Energy Technology Perspectives 2020 Special Report on Carbon Capture Utilisation and Storage CCUS in clean energy transitions Energy Technology Perspectives 2020 Special Report on Carbon Capture Utilisation and Storage CCUS in clean energy transitions INTERNATIONAL ENERGY AGENCY The IEA examines IEA member IEA association the full spectrum of countries: countries: energy issues including oil, gas Australia Brazil and coal supply and Austria China demand, renewable Belgium India energy Canada Indonesia technologies, Czech Republic Morocco electricity markets, Denmark Singapore energy efficiency, Estonia South Africa access to energy, Finland Thailand demand side France management and Germany much more. Through Greece its work, the IEA Hungary advocates policies Ireland that will enhance Italy the reliability, Japan affordability and Korea sustainability of Luxembourg energy in its Mexico 30 member Netherlands countries, New Zealand 8 association Norway countries and Poland beyond. Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States The European Commission also participates in the work of the IEA Please note that this publication is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/t&c/ Source: IEA. All rights reserved. International Energy Agency Website: www.iea.org Energy Technology Perspectives 2020 Foreword Special Report on Carbon Capture, Utilisation and Storage Foreword The International Energy Agency (IEA) has long highlighted that there are no single or simple solutions to reaching international energy and climate goals. Doing so requires a wide range of technologies, some more mature than others. Our revamped Energy Technology Perspectives series, of which this special report is a key part, has done important work in illuminating the contours of the major energy technology challenges we face today – and how to overcome them. The analysis shows that one of the key technology areas for putting energy systems around the world on a sustainable trajectory will be carbon capture, utilisation and storage (CCUS). In a path towards meeting international goals, CCUS is the only group of technologies that contributes both to reducing emissions in key sectors directly and to removing CO2 to balance emissions that cannot be avoided. This is a critical part of reaching “net” zero targets. Today, there are only around 20 commercial CCUS operations worldwide – nowhere near the amount required to put global emissions on a sustainable path. But momentum is growing – and through smart policies, investments and international co-operation, governments and companies across the globe can give CCUS the boost it needs. The United States has helped spur the development of CCUS facilities in its energy system through its innovative 45Q tax credits. And just before the launch of this special report in September 2020, Norway showed its leadership in Europe by making a major funding commitment to the Longship project. Longship will connect two different plants capturing CO2 in Norway with the Northern Lights storage facility deep under the North Sea. Northern Lights will be able to receive CO2 captured in neighbouring European countries, as well, thereby playing an important role in meeting not just Norway’s ambitious climate goals but those of the entire region. Plans for more than 30 commercial CCUS facilities have been announced in the last three years – mainly in Europe and the United States, but also in Australia, the People’s Republic of China, Korea, the Middle East and New Zealand. Projects now nearing a final investment decision represent an estimated potential investment of around USD 27 billion – more than double the investment planned in 2017. Co-operation – across borders, and between government and industry – is critical if CCUS is to grow at the pace needed to meet energy and climate goals. The IEA is committed to playing a leading role in those efforts, as demonstrated by this special report and the ongoing work of the Agency’s team of CCUS analysts. Markets alone will not turn CCUS into the clean energy success story it must become. But governments and industry today have the chance to combine their forces to realise the environmental and economic benefits that CCUS offers. Without it, our energy and climate goals will become virtually impossible to reach. Dr. Fatih Birol Executive Director International Energy Agency PAGE | 3 IEA. All rights reserved. Energy Technology Perspectives 2020 Acknowledgements Special Report on Carbon Capture, Utilisation and Storage Acknowledgements This report was prepared by the Energy Technology Policy Division and the Carbon Capture Utilisation and Storage Unit within the Directorate on Sustainability, Technology and Outlooks (STO) of the International Energy Agency. The study was designed and directed by Timur Gül (Head of the Energy Technology Policy Division). The analysis and production of the report was coordinated by Samantha McCulloch (Head of the CCUS Unit). The modelling work was coordinated by Uwe Remme. The main contributors were Praveen Bains (geospatial analysis), Adam Baylin-Stern, Niels Berghout, Sara Budinis, Peter Levi (industry analysis), Raimund Malischek, Trevor Morgan (Menecon Consulting), and Dong Xu. Other contributors were Adeola Awoyomi, Simon Bennett, Elizabeth Connelly, Araceli Fernandez Pales, Hana Mandova, Jose Miguel Bermudez Menendez, Leonardo Paoli, Andreas Schroeder, Jacopo Tattini, Jacob Teter, Tiffany Vass, Ciril Wakounig and Brent Wanner. Marina Dos Santos provided essential support. Trevor Morgan carried editorial responsibility. Erin Crum was the copy-editor. Mechthild Wörsdörfer, Director of STO, provided encouragement and support through the project. Valuable comments and feedback were provided by senior management and other colleagues within the IEA, in particular Keisuke Sadamori, Laura Cozzi, Laszlo Varro, Carlos Fernandez Alvarez, Paolo Frankl, Peter Fraser and Sara Moarif. We are also grateful to Jad Mouawad, Head of the IEA Communications and Digital Office (CDO) and the following CDO colleagues for producing and disseminating the report: Jon Custer, Astrid Dumond, Tanya Dyhin, Merve Erdem, Grace Gordon, Christopher Gully, Maria Kyriacou, Jethro Mullen, Julie Puech, Rob Stone, Therese Walsh and Wonjik Yang. The work could not have been achieved without the support provided by the United States Department of Energy and Japanese Ministry of Economy, Trade and Industry. The analysis and findings in this report draw on strategic guidance, insights and data received during invaluable IEA events: an ETP 2020 consultation meeting held in July 2019, and a workshop on the potential for CCUS technologies held in February 2020. The work also benefited from information and views provided by participants within the Technology Collaboration Programmes (TCPs) by the IEA (particularly the IEA Greenhouse Gas Programme (TCP on Greenhouse Gas Technologies)) which bring PAGE | 4 IEA. All rights reserved. Energy Technology Perspectives 2020 Acknowledgements Special Report on Carbon Capture, Utilisation and Storage together thousands of experts across government, academia and industry from 55 countries in order to accelerate energy technology innovation. Many experts from outside the IEA provided input, commented on the underlying analytical work and reviewed the report. Their comments and suggestions were of great value. They include: Florian Ausfelder DECHEMA Silvian Baltac Element Energy Thomas Berly ABT Consulting Pty Ltd Christoph Beuttler Climeworks Simon Bittleston Schlumberger Herib Blanco University of Groningen Peng Bo China University of Petroleum - Beijing Javier Bonaplata ArcelorMittal Jean-Paul Bouttes EDF Mick Buffier Glencore Coal Keith Burnard Technology Collaboration Programme on Greenhouse Gas R&D/IEAGHG Erin Burns Carbon180 Al Collins Oxy Low Carbon Ventures James Craig Technology Collaboration Programme on Greenhouse Gas R&D/IEAGHG Jarad Daniels U.S. Department of Energy Casie Davidson Pacific Northwest National Laboratory Bo Diczfalusy Nordic Energy Research Tim Dixon Technology Collaboration Programme on Greenhouse Gas R&D/IEAGHG Emrah Durusut Element Energy Ryan Edwards Oxy Low Carbon Ventures Aicha El Khamlichi ADEME Alessandro Faldi Exxon Jingli Fan China University of Mining and Technology Alan Finkel Chief Scientist of the Australian Federal Government Sarah Forbes U.S. Department of Energy Fridtjof Fossum Unander The Research Council of Norway Sabine Fuss Mercator Research Institute on Global Commons and Climate Change Marta Gandiglio Politecnico di Torino Monica Garcia Ortega Technology Collaboration Programme on Greenhouse Gas R&D/IEAGHG Oliver Geden Stiftung Wissenschaft und Politik James Glynn University College Cork PAGE | 5 IEA. All rights reserved. Energy Technology Perspectives 2020 Acknowledgements Special Report on Carbon Capture, Utilisation and Storage Lukas Gutzwiller Swiss Federal Office of Energy Beth Hardy International CCS Knowledge Center Jonas Helseth Bellona Howard Herzog Massachusetts Institute of Technology Nakamura Hidemi Taiheiyo Cement Corporation Geoffrey Holmes Carbon Engineering Takashi Hongo Mitsui & Co. Global Strategic Studies Institute Edmund Hosker Hosko Ltd Nigel Jenvey Gaffney, Cline & Associates Nils Johnson Electric Power Research Institute Hans Jorgen Vinje Gassnova Teruhiko Kai Research Institute of Innovative Technology for the Earth Anhar Karimjee U.S. Department of Energy Yoichi Kaya