Technology Roadmap: Carbon Capture and Storage in Industrial Applications
Release Date: 2011
Nearly one-third of global energy and one-quarter of worldwide carbon dioxide (CO2) emissions are attributable to industrial activities that are not in the power generation sector. If climate change is to be successfully tackled, these sectors will need to transform the way they use energy and significantly reduce their CO2 emissions. In sectors such as iron and steel, oil refining, cement and chemicals and petrochemicals, emission can be reduced through efficiency improvements and integration of low carbon energy sources. Crucially, however, carbon capture and storage (CCS) has been identified as the only large-scale mitigation option available that can deliver the additional CO2 emissions reductions that would be necessary to meet the climate goals in 2050.
This roadmap shows that CCS is a key cost-effective option for reducing CO2 emissions in large energy-intensive industries. In fact, much of the promising short-term potential for CCS globally lies not in the power sector but in industrial activities that currently vent highly pure streams of CO2. These activities include hydrogen production for fertilisers or fuel, bioethanol production and natural gas sweetening. Most studies on the potential application of CCS have focused on the power sector, however, even though all existing operational large-scale demonstrations of CCS are in industrial applications. In the longer-term, half of the global economic deployment for CCS by 2050 is shown to be in industrial applications. In certain sectors CCS is shown to be of particular relevance in developing countries, where it could be a highly cost-competitive emissions abatement option, even in the near term.
This technology roadmap builds on the initial IEA roadmap on CCS and also the technology roadmap for the cement sector developed by the IEA and the Cement Sustainability Initiative of the World Business Council for Sustainable Development. It paves the way for low-carbon industrial growth in developed and developing countries by providing a vision of CCS in industrial applications up to 2050.
- Carbon capture and storage (CCS) is a key cost-effective option for reducing carbon dioxide (CO2) emissions from industrial applications. Whereas the power sector can take advantage of alternatives to fossil fuels, in several industries deep emission reductions can only be achieved through CCS.
- CCS could reduce CO2 emissions by up to 4.0 gigatonnes (Gt) annually by 2050 in industrial applications, accounting for about 9% of the reductions needed to halve energy-related CO2 emissions by 2050. To achieve this target, 20% to 40% of all facilities need to be equipped with CCS by 2050.
- High-purity sources offer an early opportunity to demonstrate CCS. If this opportunity can be linked to enhanced oil recovery (EOR), costs could be lower than USD 10 per tonne of CO2 (tCO2), or even negative, and thus could be an enabler for early CCS project development.
- As with CCS in general, incentives and regulatory measures will be required to facilitate industrial applications of CCS. The mechanisms should be selected according to the maturity of the technology, and should distribute funding for CCS demonstration programmes efficiently between power generation and industrial production processes.
- CCS in industrial applications needs more specific support, including financial assistance for investing and operating CCS. Over time, however, incentives for CCS technologies should be linked primarily to their ability to reduce CO2 emissions.
- Additional capital investments of about USD 256 billion are envisaged for industrial CCS between 2010 and 2030. Of this total, USD 172 billion will be needed in developing countries. This high additional capital cost is one of the main barriers to implementation.
- For developing countries, CCS could be part of a low-carbon industrial development strategy. If CCS can be implemented through the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) or other new global climate mechanisms, the cost barrier could be partly overcome. It is likely that if CCS moves forward under the CDM, the first projects will be in industry.
- Technology Roadmaps: Carbon Capture and Storage in Industrial Applications- English (report | foldout)
- Technology Roadmaps: Carbon Capture and Storage in Industrial Applications – Chinese Translation (report | foldout)
- A Policy Strategy for CCS (2012)
- All Technology roadmaps
- Energy Technology Perspectives 2012
- Energy Technology Perspectives 2014 - order now
Publications and Papers:
- CCS Model Regulatory Framework (2010)
The development of this roadmap would not have been possible without financial support from the Norwegian Ministry of Petroleum and Energy and the Global CCS Institute. We want to thank those organisations for their support and guidance. The IEA and UNIDO also thank MASDAR, Shell and Petrobras who hosted stakeholder workshops in Abu Dhabi, Amsterdam and Rio de Janeiro, respectively; and the United Kingdom Department of Energy and Climate Change for sponsoring the Rio de Janeiro workshop.
The IEA and UNIDO would also like to thank the industry, governments and non-governments experts who attended meetings, reviewed and commented on drafts and provided guidance.
The Carbon Capture and Storage in Industrial Applications roadmap is IEA and UNIDO interpretation of the workshops, with additional information incorporated to provide a more complete picture, and does not necessarily fully represent the view of the workshop participants or the funders.