In the recent research conducted by the International Energy Agency, it was revealed that while carbon capture, utilization, and storage technology is essential for achieving a carbon-neutral world, it alone cannot mitigate all CO₂ emissions in the oil & gas industry to reach net zero.
The IEA’s Oil and Gas Industry in Net Zero Transitions report highlighted the immense challenge of capturing 32 billion metric tons of carbon for utilization or storage by 2050 if oil and natural gas consumption continues unabated. Fatih Birol, the director of the IEA, cautioned against viewing CCUS as a complete solution, describing it as an “illusion” for the industry to rely solely on this technology.
However, despite these warnings, the report also acknowledges the importance of CO₂ capture as an essential technology in certain sectors and circumstances for achieving net zero emissions.
Advancements in CCUS technology are evident from the IEA’s CCUS database, which lists 51 operational facilities and nearly 800 projects in various stages of planning or construction. The announced capture capacity expected by 2030 has increased significantly, with over 430 million tons of CO₂ potentially captured worldwide.
Technological progress, such as the development of innovative solvents like the KS-21 solvent by Mitsubishi Heavy Industries, is driving this momentum. Additionally, compact CO₂ capture systems are being introduced, making the technology more accessible and affordable for small and medium-sized companies.
Furthermore, the evolution of the CO₂ value chain is underway, with an increasing focus on CO₂ utilization alongside storage. Utilising captured CO₂ in industries like fertilisers and cement can create a value chain for CO₂ as a tradable asset.
Transportation of CO₂ is crucial in this value chain, with advancements such as MHI Group’s testing of a system to liquefy CO₂ captured from gas engine generator sets demonstrating progress in this area. Overall, these developments signify a promising trajectory for CCUS technology and its role in decarbonizing various sectors of the economy.
