariosthatlimitwarmingtonomorethan1.5CdeployCDRtechnologies.Further,mostmodelsareunabletofindpathwaysthatlimitwarmingto1.5CwithoutCDRtechnologies(1).NECESSITYOFCARBONREMOVALSDirectaircarboncaptureandstorage(DACCS)removesCO2directlyfromtheatmosphere,whilebioenergywithcarboncaptureandstorage(BECCS)capturesCO2frombioenergycombustion.BecauseBECCSprovidesbothCDRandusableenergy,BECCSistypicallyalowercostoptionthanDACCS.BECCS,though,islimitedbythesustainablebiomassavailableforenergy,approximately131EJglobally(2).RecenteconomicmodellingbytheGlobalCCSInstitutefoundthatreachingnet-zero(basedonIPCCSSP1-1.9)isexpectedtorequirethemaximumpossibledeploymentofBECCS(3),whichisdeterminedbytheavailabilityofsustainablebiomass.ThedeploymentofDACCShoweverisdeterminedbyitsfuturecost,whichisuncertain.TounderstandthepotentialroleofDACCSinachievingnet-zero,theInstituteexaminedarangeofpossibleDACCScostsfromUS$137pertCO2toUS$412pertCO2(comparedtotheIPCCDACCScostrangeofUS$100-300pertCO2).Thelnstitute'smodelprovidedresultsthatarebroadlyconsistentwiththeIPCC'sprojectionsofDACCS&BECCSdeployment.FIGURE19:CumulativeCDRthrough2100(GtCO2j11TBECCSDACCSTotalCDRIPCC226-842109-539333-1,221CAPTURECAPACITY491-5101.2-786511-1,277StayingwithintheremainingcarbonbudgetthroughthiscenturywillbemoredifficultandcostlywithoutCDR.Thescaleoftheenergytransitiontonet-zeroisstaggering.Advancedfuelsandtheirinfrastructuremustbedeveloped,theelectricitysectormustdecarbonise,andindustryandtransportmustbetransformed.CDRcanbuytimesothattherateoftransformationismoremanageableforthehardest-to-abate,highest-costapplications(3).CDRcanalsoactasinsuranceifunexpectedconstraintsariseinotherdecarbonisationpathways(3).ECONOMICPOTENTIALOFDACCSAnotherresultfromthelnstitute'smodellingisthattheearliestDACCSwouldbedeployedonaneconomicbasiswithoutanydedicatedDACCSincentivesis2043,withthelowest-costDACCSassumption(US$137pertCO2),butnotuntil2062withthehighest-costassumption(US$412pertCO2).Figure21showstheeconomicbreakevenpointbyyearandcostofDACCS.FIGURE20:BreakevencostsforDACCSovertime(assumesnoDACCS-specificincentives)N0u......a,c.CCl)::)...U)0uCl)u~CRJ.c.2C)400350300250200150Lt)N0N■DACCSISECONOMIC0M0NLt)M0N0q"0N■DACCSISUNECONOMICLt)q"0N0Lt)0NLt)Lt)0N0U)0NLt)U)0NTheeconomicdeploymentofDACCSbeyondthebreakevenpointdependsonhowlowthecostofDACCSisandhowearlythatbreakevenoccurs.VerylittleDACCSisdeployedifthecostishigherthanUS$350pertCO2.SignificantlevelsofDACCSareeconomicbetweenUS$137andUS$223perCO2(16GtCO2and8GtCO2,respectively,by2065).FIGURE21:QuantitiesofCO2storedfromDACCSatdifferentcostsovertime412406403395382375362354344335~3260316u...,307a::w298ll..C289Ill2281Iii2710262uVI2538<(2430,233223214204195185176166156147137:1,'v,f'~'1,0(l,b,.,oa,<o'1,0r,_,O'1-oaaaaa■aaaammmmmmDA~CSSTORED(GtC02)Figure22showshowdifferentDACCScostassumptionsaffectothertypesofCCS,includingBECCS,electricityfossilCCS,industryCCS,andhydrogenCCS.BECCSremainsconstantregardlessofthecostofDACCS,asdo,forthemostpart,industryandelectricityCCS.ThelowerthecostofDACCS,themoreitiscost-effectiveinoffsettingemissionsthatwouldotherwisebedecarbonisedthroughahydrogenpathway,whichinturnreducestheneedforbothgreenandbluehydrogenandtheCCSassociatedwithbluehydrogen.FIGURE22:CumulativeCO2storedfrom2022to2065byCCStypeasthecostofDACCSchanges800N"0u600.......CPc.Cen2.....Ill4000uenu~Ciii.c2000(!)•DACCS•HYDROGENCCS•INDUSTRYCCS•ELECTRICITYCCS•BECCSDRIVERSANDINCREASINGSUPPORTTheprimarydriverforCDRisthepathwaytowardnet-zeroemissionsbymid-century.AllavailableBECCSislikelytobedeployedbecauseitoffersCDRandenergy.ThelowerthecostofDACCS,themoreitwillbedeployed,thelowerthepriceofCO2thatwillresult,andthelowerthecostofthetransitiontonet-zero.Accordingtolnstitute'smodelling,thepotentialcostsavingsarehuge.IfthefuturecostofDACCScanbereducedtoUS$200pertonneofCO2,thenetpresentvalueofsavingsintheglobalenergysystemwouldbearoundUS$1trillion(3).IfthefuturecostofDACCScanbereducedtoUS$137pertonneofCO2,thenetpresentvalueofsavingsintheglobalenergysystemwouldbearoundUS$3trillion.InanefforttodriveDACCStechnologytowardcommercialisationtoreducetheoverallcostsofreachingnet-zero,governmentsareimplementingspecificpoliciesforDACCS.Forexample,theUSDepartmentofEnergyannouncedinMaythatitwouldprovideUS$3.5billioninfundingtofourdirectaircapturehubsoverthenextfiveyears(4).DACCSalsoqualifiesintheUSfor45QtaxcreditsofUS$180pertCO2stored(5).Canadarecentlyannouncedaninvestmenttaxcreditof60percentfordirectaircaptureequipmenttill2030and30percenttill2040(6).AnindividualcountryisunlikelytoinvestinDACCSatalevelneededforgloballyoptimalbenefits.Therefore,cooperationamongcountriesiscriticaltoensuringthatDACCScanreachlevelsthatbenefitall.ThiscooperationwouldfallwithinArticle6oftheParisAgreementandtheUNFCCCprocess.Onepossibleapproachwouldbeforagroupoflike-mindedcountriestoformaclubandpoolmoneytoinvestinDACCSprojectstodrivecommercialisation(7).5.3HYDROGENHydrogenproducedwithverylowlifecyclegreenhousegasemissions(cleanhydrogen)hasbroadapplicationinsupportingtheachievementofnet-zeroemissions.Cleanhydrogencanbecombinedwithcarbontocreatesyntheticfuelstoreplaceconventionalfossilfuels.Itcanbeusedinfuelcellstogenerateelectricityandmaybeusedasafeedstockformanychemicalprocesses.Projectionsoffuturecleanhydrogendemandexceed500Mtpaby2050comparedtototalhydrogenproductiontodayofapproximately120Mtpa,includingcleanhydrogenproductionofonlyaround1Mtpa[1l(1).Potentialsuppliersofbluehydrogen,producedwithfossilfuelsandCCS,haverespondedbyinvestinginnewprojects.AsofSeptember2022,therewere28bluehydrogenprojectsinvaryingstagesofdevelopmentandtwoinoperation.Theproductioncapacityofeachofthesefacilitiesrangesfromtensofthousandstohundredsofthousandsoftonnesofhydrogenperyear.Alargeinvestmentinhydrogentransportinfrastructurewillberequiredtodeliverhydrogentodemandcentres.Theexpectedinternationaltradeincleanhydrogenwillrequireafleetofpurpose-builtshipstogetherwithloadingandoffloadingterminalsatports.TheHydrogenEnergySupplyChain(HESC)pilotprojecthasdemonstratedthetransportofliquidhydrogenfromVictoriainAustraliatoKobeinJapan.PortinfrastructurewasconstructedatthePortofHastingsinVictoriaandinKobe,andapurpose-builtship,theSuisoFrontier,successfullyunloadedtheliquidhydrogenon25February2022(2).Hydrogenhasanextremelylowboilingtemperatureof-253°C,whichaddstothecostofcoolingandtransportinghydrogenbyship.Consequently,otheroptions,suchasthetransportofhydrogenasammonia(NH3),arealsobeingpursued.Thereisalreadysignificantinternationalshippingofammoniaacrossanetworkof120portswithappropriatefacilitiesandusing120shipsthatarecapableofcarryingsemi-refrigeratedammoniaascargo(3).Bluehydrogenprojectdevelopersarepredominantlyfromthepetroleumandindustrialchemicalindustrieswhocurrentlyproducehydrogenusingconventionalemissions-intensemethodssuchasreformationofnaturalgasorgasificationofcoalwithoutCCS.Forthesecompanies,movingfromconventionalhydrogenproductiontobluehydrogenproductionisevolutionary,notrevolutionary,fromabusinessperspective.Hydrogenproductionandthemanagementofgasesaretheircorecompetencies.Oilandgasproducersalsounderstandthebehaviouroffluids(suchasdensephaseCO2)inthesubsurface,andoperatinginjectionandproductionwells,andimplementingsubsurfacemonitoringprogramsareroutineoperationsforthem.Further,theseindustrieshaveastrongstrategicdrivertoshifttheirbusinessestosupporttheachievementofnet-zeroemissions.Productionofbluehydrogenallowsthemtoapplytheirexistingknowledgeandexpertisetoanewbusinessopportunity,andinsomecases,touseinfrastructureandresources(forexample,pipelinesandplatforms)thatwouldotherwisebecomeredundant.Theseindustriesareverywellpositionedtowinalargeshareofanyfuturecleanhydrogenmarketduetothecostcompetitivenessofbluehydrogencomparedtogreenhydrogen;thescaleoftheiroperations;existingcompetenciesandresources,includingfinancialresources;andstrongstrategicmotivation.FIGURE23:NumberofBlueHydrogenProductionFacilitiesbyDevelopmentStatus051015202530354045TOTAL•EARLYDEVELOPMENT•ADVANCEDDEVELOPMENT•INCONSTRUCTION•OPERATIONALOvertime,newertechnologies,suchasShell'sGasPartialOxidationprocess,willreplaceoldertechnologiessuchassteammethanereformation.ThecurrentfleetofoperatinghydrogenproductionfacilitieswithCCS-theoldestbeing40yearsold-areretrofitsofCCStoexistinghydrogenproductionfacilities.TheywerenotdesignedtoachieveveryhighCO2captureratesbecausetherewasnorequirementorfinancialincentivetodoso.Consequently,theyonlycapturearound60percentoftheirscopeoneemissions.Thenextgenerationofbluehydrogenfacilitiesisbeingdesignedfromthegrounduptoachieveveryhighcapturerates.Ninety-fivepercentcaptureisbecomingthedefaultcapturerate,withsomefacilitiesexpectedtoapproach100percentcapture.Ultimately,themarketwilldemandhydrogenwithverylowlifecycleemissionintensity.Blue(andgreen)hydrogenproductionfacilitieswillneedtodemonstratetheymeetthishighstandardtoaccessthismarket,andnewfacilitiesarebeingdesignedonthatbasis.Whileproductionofbluehydrogencanrampuprelativelyquickly,thisiscontingentontherebeingsufficientdemandtojustifytheinvestment.Thecostofcleanhydrogenisasignificantfactorincreatingdemand.Hydrogenmustcompetewithconventionalfossilenergy,whichisrelativelylowcostandenjoysallthebenefitsofincumbency(forexample,distributioninfrastructure,supplychains,andmatureutilisationtechnologies).Creatingdemandforcleanhydrogenrequirespolicythatcreatesvaluefromtheemissionabatementitprovides,aswellassignificantinvestmentinhydrogenproduction,storageanddistributioninfrastructure.Governmentshaverecognisedthis;theIEAreportsthat15nationalgovernmentsplustheEuropeanUnionhaveadoptednationalhydrogenstrategies,almostallwithtargetsandfunding(4).Nineofthosenationalstrategies,andtheEuropeanUnionstrategy,includebluehydrogen.FOOTNOTES[1]IncludeshydrogenproducedinsynthesisgasREFERENCES1.HydrogenCouncil.Hydrogenscalingup:Asustainablepathwayfortheglobalenergytransition.2017.2.HESC.SuccessfulCompletionofPilotProjectReport[Internet].2022[cited2022Aug5].Availablefrom:https://drive.google.com/file/d/127L2epevYr7XNEx2XEY-il05x911L-A1/view3.InternationalTradeRulesforHydrogenanditsCarriers:InformationandIssuesforConsideration[Internet].2022[cited2022Aug5].Availablefrom:https://www.iphe.net/_files/ugd/45185a_29c90ec0ea15463eadf5d585cfd7b20a.pdf4.InternationalEnergyAgency.GlobalHydrogenReview2021[Internet].2021Nov.Availablefrom:www.iea.org/t&c/5.4FINANCETheroleoffinanceinsupportingthemorewidespreaddeploymentofCCSiscritical.Atthecountrylevel,severalgovernmentshaveagainsoughttoprioritisethetechnologythroughtheprovisionofavarietyoftargetedincentivesandgrants.Inparallel,however,itisclearthatfargreatersupportfromtheprivatefinancesectorwillberequiredtoaligninvestmentswithanet-zeropathwayandprovidemoretangibleassistancetoenablewidespreadCCSdeployment.Inlinewiththewidershifttowardgreenlendingandsustainableinvesting,increasedfocushasbeenplacedontheroleofgreenorsustainability-focusedtaxonomies.Taxonomiesofthisnaturenowprovideguidancetoinvestorsastowhichactivitiesandinvestmentsmayformallybeclassifiedasenvironmentallysustainable.Inseveraljurisdictions,regulationsandsecondaryguidancesettingouttheapplicationandscopeofthesetaxonomiesisalreadyinplace,whileworkisunderwayinmanyotherjurisdictionstodevelopfurtherexamplesinthecomingyears.Effortstoharmoniseapproachesandadopttheuseofcommonprincipleshasbeenhighlightedbymanyasanimportantapproachtowardagloballyconsistentapproach.Significantly,CCShasalreadybeenformallyrecognisedasaneconomicactivitywithintheEU'staxonomy,withthesubsequentdelegatedActsettingouttechnicalscreeningcriteria.WhilethisapproachhasaffordedthetechnologyapathwaywithintheEUmodel,itwillbecriticaltoensurethatotherschemesindevelopmentaroundtheworldalsoreflectthisviewandapproach.Theexaminationofenvironmentalsocialandgovernance(ESG)factorsisincreasinglyafeatureofwiderfinancingandinvestmentdecisions.RecentyearshaveseenESGfactorsrisefromtheperipherytobecomeanimportantaspectofcorporatedecisionmaking.Climate-relatedissueshavebecomesynonymouswiththe"E"factor,occupyingasignificantspacewithintheESGlandscape,andhaveresultedinincreasinglydetailedconsiderationbycorporations,investorsandthewiderpublic.Whilefinancialandlitigationriskscontinuetomotivatecompaniestofocusonclimateconsiderationsintheirreporting,afocusonmandatoryreportingobligationsisnowexpectedtodrivefurtherclimate-relateddisclosuresinthefuture.Publicandprivatesectornet-zerocommitmentsarealsoakeydriverforcloserscrutinyofESGdisclosuresbyshareholdersandfinanciers.Investorsarenowkeentoensurethatcompaniesarealigningtheiractivitieswiththeirnet-zerocommitmentsandasaresult,arelookingforcompaniestoprovideclearandconsistentdisclosurestatements.Theemergenceofseveralnet-zerodisclosureframeworks,standardsandprotocolsareindicativeoftheweightthatisnowaffordedtothisinformation.WhereCCSfitswithintheESGreportingspace,ifatall,hasbeenthesubjectofpreviousanalysisundertakenbytheGlobalCCSInstitute.Althoughclearlynotexcluded,thequalityandutilityofinformationgeneratedthroughcurrentreportingmethodologiesmaynotmeettheneedsofeitherprojectproponentsorend-usersofthisinformation.Thelnstitute'srecentanalysis,however,hasconsideredingreaterdetailhowprojectproponentsandinvestorsmayleveragethebenefitsoftheirCCS-relatedinvestmentsandprojectoperationsinthecontextofthewiderreportingenvironment.[1]Inaccordancewiththeprevalentviewthatfargreaterconsolidationandharmonisationofreportingschemeswillberequired,theInstitutehasproposedamethodologythataimstohighlighthowCCS-specificfactorsmaybeincludedwithintheparametersofexisting,well-definedreportingpathways.[1]AnESGReportingMethodologytoSupportCCS-relatedInvestmenthttps://www.globalccsinstitute.com/resources/publications-reports-research/an-esg-reporting-methodology-to-support-ccs-related-investment/FOOTNOTES[1]AnESGReportingMethodologytoSupportCCS-relatedInvestmenthttps://www.globalccsinstitute.com/resources/publications-reports-research/an-esg-reporting-methodology-to-support-ccs-related-investment/Ý5.5INDUSTRYCCSisanessentialpathwayforkeyindustrialapplications.Industriessuchascement,ironandsteel,andchemicalsallhavecharacteristicsthatmakethemchallengingfordecarbonisation(theso-called"hard-to-abate"industries).CCSisanessentialpathwayforkeyindustrialapplications.Industriessuchascement,ironandsteel,andchemicalsallhavecharacteristicsthatmakethemchallengingfordecarbonisation(theso-called"hard-to-abate"industries).CO2isanunavoidablechemicalby-productofthecalcinationreactionthatisattheheartofcementmanufacturing.Ontopofthis,cementisproducedattemperatureswellabove600C;temperaturestypicallyproducedbythecombustionoffossilfuels.Assuch,evenifbiofuelsorotherlow-carbonsourcesofheatareusedincementkilns,thisCO2willstillneedtobemanaged.Thisdual-sourcing,aswellasthevastglobaldemandforcementforconstruction,makesthecementindustryhighlyCO2emissions-intensive,accountingforaroundeightpercentofglobalanthropogenicgreenhousegasemissions(1).Theworld'sfirstcementCCSprojectisunderconstructionattheNorcemcementplantinBrevik,Norway.PartoftheLangskipnetwork,thisprojectisintendedtocapture400,000tonnesperyearofCO2withanamine-basedabsorptioncaptureplant.Itisexpectedtobeoperationalin2024andwillliquefyCO2forshiptransporttotheNaturgassparkenCO2facilityforultimatestorageundertheNorthSea.LargerscalecementCCSprojectsareinearlydevelopmentbyLafargeHolcim(US)andHansonCement(UK).CementisprovingtobeanactivesectorfornewCO2captureinnovations.TechnologycompanyCalixistestingitsnovelcalcinerreactorintheLEILACprojectinBelgium.ThisreactorisnovelinthatitkeepscalcinationCO2(highpurity)andtheheatsourcesseparate,withindirectheatingthroughatubularreactorwall.Effectivelyaformofinherentcapture(CO2isproducedinapurestate),thisapproachoffersanewpathwayforthecementsectorinthefuture,aswellasthepotentialtoexploitnewheatsourcessuchasrenewableelectricity,furtherdecarbonisingtheprocess.Manyoftheworld'scementkilnsproduceCO2atmuchsmallerscalesthanseeninnaturalgasprocessingplantsorinthermalelectricitygeneration.ThisscaleimpactsonCO2capturecost,ascapturecostpertonnetypicallyriseswithreducedscaleoftheCO2source(2).Assuch,cementkilnscanhavehighercapturecoststhansomeotherapplications.Thisrepresentsanopportunityforcapturetechnologycompaniestobringtheircostadvantagetobearonthissector.FirmssuchasCarbonCleanandSvantearegoodexamplesofcapturetechnologydevelopmentthatisideallyplacedformedium-scaleapplications,suchasinthesector.TheglobalironandsteelsectorisalsoamajorcontributortoglobalCO2emissions.Duringironproductionfromironore,carbon-basedreductants(suchascoal)reactwithoxygenintheoretoformCO2.ThereisoneoperationalCCSplantinthissector,attheEmiratesSteelfacilityinAbuDhabi.Thisamine-basedcaptureplanthasacapacityof800,000tonnesperyearofCO2,significantlyreducingtheemissionsofitshostDirectReducedIronfacility.Alternative,non-carbon-basedironmakingpathwaysarealsoindevelopment,basedonhydrogenasareductant.Thesemayformabasisfornewironandsteelmakingfacilitiesintothefuture.Ifsuccessful,theycouldbecomeanotherusefordecarbonisedhydrogen-includinghydrogenproducedfromnaturalgaswithCCS.TheglobalchemicalssectorisanothersignificantemitterofCO2globally,especiallyammoniaandammonia-derivedfertilisers(suchasammoniumnitrate).Ammoniaissynthesisedusingareactionofnitrogenandhydrogen.Almostallthehydrogenusedinammoniaproductiontodayisproducedfromfossilfuels,primarilywithsteam-methanereforming.Ashifttodecarbonisedhydrogen,includingbluehydrogeninlargeutility-scalehydrogenplants,wouldenabledeepdecarbonisationofthisessentialsector.REFERENCES1.EllisLD,BadelAF,ChiangML,J-YParkR,ChiangYM.Towardelectrochemicalsynthesisofcement-Anelectrolyzer-basedprocessfordecarbonatingCaCO3whileproducingusefulgasstreams.PNAS[Internet].2019[cited2022Jui22];117(23).Availablefrom:www.pnas.org/cgi/doi/10.1073/pnas.18216731162.KearnsD,LiuH,ConsoliC.TECHNOLOGYREADINESSANDCOSTSOFCCS.2021Mar.5.6EVOLUTIONOFSTORAGETherateofcarbondioxidestorage,currentlyaround40milliontonnesperyearmustgrowtobillionsoftonnesperyeartomeetclimatetargets.Historically,mostcarbondioxidehasbeenusedforenhancedoilrecovery(EOR).WhilsteffectivelyallcarbondioxideinjectedforEORispermanentlytrappedintheporespacethatpreviouslyheldtheoil,themajorityoffuturestoragewillnotbeassociatedwithEOR.ThehistoricdominanceofCO2storedthroughEORisunderstandablegiventheCCSindustrywasbornoutofEORintheUS.Thesefacilitiesshowedthatmillion-tonneCO2injectionratesatmultimillion-tonnestoragesiteswerepossible.Importantly,monitoringconfirmsthatalltheCO2injectedisultimatelystored.ThismonitoringhaslaidthefoundationforCCStobecomeacriticalclimatechangetechnology.Today,deepsalineformationsarethemostcommontypeofCO2storagereservoiracrossallstoragefacilities(over150)atallstagesofdevelopmentfromoperationalthroughtoearlydevelopmentphases,andincludingcompletedfacilities(Figure25).CCSdeploymentisexpandingwithagreaterdiversityofgeographiesandstoragetargets.CO2storagefacilitiestargetingdeepsalineformationsaremostsubstantialinNorthAmericaandtheNorthSea.Storageindepletedoilfieldsisalsosettobecomemorecommon,forexampleintheUKandinAustraliaandSoutheastAsia.FIGURE24:Countofcompleted,currentandfutureCO2storageprojectsacrossstoragetypesandgeographies.Dataderivedfromover150CCSfacilities,includingcommercialanddemonstrationprojects(over100,000tpaCO:2)acrossallstagesofdevelopment.IENHANCEDOILRECOVERYIIIIUNDEREVALUATIONIllDEEPSALINEFORMATIONIIDEPLETEDOILANDGASRESERVOIRII01020304050607080COUNTOFCCSFACILITIESINCLUDINGDEMONSTRATIONANDCOMMERCIALFACILITIES(over100,000tpa)•AFRICA•ASIAPACIFIC•EUROPE•MIDDLEEAST•NORTHAMERICA•SOUTHAMERICAThetrendofstoringCO2viadedicatedgeologicalstorageisevidentincomparingthedeploymentpipelineoffacilitiescomingonlineandthoseactivelystoring-deepsalineformationsdominatetheportfolioofemergingfacilities(Figure25).Afocusondeepsalineformationsratherthandepletedfieldsisaninterestingdevelopment.Historically,theexpectationwasthatthelow-cost,fast-to-developdepletedfieldswouldbetargetedfirst.Butfacilitiesareclearlytargetingdeepsalineformations.ThisisevidentinbothNorthAmericaandalesserextentinEurope(Figure24).Tworeasonsemergeforthischoice.First,CCSnetworksthatdominatethedevelopmentpipelinefocusondeepsalineformations;thosenetworkshavemultimillion-tonne-per-annuminjectionrates.Second,thepipelineincludesasubstantialportionoffacilitiesfromtheUSandtheNorthSea(UKandEurope).Boththeseregionshaveaccesstovolumetricallysignificant(over1,000Mt),high-qualitydeepsalineformationsastheirnearestandthereforefirstoptionforstorage.Thereisclearevidenceincomparingoperationalfacilitiestodaywiththepipelineinthefuture,thatthereisagreaterdiversityofstoragetargets.Depletedfieldsaresignificanttofutureprojectdevelopment,mainlyintheUKNorthSea.Inaddition,theEORpipelineisstillgrowing,particularlyintheUSandMiddleEast.FIGURE25:PotentialandcurrentCO2storedacrossstoragetypesanddeploymentstatus.Dataderivedfromover150CCSfacilities,includingcommercialanddemonstrationprojects(over100,000tpaCO:2)acrossallstagesofdeploymentCOMPLETEDOPERATIONALINCONSTRUCTIONADVANCEDDEVELOPMENTEARLYDEVELOPMENT---051015202530354045505560COUNTOFCCSFACILITIESINCLUDINGDEMONSTRATIONANDCOMMERCIALFACILITIES(over100,000tpa)•ENHANCEDOILRECOVERY•UNDEREVALUATION•DEEPSALINEFORMATION•DEPLETEDOILANDGASRESERVOIRPerhapsthemostimportanttrendingeologicalstorageisthattheaverageinjectionrateperprojectisincreasing.Operationalfacilities,onaverage,injectjustover1MtpaCO2.Thataveragecouldmorethandoublewithinadecadeasnewlargerprojectscommenceoperation.StorageprojectsassociatedwithCCSnetworksindevelopmentgenerallyhaveinjectionratesofaround5Mtpa.Further,storageoperatorsarenowannouncing10MtpaCO2ratesormore(1).Thisgrowthininjectionratehasemergedinthepasttwotothreeyears.FIGURE26:Theaverageinjectionrate(milliontonnesperannum)ofcommercialCCSfacilitiesinthedeploymentpipeline.Dataderivedfromover30CCSfacilitieswithdedicatedgeologicalstorage,includingcommercialanddemonstrationprojects(over100,000tpaCO2),acrossallstagesofdeployment.3'[....~w~0::2z05w-,zN0()1w!w~0•EARLYDEVELOPMENT•COMPLETEDDEVELOPMENTSTAGE•ADVANCEDDEVELOPMENT•INCONSTRUCTION•OPERATIONALThegeologicalcharacteristicsofdedicatedstorageresources(i.e.nonEOR)varywidely.Facilitiesaretargetingoractivelyinjectingintothinreservoirswithlowpermeability,throughtomulti-Darcy(veryhighpermeability-almostlikesandonthebeach)reservoirshundredsofmetresthick.Thehighestqualitydeepsalineformationisnotnecessarilythebestoption,withoperatorsneedingtobalancemanyfactors.Forexample,injectingintoahigherqualityformationmeanstheCO2spreadsfurther,increasingthemonitoringarearequired.WhilsttherangeofreservoirpermeabilitiesandthicknessesthathavebeenutilisedforCO2storageisquitebroad,thereappearstobeageologicalsweetspotatapermeabilityofaround300millidarciesandaformationthicknessof100-200metres.Thiscombinationmaybedescribedquantitativelybyinjectivitypotentialwhichisthemathematicalproductofreservoirpermeabilityandthickness.Mostprojectsinjectbetween1and10MtpaofCO2intostoragereservoirswithinjectivitypotentialofbetween10and100Darcy-metresaccordingtoHoffmanetal.(2015)(2).FIGURE27:lnjectivityofstoragesitesacrosstheentirepipelineoffacilitiesAdaptedandmodifiedfromHoffman,N.,GeorgeCarman,MohammadBagheri,ToddGoebel,&TheCarbonNetProject.(2015).SitecharacterisationforcarbonstorageinthenearshoreGippslandBasin.1000inw0::I-w~II)100II)wz~0:i:I-CAPTURECAPACITY(MTPA)1510·-·•••@·•••-•••••·-••••10~--------~---------~---------~---------~110100PERMEABILITY(MILLIDARCIES)1000Thediversityofstoragetypes,geologicalconditions,andinjectionrateswilllikelyincreasewiththeongoingdevelopmentofstorageresourcesacrossnewgeographiesandgeologicalbasins.MuchlikesectorsadoptingCCSfordecarbonisation,thegeologicalsitesforstoragearediversifyingasmoreresourcesaredeveloped.REFERENCE1.Santos.Globallysignificantcarboncaptureandstorageprojectastepcloser.https://www.santos.com/news/globally-significant-carbon-capture-and-storage-project-a-step-closer/.2022.2.HoffmanN,GeorgeCarman,MohammadBagheri,ToddGoebel,TheCarbonNetProject.SitecharacterisationforcarbonstorageinthenearshoreGippslandBasin.Melbourne;2015.5.7INFRASTRUCTUREAsCCSnetworkshaveemergedasakeyCCSdeploymentmodel,thedevelopmentofsharedtransportandstorageinfrastructurehasbecomeafocusforprojectdevelopersandpolicymakers.SharedinfrastructureincludesallthecapitalequipmentrequiredtomoveCO2fromcaptureplantstoitsultimatepermanentstoragesite:pipelines;compressionsystems;ships;portfacilities,suchasCO2liquefactionplantsandtemporaryholdingtanks;andultimatelystorageinstallationswheremultipleCO2sourcescanbeinjectedintostorageinsharedwells.InfrastructureprojectsenablebettereconomicsforthetransportandstorageofCO2.Bytakingadvantageofeconomiesofscale,sharedpipelinesenablelong-distancetransportatamuchlowercostpertonneofCO2thanwouldbepossiblewithdedicated,smallercapacitypipelines.InfrastructurealsoenablesmorerapiddeploymentofCCSatscale,byaggregatingthepartsofthelifecycle(pipelinesandstorage)withlongertimelines.Infrastructureprojectsareunderdevelopmentbyexistingplayersintheoilandgassectorwhohavelonghistoriesofbuildingpipelineprojectsanddrillingwells.Theseprojectsfitwellwiththeexperienceandcorecompetenciesofthesecompanies.IntheUS,ExxonMobilisleadingtheHoustonShipChannelCCSinfrastructureproject.Incorporating14companiesoperatingemissions-intensivebusinessesintheHoustonregion,thisworld-scalenetworkprojectwillinvolvethedevelopmentofsharedCO2pipelinesintheHoustonShipChannelregion.CompaniessuchasAirLiquide,BASFandShellhaveagreedtoparticipateintheproject(1).Theuseofsharedinfrastructure(pipelinesandoffshorestoragewellsintheGulfofMexico)willgreatlyimprovetheeconomicsofCO2transportandstorageintheregion.IntheUK,theEastCoastClusterisworkingtoaggregateCO2capturedfromamultitudeofindustrialandenergyfacilities.Inadditiontotheseonshorepipelinenetworks,supportinginfrastructureintheformofoffshorepipelinesandoffshorestoragefacilitiesisbeingdevelopedundertheNorthernEndurancePartnership(2).Thislarge-scaleoffshorestorageprojectwillbecomeessentialinfrastructurefortheentireHumberandTeessideindustrialregion,enablingupto27MtpaofcapturedCO2tobestoredfarmorecosteffectivelythanmultiple,smallerstorageprojects.InEurope,EquinorandFluxyshaveannouncedplansforaworld-scaleCO2subseapipelinefromBelgiumtostoragesitesintheNorwegianNorthSea(3).This1,000kmlongpipeline,withananticipatedcapacityof20-40Mtpa,isintendedtosupportthetransportofcapturedCO2fromBelgiumandsurroundingcountriesasanopen-accesstransportsystem.ThiswouldformanessentialbackboneofCO2pipelineinfrastructureacrossNorthwesternEurope.IntheDutchNorthSea,theAramisprojectwillprovideopen-accessCO2transportandstorageservicesthroughanoffshorepipelinetodepletedgasfields.Aswellaspipelines,shippingisemergingasanessentialtransportvectorforCO2-oftenwhenCO2sourcesandstoragesitesaretoofarapartforpipelines.Ship-basedCO2transportreliesontherefrigerationofCO2toliquefyit,makingitdenserandenablingshipstotransportlargertonnagesforagivenvolume.Earlyshipdesigns,suchasthoseusedintheLangskipnetworkinNorway,arededicatedcarriersshuttlingCO2fromparticularindividualCO2capturefacilitiesinOsloandBrevik.Assuch,their7,500m3CO2volumeisdeterminedbylogistics,withshippingdistanceandannualCO2volumethekeyconsiderations(4).TheseearlyshipswereadaptedfromexistingLPGcarrierdesigns.ItisanticipatedthatfutureCO2shipswilllikelybedevelopedwithlargercapacitiestofacilitatelongeropenwatershippingroutes,usingcleansheetdesigns.InIceland,CO2storagecompanyCarbfixisdevelopingtheCodaproject(5).Leveragingthelow-costbasaltstorageavailableinIceland,thisCO2terminalwillenableCO2tobeshippedfromacrossNorthwesternandWesternEurope.CO2portinfrastructurelikeCodaisexpectedtobecomeacommonfeatureofcoastalCCSnetworksmoregenerally.Ship-basedCO2movementsincreasethescaleofCCSnetworksandwillrequireCO2loadingfacilities(atsourceports)andunloadingfacilities(atreceivingports).AkeyadvantageofportfacilitiesisthatCO2transportroutescanchangeovertime(unlikepipelines),allowingshipstotakeCO2tothelowest-coststoragefacilitiesinaregion.Aswellasindustrialplayers,governmentsplayakeyroleintheincentivisationanddevelopmentofCCSinfrastructure.Forexample,theCarbonNetpipelineandstorageprojectinVictoria,Australiahasbeenanongoingefforttodevelopanewstoragesectorforenergyandindustrialbusinessesinthestate.Similarly,theAlbertaCarbonTrunkLine(ACTL)projectinAlberta,CanadahasbenefitedfrompublicsupporttokickstarttheCCSsectorintheregion,buildingaworld-scalepipelineconnectingCO2sourcestostorageresources240kmaway.Thissupportgoesbeyondtechnicalwork-itincludessupportiveregulationstoenableafirmlegalbasistoundertakestorage,guidanceforpipelineroutedevelopment,andgovernmentsupportforearly-stageexplorationtoconfirmstorageresourcequality.Thesearekeyrolesforgovernmentstohelpovercomesomeoftheearlybarrierstoinfrastructuredevelopment.Thecontinuedgrowthandscale-upofCCStoenableCCStomovetogigatonnescalesglobally,willdependonmorepipelines,storageprojectsandshippinginfrastructureoverthecomingdecades.REFERENCES1.ProposedHoustonCCShubgainssupermajorsupportIUpstreamOnline[Internet].[cited2022Jui22].Availablefrom:https://www.upstreamonline.com/energy-transition/proposed-houston-ccs-hub-gains-supermajor-support/2-1-11493922.EastCoastCluster[Internet].[cited2022Jui22].Availablefrom:https://eastcoastcluster.co.uk/3.OleKetilHelgesen.EquinorandFluxysunveilplansforCO2pipelinefromBelgiumtoNorwegianoffshoreCCSIUpstreamOnline[Internet].UpstreamOnline.2022[cited2022Jui22].Availablefrom:https://www.upstreamonline.com/energy-transition/equinor-and-fluxys-unveil-plans-for-co2-pipeline-from-belgium-to-norwegian-offshore-ccs/2-1-12476044.NorthernLights.WhatittakestoshipCO2[Internet].[cited2022Jui22].Availablefrom:https://norlights.com/news/what-it-takes-to-ship-co2/5.Carbfix.CarbfixsignsagreementwithDanishshippingcompanyforthetransferofCO2[Internet].[cited2022Jui22].Availablefrom:https://www.carbfix.com/carbfix-signs-agreement-with-danish-shipping-company-for-the-transfer-of-co25.8TIMELINESFORCCSPROJECTDEVELOPMENTBuildinganewCCSfacilityorretrofittingCCStoanexistingfacilityisamajorindustrialprojectrequiringthefullsuiteofstudies,fromconceptthroughpre-feasibilityandfeasibility,beforedetailedengineeringstudiescommence.Thecomplexitiesofidentifyingandnegotiatingcommercialagreementswithcounterpartieswhererequired(forexample,CO2offtakeagreements)andcompletingenvironmentalimpactassessmentprocesses,aswellasobtainingthenecessarytenementsandapprovalsforgeologicalstorageofCO2fromregulators,generallyrequiresyearstocomplete.ThisisassumingthatappropriatelegislationfortheregulationofCCShasbeenpromulgated;inmostjurisdictions,thisisstillnotthecase.ThedevelopmentofaCCSprojectsharesmanysimilaritieswithminingandmineralprocessingandoilorgasproductionprojects;alargecomplexCCSprojectmaytakeadecadetoprogressfromconcepttooperation.TheidentificationandappraisalofgeologicalresourcesforthestorageofCO2isacostlyandtime-consumingprocess.Itrequiresadesktopreviewofexistinggeologicalmodelscoveringtheareainquestion,"imaging"ofthesubsurfaceusingseismictechniquesandcomplexdataprocessing,andfinally,thedrillingofawelltocollectcoresamplesforanalysisandtoundertakesmallscaleinjectiontesting.Theseactivitiestypicallytakeafewyearstocompleteandaresubjecttotheavailabilityofgeoscientistswithappropriateexperienceandthecriticalequipmentrequiredtocollectdataanddrillwells.StorageappraisalisonthecriticalpathforCCSdeployment.Figure28isahighlysimplifiedGanttchartforthedevelopmentofacomplexCCSproject,assumingappropriateCCSregulationisinplaceandthereisnosignificantcommunityopposition.Itispossibletodeliveracomplexprojectinlesstimeifrelevantpre-existingstudiesareavailable(forexample,storagesiteappraisalorcaptureengineeringstudies).FIGURE28:SimplifiedGanttchartforacomplexCCSprojectYEARAPPROVALSGEOLOGICALSTUDIESCO2CAPTURE&TRANSPORTSTUDIESCONTRACTINGPROJECTEXECUTIONGeologicalstorageexplorationpermittingGeologicalstorageresourcedeclarationEnvironmentalImpactAssessment&ApprovalsGeologicalstorageinjectionpermittingBasinScreening(desktop)InitialInventoryReview(desktop)StorageSiteIdentification&Appraisal(datacollection)StorageFieldDevelopment&EngineeringDesignC02Capture&transportScoping&Pre-feasibilityStudiesCO2Capture&TransportFeasibilityStudiesCO2Capture&TransportFEEDStudiesFinancialInvestmentDecisionCounterpartyCommercialNegotiationsC02Capture&TransportDetailedEngineeringProcurementConstructionCommissioningOperationAttheotherendofthespectrum,lesscomplexCCSprojectscanbedevelopedinlessthanfiveyears.TheseprojectswillgenerallyrequireCO2captureprocessesthataresimpletointegratewiththeCO2source,areverticallyintegrated(noofftakeagreements),utiliseexistinginfrastructureand/oraccessrights,andaccessgeologicalstorageresourcesthatarealreadywellcharacterisedandnotfacinganysignificantriskofcommunityopposition.AnexcellentexampleofalesscomplexCCSprojectisSantos'sCooperBasinCCSProjectinAustralia,whichisscheduledtocommenceoperationin2024.ThisprojectwillcaptureCO2fromgasprocessingfacilitiesand,usinganexistingpipelinecorridor,transportit50kmtoadepletedhydrocarbonreservoirforstorage.Santoswillownandoperateeveryelementoftheproject,whichisinaremotepartofAustraliawithextremelylowpopulationdensity.WhiletherearelikelymanyopportunitiesaroundtheworldtodeveloplesscomplexCCSprojectssuchastheCooperBasinCCSProject,theserepresentaminorityofthetotalcapacityrequiredtomeetclimatetargets.CCSprojectsindevelopmenttodaytypicallyhavedisaggregatedvaluechainsandconnecttoaCO2transportandstoragenetworkbecauseofthecostandtheriskbenefitsthatnetworksprovide.Thedownsideisincreasedcomplexityandlongerdevelopmenttimelines.Inthelastfewyears,asCCSnetworkshaveemerged,thescaleandcomplexityofCCSprojectshasincreasedsignificantly.Alargemajorityoftheseprojectsareleveragingsomeexistingstudies,mostcommonlyrelatedtogeologicalstorageresources.Thosewithaccesstopre-existingstudieswouldbeexpectedtoadvancetooperationinlessthannineyears,butsomemaytakelonger.Largeindustrialprojectstaketimetodevelop.Ifambitiousclimatetargetsaretobemet,themajorityofprojectsthatwilldelivermulti-mega-tonne-per-year-abatementinthe2030sneedtocommencedevelopmentinthe2020s.Inaddition,lesscomplexprojectsthatcanbedeliveredinfiveyearsorlessshouldbepursuedwithurgency.PolicymakersmusttakethesetimelinesintoaccountanddeveloppolicythatincentivisesinvestmentinmorecomplexandlesscomplexCCSprojectstosupportnet-zerostrategies.Further,capacity-buildingacrossallrelevantdisciplines,especiallygeoscience,willbenecessaryinsomedevelopingcountries,particularlythosewithoutawelldevelopedpetroleumproductionindustry.APPENDICES2022STATUSREPORTCHAPTER6~~~~~~~~~~~~~~I===================================================================================================================I••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••SECTION66.1CO2GEOLOGICALSTORAGESUMMARYOFSTORAGEMECHANISMSANDSECURITYFourmechanismsexistfortrappingCO2inthesubsurface.Thesemechanismsoccursimultaneouslyuponinjectionbutoccuratdifferentrates(Appendixfigure1).Therelativecontributionofeachtrappingmechanism-physical,residual,dissolution,mineralisation-changeswithtimeandwithaCO2plume'sevolution.Intheinitialdecadesofastandardstorageoperation,physicaltrappingoffree-phaseCO2istheprimarytrappingmechanism.TrappingofCO2isstronglydependentonasite'sgeologyandlocalformationconditions(in-situfluids,pressure,temperature).AportionoftheCO2plumemayalwaysremaininitsfreephase,butphysicaltrappingispermanentwhenthegeologicsettingisstableandtheCO2plumeisbehavinginthereservoiraspredicted.APPENDIXFIGURE1:(Lowerpanel)ThefourtrappingmechanismsoperatinginthesubsurfacetopermanentlystoreCO2.(Upperpanel)RelativecontributionofthefourtrappingmechanismstopermanentCO2storagethroughtime.EachmechanismoperatessimultaneouslyuponCO2injection,buttheyoccuratdifferentrates.01010010,000TIMEAffi!I002IN.1~110:tt(Y'EARSJ-~-----------~-~----STRUC:TIJRAL.TRAPPIN~DiSSOLUTIONITRAPPINGcaprnck""Imm"'10-501,,lffl~o.5mm-0.5mmSource:IPCC(2005)PHYSICALTRAPPINGPhysicaltrappingoccurswhenbuoyant,free-phaseCO2migratesintoabodyofrockthathasbeenfoldedorfaultedintoasubsurfacestructure(or"trap"),whichclosesinthreeorfourdirections,andiscontainedbelowalow-permeabilitycaprock(or"seal")(seeAppendixfigure2).Physicaltrappingisthesamemechanismthattrapshydrocarbonsinthesubsurface.Appendixfigure2illustratestypesofphysicaltraps,includingindependentfoldedrockbodiesandfault-dependentfolds(whichrelyonclosureagainstafaultforCO2containment).Incertaingeologicalsettings,physicaltrappingofCO2occurswhenareservoirthinslaterallyandultimatelypinches-out.Thisiscalledastratigraphictrapandisshownat"E"inAppendixfigure2.APPENDIXFIGURE2:Schematicillustrationofphysicaltrapsinthesubsurface.Circlesshow''spillpoints"orfaultdependencyofstructuralclosures.(A)Residualtrappingcanbethedominanttrappingmechanismingentlydipping(thatis,relativelyflat-lying)rockbodiesthatdonotexhibitstructuralclosure.(B)Afault-independentfoldedrockbody(anticline)cantrapbuoyantCO2downtoits''spillpoint';belowwhichCO2willmigrateoutofthefoldedtrap.(C)Afault-dependent(extensionalfault)foldedclosurereliesonthejuxtapositionofsealinglithologiesacrossthefaultplanetopreventCO2migrationoutofthetrap.(D)Afault-dependent(contractionalfault)foldedclosurereliesonthejuxtapositionofsealinglithologiesacrossthefaultplanetopreventCO2migrationoutofthetrap.(E)Astratigraphictrapreliesonlateralchangesinlithology(offenlateralstratigraphicterminationsor"pinch-outs'JtopreventCO2migrationoutofthetrap.■STORAGEFORMATIONS■FAULTSIZIINJECTEDCO2QSPILLPOINTS(FAULTDEPENDENCYOFSTRUCTURALCLOSURES)RESIDUALTRAPPING[!IRESIDUALTRAPPING(MONOCLINEFOLD)[iiFAULT-INDEPENDENTSTRUCTURALTRAP(ANTICLINEFOLD)@]FAULT-DEPENDANTSTRUCTURALTRAP(EXTENSIONALFAULT)[IDFAULT-DEPENDANTSTRUCTURALTRAP(CONTRACTIONALFAULT)[!]STRATIGRAPHICTRAP(PINCHOUT)-AsaC02plumemigratesthroughareservoir,aportionoftheplumewillbecometrappedintheporespaceandmicro-scalereservoirheterogeneitiesbycapillaryforces(seeAppendixfigure1).Thisprocessiscalledresidualtrappingandiscontrolledbytheconnectivitybetweenpores,porethroatsize,reservoirlithology,andpre-existingporefluidchemistry.Poresinsuitablereservoirsaretypically<1mminsize,wellconnected,andoftenmakeup10-30percentofthebulkrockvolume.BuoyancyforcesoftheC02plumearegenerallystrongenoughtoovercomecapillaryforcesinrockpores;however,alongthemarginsandtailofamigratingplume,capillaryforcesarestrongenoughto"snap-off"smallamountsofC02fromtheplume.ThesesmallamountsofC02areheldpermanentlyinporesagainstthesurfaceofmineralgrains.AstheC02plumemigratesawayfromthehigherpressuresataninjectionwell,residualtrappingbecomesincreasinglyimportant.Althoughresidualtrappingoccursatthemicro-scale,themassofC02trappedbythismechanismbecomessignificantatthereservoirscale(tensofmetresofthicknessandoveranareaofhundredsofsquarekilometres).Residualtrappingcontributessignificantlytopermanentstorageintheearlydecadesofastorageproject.DISSOLUTIONTRAPPINGDissolutiontrappingisasimplemechanismthatoccurswheninjectedC02comesintocontactwithabrineandtheC02isabletodissolveintothebrinesolution.C02solubilityisdependentonbrinesalinityandthetemperatureandpressureconditionsofareservoir.ACOrsaturatedbrinesolutionisdenserthanunsaturatedbrineandwillsinkinareservoir.Dissolutiontrappingisconsideredpermanentlytrapped.Overtime,theCOrsaturatedbrinediffusesanddisperseswithintheregionalhydrogeologicalsystemofthebasin.Dissolutiontrappinghappensimmediatelyoncontact,butonlybecomesasignificantcontributortostorageatdecadaltocenturytimescales.MINERALTRAPPINGMineraltrappingoccurswheninjectedCO2chemicallyreactswiththemineralsinareservoirrocktoformsolidstableproductminerals-oftencarbonateminerals.Mineraltrappingisapermanentformofstorage.Reactionratesandthemineralogyofproductmineralsdependonreservoirpressure,temperature,andreservoirmineralogy.ReservoirstargetedforCO2storageoftenhavefavourableconditionsformineralisation.Mineralcarbonationbeginsimmediatelyuponinjection,butisgenerallyaminorcomponentofastorageprojectuntilthousandsofyearshavepassed.Atthistimescale,inaconventionalstoragereservoir,themajorityofCO2willhavealreadybeenpermanentlystoredbythethreemechanismsdiscussedabove.However,injectionintosomerockformations(suchasbasalts)thatcontainreactiveironandmagnesiummineralscanresultinrapidmineralisationofthemajorityoftheCO2inasquicklyastwoyears(2).CO2STORAGERESOURCECATALOGUETheCO2StorageResourceCatalogueisacomprehensiveglobaldatabaseofstorageresourcesclassifiedaccordingtotheircommercialreadinessusingthe2017SocietyofPetroleumEngineersStorageResourcesManagementSystem(SRMS).Thepurposeofthecatalogueistoacceleratethecommercial-scaledevelopmentofCCSprojects,buildconfidenceinstorageresourceestimates,provideaconsistentglobalpictureofstoragepotential,andtoestablishtheSRMSasarobustandauthoritativereportingmechanismforstorageresources.Thecatalogueisasix-yearprojectfundedbytheOilandGasClimateInitiative,withtechnicalassessmentsundertakenbytheGlobalCCSInstituteandStoregga.Itisexpectedthatby2025,thecataloguewillhaveassessedallcountriesacrosstheglobe.TheSRMSclassificationsareshowninAppendixfigure3.TheGlobalCCSInstituteinpartnershipwithStoreggadevelopedaseriesofguidingquestionstohelpusersclassifytheirstorageresourcescorrectly.TherearefourmajorresourceclassesintheSRMS-theseareStored,Capacity,Contingent,andProspectiveresources.Eachclassimpliesadifferentlevelofcommercialmaturity,withProspectiveresourcesbeingtheleastmatureandStoredbeingthemostmature.Together,thesemakeupthetotalstorageresourcebase.APPENDIXFIGURE3:TheStorageResourceManagementSystemclassificationsystemforCO2storageresources.Followthequestionflowchart(blueboxes)toguideyourresourceclassification.Source:OGCIetal.(2022)Thethirdannualassessmentcycle("Cycle3"inOGCIetal.(2022))wascompletedinMarch2022andaddedapproximately1,000gigatonnesofCO2(GtCO2)ofstorageresourcestotheglobalresourcebase,whichstandsat13,954GtCO2.APPENDIXFIGURE4:Resultsfromassessmentcycle3oftheCO2StorageResourceCatalogue■HIGHLYSUITABLE■SUITABLE■POSSIBLE■UNLIKELYSource:OGCIetal.(2022)Assessmentcycle3increasedthenumberofstoragesitesto852andthenumberofassessedcountriesto30.Appendixfigure4showsthetotaldiscoveredandundiscoveredstorageresource.Justover577Gtofstorageresources(or4.1percentofthetotalglobalresourcebase)havebeendiscovered-meaningtheyhavebeenprovenwithsubsurfacedatasuchasawellandseismicsurveys.Unfortunately,onlyaverysmallfractionofthetotalglobalstorageresourcebasecanbeconsideredcommercialresources-just253MtCO2(or0.002percent).Commercialresourcesmustbereadyforastorageoperationtoproceedandhave:alegalandregulatoryframeworkthatenablesCO2storageathoroughtechnicalassessmentandunderstandingofthestoragecomplexanotionalprojectdevelopmentplannosignificantbarriercausingdelayindevelopmentoftheproject.Theorderofmagnitudedifferencebetweensub-commercialresourcesandcommercialresourcessuggestsasignificantopportunityexiststoexplore,develop,andappraisestorageresourcesglobally(Appendixfigure5).TheCO2StorageResourceCataloguecanonlyusedatainthepublicdomain,soclassificationsinAppendixfigure5likelyunderestimateresourcecommercialitybecausecompaniestendtokeeptheirCCSprojectinformationprivate.APPENDIXFIGURE5:CO2storageresources(whichareassociatedwithstorageprojects)bycountryandSRMSmaturityclass10,000,ooo1,000,000~~100,000w0a::::::,010,000Cl)wa::w(!)~1,0000I-Cl)"1000010--1n1I~~0...I<zs~zssz:I!::::c:sCiii~>-~~>-wsI-a::~w0Nzj:!...I<~Cj:!<Cl)Cl)zz;::::,a::z<Ill~~::::,::::,<><~:i:<a::D.~zww<::::,z<<::::,<ii0zw0Cl)a::0<Cl)I-Cz...Ia::<a:::I!:::I!::a::::::,ILiii~:I!::Ill::c:I-~..,<~w~0<iIll...I0za::<0<~Cl)::c::ii:~>C::c:iizww~:ii:;ej(!)c::c:;ej::::,I-z~I-Cl)C(!)I-~<::::,<::::,::::,00Ill<0:ii:Cl)Cl)Cl)AMERICASAPACEUROPEMENA■STORED■CAPACITY■SUB-COMMERCIAL■UNDISCOVEREDSource:OGC/etal.(2022)InFebruary2022,Santosbecamethefirstcompanytoofficiallyclaimownershipof(or"book")CO2storageresourcesusingtheSRMSsystem(4).Ithasbooked100MtofstorageresourcesintheCooperBasinofAustraliaaheadofitsMoombaCCSProject,whichhasreacheditsfinalinvestmentdecision(FID).SantosbookednineMtof2P(provedplusprobable)resourceand91Mtofcontingent(2C)resource.REFERENCES1.IPCC.IPCCSpecialReportonCarbonDioxideCaptureandStorage[Internet].Cambridge;2005[cited2022Aug31].Availablefrom:https://www.ipcc.ch/site/assets/uploads/2018/03/srccs_wholereport-1.pdf2.CarbFix.CarbFix:Howitworks[Internet].2022[cited2022Jui14].Availablefrom:https://www.carbfix.com/how-it-works3.OGCI,GlobalCCSInstitute,Storegga.CO2StorageResourceCatalogueCycle3Report[Internet].2022Mar[cited2022Aug29].Availablefrom:https://www.ogci.com/wp-content/uploads/2022/03/CSRC_Cycle_3_Main_Report_Final.pdf4.Santos.PositionedforSuccess:AnnualReport2021[Internet].2021[cited2022Aug8].Availablefrom:https://www.santos.com/wp-content/uploads/2022/02/2021-Annual-Report.pdf6.22022FACILITIESLIST-----i-FACILITYCOUNTRYFACILITYOPERATIONALFACILITYCAPTUREFACILITYSTATUSDATEINDUSTRYCAPACITYSTORAGEMtpaCO2CODETERRELLNATURALGASPROCESSINGPLANTNaturalGasEnhancedOilUSAOperational19720.5(FORMERLYVALVERDEProcessingRecoveryNATURALGASPLANTS)FertiliserEnhancedOilENIDFERTILIZERUSAOperational19820.2ProductionRecoverySHUTECREEKGASNaturalGasEnhancedOilUSAOperational19867PROCESSINGPLANTProcessingRecovery+~MOLSZANKFIELDCO2NaturalGasEnhancedOilHungaryOperational19920.16EORProcessingRecoveryDedicatedSLEIPNERCO2NaturalGasNorwayOperational1996GeologicalSTORAGEProcessingt~Storaget}GREATPLAINSSyntheticEnhancedOilSYNFUELSPLANTANDUSAOperational20003NaturalGasRecoveryWEYBURN-MIDALECOREENERGYCO2-NaturalGasEnhancedOilUSAOperational20030.35EORProcessingRecoveryDedicatedSNOHVITCO2NaturalGasNorwayOperational20080.7GeologicalSTORAGEProcessingStoragett}~ARKALONCO2EthanolEnhancedOilCOMPRESSIONUSAOperational20090.29ProductionRecoveryFACILITYNaturalGasEnhancedOilCENTURYPLANTUSAOperational20105ProcessingRecovery~PETROBRASSANTOSNaturalGasEnhancedOilBASINPRE-SALTOILBrazilOperational20117FIELDCCSProcessingRecoveryiiBONANZABIOENERGYEthanolEnhancedOilUSAOperational20120.1CCUSEORProductionRecoveryAIRPRODUCTSSTEAMHydrogenEnhancedOilUSAOperational2013METHANEREFORMERProductionRecoveryt+~COFFEYVILLEFertiliserEnhancedOilUSAOperational20130.9GASIFICATIONPLANTProductionRecoveryFertiliserEnhancedOilPCSNITROGENUSAOperational20130.3ProductionRecoveryBOUNDARYDAM3CARBONCAPTUREPowerCanadaOperational2014VariousANDSTORAGEGenerationFACILITYllll1KARAMAYDUNHUAOILMethanolEnhancedOilTECHNOLOGYCCUSChinaOperational20150.1ProductionRecoveryEORDedicatedQUESTCanadaOperational2015Hydrogen1.3GeologicalProductionStorageUTHMANIYAHCO2-EORNaturalGasEnhancedOilSaudiArabiaOperational20150.8DEMONSTRATIONProcessingRecovery~ABUDHABICCS(PHASE1BEINGUnitedArabIronandSteelEnhancedOilOperational20160.8EMIRATESSTEELEmiratesProductionRecoveryINDUSTRIES)ILLINOISINDUSTRIALDedicatedEthanolCARBONCAPTUREUSAOperational2017GeologicalProductionANDSTORAGEiiStorageiCNPCJILINOILFIELDNaturalGasEnhancedOilChinaOperational20180.6CO2EORProcessingRecoveryDedicatedGORGONCARBONNaturalGasAustraliaOperational20194GeologicalDIOXIDEINJECTIONProcessingStorageft~fDedicatedNaturalGasQATARLNGCCSQatarOperational20192.2GeologicalProcessingStorageALBERTACARBONTRUNKLINE(ACTL)WITHNORTHWESTEnhancedOilREDWATERCanadaOperational2020OilRefining1.6PARTNERSHIP'SRecoverySTURGEONREFINERYCO2STREAMALBERTACARBONTRUNKLINE(ACTL)FertiliserEnhancedOilCanadaOperational20200.3WITHNUTRIENCO2ProductionRecoverySTREAMDedicatedDirectAirORCAIcelandOperational20210.004GeologicalCaptureStoragetfttDedicatedGLACIERGASPLANTNaturalGasCanadaOperational20220.2GeologicalMCCSProcessingStorageSINOPECQILU-SHENGLIChemicalEnhancedOilChinaOperational2022ccusProductionRecoveryDedicatedREDTRAILENERGYEthanolUSAOperational20220.18GeologicalccsProductioniiStorageCNOOCSOUTHCHINANaturalGasEnhancedOilChinaInConstruction20230.3SEAOFFSHORECCSProcessingRecovery~GUODIANTAIZHOUPowerEnhancedOilPOWERSTATIONChinaInConstruction20230.3GenerationRecoveryCARBONCAPTUREttt~DedicatedSANTOSCOOPERNaturalGasAustraliaInConstruction20231.7GeologicalBASINCCSPROJECTProcessingStorageDedicatedDirectAirMAMMOTHIcelandInConstruction20240.03GeologicalCaptureStorageNORCEMBREVIK-CementNorwayInConstruction20240.4N/ACEMENTPLANTProductiontttNORCEMBREVIK-CementNorwayInConstruction2024N/ASHIPPINGROUTEProductionDedicatedNORTHERNLIGHTS-NorwayInConstruction2024VariousGeologicalSTORAGEStorageOXYANDCARBONDedicatedENGINEERINGDIRECTDirectAirUSAInConstruction20240.5GeologicalAIRCAPTUREANDEORCaptureFACILITYjfStoragettrHAFSLUNDOSLOCELSIO-KLEMETSRUDWasteNorwayInConstruction20250.4N/AWASTETOENERGYIncinerationPLANTNORTHFIELDEASTNaturalGasUnderQatarInConstruction2025PROJECT(NFE)CCSProcessingEvaluationDedicatedLOUISIANACLEANUSAInConstruction2026Various5GeologicalENERGYCOMPLEXtii~StorageDedicatedWABASHCO2AdvancedFertiliserUSA20221.75GeologicalSEQUESTRATIONDevelopmentProductionStorageBRIDGEPORTENERGYAdvancedEnhance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