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CCUS in Industry and Transformation

Not on track
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About this report

The industry and fuel transformation sectors currently have just under 30 commercial CCUS facilities in operation, with a growing pipeline of projects in development. Many planned projects target industrial hubs and low-carbon hydrogen production, and if all were to proceed, CO2 capture capacity from industry and fuel transformation would almost quadruple.

Although a more inviting investment environment and net zero goals are raising interest in CCUS, its deployment remains woefully below the level required in the Net Zero Emissions by 2050 Scenario. Targeted support for lower-cost and less complex industrial CCUS applications, along with greater investment in CO2 transport and storage infrastructure, could unlock significant near-term emissions reductions.

Large-scale CO2 capture projects in industry and transformation, actual vs. Net Zero Scenario, 2020-2030

Tracking progress

Despite new projects coming online in 2020 and a large number under development, CCUS in industry and fuel transformation is not on track to reach the Net Zero Emissions by 2050 Scenario level of almost 1 150 Mt CO2 per year by 2030 (370 Mt CO2 per year in industrial applications and 775 Mt CO2 per year in fuel transformation).

With the two Alberta Carbon Trunk Line projects that came online in Canada in 2020, there are now just under 30 commercial CCUS projects in industry and fuel transformation (with capture capacity greater than 100 000 tCO2 per year). These projects capture CO2 from fertiliser production (0.5 Mt CO2 per year) and oil refining (1.3 Mt CO2 per year). The commercial projects operating today have an annual capture capacity of around 40 Mt CO2

In 2019, the Gorgon CO2 injection project was launched in Australia, with capacity to capture up to 4 Mt CO2 per year from natural gas processing at the Gorgon LNG plant. Additionally, the 2 Mt CO2 per year capture facility at the Qatar LNG natural gas processing plant started operations in 2019. 

In 2018, the 0.6Mt CO2 per year CNPC Jilin Oil Field CO2 enhanced oil recovery project started commercial operations in China, also capturing CO2 from a natural gas processing plant. 

Operating CO2 capture projects in industry and fuel transformation