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1、GLOBAL STATUS OF CCS 2023SCALING UP THROUGH 2030ABOUT THE REPORTThis report documents the milestones for carbon capture and storage over the past 12 months,as it is increasingly adopted globally,and defines the key opportunities and challenges for the coming years.The data is provided to inform and
2、help accelerate deployment of this proven emissions reduction technology as an integral part of meeting global climate targets.We hope it will be read and used by governments,policymakers,academics,media commentators and the millions of people who care about our climate.About usThe Global CCS Instit
3、ute is a leading international carbon capture and storage(CCS)think tank.Our mission is to accelerate the global deployment of CCS as an integral part of tackling climate change and delivering climate neutrality.Our more than 200 international members include governments,companies,research bodies an
4、d NGOs,all with a commitment to CCS as part of achieving a net-zero future.We have resources in Washington DC,New York,Houston,London,Paris,Brussels,Abu Dhabi,Beijing,Kuala Lumpur,Melbourne,Perth,Brisbane and Tokyo.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERV
5、IEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX21.0 FROM THE CEO 42.0 SCALING UP THROUGH 2030 52.1 Scaling Up Through 2030 63.0 GLOBAL STATUS OF CCS 93.1 Global Facilities and Trends 103.2 International Policy,Legal and Regulatory Developments 203.3 Status of CCS Financing 234.0 REGIONAL OVERVIEW 274
6、.1 Americas 284.2 Asia Pacific 344.3 Europe&UK 414.4 Middle East&Africa 495.0 ANALYSIS 535.1 The Value of CCS in a Net-Zero World 545.2 Drivers of CCS Investment 565.3 CCS Business Models and Trends 605.4 Global Transport Methods 665.5 Managing Long-Term Liability 715.6 Storage Resource Development
7、Progress 746.0 FACILITIES LIST 762023 Facilities List 777.0 APPENDIX 93Acronyms 94References 94CONTENTS1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX3The climate math is clear:carbon capture and storage(CCS)and carb
8、on dioxide removal(CDR)must scale up to gigatonnes per annum to mitigate climate change and reach net-zero emissions.The growing urgency to address climate change felt by policy makers,industry leaders,investors and the general public is now accelerating CCS deployment in many regions around the glo
9、be.World-leading climate and energy analysts maintain CCS and CDR are key pillars needed this decade to keep within reach the Paris Agreements target of pursuing efforts to limiting the global temperature rise to 1.5 C.We have seen significant progress on CCS since last years 2022 Global Status of C
10、CS report,spurred by government policies in North America and Europe set forward to catalyse all forms of climate change mitigation.In the United States alone,federal policy is unlocking the potential for hundreds of million tonnes per annum(Mtpa)of CCS deployment this decade.Support for CCS in Denm
11、ark is an example of how quickly and strongly enabling policies can be developed and implemented with strong public support.The Global CCS Institute is now tracking 41 projects in operation and 351 in development globally,with new projects being announced weekly.The growing interest from CCS project
12、 developers is now palpable in many regions,across industries and in diverse applications.It is exciting to see so many projects progressing in many regions around the globe,including major projects in North America,the Jubail hub in Saudi Arabia with the first phase operational by 2027,and the firs
13、t major CO2 pipeline in China.We are seeing accelerating progress at a project level in the Middle East and North Africa,Australia and Asia.CCS networks(sometimes also referred to as hubs and clusters)are growing and we are tracking approximately 115 networks globally.Shared common infrastructure ca
14、n provide economies of scale and leverage synergies between point source carbon capture and carbon dioxide removal.It can shorten permitting timelines and create efficiencies during both development and operation.The financial sector and investors are actively looking to include CCS in their sustain
15、able development portfolios and investments.We are working with the financial community to include CCS in regulatory and reporting requirements to address this growing interest.Global collaboration on CCS has never been stronger.We support the Carbon Management Challenge championed by the United Sta
16、tes and a growing coalition of countries,which aims to deliver gigatonne scale CCS by 2030 consistent with the climate math and models.On behalf of our Members,the Global CCS Institute is working hard to help speed deployment of this critical climate change mitigation technology through our advocacy
17、,thought leadership,and knowledge-sharing efforts.I am encouraged by the exponential growth of enabling policies,projects,and collaborative activities we are witnessing on CCS globally.With public-private collaboration across government and industry and multi-lateral collaboration across many region
18、s,we can accelerate CCS.Jarad DanielsThe Global CCS Institute is now tracking 41 projects in operation and 351 in development globally,with new projects being announced weekly.1.0 FROM THE CEO1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACI
19、LITIES LIST7.0 APPENDIX42.0 SCALING UP THROUGH 2030 1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX2.1 SCALING UP THROUGH 20305Figure 2.11:Year-on-year growth in capture capacity of CCS projects in construction and d
20、evelopment(excludes capacity in operation).Capture capacity of CCS projects in construction and development(Mtpa CO2)00200202502003835 57%58%68%57%36%29%Carbon capture and storage is beginning to scale up,and the CCS project pipeline has reached an unprece
21、dented capacity.As of 31 July 2023,the total CO2 capture capacity of CCS projects(in the public domain)in development,construction and operation was 361 Mtpa,an increase of almost 50%compared to that reported in the 2022 Global Status of CCS report.Considering just CCS projects in construction and d
22、evelopment,the rate of growth has remained high,as shown in Figure 2.11.In addition to the headline statistics noted in Figure 2.11,the diversity of industries to which CCS is being applied has increased significantly over the past several years,demonstrating its role in supporting net-zero ambition
23、s.2.1 SCALING UP THROUGH 20301.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX62.1 SCALING UP THROUGH 2030The last 12 months have seen a significant increase in equity financing and interest in project finance for CCS
24、projects.Many businesses seeking to profit from the provision of CCS services,especially in the transport and/or storage of CO2,are now emerging on the back of decades of government-sponsored research,development,and deployment,industry net-zero commitments,and expectations of more stringent climate
25、 policy.CCS is also becoming a more prominent feature of public policy,from inclusion in a growing number of countries Nationally Determined Contributions(NDCs)to the provision of targeted policy to drive deployment and the drafting of appropriate regulations.International CCS business models are be
26、ing developed,with the first transboundary movement of CO2 by ship for geological storage completed between Belgium and Denmark in 2023.These are all encouraging indicators of progress.However authoritative analysis by the International Energy Agency,the Intergovernmental Panel on Climate Change,and
27、 others consistently indicates that achieving global climate targets will require annual CO2 storage rates of approximately 1 Gtpa by 2030,growing to around 10 Gtpa by 2050.A critical question given where we are today is:Is this level of scale-up feasible?Analysis from the Institute and other organi
28、sations demonstrate that whilst there are credible pathways for scaling up CCS deployment to keep the world on track for the goals of the Paris Agreement,this will require an ongoing and expanded commitment from governments and project developers,adoption of policy measures,and platforms that expand
29、 the CCS knowledge base to a wider audience of key stakeholders.Continued growth of the facility development pipeline,and ensuring projects in development proceed efficiently to final investment decision,construction and operation,are critical in the path to achieving the rates of deployment needed.
30、Supportive policies that underpin more robust carbon values,compelling and complementary tax incentives,and facilitating CO2 transport and storage hubs to attract more local capture projects would help maximise the number of CCS projects entering the development pipeline.In parallel,encouraging impr
31、oved cross-learnings between projects,creating more support for CCS amongst the financing community,facilitating closer interaction between capture customers and infrastructure providers and enhancing public and community engagement,education,and communication would ensure projects successfully prog
32、ress through FID and construction.Thankfully,there have been very significant policy developments in the last few years that have enabled the potential of CCS project investment to accelerate,as described in the regional sections of this report.For example:In the EU,the Net-Zero Industry Act aims to
33、 have 50 Mtpa of CO2 storage developed by 2030.The UKs CCUS Net Zero Investment Roadmap foresees 20 to 30 Mtpa of CCS capacity installed by 2030.Analysis of the impact of the US Inflation Reduction Act concludes that it could increase CCS deployment in the US by 200 to 250 Mtpa of CO2 by 2030.Japans
34、 CCS Long-Term Roadmap announced in January 2023 sets a target for the first commercial facilities to commence operation by 2030 on a trajectory towards 240 Mtpa CO2 stored by 2050.Saudi Arabia has announced a target of capturing and storing 44 Mtpa CO2 by 2035.There have been very significant polic
35、y developments in the last few years that have enabled the potential of CCS project investment to accelerate.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX2.1 SCALING UP THROUGH 20307However,recent growth in CCS pro
36、ject capacity has been concentrated in North America and Europe where supportive policy and/or carbon pricing is the strongest.These jurisdictions have also promulgated comprehensive CCS regulation.Together,they have demonstrated how sound policy and regulation can rapidly increase investment in CCS
37、.Growing the CCS project pipeline to the level required to capture 10 Gtpa CO2 per year by the middle of this century will require strong growth in all jurisdictions,not just Europe and North America.This,in turn,will require similar policies and regulation to those in place in Europe and North Amer
38、ica to be commonplace around the world.Further,the rate of development of geological storage resources is not keeping pace with potential future demand,even in leading jurisdictions and especially in Europe.Unless dedicated programs are put in place to identify and appraise geological storage,suffic
39、ient capacity may not be available when required.Stronger policy,targeted programs to develop storage resources and the promulgation of fit-for-purpose regulation of CCS in more jurisdictions including the Global South are essential within the next decade to ensure that CCS can scale up though 2030
40、to 2050 and beyond.In addition,more stringent general climate policy and regulation is sending a very clear signal that the world is looking to expeditiously decarbonise across all sectors.The entry into force of the European Carbon Border Adjustment Mechanism and reform of the EU Emissions Trading
41、System(EU ETS)to achieve a 55%reduction in emissions by 2030,and the commencement of the reforms to the Australian Safeguard Mechanism,requiring 4.9%year on year reduction in emissions from covered facilities over the next 5 years,are examples.We are now seeing a rapid escalation in the development
42、of new CCS projects,although relatively few have yet advanced to operation.Given projects typically take 7 years or more to develop,the lag between projects in development and projects entering operation is not surprising.The impact of these recent developments is expected to be a sustained increase
43、 in the number of CCS projects in development,and a greater proportion of them successfully progressing to construction,especially when compared with the decade between 2010 and 2020.That decade was characterised by cost discovery through studies and the subsequent cancellation or delay in project d
44、evelopments due to economic non-viability.Now there are far fewer cost surprises and policy drivers are much stronger.The game has changed.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX2.1 SCALING UP THROUGH 203083.
45、0 GLOBAL STATUS OF CCS1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX3.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY90050030025020
46、0202320000022Mtpa CO2Figure 3.11:Capacity of commercial facility pipeline since 2010OperationalAdvanced developmentEarly developmentIn constructionThe number of CCS facilities in the development pipeline has increased significantly in 2023,with 11 new faci
47、lities commencing operations and 15 new projects in construction.As of July 2023,there are 392 projects in the pipeline,representing a 102%year-on-year increase.The project pipeline in terms of facility numbers and capacity is at an all-time high.Since 2017,capture capacity has grown at a compound r
48、ate of more than 35%per annum.This has accelerated in the last 12 months;capture capacity increased 50%from 2022 the highest increase since the upward momentum started in 2018.Figure 3.11 shows the increase in capacity from 2010 to 31 July 2023.This figure,and the capture capacity reported in Figure
49、 3.11,do not include the capacity of CO2 transport and/or storage projects,to avoid double counting.However,the number of facilities in Figure 3.11 does include CO2 transport and/or storage facilities that do not have their own CO2 capture source.As of 31 July 2023,101 transport and/or storage proje
50、cts were in the deployment pipeline,in construction or operational.Capture capacity in all stages of project development has increased significantly,including a 47%increase in both Advanced Development and Early Development projects.Projects that have received significant funds for engineering devel
51、opment,are demonstrating a higher level of commitment,and have a higher probability of moving to funding approval and construction are included in“Advanced Development”.In light of this,an increase of 47%is significant.3.1 GLOBAL FACILITIES AND TRENDS 102%year-on-year increase in number of CCS facil
52、ities in development pipeline.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX3.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY10Figure 3.12:Com
53、mercial CCS facilities by number and total capture capacity of 31 July 2023;total for 2022 shown for comparison.Number of facilitiesCapture capacity(Mtpa)492041212641 Note:The 2022 Global Status of CCS report stated a total capture capacity of approximately 244 Mtpa including the capacity
54、 of facilities that had suspended capture operations.Suspended capacity is no longer included in these statistics and thus the 2022 capacity has been revised down slightly.392241194Total 2022Total 2022Total 2023Total 2023OperationalAdvanced developmentEarly developmentIn constructionHistorically,a C
55、CS facility was vertically integrated a single CO2 capture plant with dedicated CO2 compression,pipeline and storage systems.However,CCS networks are becoming the dominant mode of CCS deployment.CCS networks involve capture plants utilising shared transport and storage infrastructure.Many CO2 transp
56、ort and storage facilities in the deployment pipeline are not associated with a specific CO2 capture source.However,those same CO2 transport and storage facilities still have a design capacity.For example,a storage site will announce its maximum annual injection rate,which will be reported as its ca
57、pacity.Including the CO2 flow capacity of these CO2 transport and storage facilities along with the capacity of the CO2 capture plants that will utilise them would result in double counting of CO2 capture and storage capacity.Since 2022,the Global Status of CCS reports have used only the maximum CO2
58、 capture design capacity in their reporting.This method avoids double counting while ensuring compatibility with our historical capacity statistics.Facility pipeline charts and figures are now explicitly referred to by“Capture Capacity”,a change from the pre-2022 title of“Capacity of CCS Facilities”
59、.Dedicated CO2 transport and storage facilities are still counted in total facility numbers but will not contribute to global CCS capacity.The CCS facilities capture,transport and storage capacity is detailed in Section 6.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONA
60、L OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX113.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY10.6 MtpaThe worlds largest operating project,Petrobras Santos Basin Pre-Salt Oil Field,has a capture capacity of 10.6 Mtpa
61、 dedicated CO2New facilities in operation in China5New funding for seven CCS networks in Japan7Top 2 applications by the number of facilities ethanol,power generation and heat2CCS development highlights Industry developmentsTransport and storage networks CCS deployment through networks has become th
62、e dominant pathway as networks deliver economies of scale that reduce cost and business model synergies that reduce risk.Capture hubs and transport networks are being developed to service regional CO2 sources.These sources are typically less than 1,000 km from the storage resource but may be signifi
63、cantly further where the scale and project economics allow,particularly where the main transport mode is by ship.These hubs and networks establish shared CO2 storage infrastructure for permanent CO2 storage.Modelling suggests that up to 4.2 Gtpa of CO2 could be captured and stored by establishing 16
64、0 hubs globally at costs of less than$85 per tonne of CO2.It is clear the development of CCS networks and hubs is critical,since storage of around 10 Gtpa of CO2 is required to achieve net zero emission targets by mid-century.As global CCS policy and regulation develop and funding support increases,
65、companies can be expected to build positions in CCS networks to take advantage of economies of scale and reduced cost.To date in 2023,there have been three key CCS merger and acquisition transactions the Chevron-Talos-Carbonvert deal in the US;E.ON-Horisonts Energi deal in Europe and ExxonMobil Corp
66、oration acquiring Denbury Inc.for its CO2 transport and storage facilities.There has seen the proliferation of CCS networks in 2023.The ongoing development of CCS networks has resulted in a new industry category of“CO2 transport and storage”facilities.In 2023,101 of these facilities were identified
67、globally.These stand-alone facilities represent a new CCS industry model.The facilities are not aligned to any other industries,which to date were defined by their capture source.Examples of these multi-user,multi-industry CO2 transport and storage facilities include:Wolf s Alberta Carbon Trunk Line
68、 CO2 compression and pipeline in Canada,operating since 2020.CarbonNet in Australia,a CO2 storage-focused facility.CarbFix CODA CO2 transport and storage,shipping CO2 from across Europe before storing the CO2 through mineral carbonation.The Northern Lights open-source transport and storage network i
69、n Norway,aiming to be operational in 2024 and storing 0.8 Mtpa of CO2 from a cement plant in Brevik and a waste plant in Oslo(phase 1)deep under the seabed in the North Sea.In May 2023,the project signed another cross-border deal with rsted to transport and store a further 430,000 tpa from two power
70、 plants in Denmark.Industries hosting CCS facilitiesFocussing on the capture source of emissions,the ethanol industry has the second largest number of facilities at 70.Two major US ethanol-focused CCS networks are Summits Mid West Express with 36 plants and Navigators Heartland Greenway with 18 plan
71、ts.Power generation and heat is the third largest count of facilities by industry at 53,followed by hydrogen/ammonia/fertiliser(50).Natural gas processing,which historically was a primary industry for CCS,completes the 2023 top five industries with 45 facilities.Away from these five industries,cemen
72、t was the fastest-growing industry at 22 facilities,dominated by European plants.Finally,there are now six commercial direct air capture plants in the pipeline.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX123.1 GLO
73、BAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYCementBiomass toPower and HeatChemicalCO2 Transport/StorageDirect AirCaptureEthanolHydrogen/Ammonia/FertiliserIron and SteelProductionNatural GasProcessingOil RefiningPower Generationan
74、d Heat520-20302031-2035Timeframe unconfirmedUnder evaluationFigure 3.13:CCS project pipeline by industry and year of operational commencement.OperationalAdvanced developmentEarly developmentIn construction0.21525+Capture,transport and/or storage capacity(Mtpa CO2)1.0 FROM T
75、HE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX133.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY217CHINAFigure 3.14:Top five countries with CCS project
76、s in the pipeline in 2023 vs 2022;the US,UK,Canada,China and NorwayGSR 2023(37 countries represented)GSR 2022(26 countries represented)81USCANADAUK1612NORWAYCountry and regional developmentsThe CCS facility developments over the past year are far too numerous to summarise here.However som
77、e examples are mentioned below to illustrate the broad scope and scale of CCS projects in development:Saudi Arabia:Jubail Industrial City,one of the worlds largest CCUS hubs,will start operating by 2027 with a capacity of up to 9 Mtpa of CO2 in its first phase,supporting Saudi Arabias aim to extract
78、,use and store 44 Mtpa of CO2 by 2035.China:Three projects became operational in 2023 Asias largest coal-power plant CCS facility,the first offshore CO2 storage facility,and carbon capture at an oil refinery.China now hosts 11 operating facilities including its first commercial-scale CO2 transport p
79、ipeline(part of the Sinopec Qilu-Shengli facility).The US:Construction commenced on the first large-scale DAC project,STRATOS,and operations are planned to start in 2025.The project aims to capture up to 500,000 tonnes of CO2 per year.Japan:Announced support for seven CCS networks that will capture
80、CO2 in Japan for storage in the offshore waters off Japan and in the wider Asia-Pacific region.Greece:Announced five facilities as part of the Prinos CCS network with natural gas,cement and hydrogen plants to access their CO2 transport and storage infrastructure.The growth in the number of CCS facil
81、ities announced and in development worldwide indicates that the technology is becoming attractive as countries and companies work to achieve their climate commitments on a shrinking carbon budget.Between 2022 and 2023,11 new countries registered CCS facilities in various stages of development.The US
82、 still dominates CCS deployment,with 73 new facilities entering the pipeline in 2023.The UK,Canada and China increased their facility counts and remained in the top five CCS deployment countries.The Netherlands has been replaced by Australia,which now has 12 facilities in development.In 2022,Japan a
83、nd Greece had no commercial facilities but now host seven and five,respectively in 2023.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX143.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DE
84、VELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYFigure 3.15:Commercial CCS facilities in the Middle East and North AfricaOperationalAdvanced developmentEarly developmentIn constructionMiddle East and AfricaThree CCS facilities are operational in the Middle East,with three in construction,and three in adv
85、anced development.Six CCS facilities in this region are associated with the natural gas processing industry.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX153.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEG
86、AL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYFigure 3.16:Commercial CCS facilities in North and South AmericaOperationalAdvanced developmentEarly developmentIn constructionNorth America In the US and Canada,the ethanol industry hosts the most carbon capture facilities(69)in operati
87、on,construction or development.CO2 transport and storage facilities are the second most prolific industry with 48 facilities in the pipeline.CCS is gaining momentum in ammonia,hydrogen and fertiliser production,as well as power generation and heat,with 25 and 28 projects respectively across the proj
88、ect pipeline or in operation.Natural gas processing accounts for 16 CCS projects.Overall,21 CCS facilities are operational in this region,nine in construction,80 in advanced development and an additional 92 in early development.South AmericaThe worlds largest operating CCS facility is in the natural
89、 gas processing industry;the Petrobras Santos Basin Pre-Salt in Brazil.Operating in over 2,000 m water depth,the facility is currently capturing 10.6 Mtpa and re-injecting the CO2 for enhanced oil recovery.In 2022,40.8 Mt of CO2 had been cumulatively reinjected.1.0 FROM THE CEO2.0 SCALING UP THROUGH
90、 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX163.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYFigure 3.17:Commercial CCS facilities in the APAC regionOperationalAdvanced develop
91、mentEarly developmentIn constructionAsia PacificCO2 transport and storage facilities under development(17)make up the largest category of facilities in the Asia Pacific region,followed by natural gas processing and chemical manufacturing 15 and 10 facilities respectively.A total of 12 facilities are
92、 operational(five facilities commencing operations in 2022/23 in China),eight in construction,and 34 in advanced or early development.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX173.1 GLOBAL FACILITIES AND TRENDS
93、IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYFigure 3.18:Commercial CCS facilities in EuropeOperationalAdvanced developmentEarly developmentIn constructionEuropeIn Europe,35 CO2 transport and storage networks are in development.Other industries where CCS f
94、eatures prominently include hydrogen,ammonia and fertiliser facilities(20),power generation and heat(19 facilities),cement(17 facilities),and biomass to power/heat(15 facilities).Four facilities are operational,with six in construction and 109 in early or advanced development.1.0 FROM THE CEO2.0 SCA
95、LING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX183.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYDevelopments in the shipping of liquified CO2As CO2 networks gain mo
96、mentum,CO2 transport mechanisms are developing and maturing,including technologies for shipping liquefied CO2(LCO2).Shipping companies are actively expanding their services into the shipping of LCO2.Key activities over the past 12 months include:The Northern Lights project will be the first to trans
97、port LCO2 by ship.In December 2022,Kawasaki Kisen Kaisha,Ltd.(“K”Line)signed long-term charter contracts with Northern Lights JV DA for two 7,500 m3 LCO2 vessels.These vessels will start transporting LCO2 from several CO2 capture facilities,including Norcem Brevik and Hafslund Oslo Celsio,to the Nor
98、thern Lights CO2 receiving terminal in ygarden,Norway in 2024.In June 2023,Knutsen NYK Carbon Carriers AS(KNCC),an affiliate of NYK,received the maritime industrys first General Approval for Ship Application(GASA)for an ambient temperature and elevated pressure containment system(the LCO2-EP system)
99、which can be fitted or retrofitted on vessels for transport of LCO2.In June 2023,Mitsui O.S.K.Lines,Ltd.(MOL),Malaysian state oil company PETRONAS and the Shanghai Merchant Ship Design&Research Institute(SDARI)acquired approval in principle from ship classification societies Det Norsk Veritas and th
100、e American Bureau of Shipping(ABS)for a jointly developed LCO2 carrier.ABS also granted approval in principle for the companies jointly developed floating storage and offloading unit.Also in June 2023,Mitsubishi Shipbuilding Co.,Ltd.and Nippon Yusen Kabushiki Kaisha(NYK Line)were granted approval in
101、 principle from Japans classification society,ClassNK,for the development of a ship that can simultaneously transport ammonia and LCO2.In July 2023,South Koreas HD Hyundai,through its Korea Shipbuilding&Marine Engineering arm,received its first order to build the largest LCO2 carriers for Greeces Ca
102、pital Maritime Group.The two vessels will each carry 22,000 m3 of LCO2 and the first delivery will be in 2025.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX193.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY L
103、EGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYMomentum grows for collective global action on CCSThe first half of 2023 saw significant strides toward global action on CCS.The Intergovernmental Panel on Climate Change(IPCC)Sixth Assessment Synthesis report re-stated the need for CC
104、S to achieve the Paris climate goals.The report concludes the 6-7 year reporting cycle and highlights CCS as a clear option in modelled pathways to limit global warming 1.5C,with carbon dioxide removal from the atmosphere(CDR)to counterbalance residual emissions from the hard-to-abate sector.With th
105、e next report scheduled to be published around 2030,the timing of IPCC AR6 is crucial for this critical decade for climate action.Significantly,the report will inform the worlds first Global Stocktake(GST)at the 28th Conference of the Parties(COP28)hosted by the UAE in Dubai from 30 November.The GST
106、 is designed to lay the foundation for countries to update their national climate action plans known as Nationally Determined Contributions(NDCs).A highlight in global CCS collaboration was when the US announced the Carbon Management Challenge at the Major Economies Forum(MEF)in April,inviting other
107、 countries to join the challenge towards a collective CCS/CDR target by 2030,with the aim of unveiling at COP28 a suite of concrete announcements and goals.At the MEF meeting,leaders from Australia,Canada,Egypt,the European Union,Japan,Saudi Arabia,the UAE,Norway and Denmark joined in supporting the
108、 launch of this call to action.Sweden and Brazil joined the initiative in July during the 14th Clean Energy Ministerial in Goa,and more countries are expected to join.In tandem came the International Energy Agency(IEA)Credible Pathways to 1.5 report,which features carbon management as the fourth of
109、the four pillars outlined for action this decade,with a 1.2 Gt of CO2 storage target by 2030.Shortly after the MEF meeting,the Group of 7 Summit in Hiroshima Leaders Communiqu heralded the most detail on CCS ever featured in a G7 leaders document,acknowledging that the technology is an important par
110、t of the broad portfolio of decarbonisation solutions to reduce emissions that cannot be avoided otherwise,with CDR to counterbalance residual emissions.At the Bonn Climate Change Conference in June,the Global CCS Institute led the conversation as a technical expert on CCS with IEA GHG at the first
111、Global Dialogue and Investment-focused event under the accelerated mitigation ambition and implementation work programme established at COP27.This involved day-long discussions that brought to light shifting country perspectives on CCS,such as from small island nations,which despite having no CCS op
112、portunities within their borders see the value of it in the implementation of the Paris Agreement.At the third and final technical dialogue of the GST diverging views on CCS were more pronounced,with countries with strong views for or against the technology speaking up in their interventions.Latest
113、NDC updates as of July find newcomers Andorra,Singapore,Trkiye,Turkmenistan,the UK and Vietnam including CCS in their NDCs.Furthermore,at the Katowice Committee of Experts on the Impacts of Implementation of Response Measures,CCS is found in Activity 5 of its current work plan,providing an opportuni
114、ty for countries to discuss aspects in relation to capacity building and socio-economic impacts of the technology in a United Nations setting.As the world anticipates the operationalisation of the new international carbon market under Article 6,the year saw contentious discussions surrounding key do
115、cuments that will dictate how CDR is handled under the mechanism.3.2 INTERNATIONAL POLICY,LEGAL AND REGULATORY DEVELOPMENTS1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX3.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 I
116、NT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY20The views expressed in these documents on engineered removals(ie direct air capture and storage DACCS and bioenergy carbon capture and storage BECCS)and consequently CCS,subsequently led to a significant response from the
117、CCS/CDR community through a series of official submissions to the process.Looking at the wider picture for Article 6,projects are indeed underway for the bilateral segment of Article 6.2,with an interim platform online as negotiations continue on various administrative elements,with technical capaci
118、ty building being set up for certain countries in need.For the global market(Article 6.4),under which the current CDR debate falls,further fundamental differences overshadow the progress necessary to begin trading,as any mechanism put in place under Article 6.4 would be perceived as the gold standar
119、d for the oversight for compliance and voluntary carbon markets.Expectations are high for the UAEs COP28 presidency to deliver on the global energy transition towards net-zero,where there is an opportunity to advance CCS.With a global target on the horizon,global ambition on CCS deployment this deca
120、de needs to become clearer.With such momentum,it is also imperative that“how”,and not just“how much”,is being addressed.Preliminary work on the Global Sustainable Development Goals(SDGs)and how they relate to CCS is demonstrated in IPCC AR6,in tandem with the global focus on just energy transition p
121、athways.Indeed,the mobilisation of the international community towards the technical capacity building and financial needs of the Global South is a critical lever to ensure deep decarbonisation through the use of CCS technologies this decade.Role of policyThe past year has seen significant policy,le
122、gal and regulatory intervention in many jurisdictions around the world,which in turn has resulted in a strengthening of support for CCS and in some instances further commitments to commercial deployment.While there are noteworthy examples of developments in jurisdictions with a history of support fo
123、r CCS,it is positive to see a wider group of nations now focused on fostering a supportive environment for deployment.The impact of strong policy intervention is particularly evident in the US,with federal and state level initiatives affording strong incentives and support for projects.At the federa
124、l level,the Inflation Reduction Act and Bipartisan Infastructure Law have had an undeniable impact upon project commercialication and their package of programs,funding and strong ambition has led to a rapid expansion in project announcements nationwide.State level regulatory activity,for permitting
125、geological storage as well as other issues such as pore space acquisition or long-term stewardship,may offer further support for those seeking to develop projects in several states across the US.Coordination between federal and state regulatory authorities and technical capacity building across all
126、jurisdictions may ultimately lead to more efficient regulatory timelines.In Europe,the Commissions proposed Net Zero Industry Act offers further support for the EUs clean energy transition.With a focus on scaling up decarbonisation technologies and a clear commitment to enhancing storage opportuniti
127、es and increasing injection capacity by 2030,the Act further bolsters the strong Union-wide policy and regulatory environment for the technology.The development of CCS-specific policy and legislation is also proving important for nations in the nascent stages of formulating a national approach to th
128、e technology.The recent development of CCS-specific laws and regulations in Indonesia and a state in Malaysia,for example,have addressed a significant barrier to more widespread deployment in both nations.These early frameworks offer an important foundation and provide confidence for investors and t
129、he operators of the newly-announced projects in both jurisdictions.Importance of frameworksNotwithstanding the significant developments in several jurisdictions over the past year,the scale and urgency of the policy and legislative task remains significant.Examination of national frameworks in even
130、the most advanced jurisdictions indicates that further action is required.In Europe,where some of the worlds first CCS-specific policies and legislation were developed,work remains underway to complete and strengthen these early frameworks.In addition to the policy development highlighted previously
131、,the Commission is supporting the revision of its Guidance Documents,a key tool for supporting operators and authorities in their domestic implementation and interpretation of permitting procedures under the EUCCS Directive.The latest version will reflect the significant developments that have been
132、made in Europe,including project-level experience and feedback from policymakers and regulators in the member states.With a global target on the horizon,global ambition on CCS deployment this decade needs to become clearer.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGION
133、AL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX213.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYThe Commissions work will also provide important support to national authorities focusing on the permitting of new project
134、s and address the newer technical applications of the technology that were not conceived when the original policy and regulation was developed.The timeliness of this is particularly noteworthy as several member states are currently in the process of reviewing domestic legislation to enhance regulato
135、ry frameworks.Delays in implementing legislation will have a profound impact on project deployment,an issue that has proven particularly significant for those seeking to invest in or develop projects in several regions around the world.Many nations have yet to develop CCS-specific frameworks and a s
136、ignificant number have yet to begin even preparatory studies or assessments of existing capacity to regulate the technology.In Southeast Asia,project proponents continue to voice concern that existing frameworks will not support commercial-scale deployment and cite many critical issues that remain u
137、naddressed by Permitting is now an acute issue in the US,where there is suddenly a sizeable number of permit applications for CO2 storage.national legislation.Although there have been some noteworthy developments in the region over the past year,the absence of CCS-specific legislation remains a sign
138、ificant barrier that must be overcome for countries and industries to meet their commitments to both deployment and emissions reduction.Timely action is essential in this regard,and the consequences of further delay are likely to prove significant.Permitting is now an acute issue in the US,where the
139、re is suddenly a sizeable number of permit applications for CO2 storage.The US EPA has recently provided more details on the status of each permit,but many questions remain regarding the timing of these permits and the EPA process to grant primacy to states.State primacy is important because it can
140、help expand the CCS regulatory and permitting capacity in the US.Transboundary issuesThe emergence of new markets and applications for CCS technologies,enhanced or revised national commitments to achieving net-zero and wider commercial opportunities afforded by CCS networks has led to greater scruti
141、ny of CCS project opportunities beyond national boundaries.This focus has been strengthened further by the development of several regional cooperation initiatives aimed at advancing deployment of the technology in recent years.Consequently,project proponents,policymakers and regulators have also had
142、 to consider the legal implications of transporting captured CO2 across territorial boundaries,including between nations.The most significant of these considerations was in Article 6 of the London Protocol,which prohibited“the export of wastes or other matter to other countries for dumping or incine
143、ration at sea”and was determined to similarly prohibit the transboundary transportation of CO2 for geological storage.Amendments to the Protocol in 2009 addressed this obstacle and a more recent decision by the Protocols parties removed a final barrier by enabling the provisional application of the
144、amendment.For some nations,however,uncertainty remains as governments have yet to commit to the adoption of the Protocols amendments or enter into formal agreements with other nations to enable transboundary movement.While several European parties have entered into these agreements to facilitate pro
145、jects in the North Sea,formal adoption and agreement has been slower in other parts of the world where transboundary operations are proposed.The recent recommendation by the Australian governments House Standing Committee on Climate Change,Energy,Environment and Water to ratify the 2009 amendment is
146、 an important step in recognising both the significance of the agreement and the role of CCS in the region.In addition to international marine agreements,focus must also turn to the wider body of domestic and international law that will apply to operations of this nature.Analysis suggests a variety
147、of laws will apply and policymakers and regulators must ensure these will not present further barriers to deployment.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX223.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT P
148、OLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYBusy and acceleratingEquity financing:No firm commitments yet,but momentum growingDebt financing:Governments are putting significant financial resources into CCS projects and infrastructure through loans,guarantees,or grantsGove
149、rnment finance:This is the main source of finance currently,but project finance is needed to reach ambitious targetsBalance sheet/cash flow:FactorChange*DriversExpected Return on InvestmentImprovedStronger policy support,higher C pricing,tax credits,more commercial/offtake agreementsPredictability o
150、f revenuesImprovedStronger policy support,higher C pricing,Carbon Contract for Difference(CCfD)instruments,tax credits,more commercial/offtake agreementsMaturity of technologyImprovedAccumulation of operational experience,many more feasibility studies/Front End Engineering&Design(FEED)studiesExperie
151、nce of developersImprovedAccumulation of operational experience,many more feasibility studies/FEED studiesPolitical riskImprovedWhere policy support has increased,political risk is generally lowerInterest ratesDeterioratedRising interest rates increase the overall cost of capitalPermittingUnchanged
152、risk of deterioration in permitting times in the USTiming uncertainty due to strong growth in the number of permit applications requiring assessment.Permitting requirements/Regulation materially unchangedLiability riskImprovedRisks are better understood/Insurance companies are beginning to price ris
153、ks Table 3.31:High level assessment of factors impacting potential financing of CCS in leading jurisdictions*Change since release of 2022 Global Status of CCS reportFinancing prospects have improved substantially in the past year in key jurisdictions due to increased policy support and other factors
154、,including price signals,and there is every indication that the momentum will continue.This has precipitated a substantial increase in CCS investment,however the increase is mostly in equity funding in developed economies benefiting from multiple revenue streams.For CCS to scale up to reach climate
155、goals,debt finance and rapid deployment in the developing world are necessary.Table 3.31 represents the Global CCS Institutes high-level assessment of how changes in key factors have affected the finance-ability of CCS projects over the past year in leading jurisdictions.The net result of the improv
156、ement of the factors listed in the table is a significant increase in investment to develop CCS facilities.The total capacity of CCS projects in development,construction or operation has increased from 244 Mtpa CO2 in September 2022 to 361 Mtpa CO2 in July 2023,an increase of 47%.3.3 STATUS OF CCS F
157、INANCING 1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX233.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYDealDescriptionInvestorsInvestor typ
158、eSize$US milDateClimeworks Direct Air CaptureSwiss RePartners GroupM&GGICBaille GiffordInsurerPrivate EquityPrivate EquitySingapore Wealth FundPension Fund646April 2022SvanteCO2 Capture Chevron VenturesUnited AirlinesSamsung VenturesOGCIM&GJapan Energy FundGE Vernova3MHesta AGVC arm of ChevronAirlin
159、eVC arm of SamsungGrowth CapitalPrivate EquityPrivate EquityDecarbonised power technology supplierDiversified conglomerateFamily office324May 2022Summit carbon solutionsCCS as a ServiceTPG InfrastructureTiger InfrastructureContinentalSK Private EquityPrivate EquityOil and GasDiversified conglomerate
160、1,000+May 2022AmogyNear-zero emissions ammonia as a fuelSK InnovationTemasekAramco VenturesKorea ZincMOL+VC arm of SK Global investment companyVC arm of Saudi AramcoNon-ferrous metals&clean energy companyVC arm of Mitsui Lines150March 2023InfiniumSynthetic fuel production using captured CO2 and near
161、-zero emissions hydrogenSK InnovationNexteraMHIGrantham FoundationVC arm of SK(Korea)Utility Diversified heavy industry companyFoundation 69October 2021/22Ion clean energyCO2 CaptureSK Materials DenburySemiconductor and gas supplierCCS developer/Oil and gas 25April 2023HeirloomDirect Air Capture via
162、 accelerated mineralisation,CO2 liberation and geological storage of CO2Carbon DirectAhren InnovationBreakthroughMicrosoft ClimateTime VenturesVenture CapitalVenture CapitalVenture CapitalVenture CapitalVenture Capital53March 2022Table 3.32:Recent notable deals Source:Crunchbase GCCSI analysisEquity
163、 investment in companiesEquity finance is a high-risk high-return investment provided in return for share ownership.The equity flow to climate technology,including CCS which accounts for only a small share,reached$196 billion in 2022,an increase of 6.6%over 2021.The increase contrasts with a slump i
164、n venture capital,private equity,and environmental,social and governance(ESG)investing.To provide context,overall venture capital funding decreased by 37%in 2022 to$420 billion and ESG inflows dropped to$155 billion in 2022 from$650 billion in 2021.Table 3.32 lists some notable deals of relevance to
165、 CCS in 2022 and the first half of 2023.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX243.1 GLOBAL FACILITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYEquit
166、y project financeIn addition to taking equity in companies that are developing CCS,investors may also take equity directly in CCS projects.This is equity project finance.Notable examples of CCS projects that have benefitted from equity project finance include:Brookfield Renewables led with a$300 mil
167、lion equity commitment in Entropy in a hybrid structure to fund Glacier phase I and II and a$500 million commitment in California Resources Corporations Grannus blue ammonia project in California.Crescent Midstream,backed by the Carlyle Group,partnered with Repsol and Cox Oil to build a CO2 pipeline
168、 for offshore storage from Geismar to Grand Isle,Louisiana.Manulife Investment Management,the largest timberland investor,partnered with Occidental to lease 27,000 acres to develop and operate a geological carbon storage hub.Copenhagen Infrastructure Partners(CIP)acquired a majority stake in a blue
169、ammonia project in the Gulf Coast with an annual capacity of 3 million tonnes at an estimated cost of$4.6 billion along with US-based Sustainable Fuel Group.International-Matex Tank Terminals is planning to provide ammonia storage and handling services.CIP made this investment through the CI Energy
170、Transition Fund,which makes investments aligned with the UN Sustainable Development Goals.As the economics of CCS projects become better understood and the need for infrastructure for the transport and handling of decarbonised fuels and CO2 increases,private equity investments in CCS are expected to
171、 accelerate.This is most obvious in the US,where the policy incentives are the strongest.Development capital&project debt financeDevelopment capital is a form of equity finance and is used for engineering and feasibility studies,permitting,and offtake agreement negotiations,etc.Project debt finance
172、is where the project developer borrows money to finance the project,and the lenders claim is limited to project assets and cash flows and not other assets of the borrower,i.e.non-recourse finance.Project finance is crucial in financing infrastructure projects,typically accounting for 70-80%of capita
173、l expenditure.It requires a high degree of certainty of project commercial viability and is the last instrument to fall in place as all the operational,regulatory and commercial terms must be determined before or concurrent with the financial closing.There is limited public data on development capit
174、al deals as they are only sometimes publicly announced.That said,the Institutes engagement with project developers and financiers suggests that the change in the policy landscape,especially in the US and the EU,has led to a substantial increase in the demand for and supply of development capital for
175、 CCS.Further,the first project finance deals for CCS projects are now being developed by commercial banks.One example of project debt finance for a CCS project is the Midwest Carbon Express CCS network under development by Summit Carbon Solutions in the US.The emergence of project debt finance for C
176、CS projects is a compelling indicator of the recent rise in the finance-ability of CCS,at least in the US.To reach rates of deployment required to support climate ambitions,project debt finance will need to be as common for CCS projects as it is now for general infrastructure projects around the wor
177、ld.Government-related financeRecent enhancements in government support for CCS in the US(e.g.the Inflation Reduction Act)have made unprecedented levels of government financing available to CCS projects in the country.Other nations have also ramped up government finance.Commitments made by government
178、s globally in the past year that have increased financing include:In the US,through the Inflation Reduction Act,the federal government provides over$300 billion for projects that support clean energy deployment and infrastructure reinvestment(including CCS)under Title 17 of the Clean Energy Financin
179、g Program and$25billion for Carbon Dioxide Transportation through September 2026 for loans and loan guarantees,in addition to$2.5 billion in grants.The EU announced 3 billion in funding for climate technologies,including CCS projects,under the third call of the Innovation Fund.The UK government comm
180、itted to investing 20 billion to scale up CCS projects over a period of 20 years.Norway provided 85%of the 400 million cost for Heidelberg subsidiary Norcems(cement)carbon capture facility.This is in addition to Norways long-time financial commitment to Northern Lights as part of the greater Norwegi
181、an carbon capture and storage initiative,Longship.The Dutch government announced 6.7 billion to be allocated to CCS projects,specifically eight projects that use the Aramis project to store CO2 in depleted natural gas fields in the North Sea.In Asia,Japans JOGMEC selected seven potential CCS project
182、s,five domestic and two involving international CO2 shipping to support commercialisation,with undisclosed financial terms aiming to store a combined 13 million tonnes per year of CO2.The Peoples Bank of China provides support through the carbon emission reduction facility(CERF)and has a targeted re
183、-lending quota for the clean,efficient use of coal.The CERF is not capped,while the re-lending quota is currently Yuan 300 billion(US$42 billion).1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX253.1 GLOBAL FACILITIES
184、 AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITYGreen and climate bonds Green and climate bond standards and certificates have historically omitted CCS technologies.Still,there are examples of more resources being allocated to examining the eligib
185、ility of CCS.Given that green bonds offer a lower cost of debt,including CCS may improve the finance-ability of CCS projects.Corporate financeMost CCS projects are financed by corporate balance sheets as project finance is not yet widely available;for example Exxon,Occidental and Denbury each financ
186、ed their CO2 pipeline and storage networks.Historically,the bulk of corporate finance has been provided by the oil and gas sector,however there is now a greater diversity of industries investing directly in CCS projects.The fertiliser and chemicals sector is now active,with CF,MHI,Linde,OCI and Yara
187、 having announced blue hydrogen and ammonia plants in the US Gulf Coast.Likewise,cement giants like Holcim,Cemex and Heidelberg have announced projects to deploy CCS.Maritime shipping players such as Hafnia-NYK,Knudsen and MOL have announced plans to invest in low-carbon fuel and CO2 tankers while s
188、hifting to low-carbon fuels to decrease their emissions.ConclusionThe recent increase in finance for CCS projects,now at unprecedented levels,is encouraging and demonstrates how policy can incentivise material private sector investment.Assuming the current global macro-trend of strengthening policy
189、drivers for climate mitigation continues,the Global CCS Institute expects financing of CCS projects to accelerate as the finance sector and project proponents experience grows,further de-risking the sector.To achieve global climate goals,these developments that are focused on North America and Europ
190、e must further accelerate and be replicated in developing economies,which currently still exhibit the highest rates of growth in greenhouse gas emissions.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX3.1 GLOBAL FACI
191、LITIES AND TRENDS IN 2023 3.2 INT POLICY LEGAL AND REGULATORY DEVELOPMENTS 3.3 MANAGING LONG-TERM LIABILITY264.0 REGIONAL OVERVIEW1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX4.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGI
192、ONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENA2773+US Facility count increased by 73 since GSR 2022*Expansion of 45Q production tax credit and other incentives in the Inflation Reduction Act and funding provided under two other acts cultivate robust and
193、 attractive business environment for CCS in the US.45Q40 MtCO2Brazils Petrobas injects 10.6 MtCO2 into pre-salt reservoirs in Santos Basin in 2022,yielding a cumulative 40.8 MtCO2 surpassing its 40 MtCO2 target and aims to reinject 80 MtCO2 by 2025.19 hubsCanadas Alberta awards 19 hubs through provi
194、ncial TIER system in addition to 6 sequestration hub agreements announced in spring 2022.Clean ammonia and clean hydrogen production become economically favourable in the US.H2NH3*This excludes“announced”projects.4.1 AMERICASOverviewNorth America remains the world leader in CCS deployment following
195、substantial policy enhancements,particularly the game-changing US Inflation Reduction Act(IRA).Multiple new CCS projects and networks have been announced in the region since the publication of the 2022 Global Status Report,continuing the established momentum.Moreover,the acceleration in policy and a
196、ttitudes has brought CCS more directly into decarbonisation conversations and public awareness.Enabling this positive trend is rising societal expectations to lower emissions and define pathways to net-zero enabled by sustained policy support from federal,state and provincial level governments that
197、create business cases for CCS.Through clear policy set by the Governments of the US and Canada as well as continued acceptance that CCS is necessary for North American decarbonisation,the persistent growth of the project pipeline in this region reflects the bullish trend of CCS across industries.1.0
198、 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX284.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENAThe BIL provides$12 billion for progra
199、ms such as carbon management,research,demonstration and deployment up to 2026.The funds provide$8.5 billion in supplemental funding for CCS for FY2022-FY2026,including funding for the construction of new carbon capture facilities and commercial carbon storage facilities,and$3.6 billion in supplement
200、al funding for DAC,primarily to support the establishment of four regional direct air capture hubs in the US.The tax incentives included in the IRA to deploy CCS and direct air capture technologies complement funding in the BIL.The IRA provides billions of dollars to help decarbonise existing indust
201、rial facilities and includes an enhanced Internal Revenue Service(IRS)Section 45Q federal corporate income tax credit that lowers carbon capture thresholds,increases the dollar value of tax credits($85/tCO2 captured from power and industrial sources and stored in dedicated geological storage resourc
202、es),and adds provisions for direct pay and tax credit transferability.Analysis suggests the IRA could increase the deployment of carbon capture in the US by as much as 13-fold by 2030.The CHIPS Act Sec.10102 authorised the DOE to establish a“Carbon Sequestration Research and Geologic Computational S
203、cience Initiative”and at least two carbon storage research and geologic computational science centers to expand the fundamental knowledge,data collection,data analysis,and modelling of subsurface geology for advancing carbon sequestration in geologic formations.Under CHIPS,the US Department of Energ
204、y(DOE)will carry out research for the sequestration of carbon in geologic formations.The Biden Administration continues to drive CCS deployment as a whole-of-government approach,with the executive branch agencies working to advance the deployment and enhance the safety of the entire CCS value chain
205、while addressing the concerns of communities and developers.The BIL established a timeframe for the Department of Interior(DOI)to promulgate regulations for offshore storage of CO2.The Department of Transportations Pipeline and Hazardous Material Safety Administration(PHMSA)continues to work on new
206、rulemaking to update standards for CO2 pipelines,including requirements related to emergency preparedness and response.The EPA issued a rule proposal to grant Louisiana primary enforcement authority(primacy)for Class VI wells under the Underground Injection Control program,which is currently progres
207、sing through the administrative process.The EPA also issued a proposed rule to reduce carbon dioxide emissions from power plants,expected to be finalised next year.States are also actively engaged in policy and regulatory actions in the US.The California Air Resources Board approved its climate acti
208、on plan(scoping plan)to shift the worlds 4th largest economy from fossil fuels to clean and renewable energy,in which CCS is one of the mitigation tools.Louisiana has enacted legislation to address various aspects of CCS deployment,while meeting the federal primacy requirements.United StatesPolicyTh
209、e US is leading the global CCS landscape with the largest number of CCS facilities operating,in construction,and in development,which has increased by 73 since the publication of the 2022 Global Status Report.Several projects have cited the Inflation Reduction Act(IRA)as a driving force in accelerat
210、ing their launch.The US has a robust and comprehensive policy framework that provides support for all stages of CCS deployment.CCS is a key mitigation tool for reaching federal climate goals,including 50-52%emissions reduction from 2005 levels by 2030 and net-zero emissions by 2050.The 2021 Bipartis
211、an Infrastructure Law(BIL),the 2022 IRA and the 2022 Creating Helpful Incentives to Produce Semiconductors and Science Act(CHIPS)provide financial and policy incentives to spur CCS deployment by providing greater financial support mechanisms.This policy framework is critical for reaching the US gove
212、rnments ambitious climate targets and solidifying the US as a leader in decarbonisation,which can help motivate others to deploy necessary resources and join the US in scaling carbon management.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FA
213、CILITIES LIST7.0 APPENDIX294.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENACredit:NET Powers La Porte test facility,image courtesy of NET PowerCarbon dioxide pipeline safety and pipeline siting is a concern for devel
214、opers.While PHMSA regulates pipeline safety,no federal entity regulates pipeline siting in the US.Opposition to CO2 pipelines is a consideration for developers making community engagement a priority.ProjectsProduction of clean hydrogen and ammonia has become economically favourable in the new policy
215、 environment and is reflected in several of the projects announced this year.The US Department of Energys Hydrogen Shot which seeks to reduce the cost of clean hydrogen by 80%to$1 per kilogram within a decade is supported by government funding and policy frameworks,including$8 billion to support the
216、 development of regional hydrogen hubs.CCS at coal and gas-based hydrogen production remains the most economic option in regions where both CO2 storage and low-cost fossil fuel feedstocks are available and offers opportunities to produce clean hydrogen at scale.Since the 2022 Global Status of CCS Re
217、port was published,the number of clean hydrogen/ammonia facilities in development,construction or operation has increased by 13 in the US.Ethanol production has driven a new tranche of announced projects and 40 have progressed into advanced development.Thirty-six of these facilities are part of the
218、Mid West Express CCS network.The US goal of carbon-free electricity by 2035 has turned attention to the potential for the scaling-up of CCS at fossil fuel power plants,evidenced in the Environmental Protection Agencys proposed rule issued in May 2023.Development continues at 23 power/heat facilities
219、,more than half of which plan to be operational in the late 2020s.CCS at current and future fossil fuel power-generating assets offers the benefits of reliable,low-carbon dispatchable electricity without the need for costly energy storage.In addition,CCS can be combined with bioenergy and waste-to-e
220、nergy to remove carbon dioxide from the atmosphere and deliver net negative emissions.There are now two biomass to power/heat facilities with CCS in early development in the US.CCS projects in cement,steel and chemical production are also being developed.There are three chemical CCS facilities and t
221、hree cement CCS facilities in development.The first two steel CCS projects in the US entered early development this year.CCS remains a highly viable technological solution to abate emissions in these industries.One DAC project is in construction and two more are being developed in the US.DAC project
222、s are supported by the billions of dollars flowing from the US government into research and development,through both the DAC Regional Hubs funding opportunity and the DOE Carbon Negative Shot,which aims to reduce carbon removal costs to$100/net tonne.Ethanol production projects in the US have progre
223、ssed to advanced development.Despite significant progress at federal and state levels,several important steps are needed,including community support and permitting.Successful community engagement is critical to deploying CCS projects.In the past,unsuccessful community engagement and local opposition
224、 have contributed to cancellation or relocation of some CCS projects,while others were well received.Lack of community support,coupled with permitting challenges,has become a barrier for some early development stage CCS projects in the US.Permitting,specifically for Class VI wells and pipeline infra
225、structure,remains a potential bottleneck for CCS deployment,with a rapid influx of permits and need to ramp up federal and state capacity including the technical and regulatory expertise needed to evaluate permits.Congress provided funding via the IRA and the BIL to add staff to the Class VI permitt
226、ing program at the EPA,which committed to focusing on streamlining the permitting process,performing continuous programmatic evaluations,and increasing public outreach,awareness,and transparency.In August,the US Department of Energy announced up to$1.2 billion funding to advance the development of t
227、wo commercial-scale direct air capture facilities in Texas and Louisiana.Project developers that offer CCS as a service,or more broadly decarbonisation as a service,are becoming a more common feature in the North American CCS landscape.Entrepreneurs able to manage the value chain for CCS projects an
228、d offer flexible business models are seeking to provide a one-stop-shop for emitters looking to decarbonise.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX304.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-P
229、ACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENACCS transport and storage hubs remain among the largest projects with the highest potential for emissions mitigation.Capitalising on economies of scale and diverse CO2 sources,CCS networks offer some of the largest total capaci
230、ties of capture and storage.The Institutes database records 16 transport and/or storage facilities in the US in development and 1 in construction.Broader CCS-enabled ecosystems are shaping up as a notable theme across the sector.Multi-party partnerships to develop and deploy complex projects continu
231、e to grow,taking advantage of complementary capabilities across the CCS value chain to offer deep emissions reductions across various industries.This past year saw a flurry of partnership announcements between the largest vertically integrated energy companies and emitters,technology providers,and s
232、ervice providers with CCS competencies or regional assets.For example,at the time of writing ExxonMobil was in the process of acquiring Denbury and its significant CO2 transport and storage assets in a multi-billion dollar deal.Storage developmentsThere is considerable geological storage development
233、 activity underway in the US.A selection of storage facilities is summarised below.Carbon Terravault(CTV)&California Direct Air Capture(DAC)Hub ConsortiumCalifornia Resources Corporation(CRC)was an early CCS mover in California,identifying 1 Gt of CO2 storage resources at sites across the state.CRCs
234、 Class VI well permit applications filed with the US EPA are well advanced,with three having been designated“administratively complete”for its projects in development.In the southern San Joaquin Basin,CRC estimates 46 Mt of CO2 storage resources are present in formations of the Elk Hills Field.It re
235、fers to this project as Carbon Terravault I(CTVI).CRC is progressing offtake agreements with Lone Cypress Energy Services and InEnTec to store 100,000 tonnes of CO2 per year from each company for storage in CTVI.CTVI is also the planned storage site for CO2 captured from the newly formed California
236、DAC Hub Consortium,which is led by CRC subsidiary CTV Direct,EPRI and Kern County Community College District,but comprises a much broader partnership of organisations across industry,technology,academia,national laboratories,local communities,government,and labour groups.Capture rates for the Califo
237、rnia DAC Hub have not been released,but the consortium is targeting funding for DAC hubs available through the US Department of Energy.In the Sacramento Basin,CRC has identified 118 Mt of CO2 storage resources across three additional sites,which it refers to as CTV II,CTV III and CTV IV and comprise
238、 23,71,and 24 MtCO2 of storage resources,respectively.CRC is progressing an offtake agreement with Grannus to accept 370,000 tonnes of CO2 per year from its Grannus Blue Ammonia and Hydrogen Project for storage in CTV III.It is partnering with Yosemite Clean Energy to store 40,000 MtCO2 per year fro
239、m Yosemite Clean Energys planned bioenergy plant in Oroville at CTV sites.Central Louisiana Regional Carbon Storage Hub(CENLA Hub)CapturePoint in February 2023 approved its final investment decision to develop a CO2 storage hub comprising 14,000 acres in central Louisiana.It estimates the storage co
240、mplex contains more than 100 MtCO2 of total CO2 storage resources,with the potential to inject more than 10 Mtpa and has submitted applications for two US EPA Class VI well permits.Denbury Orion and Leo Sequestration SitesDenbury has announced eight projects focused on CO2 transport and storage,in a
241、ddition to its vertically integrated project with partner Clean Hydrogen Works,which will sequester CO2 from their planned Ascension Clean Energy hydrogen-ammonia complex in Ascension Parish,Louisiana.Together,the eight transport and storage-focused projects comprise 1.78 Gt of storage resources.The
242、 Orion and Leo sites have matured into early development and are located in Alabama and Mississippi,respectively.Denbury has submitted Class VI permit applications to the EPA for both Orion and Leo and has drilled an initial stratigraphic test well for the Orion site.River Bend CCSTalos Energy(60%sh
243、are)is also developing the River Bend CCS project in the New Orleans/Baton Rouge region with Storegga(40%).The project comprises more than 620 MtCO2 of CO2 storage resources across three sites,with 47,000 acres leased by Talos,which has secured the right of first refusal on an additional 63,000 acre
244、s in the area for future expansion.First injection is expected in late 2026.100 MtCO2 CENLA Hubs estimated storage resources,with the potential to inject more than 10 Mtpa.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPEN
245、DIX314.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENACredit:Carbon Engineerings Innovation Centre and Research&Development headquarters,image courtesy of Carbon EngineeringProjectsCanada has experienced continued gro
246、wth of CCS,particularly in Alberta and Saskatchewan,since establishing an escalating carbon price that is continuing to drive CCS investments.In Alberta,in addition to the six sequestration hub agreements announced in the second quarter of 2022,19 further hubs have been awarded through the provincia
247、l Technology Innovation and Emissions Reduction Regulation(TIER)Regulation.These hubs facilitate access to storage resources for emitters undertaking carbon capture and following on from this,networks have become a primary strategy for growing CCS in the province.The Glacier Gas plant CCS project in
248、 Alberta came online in August 2022 and has been successfully storing CO2 as a first-of-kind application that captures and sequesters CO2 from the exhaust of a natural gas-fired emission source.Several projects have been announced since last year and most of the projects in the pipeline are progress
249、ing through various stages of development.These projects slated to come online in the coming years span industries including refining,power generation,hydrogen production,and ethanol,pointing towards a growing interest in multiple sectors for CCS as an emission abatement pathway.Carbon price stabili
250、ty and certainty of business case around CCS are chief concerns among Canada PolicyCanadas ambitious climate targets include reducing greenhouse gas emissions at least 40%by 2030 from 2005 levels and reaching net-zero emissions by 2050.Its federal emissions reduction plan expects national CCS capaci
251、ty to grow significantly,adding facilities to capture and store at least 15 Mtpa by 2030,while a federally mandated carbon price is slated to increase to C$170 per tonne by 2030.The federal government announced significant support for CCS deployment in its March budget,including an investment tax cr
252、edit expected to be in place by October following further public consultation that will cover up to 50%of the capital cost of CO2 capture projects over 2022-2030.There is also a proposal to introduce carbon contracts for difference(CCfDs),which effectively de-risk carbon pricing by eliminating carbo
253、n price uncertainties over future prices.At a provincial level,Alberta continues to advance efforts to be a global leader in emissions reductions,innovation and technology,and the sustainable development of its resources.The Emissions Reduction and Energy Development Plan sets Albertas course for cu
254、tting emissions,attracting investment,working with Indigenous communities and supporting jobs.Leveraging the provinces geological advantages enables large-scale emissions mitigation.CCS will be a fundamental piece of the equation.Bayou Bend CCSThe Bayou Bend CCS project is a joint venture between Ch
255、evron New Energies(operator,50%),Talos Low Carbon Solutions(25%)and Carbonvert(25%),which in March 2023 acquired nearly 100,000 acres onshore in Chambers and Jefferson counties,Texas.In August Carbonvert sold their share to Equinor.This acreage adds to the projects previously announced 40,000 acres
256、in state waters offshore Port Arthur/Beaumont,Texas.Bayou Bends offshore permit was the first offshore storage permit granted by the state.The combined onshore and offshore acreage holds an estimated CO2 storage resource exceeding 1 GtCO2.First injection is expected in early 2027.Coastal BendIn Corp
257、us Christi,Texas,Talos Energy(50%)is partnered with Howard Energy Partners(50%)in developing storage sites across 13,000 acres onshore,comprising 50-75 MtCO2 of CO2 storage resources.The initial project goal is to store 1-1.5 Mtpa in saline formations,with the capability to increase to 6-10 Mtpa.Fir
258、st injection is expectedlate 2026.Canadian enterprises and as such,CCS project growth in the country is cautiously slow.Storage developmentsNortheast British Columbia(BC)Geological Carbon Capture and Storage AtlasGeoscience BC in February 2023 published the Northeast BC Geological Carbon Capture and
259、 Storage Atlas,the first report in a project aimed at developing a province-wide CCS storage resource atlas.The report estimates 4,230 Mt of combined(depleted gas fields and deep saline formations)CO2 storage resources are present in the study area.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOB
260、AL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX324.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENASource:Government of Alberta,2023ProjectProponentsLocationRateMeadowbrook Carbon Stora
261、ge ProjectBison Low Carbon VenturesMorinville,Alberta3 Mtpa(25 yrs)Open Access Wabamun Carbon HubEnbridge,First Nations Capital Investment Partnership,and Lac Ste.Anne Mtis CommunityWest of Edmonton4 MtpaOrigins ProjectEnhance EnergyCentral Alberta20 MtpaAlberta Carbon Grid(ACG)Pembina and TC Energy
262、North of Fort Saskatchewan 10 Mtpa ACG Industrial Heartland Project;20 Mtpa across several hubs comprising ACGAtlas Carbon Sequestration Hub(Atlas Hub)Shell Canada Ltd.,ATCO Energy Solutions Ltd.,and Suncor Energy Inc.East of Edmonton.78-.85 Mtpa in Phase I;Expansion up to 10 MtpaSequestration Hub b
263、y Wolf Midstream and PartnersWolf Midstream(Wolf),Whitecap Resources(Whitecap),the First Nation Capital Investment Partnership and Heart Lake First NationFort Saskatchewan area2-3 Mtpa initiallyTable 4.11:Proponents and estimated CO2 storage rates of the first six CCS Hub projects selected by the Go
264、vernment of Alberta to evaluate and explore CO2 storage site suitability in the Edmonton regionAlberta CCS HubsAlberta in March 2022 selected six CCS hub project proposals to evaluate and explore CO2 storage site suitability in the Edmonton region.If these six hub projects proceed and expand to thei
265、r maximum capacity,they will have a combined estimated annual CO2 storage rate exceeding 50 Mtpa(Table 4.11).A second group of 19 hub proposals were also selected for the same evaluation process in October 2022.When the hub proponents have completed their evaluations,they will be able to apply to pr
266、ovincial government for the right to inject CO2 at their evaluated sites.The evaluation process is ongoing.BrazilPolicyIn August,a Bill(PL 1.425/2022)which would establish a legal framework for CCS in Brazil passed the Senate and moved through to the Chamber of Deputies.The law outlines fundamental
267、definitions and regulations for CO2 storage in Brazilian sedimentary basins,including initial terms for storage and the limits of responsibility for the stored CO2 over time.If approved by the Chamber of Deputies,the Bill will then progress to the President for sanction.ProjectsBrazils state-control
268、led Petrobras operates one of the worlds largest CCS projects in the Santos Basin and in its 2023 Climate Change Supplement report says it injected 10.6 MtCO2 into the pre-salt reservoirs in 2022,yielding an accumulated 40.8 MtCO2 injected since operations began.Petrobras has readjusted its target t
269、o reinject 80 MtCO2 cumulatively by 2025.Petrobras is preparing a pilot project for CCS from industrial emissions and is looking to build partnerships for a full-scale CCS hub.This pilot project will serve as a testing ground for developing the geological aspects of carrying out CCS in a saline aqui
270、fer environment and will involve geophysical studies,at least one drilling operation,and research on storage sealing.These operations will likely provide not only technical data for the project itself but also information for legislators and regulators to build up the framework for such activities.1
271、.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX334.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENA34APAC facility count increased by 3
272、4 since GSR 2022*240 MtpaJapans CCS Long-Term Roadmap sets target for first commercial CCS projects to commence by 2030 and aims to store up to 240 Mtpa of CO2 by 2050;JOGMEC selects seven candidate projects for feasibility studies.12 8facilities currently in operationfacilities under constructionFa
273、cilities in development include 17 in CO2 transport and storage and 11 in natural gas processing.Australias reformed Safeguard Mechanism establishes framework for future regulation of emissions reduction,including a decline in baseline emissions of 4.9%per year to 2030.174.9%*This excludes“announced
274、”projects.4.2 ASIA PACIFICOverviewThe Asia Pacific region presents a dynamic environment for the deployment of CCS,with significant activity from both government and industry across the region in the past 12 months.Nations that took early actions such as Australia and Japan continue to develop domes
275、tic policies and legislation,with both nations introducing new measures targeted at promoting the technologys deployment.After reducing support for CCS by cancelling its CCUS Hubs and Technologies Program,the current Australian government has taken some positive actions towards supporting CCS.These
276、actions include important steps towards enabling the transboundary transport and geological storage of CO2,an issue of significant importance for the broader Southeast Asia region.Japan has announced funding for the development of seven CCS projects,two of which will involve transboundary CO2 transp
277、ort and storage.New project-level developments in Southeast Asia also reflect the pace of deployment across the region.Recent project announcements,which are being led by the oil and gas sector,offer significant potential for emissions mitigation in the regions 1.0 FROM THE CEO2.0 SCALING UP THROUGH
278、 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX344.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENAservices to third parties for a fee.This development strategy is being co
279、nsidered by almost every vertically integrated natural gas processing CCS project in the Asia Pacific region.Seventeen facilities in development are CO2 transport and/or storage projects.These projects do not have a CO2 capture source within their ownership structures.Each may provide CO2 transport
280、and storage services potentially to multiple customers that require a CO2 management solution.These projects,together with the vertically integrated natural gas processing projects mentioned in the previous paragraph,have the potential to create multiple CCS networks serving industry across the Asia
281、 Pacific region,with CO2 transport by pipeline and by ship.However,where transboundary transport of CO2 is required,bilateral agreements between exporting and importing countries will be required,following the promulgation of appropriate CO2 storage regulation and where applicable,the ratification o
282、f amendments to the London Protocol.These issues are further described in section 3.2 of this report.natural gas sector and are positioned as a key aspect of countries transition pathways towards clean energy.It is clear,however,that further policy and regulatory development will be required to supp
283、ort development at the scale envisaged by industry and governments.There are currently 54 facilities in development,construction or operation across the Asia Pacific region,with 34 added since the release of the 2022 Global Status of CCS Report.Twelve facilities are in operation(11 in China plus Gor
284、gon in Australia)and eight are in construction(six in China plus Kasawari in Malaysia and Santos Moomba project in Australia).Thirty-four facilities are in early or advanced development across the region,of which 11 are in natural gas processing.Natural gas processing involves stripping reservoir CO
285、2,and other unwanted gases such as H2S from the methane before it is sold.This produces a near-pure stream of CO2 that is generally released into the atmosphere.However,as companies and countries adopt net-zero emission targets,the capture,compression,and re-injection of reservoir CO2 will become st
286、andard operating practice.Gas fields with high CO2(10%and up to 70%)are being developed with CCS,and almost all facilities are vertically integrated with offshore storage.Once infrastructure to re-inject CO2 is established,the owners of these facilities will have the option to offer CO2 storage Ther
287、e are currently 54 facilities in development,construction or operation across the Asia Pacific region.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX4.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4
288、.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENA35Credit:Shanghai Shidongkou Coal-Fired Power CO2 Capture Facility,image courtesy of Huaneng Clean Energy Research Institute.Credit:Hainan International CO2 Capture Test Platform,image courtesy of Huaneng Clean Energy Research Institut
289、e.ChinaPolicyStrong momentum for CCS development continues in China since the successful start of full operations of its first integrated megatonne-scale CCS project in Shandong province in August 2022.The signals are clear,but concrete policy tools are limited.Since 2020,most of the released policy
290、 documents within Chinas“1+N”climate framework at the national and sectoral level have incorporated CCS.The“1+N”climate framework refers to a series of directives guiding Chinas efforts to peak emissions before 2030 and achieve carbon neutrality by 2060.There is also a growing interest from the sub-
291、national authorities around 10 provincial governments have included CCS development in their decarbonisation efforts.The national consensus is clear that CCS will play an essential role in Chinas carbon neutrality journey.ProjectsIn China,there are four CCS facilities in development,six in construct
292、ion and 11 in operation.Ten of these projects are in the chemical industry,five are in power generation,two are in gas processing,two are CO2 transport and storage,one is in iron and steel production and one in oil refining.Some of the more significant developments in China since the 2022 Global Sta
293、tus of CCS report was published are summarised below.November 2022:SINOPEC,Baowu,Shell and BASF announce they will jointly explore an up to 10 Mtpa large-scale open-source CCUS hub in Yangtze River Delta region.December 2022:Huaneng,one of Chinas largest power producers,commences construction of the
294、 worlds largest,1.5 Mtpa,coal-fired power integrated CCUS project in Gansu province.January 2023:CNOOC,Guangdong Provincial Development,Shell,and ExxonMobil advance the 10 Mtpa Daya Bay CCS hub project by reaching a Joint Study Agreement.May 2023:Construction begins on a 3 Mtpa CCUS project in Ningx
295、ia region by China National Energy Investment with the first phase to capture 500 ktpa CO2 from a coal-to-liquids facility for enhanced oil recovery.Early June 2023:China Energy Investments 500 ktpa coal power CCUS project enters full operation in Jiangsu province,becoming Asias largest CCUS project
296、 in the power sector;CNOOC commences operations at Chinas first offshore CO2 storage project.28 June 2023:China United Cement Group begins construction of the worlds largest oxyfuel CCUS project in the cement industry in Qingzhou,Shandong.The captured CO2 will be used for food and chemical productio
297、n.Whilst this project does not currently involve the storage of CO2 and so is not included in the Institutes database of CCS projects,it is noted here due to the significance of the application of CO2 capture technology at a cement plant.July 2023:Chinas first commercial-scale CO2 transport pipeline
298、 with a length of 109 km starts full operations,serving SINOPECs Qilu-Shengli CCUS project;Chinas first Natural Gas Combined Cycle Carbon Capture Test facility enters operation at a scale of 2,000 tpa at Hainan Island,developed by Huaneng Group.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL S
299、TATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX364.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENACredit:The Tomakomai Project,image courtesy of JCCSJapanPolicyThe Ministry of Economy,Trad
300、e and Industry(METI)announced its CCS Long-Term Roadmap in January 2023,setting a target for Japans first commercial CCS projects to commence by 2030 and aiming to store up to 240 Mtpa of CO2 by 2050.Key items included in the Long-Term Roadmap are:Capital support from METI(seven candidate projects h
301、ave been selected).Future CCS cost targets(40%cost reduction).Enhancing public acceptance of CCS.Promoting overseas CCS Projects,especially in Southeast Asia.Establishing a comprehensive regulatory framework for CCS.In June 2023,METI presented a set of draft rules for the common governance of CCS wi
302、th Australia and Southeast Asia at an Asia Zero Emission Community(AZEC)meeting in Indonesia.The adoption of shared rules is aimed at lowering the cost of CCS and shortening construction timelines.A detailed proposal on shared rules will be tabled at an AZEC ministerial meeting in early 2024.Project
303、sIn accordance with the CCS Long-Term Roadmap,the Japan Organisation for Metals and Energy Security(JOGMEC)selected seven candidate projects for feasibility studies.These projects span a wide range of sectors including power generation,oil refining,steel,chemicals,pulp and paper,and cement.In total,
304、the projects aim to store approximately 13 Mtpa of CO2.Five projects will store CO2 in Japan and the remaining two in Malaysia and Oceania,respectively.Based on data and knowledge obtained through the exploration of oil and gas,the CO2 storage potential of Japan has been broadly characterised by geo
305、logical surveys that found storage resources in deep saline formations within geological structures to be an estimated total of 16 billion tonnes across 11 structures.The selected project proponents are:1 JAPEX,Idemitsu,Hokkaido EPC2 Itochu,Nippon Steel,Taiheiyo Cement,Mitsubishi Heavy Industries,IN
306、PEX,Taisei Corporation(General Constructor)3 JAPEX,Tohoku EPC,Mitsubishi Gas,Hokuetsu(Paper mill),Nomura Research Institute(Consulting)4 INPEX,Nippon Steel,Kanto Natural Gas5 ENEOS(Refinery),JX Oil,J-Power6 Mitsui&Co.7 Mitsubishi Corp.,Nippon Steel,Exxon Mobil Asia PacificIn line with the Japanese g
307、overnments Sixth Strategic Energy Plan(2021)that included CCS as one of the pathways to achieving an emissions reduction of 46%from 2013 levels by 2030,ITOCHU Corporation,Mitsubishi Heavy Industries,INPEX Corporation and Taisei Corporation signed a memorandum of understanding in January 2023 to cond
308、uct a feasibility study on a large-scale,wide area CCS value chain project.The study will include separation,capture,transportation and storage of CO2.Japanese companies are active investors in,or technology suppliers to,many CCS projects around the world.These projects are mostly associated with fo
309、ssil point sources of CO2.However,interest in direct air capture(DAC)and biomass is now emerging.Tokyo Gas Co.,Ltd.became the first Japanese company to invest in Denver-based Global Thermostat to implement its DAC technology.In April 2023,NextGen,a South Pole/Mitsubishi Corporation joint venture,est
310、ablished the worlds largest diversified portfolio of permanent certified carbon dioxide removal certificates(CDRs)through the advance purchase of 193,125 tonnes of CDRs from carbon removal projects.The advance purchase will include CDRs from Summit Carbon Solutions$5.1 billion biomass carbon removal
311、 and storage(BiCRS)project being implemented in the US Midwest;the worlds largest direct air capture and storage(DACS)project being developed by 1PointFive in Texas;and Carbo Cultures inaugural high technology biochar project in Finland.1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF
312、 CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX374.1 REGIONAL OVERVIEW:AMERICAS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENASouth KoreaPolicyCCS is featuring as a core emissions reduction component across several of South
313、Koreas national climate change mitigation strategies and action plans,with the designation of CCUS as one of the Ten Major Technologies for Carbon Neutrality Technology Innovation in the countrys 2050 Carbon Neutral Promotion Strategy,accompanied by a commitment to commercialise the technology by 20
314、30.In March 2023,the South Korean government published a draft of its first National Framework Plan for Carbon Neutrality and Green Growth,which sets out the countrys plan to achieve its 2030 emissions reduction target.It also commits to developing two national policies to support CCUS and legislati
315、on addressing business,safety and certification of CCS projects.These developments underpin the strong interest in and uptake of CCS project partnerships across the countrys industrial sectors and will likely enhance the development of further policy and regulatory frameworks to facilitate deploymen
316、t of the technology.ProjectsMultiple project announcements and cooperation agreements between South Koreas leading energy and industrial companies to assess opportunities for CCS technologies have seen CCS-related development gain momentum over the past 12 months.Notable examples include:TCRK Enviro
317、nmental Services collaboration with Asia Cement,a leading cement production company in South Korea,to develop carbon capture technology for Asia Cements plants in pursuit of the companys 2025 emissions reduction targets.Hyundai Merchant Marines partnership with PANASIA,and the collaboration between
318、Samsung Heavy Industries(SHI)and BASF,to assess the feasibility of carbon capture systems onboard maritime shipping vessels.Transboundary CO2 storage opportunities Business models involving transboundary CO2 transport and storage activities are emerging,with multiple consortiums formed in the past y
319、ear in South Koreas private sector to explore opportunities in the region.In November 2022,a consortium of eight South Korean energy companies signed a memorandum of understanding with Caltex to cooperate on and promote the development of CCUS in South Korea.The companies will capture CO2 produced f
320、rom their plants at the Yeosu National Industrial Complex for use as raw material for chemical and mineral carbonation processes,with the remainder to be transported overseas for geological storage.Similarly,a consortium of six leading industrial companies in South Korea announced a partnership with
321、 Malaysias Petronas to implement a cross-border CO2 transport and storage project between South Korea and the proposed CCS hub in Sarawak,Malaysia.IndiaPolicyIndias central government in June 2023 passed an amendment to the Energy Conservation bill that would set up a domestic carbon credits trading
322、 scheme.This came just after India updated its NDCs through the UNFCCC in November 2022 and released a policy framework paper on CCUS through NITI Aayog,an Indian central government think tank,in December 2022.While CCUS is not yet included in the carbon credits trading scheme,India has included CCU
323、S as a removal activity under the Article 6.2 mechanism.In addition,the Indian government announced the establishment of two National Centres of Excellence in Carbon Capture and Utilization in 2022.These two institutions will focus on research and development,and act as centres for collaboration and
324、 other initiatives related to carbon capture and utilisation.In July 2023,India and the US agreed to add carbon capture,utilisation and storage as a work stream under the Emerging Fuels and Technology Pillar of the US-India Strategic Clean Energy Partnership.Further,the US and India welcomed engagem
325、ent through the Low-Emissions Gas Task Force to reduce emissions through the deployment of emerging technologies including CCUS.AustraliaPolicyIn March 2023,Australias Federal Government announced reforms to its Safeguard Mechanism,to establish a framework for future regulation of emissions reductio
326、n by large emitters(emissions 100,000 tonnes per year).Key amendments include baseline setting for covered facilities,an annual rate of decline in baseline emissions of 4.9%year-on-year to 2030,generation and use of Safeguard Mechanism Credits(SMCs),greater transparency requirements,and a“hard cap”o
327、n total emissions between 2020 and 2030.Covered facilities could utilise carbon capture technology on site to meet their baselines,however 1.0 FROM THE CEO2.0 SCALING UP THROUGH 20303.0 GLOBAL STATUS OF CCS4.0 REGIONAL OVERVIEW5.0 ANALYSIS6.0 FACILITIES LIST7.0 APPENDIX384.1 REGIONAL OVERVIEW:AMERIC
328、AS 4.2 REGIONAL OVERVIEW:ASIA-PACIFIC 4.3 REGIONAL OVERVIEW:EUROPE AND THE UK 4.4 REGIONAL OVERVIEW:MENACredit:Photo taken by Alex Zapantissuch abatement projects,which directly reduce emissions from the operations of a covered facility,will not be eligible for Australian Carbon Credit Units(ACCUs)u
329、nder the new rules.Covered facilities whose emissions are below their baselines will automatically generate tradeable Safeguard Mechanism Credits.The Western Australian state government introduced the Petroleum Legislation Amendment Bill,integrating transport and storage of greenhouse gases into cur
330、rent state legislation.The amendment legislation aims to provide industry with the opportunity to decarbonise through CCS.Key provisions include permitting requirements for onshore and offshore storage operations,transfer of liability for stored CO2 to the state following a 15-year post-closure peri
331、od,prescriptive site closure requirements and allowance of GHG transport via pipelines to depleted petroleum reservoirs in the state.The federal governments House of Representatives Standing Committee on Climate Change,Energy,Environment and Water in June 2023 recommended that Australia ratify both
332、the 2009 and 2013 amendments to the London Protocol,which will remove barriers to transboundary transport of CO2 for offshore storage.Rest of Asia Pacific High domestic emissions,limited domestic storage potential and close geographic proximity to suitable storage sites in the territorial waters of
333、neighbouring countries have strengthened the case for export and import of CO2 and the establishment of storage hubs in the Asia Pacific region.Several world-class sedimentary basins exist in the region,creating the opportunity for a new regional CO2 transport and storage industry.Malaysia,Indonesia,Thailand,Brunei and Timor-Leste are all moving forwards to develop opportunities to receive CO2 fro