It is likely that carbon capture will play a seminal role in the fight for a carbon neutral future.
Carbon capture and storage (CCS) involves the removal of carbon emissions from the atmosphere. This technology is currently operating mostly at the point of production whereby energy generation and industrial production facilities invest in physical infrastructure which prevents the release of harmful carbon emissions.
It's societal implications have been lauded by many.
The adoption of carbon capture utilisation and storage (CCUS) technologies provides the only feasible pathway to net zero emissions in 2050 without ‘extreme societal and behavioural changes’.
Furthermore, Carbon capture has also been hailed by experts as the most pragmatic means of allowing developing nations a solution to energy production which is vital for economic growth yet also carbon-neutral (GCCSI).
And, there is much to be optimistic about.
In an interview with the CEO of CCm Technologies I was informed that the industry benefits significantly from its strong collaborative environment which is essential for intra-firm evolution and encourages global integration of innovation. Given the global nature of the current climate crisis this is a reassuring sign in the context of an economic environment which is so often dominated by intellectual property and large multinational corporations seeking private gains.
Furthermore, whilst extremely high initial capital expenditure resulting from the relative infancy of the technology has prevented the UK government from committing significant resources so far, however learning-by-doing has already reduced the cost of CCS in the coal fired power sector by half.
Lastly, occupational and geographical economies of scale have been experienced by firms operating in concentrated clusters, whilst this concentration also offers ‘commercial synergies that reduce the risk of investment’.
However, more capital needs to be deployed for it to be truly effective.
The Global Carbon Capture and Storage Institute’s 'Global Status of CCS 2019' report highlights the necessity for governments to act fast, stating that ‘the number of industrial scale facilities needs to increase a hundredfold, from 19 in operation now [32 more currently in advanced development] to more than 2,000 by 2040.’ This is necessary in order to stay on track with limiting global warming to 2 degrees Celsius above pre-industrial levels this century, a level which was deemed to be the upper limit during the Paris Agreement signed in 2015.
However, given the fiscal constraints COVID-19 will engender and the high capital expenditures required for investment, it is unlikely states will be able to take on this burden.
So we will have to turn to market based incentives.
The U.S had shown that this is possible . This is demonstrated in the Petra Nova project in Texas whereby the coal power plant was retrofitted with a post-combustion CCS treatment system. The captured carbon dioxide is then sold and piped 82 miles for use in enhanced oil recovery (EOR) which comprises 90 percent of the projects revenue stream. An issue with this type of project however is its reliance on oil prices, and the current downward trend of oil prices, especially in the context of COVID-19, would render the project unattractive for governments in the current economic climate.
Furthermore, the approach across the pond in which CO2 is recycled for oil recovery is a method which could be utilised by developing economies in order to achieve carbon-neutral energy. Bill Gates, a keen supporter of CCS and an Ambassador to the Global CCS Institute, has spoken of the practicality of utilising a mixture of wholly renewable energy resources (e.g. solar or hydroelectric) alongside clean energy solutions like CCS.
A successful mixture of this, combined with continued action in other nations could balance the need to eliminate carbon emissions with economic growth whilst also acting to make carbon-neutral electricity ‘up to 62 percent cheaper than using renewables alone.’
The IEA’s World Energy Outlook 2019 predicts that CCS will provide 9 percent of the cumulative emissions reduction between now and 2050.
Given the lack of government funding, which appears to be inevitable in the context of an approaching economic downturn, private corporations will have to take responsibility and lead the way in the administration of CCS projects in the future.
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