Understanding Carbon Capture and Storage (CCS): A Crucial Technology for Combating Climate Change

Carbon Capture and Storage (CCS) represents a vital technology in the global effort to mitigate the impacts of climate change. By capturing carbon dioxide (CO₂) emissions from industrial processes and power generation, and securely storing it underground, CCS can significantly reduce the amount of greenhouse gases released into the atmosphere. This technology is poised to play a critical role in achieving net-zero emissions and limiting global warming.

What is Carbon Capture and Storage (CCS)?

CCS involves three main steps: capturing CO₂ emissions, transporting the captured CO₂, and storing it securely. Capture technologies can be applied to various emission sources, including power plants, steel mills, and cement factories. Once captured, the CO₂ is compressed and transported, usually via pipelines, to a storage site. The storage typically involves injecting the CO₂ into deep underground rock formations, such as depleted oil and gas fields or deep saline aquifers, where it is securely trapped.

The Role of CCS in Reducing Climate Change Impacts

The importance of CCS in the fight against climate change cannot be overstated. The Intergovernmental Panel on Climate Change (IPCC) has identified CCS as essential for achieving the Paris Agreement targets of limiting global warming to well below 2°C above pre-industrial levels (Global CCS Institute). By capturing up to 90% of CO₂ emissions from industrial sources, CCS can help decarbonise sectors that are otherwise challenging to address, such as cement production and heavy industry (CSS Knowledge Center).

Moreover, CCS can facilitate the transition to a hydrogen economy. Hydrogen, when produced from natural gas with CCS (known as blue hydrogen), can serve as a low-carbon energy carrier, providing a clean alternative for various applications, from transportation to heating.

Investing in CCS: Opportunities and Benefits

Investors play a pivotal role in accelerating the deployment of CCS technologies. Investment can take various forms, including direct funding of CCS projects, investing in companies developing CCS technologies, and supporting research and development. Governments can also incentivise investment through policies and subsidies that lower the financial risks associated with CCS projects.

One promising avenue for investors is the voluntary carbon market. By purchasing carbon credits from CCS projects, businesses can offset their emissions while supporting the development of this crucial technology. Additionally, as global regulations on carbon emissions tighten, the demand for CCS solutions is expected to grow, potentially offering significant returns for early investors.

According to the World Economic Forum, although carbon capture, utilisation, and storage (CCUS) technologies have been commercially available for decades, there are currently only 30 operational projects worldwide, according to the Global CCS Institute. Additionally, 11 projects are under construction, and 153 are in various stages of development. Notably, 2022 saw the initiation of 61 new CCUS projects (WEF).

Carbon Capture, Use, and Storage (CCUS)

An extension of CCS is Carbon Capture, Use, and Storage (CCUS), which not only captures and stores CO₂ but also utilises it. Utilisation can involve converting CO₂ into useful products, such as chemicals, fuels, and building materials. This adds an economic incentive to the environmental benefits of CCS, potentially making CCUS projects more financially viable.

Conclusion

Carbon Capture and Storage is a critical technology in the global strategy to combat climate change. By capturing and securely storing CO₂ emissions, CCS can significantly reduce greenhouse gas levels in the atmosphere. For investors, CCS offers opportunities not only to contribute to climate solutions but also to capitalise on the growing market for low-carbon technologies. With continued support and investment, CCS can play a transformative role in achieving a sustainable and resilient future.

References

1. International Energy Agency. "Carbon Capture, Utilisation and Storage."
2. Geoscience Australia. "What is CCS?"
3. Resources for the Future. "Carbon Capture and Storage 101."
4. Department of Climate Change, Energy, the Environment and Water. "Carbon Capture, Use and Storage."
5. CSIRO. "Carbon Capture and Storage: One Tool, Many Opportunities."
6. World Economic Forum. "CCUS: A Pathway to Sustainable Industrial Development."