GLOBAL STATUS OF CCS 2019 TARGETING CLIMATE CHANGE URGENT ACTION IS REQUIRED TO ACHIEVE CLIMATE CHANGE TARGETS CARBON CAPTURE AND STORAGE IS VITAL < > 1.0 INTRODUCTION ABOUT US ABOUT THE REPORT ACRONYMS CONTENTS The Global CCS Institute (the Institute) is an CCS is an emissions reduction technology BECCS Bioenergy with CCS 1.0 INTRODUCTION international think tank whose mission is to accelerate critical to meeting global climate targets. CCS Carbon Capture and Storage 1.1 About Global CCS Institute the deployment of carbon capture and storage (CCS), CCUS Carbon Capture Utilisation and Storage The Global Status of CCS 2019 documents important 1.2 About the Report a vital technology to tackle climate change. COP Conference of the Parties milestones for CCS over the past 12 months, its status 1.3 Acronyms DAC Direct Air Capture As a team of almost 40 professionals, working with across the world and the key opportunities 1.4 CEO Foreword DACCS Direct Air Capture with Carbon Storage and on behalf of our Members, we drive the adoption and challenges it faces. EC European Commission of CCS as quickly and cost effectively as possible; sharing 2.0 MEETING THE CLIMATE CHALLENGE: We hope this report will be read and used by EOR Enhanced Oil Recovery expertise, building capacity and providing advice and THE NEED FOR CCS governments, policy-makers, academics, media ESG Environmental, Social and Corporate Governance support so CCS can play its part in reducing greenhouse commentators and the millions of people who care ETS Emissions Trading Scheme gas emissions. about our climate. EU ETS European Union’s Emissions Trading System 3.0 GLOBAL STATUS OF CCS Our diverse international membership includes EU European Union 3.1 Global CCS Facilities Update governments, global corporations, private companies, AUTHORS FEED Front-End Engineering Design 3.2 Policy Levers for Accelerating Deployment research bodies and non-governmental organisations; GHG Greenhouse Gas 3.3 Global CO2 Storage Overview all committed to CCS as an integral part of a net-zero The team that prepared this report and its underlying Gt Gigatonne 3.4 Legal and Regulatory Overview emissions future. analyses: This report was led by Brad Page, Guloren Turan GW Gigawatt and Alex Zapantis and included Lee Beck, Chris Consoli, The Institute is headquartered in Melbourne, Australia IPCC Intergovernmental Panel on Climate Change 4.0 REGIONAL OVERVIEWS Ian Havercroft, Harry Liu, Patricia Loria, Annya Schneider, LCFS Low Carbon Fuel Standard with offices in Washington DC, Brussels, Beijing, 4.1 International Climate Policy Overview Eve Tamme, Alex Townsend, Lucy Temple-Smith, MMV Monitoring, Measurement and Verification London and Tokyo. 4.2 Americas Dominic Rassool and Tony Zhang. Mtpa Million Metric Tonnes Per Annum 4.3 Europe MW Megawatt Other Institute staff members who contributed to this 4.4 Middle East and Central Asia NDC Nationally Determined Contribution report are: Jamie Burrows, Jeff Erikson, Bruno Gerritts, 4.5 Asia Pacific Carla Judge, David Kearns, Xiangshan Ma, Rob Mitchell, OECD Organisation for Economic Co-operation Hiroshi Nambo and Nabeela Raji. and Development R&D Research and Development 5.0 CCS DEVELOPMENT: SDS Sustainable Development Scenario TECHNOLOGY AND APPLICATIONS SMR Steam Methane Reformation 5.1 Natural Gas SOE State Owned Enterprise 5.2 Hydrogen TWH Terrawatt Hour 5.3 CCS in the Power Sector UNFCCC United Nations Framework Convention 5.4 Bioenergy with Carbon Capture on Climate Change and Storage (BECCS) UK United Kingdom 5.5 Direct Air Capture (DAC) US United States of America 5.6 CO2 Utilisation US DOE United States Department of Energy 5.7 CCS Innovation 5.8 Industry’s Transition to a Net-zero Future 6.0 APPENDICES 7.0 REFERENCES 5 1.0 Introduction CONTENTS 1.4 CEO Foreword < > BRAD PAGE CEO Global CCS Institute As if the world needed any more evidence that action. It is possible to get there but it requires policies Ramping up over time to capture and store between developing the new energy economy based on clean the effects of climate change are with us now and that mobilise enormous sums of capital to deliver an 3.4 and 4.0 million tonnes of CO2 per annum, Gorgon fuels like hydrogen, is dependent on CCS deployment. getting worse, 2019 bore witness to unprecedented unprecedented transformation of the global energy puts Australia on the CCS facility map and is a credit to And as CCS is deployed, many communities that catastrophic events that go well beyond weather system. It is hard but it can be done. the determination and persistence of the joint venture otherwise may have a less prosperous outlook in a variability and cannot be explained away as simply partners led by Chevron and including prominent carbon-constrained world become a positive part The recurring theme of many deeply analytical and extreme events that happen from time-to-time. Fires Institute members Shell and Exxon Mobil. of the transition. credible reports is that we need all technologies to win of devastating proportion and impact – in many cases this wrestle. We can no longer afford to have confected Hydrogen as a vital new energy source in the But we have much more work to do. Few clean energy more severe and widespread than ever previously competitions between technologies with prejudices decarbonisation race was also to the fore in 2019. technologies are on track to be deployed at the scale experienced – have wrought havoc in countries as that serve to compromise our ability to rapidly reduce In Europe, Australia, Japan, South Korea and an required to meet the Paris climate targets. CCS is disparate as the United States (US), France, Greece, emissions. increasing number of other countries, hydrogen is resurgent but still lagging while emissions again rose Portugal and Australia. Elsewhere, extreme storm receiving policy attention not seen for several decades. in the past year. Now is the time to rally for greater events have been experienced. Think Typhoon Hagibis Against this background we have seen exciting new The difference this time around is that the need for policy support and for capital to be allocated to build in Japan during the Rugby World Cup, prolonged developments in the energy transformation during a zero-emission energy dense fuel is vital and the on the positive CCS progress of the past two years. monsoons in India, Hurricane Dorian in the Bahamas 2019. For the second year in a row the CCS facility technology to produce and deliver the hydrogen has and Typhoon Lekima in China to name but a few, all pipeline has grown. The flexibility, applicability and advanced substantially in the intervening period. As with devastating loss of life and property. Meanwhile increasingly positive economics of applying CCS to is noted later in this report, the most technologically droughts worsen and deepen in many parts of the a range of emission sources is coming to the fore. proven, economical, at-scale process for producing world, including in essential food production areas. As this report reveals, positive policy intentions and clean hydrogen is through steam methane reforming settings are apparent in many parts of the world and The climate science has been clear for many years. Now or coal gasification, both with CCS. The potential especially the US, the UK, Norway and the Netherlands we are experiencing first hand the impacts of unabated market for clean hydrogen is substantial and early leading to more projects being added to our globally greenhouse gas emissions. stage investment in production facilities, evidenced for comprehensive database. CCS is also to the fore in the example in the Japanese/Australian joint venture of Time is not on our side to achieve the necessary targets plans and policies of the EU while Japan continues to building a coal gasification pilot plant, is the harbinger agreed at the historic COP 21 in Paris in 2015. We have make impressive strides forward. It is also notable that of a growing industry as are plans in the UK and in in the recent past had highly credible analysis of options China continues to attach importance to CCS and has Europe. and pathways to achieve the 2˚C and 1.5˚C targets established a new professional committee to broaden along with net zero carbon emissions by mid-century. the advice and support to government on CCS policy Perhaps the most compelling development in the last Indeed, the IPCC 1.5˚C Special Report makes it clear and actions. 12 months though is that increasingly, CCS is the stand that all technologies, and especially CCS in various out technology to genuinely deliver a just transition 2019 will also be celebrated for the commencement applications, are necessary along with reaching net zero for many fossil fuel-based communities. Dealing with of injection at the world’s largest geological storage emissions around 2050. The 4 pathways offered by the the associated emissions for extracting, processing facility – Gorgon – offshore NW Western Australia. IPCC all demand urgent and unprecedented levels of and using fossil fuels and perhaps more significantly 1 2 1.0 Introduction CONTENTS CCS Ambassador < > LORD NICHOLAS STERN IG Patel Professor of Economics & Government, London School of Economics Chair, Grantham Research Institute “ CARBON CAPTURE, USE AND STORAGE, WILL PLAY A VITAL ROLE The effects of climate change are already raging One of the opportunities that we have at hand, AS INDICATED BY THE across the world with wild fires, droughts, and carbon capture, use and storage, will play a vital rising sea levels. Bad as it is already, we risk far role as indicated by the Intergovernmental Panel worse. Failure to mitigate climate change is deeply on Climate Change’s Report on Global Warming of INTERGOVERNMENTAL dangerous; we owe it to future generations to tackle 1.5 ºC.