The planned global carbon capture, utilisation and storage (CCUS) capacity pipeline has reached 905 million tonnes per annum (mtpa), with more than 50 new projects announced this quarter, according to a new report by Wood Mackenzie.
North America and Europe continue to emerge as hotspots for CCUS activity, Wood Mackenzie’s research noted. North America accounts for over two thirds of current global capacity in 2022, with activity mainly focused in Alberta, the Gulf Coast and US Midwest.
US major Occidental and its subsidiary 1PointFive announced began engineering and early site construction on Friday for their first large-scale Direct Air Capture (DAC) plant in Texas.
Also, UAE, Saudi and Bahrain are leading efforts for carbon capture in the Middle East, which could become the world’s leading region to capture carbon in enhanced oil recovery or for storage, according to Mitsubishi Heavy Industries Ltd.
The Global CCS Institute noted that UAE and Saudi Arabia together accounted for 10% of global annual capture in 2020, at 3.7 million mtpa, and forecasts the Gulf Cooperation Council states could alone have a total of 60 million mt/year by 2035.
More efforts for carbon capture needed to achieve net-zero goals
Despite progress, more effort will be needed to meet 2050 greenhouse gas targets, Wood Mackenzie noted.
Lucy King, senior research analyst and author of the report, said: “Despite continued momentum in the CCUS pipeline, much more progress is required to meet 2050 greenhouse gas targets. Currently, the CCUS capacity pipeline is close to aligning with Wood Mackenzie’s 1.5-degree pathway to 2030, but it will need to grow seven-fold by 2050 to reach the capacity required for net zero.”
“The biggest challenge is the lack of embedded policy and regulation for CCUS projects. For most countries, the rate of growth and demand for CCUS is outpacing the respective government’s ability to legislate. Despite this, we expect 2022 to be a pivotal year for CCUS, with many countries formulating strategies, policies and regulation to support its deployment” King said.