Companies Acknowledge Potential of CCS, Need Government Incentives

Companies around the globe have been looking to deploy carbon capture and storage (CCS) technologies in growing numbers. The potential of CCS in helping corporate sustainability efforts and decarbonizing the economy attracts many companies. The number of CCS project worldwide have been steadily increasing as all CCS facilities in operation or under construction had a capturing capacity of around 40 Mt in 2021.

As decarbonization scenarios from the International Energy Agency (IEA) gets more ambitious, the part CCS plays becomes bigger. If the IEA’s “Announced Pledges Scenario” (APS) comes to fruition, and all governments’ climate commitments are met in full and on time, CCS capacity will grow to 350 Mt per year by 2030.

The capacity will climb further under the Net Zero Emissions by 2050 Scenario (NZE) to around 1.7 Gt per year in 2030. The IEA calculates that CCS could amount to 18% of the emissions reduction needed between 2030 and 2050.

The cost of CCS has so far been the biggest challenge to scale up the technology. However, if the industry wants to reduce emissions, CCS is still one of the cheapest options. For instance in ammonia and ethanol production, while incorporating CCS raises costs by 20%-40%, electrolytic hydrogen increases the cost by 50%-115%. This is why CCS will likely to become attractive for carbon intense industries such as cement, fertilizers and steel. Moreover, the technology is also attractive because of its potential of pairing with bioenergy and create negative emissions.

Despite its perceived position to play a key role in energy transition, CCS is still at a very early stage of development. That’s why corporations rely on government incentives to reduce costs. Governments acknowledge CCS’s potential and many try to embed CCS initiatives in their climate plans.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

TSMC to Build New Semiconductor Factory in Japan

Taiwan Semiconductor Manufacturing Corporation (TSMC) has announced it will build a new computer chip factory in Japan. TSMC, the world’s biggest contract manufacturer of semiconductors, stated that the expansion aims to increase the company’s competitive advantage to better serve its customers. The new factory is expected to be built in Western Japan as a joint venture with Sony. 

Ukraine War, China Lockdowns Hit European Supply Chains

The lockdowns in China and the war in Ukraine have caused a container shortage in Europe. Together with the shortage of containers, the port throughput has also decreased. 

Elon Musk to Move Tesla Headquarters to Austin, Texas

Tesla CEO Elon Musk said the electric automotive manufacturer was planning to move its headquarters from Silicon Valley to Austin, Texas. Tesla will build a car and battery manufacturing facility in the city. Oracle, HP and Toyota were the first companies to move from California to Texas. Texas offers cheaper labor, looser regulations and has lower cost of living than California. 

Stay informed

error: This content is protected !!