1、CCUS Policies and Business Models Building a commercial marketThe IEA examines the full spectrum of energy issues including oil,gas and coal supply and demand,renewable energy technologies,electricity markets,energy efficiency,access to energy,demand side management and much more.Through its work,th

2、e IEA advocates policies that will enhance the reliability,affordability and sustainability of energy in its 31 member countries,13 association countries and beyond.This publication and any map included herein are without prejudice to the status of or sovereignty over any territory,to the delimitati

3、on of international frontiers and boundaries and to the name of any territory,city or area.Source:IEA.International Energy Agency Website:www.iea.orgIEA member countries:AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembour

4、gMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TrkiyeUnited KingdomUnited StatesThe European Commission also participates in the work of the IEAIEA association countries:Argentina BrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingapore South Afri

5、ca Thailand UkraineINTERNATIONAL ENERGYAGENCYRevised version,November 2023Information notice found at:www.iea.org/correctionsCCUS Policies and Business Models:building a commercial market Abstract PAGE|3 I EA.CC BY 4.0.Abstract Carbon capture,utilisation and storage(CCUS)is an important technology f

6、or achieving global net zero emissions.Momentum on CCUS has increased in recent years,but the deployment of projects has remained relatively flat.Emerging business models are opening the door to new investment opportunities,and with that bringing new challenges to be overcome.The scale-up needed to

7、reach net zero emissions by mid-century represents a major undertaking,and policy support and co-ordination are crucial.Policy makers have a suite of tools at their disposal to create the conditions necessary to drive long-term investment,enabling industry to take the next step forward and push CCUS

8、 into a viable and sustainable commercial market.This IEA CCUS Handbook provides governments with a policy toolkit to tackle the overarching challenges to CCUS deployment.It gives an overview of existing policies that have helped launch CCUS projects to date and identifies the main challenges to fut

9、ure large-scale deployment.The handbook also highlights international best practices,drawing on existing and proposed government efforts to address these challenges.The handbook is supported by our CCUS Projects Database1 and complements the IEA CCUS Handbooks on Legal and Regulatory Frameworks for

10、CCUS and on CO2 Storage Resources and their Development.1 The IEA CCUS Projects Database available for download contains projects updates as of February 2023.This report relies on an internal version of the database with project updates as of Q2 2023,with the exception of major project updates,which

11、 include projects(re)entering operation or construction,which are included up to October 2023.CCUS Policies and Business Models:building a commercial market Acknowledgements PAGE|4 I EA.CC BY 4.0.Acknowledgements This study was prepared by the Energy Technology Policy(ETP)Division of the Directorate

12、 of Sustainability,Technology and Outlooks(STO)of the International Energy Agency(IEA).The study was designed and directed by Timur Gl,Chief Energy Technology Officer and Head of the Energy Technology Policy Division.The analysis and production was co-ordinated by Sara Budinis.The lead authors were(

13、in alphabetical order)Sara Budinis,Mathilde Fajardy,Carl Greenfield and Flowra(Yuting)Zhang.Per-Anders Widell provided essential support throughout the process.Lizzie Sayer edited and produced the manuscript.Thanks also to the IEA Communications and Digital Office for their help,particularly to Jeth

14、ro Mullen,Poeli Bojorquez,Curtis Brainard,Hortense de Roffignac,Astrid Dumond,Merve Erdil,Grace Gordon,Julia Horowitz,Oliver Joy and Aya Abu Shaqra.Valuable comments and feedback were provided by other colleagues within the IEA,in particular Simon Bennett,Luca Lo Re and Tiffany Vass.Valuable input t

15、o the analysis was provided by a series of consultations with key government officials including(in alphabetical order)Niels Berghout(Ministry of Economic Affairs and Climate Policy,The Netherlands),Krzysztof(Chris)Bolesta,(DG Energy,European Commission),Alexandre Dedo(DG Energy,European Commission)

16、,Noah Deich(US Department of Energy),Alexander Engh(Norwegian Ministry of Petroleum and Energy),Ramsey Fahs(US Department of Energy),Johanna Fiksdahl(DG Energy,European Commission),Jason Gadoury(Natural Resources Canada),Kathryn Gagnon(Natural Resources Canada),Rory Jacobson(US Department of Energy)

17、,Will Lochhead(UK Department for Energy Security and Net Zero),Jessica Mackenzie(UK Department for Energy Security and Net Zero),Saviz Mortazavi(Natural Resources Canada)Henriette Nesheim(Norwegian Ministry of Petroleum and Energy),Monica Reed(Natural Resources Canada),Norihiko Saeki(Japan Ministry

18、of Economy,Trade and Industry),Tina Schn(Danish Energy Agency),Henrik Sulsbrck(Danish Energy Agency),Stig Svenningsen(Norwegian Ministry of Petroleum and Energy),Matthew Taylor(UK Department for Energy Security and Net Zero),Chris Thackeray(UK Department for Energy Security and Net Zero)and Pil Krog

19、h Tygesen(Danish Energy Agency).CCUS Policies and Business Models:building a commercial market Acknowledgements PAGE|5 I EA.CC BY 4.0.Several senior government officials and experts provided essential input and feedback to improve the quality of the report.They include:Nabil Al Bulushi Petroleum Dev

20、elopment Oman Nawal Al-Hanaee Ministry of Energy and Infrastructure,United Arab Emirates AbdulAziz Aliyu Technology Collaboration Programme on Greenhouse Gas R&D Jack Andreasen Breakthrough Energy Mark Preston Aragones Bellona Paulina Becerra General Electric Power Brendan Beck Australian Energy Pro

21、ducers Niels Berghout Ministry of Economic Affairs and Climate Policy,The Netherlands Krzysztof(Chris)Bolesta DG Energy,European Commission Keith Burnard Technology Collaboration Programme on Greenhouse Gas R&D Johanna Fiksdahl DG Energy,European Commission Kathryn Gagnon Natural Resources Canada Ro

22、ry Jacobson US Department of Energy Maria Leis Breakthrough Energy Juho Lipponen Clean Energy Ministerial CCUS Initiative Will Lochhead UK Department for Energy Security and Net Zero Toby Lockwood Clean Air Task Force Claude Lorea Global Cement and Concrete Association Wilfred Maas Carbon Direct Iai

23、n Macdonald Shell Rachael Moore World Bank CCUS Policies and Business Models:building a commercial market Acknowledgements PAGE|6 I EA.CC BY 4.0.Isabela Morbach CCS Brazil Nicolai Mykleby-Skaara Aker Carbon Capture Naser Odeh King Abdullah Petroleum Studies and Research Center David Phillips Aker Ca

24、rbon Capture Andrew Purvis World Steel Association Simon Roussalany SINTEF Ed Rubin Carnegie Mellon University Stijn Santen European Business and Innovation Centre Network Robert Kennedy Smith US Department of Energy Henrik Sulsbrck Danish Energy Agency Eve Tamme Climate Principles James Tarlton UK

25、Committee on Climate Change Paolo Testini Snam Jan Theuleun Heidelberg Materials Martin Towns BP Fridtjof Unander Aker Horizons Machteld van den Broek Delft University of Technology Vikram Vishal Indian Institute of Technology Bombay Zhang Xian Administrative Centre for Chinas Agenda 21 Dong Xu Chin

26、a Energy Ruina Xu Tsinghua University Alex Zapantis Global CCS Institute CCUS Policies and Business Models:building a commercial market Table of contents PAGE|7 I EA.CC BY 4.0.Table of contents Executive summary.10 Chapter 1:Setting the context.14 Overview.14 Net zero pledges and the role of CCUS.18

27、 Is CCUS on track?.21 CCUS dashboards.27 The IEA CCUS Handbook series.32 Chapter 2:Policy trends.34 Overview.34 Existing CCUS policies.35 CCUS policy gaps.47 Chapter 3:Business model trends.49 Overview.49 From full-chain to part-chain model.51 Possible revenue streams.57 Chapter 4:Challenges for fut

28、ure deployment.61 Economic viability.61 Long lead times.73 Project complexity.78 The innovation gap.84 Chapter 5:A policy toolkit to accelerate deployment and build a commercial market for CCUS.86 Overview on types of approaches to build a commercial market.86 How can policy effectively and efficien

29、tly tackle existing gaps and challenges?.89 Conclusions.90 A policy toolkit.105 General annex.107 Annex A:Large-scale CCUS operating projects,2023.107 Annex B:Principal capture technologies.110 Annex C:CCUS cost metrics.112 Annex D:Dashboard notes.113 Annex E:Regional and country groupings.116 Abbre

30、viations and acronyms.119 Units of measure.120 CCUS Policies and Business Models:building a commercial market Table of contents PAGE|8 I EA.CC BY 4.0.List of figures A policy toolkit for CCUS.13 Schematic of a potential CO2 management value chain.15 Large-scale CCUS projects,operating and under cons

31、truction,2023.17 Evolution of the CO2 capture project pipeline,2012-Q2 2023.18 Capacity of current and planned large-scale CO2 capture and storage projects vs.the Net Zero by 2050 Scenario,2022-2030.22 Operating and planned CO2 capture capacity by application,Q2 2023 vs.2030.23 Operating and planned

32、 CO2 capture capacity by region,Q2 2023 vs.2030.25 Operating and planned CO2 storage facilities by type of storage,2023.26 Key elements of a CCUS business model.50 Levelised cost of CO2 avoided between CCUS and unabated route across sectors.63 Impact of cost of capital on levelised cost of capture f

33、or selected sectors.64 Levelised cost of capture for different stream capture rates in coal and gas power generation(left)and plant capture rates in biodiesel,bioethanol and gas SMR(right)66 Levelised cost of products for different industries and production routes.68 Levelised cost of hydrogen produ

34、ction for different regions and gas prices,2022.69 Levelised cost of electricity of selected technologies,2022.70 Levelised cost of CO2-based fuel production,2022.72 Cost of removal and storage permanence for different removal methods.73 High-level planning and indicative timelines of a CCUS project

35、.75 Lead times of selected operating and planned CCUS projects.76 Capture and storage capacity in planning around the North Sea,2019-2023.80 CO2 emissions clusters and storage hubs in planning in selected regions,2023.82 Cumulative CO2 captured by Technology Readiness Level(2022-2050)in the Net Zero

36、 by 2050 Scenario,by sector.85 Spectrum of existing approaches to building a commercial market for CCUS.87 A policy toolkit for CCUS.106 List of boxes What is CCUS and how does it work?.14 How can a value proposition for CCUS technologies be established?.50 Selected CCUS hubs approaches.55 Is EOR a

37、good revenue stream for CCUS?.58 Revenue streams by Technology Readiness Level(TRL).60 Can high plant capture rates be achieved?.65 Data sharing and transparency efforts for CO2 storage in the United Kingdom and European Union.94 Enabling social acceptance of CCUS by showing community benefits.95 Li

38、st of tables Countries with a net zero target explicitly mentioning CCUS.19 Selected carbon management and CCUS strategies.20 Selected storage hubs in development by region,2023.31 Current policy mechanisms for CCUS.35 Existing CCUS policy mechanisms by country.37 Legal and regulatory frameworks of

39、selected countries.38 CCUS Policies and Business Models:building a commercial market Table of contents PAGE|9 I EA.CC BY 4.0.Cost reduction policies.40 State-owned enterprises involved in CCUS.42 Carbon pricing policies of selected jurisdictions.44 Selected examples of CCUS business models.53 Overvi

40、ew of potential risks for CCUS projects.78 Policy tools to address challenges to CCUS deployment.91 Obligations under the London Protocol.102 Large-scale CCUS operating projects,2023.107 CCUS Policies and Business Models:building a commercial market Executive summary PAGE|10 I EA CC BY 4.0.Executive

41、 summary Carbon capture,utilisation and storage(CCUS)is an important tool for emissions reduction and removal CCUS accounts for 8%of cumulative emissions reduction in the Net Zero Emissions by 2050 Scenario(NZE Scenario)to 2050.CCUS is particularly well suited to applications characterised by highly

42、 concentrated CO2 streams and those lacking technically or commercially available solutions for carbon abatement.Moreover,it is the only technology-based solution for carbon removal,where CO2 is captured directly or indirectly from the air and permanently stored underground.Carbon removal can help b

43、alance residual emissions from heavy industries and long-distance transport.Governments have taken different approaches to supporting CCUS projects,either through broad funding incentives or targeted support for selected projects.Two types of policies in particular have contributed to the CCUS proje

44、cts in operation today:legal and regulatory frameworks that facilitate and enable deployment,and cost reduction measures,such as grants,tax credits and the use of state-owned enterprises(SOEs).These measures combined have supported early large-scale projects to move into operation.New business model

45、s are emerging,shifting risk allocation across the value chain The full-chain business model has played an important role in the early development phase of CCUS.In such models,a single project framework is used for the full CCUS value chain from CO2 capture to transport and storage.The oil and gas i

46、ndustry has played a major role in these projects,thanks to its expertise in operating large-scale projects and knowledge of the subsurface.However,the industrys historical focus has been enhanced oil recovery(EOR)and a shift is now required to one that centres on dedicated CO2 storage.While the ful

47、l-chain business model has some advantages,it comes with multiple risks at each step of the chain.These are typically associated with a need for technical and operational expertise in all fields,and high CAPEX.Full-chain business models alone are not well suited to CCUS applications needed for net z

48、ero,as some emitters may not have the internal expertise.For capture,this is particularly relevant for applications where CO2 is not already separated as part of the process,and which require dedicated capture equipment.CCUS Policies and Business Models:building a commercial market Executive summary

49、 PAGE|11 I EA CC BY 4.0.New part-chain business models are emerging,characterised by separate entities specialising in different parts of the CCUS value chain.While the oil and gas sector continues to play a role,new specialised players are entering the market,such as chemical and engineering compan

50、ies to provide CO2 capture solutions and infrastructure,shipping companies that are expanding their portfolio,and new companies focusing exclusively on CCUS.Old and new players are now establishing joint ventures in a CCUS hub configuration,which today appears to present a promising opportunity.CCUS

51、 hubs can shorten lead times for connecting to shared infrastructure,reduce costs through increased competition within a more specialised corporate landscape and through cost-sharing on infrastructure,and allow more dispersed and smaller emitters to connect to CO2 transport and storage(due to econom

52、ies of scale).With new business models come new project complexities.These include greater need for co-ordination across the value chain,mitigation of counter-party risks,allocation of long-term liability,and management of shared,cross-border CO2 transport and storage infrastructure.Governments can

53、support the deployment of these new models and step in where challenges remain and the private sector struggles to progress.Global project announcements are growing exponentially,but challenges for deployment remain CCUS deployment has remained relatively flat in the last decade,partially due to a l

54、ack of policies to support the establishment of a sustainable market for CCUS.This lack of progress has led to progressive downward revisions in the role of CCUS in the IEAs updated NZE Scenario.Momentum,however,is growing.Over the past 3 years,more than 400 new projects have been announced along th

55、e CCUS value chain,and over 45 countries have CCUS projects in development.While the current project pipeline would only meet just over one-third of deployment needed by 2030 in the NZE Scenario,these needs could be met in full if momentum continues,projects reach commissioning on time,and lead time

56、s are reduced.The call is on industry to successfully deliver on CCUS projects,and for policymakers to support them.There is a need for continuous innovation to reduce energy penalty and costs for CCUS applications.While some CCUS technologies have been in use for decades,operating CCUS projects hav

57、e been largely concentrated in lowest-cost areas such as natural gas processing.In contrast,around three-quarters of capture capacity by 2050 in the NZE Scenario relies on technologies and applications that are still at demonstration or prototype scale.For all CCUS applications,economic viability re

58、mains a significant hurdle,as costs can be prohibitively high compared to unabated technologies.In addition,long lead times CCUS Policies and Business Models:building a commercial market Executive summary PAGE|12 I EA CC BY 4.0.for project development and implementation can further impede progress,p

59、articularly related to CO2 storage development.A suite of policy tools is needed Countries are recognising the value of CCUS in meeting their climate and energy goals,but there is a gap between intention and action.Around half of the countries with a net zero pledge in place(48 out of 93 countries p

60、lus the European Union)have identified CCUS as contributing in some way to the target.Despite this,under 20 countries have CCUS policies on the books that go beyond R&D initiatives.Grants and tax credits,and an enabling legal and regulatory framework alone are insufficient to scale up CCUS across ap

61、plications at the required pace.The creation of a commercial market for CCUS requires a suite of policy tools to address all the challenges associated with CCUS deployment,and ensure that investment continues to flow into CCUS projects,and projects are completed on time.Particular attention must be

62、placed on supporting CCUS deployment in emerging markets and developing economies(EMDEs).Approximately half of all CO2 capture capacity in the NZE Scenario is located in EMDEs by 2030,up from one-third today.Following the closure of the Asian Development Banks CCS Trust Fund in 2022,and with the pla

63、nned closure of the World Banks CCS Trust Fund in 2024,there will be a major gap in multilateral development funding support for CCUS in EMDEs.Dedicated international funding instruments are needed to support the development of CCUS-enabling environments and/or piloting,as most EMDEs typically rely

64、on some level of multilateral development funding to perform the technical assistance studies that underpin the development of legal and regulatory frameworks and CCUS policies.The IEA has developed a policy toolkit for governments to build a commercial market for CCUS and tackle the overarching eco

65、nomic,lead time,innovation and complexity challenges to deployment.How governments approach this will depend on institutional,economic and political factors that will influence whether they opt for more or less intervention,or shift their approach as the market develops.These tools will help to crea

66、te an enabling environment for CCUS,and can help reduce costs to spur early market movement,support revenue streams to secure necessary infrastructure,set strategic targets to signal long-term commitment and regulate industrial activities to drive market demand.CCUS Policies and Business Models:buil

67、ding a commercial market Executive summary PAGE|13 I EA CC BY 4.0.A policy toolkit for CCUS There is no one single approach to building a commercial market for CCUS.Various approaches should be thought of as existing on aspectrum:incentive-or penalty-based,sharedcostallocationandfull control approac

68、h.Institutional,economic and political factors will influence what part of the CCUS policy spectrum a country may end up on,and countriesmay move along the spectrum as these factors change and as the domestic market for CCUS matures.Where a country sits on thespectrum may impact the types of policy

69、tools that it chooses to use.ApproachesLevel of government interventionPolicy approaches for CCUS deploymentShared cost allocation approachEconomic parameters govern the costand revenue structures of a company,which is shared between the publicand private sectors.This approachmaybewellsuitedforlarge

70、infrastructure endeavours,such as thedevelopment of a CO2transportationand storage network.Incentive-or penalty-based approachPoliciestoinfluencehowaprivatecompanywillmakeitsinvestmentdecisions.Thisiseitherdonewithincentives(e.g.grants,loans or taxcredits)to private companies to deploy acertain tech

71、nology or adopt a certainpractice,or with penalties(e.g.taxes orfees)for not complying with regulations.Full control approachInstead of solely relying on the privatesector to develop a market,this approachleansonstate-ownedenterprisestofinance,build,own and operate projects.It may still rely on some

72、 level of privatesector involvement,whether it is throughjointly developing projects,as a customeror as an investor.Low interventionHigh interventionEconomic viabilityAbsentanypolicysupport,theeconomic viability of a CCUS projectisamajorbarriertowide-scaledeployment.High costs and a lack ofrevenue s

73、treams for projects directlyimpact a projects economic viability.Lead timesLead times(i.e.the totaltime required between aprojectsconceptionandcommissioning)currentlyaverage around six years.Reaching net zero goalshingesoncuttingtheselead times.Innovation gapsThetechnologymaturityofCCUS varies consi

74、derably bytechnologytypeandapplication.Technologies whichare mature today are also notnecessarily the ones consistentwith a net zero energy system.Project complexityThe shiftto a hub modelmeansacomplexprojectstructure,with implications forrisk,timing and co-ordination.Specialconsiderationsarealsonee

75、dedforcarbondioxide removal technologies.Governments have several policy tools to address challenges to CCUS deployment.It is important that these tools work together totackle economic viability,lead time,innovation and complexity challenges.Whatever tools a government chooses to employ will be uniq

76、ue to that country,but it is vital that the tools are effective and efficient,setting upa viable and sustainable commercial market for CCUS that attracts investment and retains it over the long term.ChallengesPolicy toolsPolicy toolkit to address CCUS challenges Grants,tax credits,loans State-owned

77、enterprises Carbon pricing and leakage policy Public procurement Low-emissions mandates(Carbon)contracts-for-difference Regulated asset base Emerging market and developing economy considerations:concessional finance,sustainable debt,multilateral funding instruments One-stop shop for permitting Clear

78、 approval timelines Internal regulatory capacity Precompetitive resource assessments Data sharing and transparency Community engagement requirements Research,development and demonstration Platforms for international co-operation Foreign direct investment for technology co-development Long-term liabi

79、lity legislation Competitive solicitations for hubs One-off backstop agreements for first movers London Protocol specifications Definition of high-quality removals Monitoring,reporting and verification mechanismsIEA.CC BY 4.0.CCUS Policies and Business Models:building a commercial market Chapter 1:S

80、etting the context PAGE|14 I EA CC BY 4.0.Chapter 1:Setting the context Overview Carbon capture,utilisation and storage(CCUS)is an important suite of technologies for the decarbonisation of the energy system towards global net zero emissions by 2050.CCUS technologies can reduce emissions in some ind

81、ustrial sectors in which emissions are hard to abate,where other technology options are limited or not yet mature(e.g.cement,iron and steel,chemicals).They can also enable low-emissions hydrogen production,supporting the decarbonisation of other parts of the energy system,including industry and long

82、-distance transport.Moreover,CCUS technologies can facilitate the continued operation of existing industrial and power plants,avoiding early and potentially costly retirement of valuable assets.Finally,CCUS technologies can remove CO2 from the air through bioenergy with carbon capture and storage(BE

83、CCS)and direct air capture with storage(DACS).What is CCUS and how does it work?CCUS involves the capture of CO2,generally from large point sources such as industrial or power generation facilities that use either fossil fuels or biomass as fuel,or from the air.If not being used on-site,the captured

84、 CO2 is compressed and transported by pipeline,ship,barge,rail or truck to be used in a range of industrial applications(e.g.synthetic fuels,building materials),or injected into deep geological formations such as saline formations,depleted oil and gas reservoirs or unconventional storage resources(e

85、.g.basalts,peridotites)for permanent storage.CCUS technologies are particularly well suited for applications where alternative decarbonisation methods are not technically or commercially available,such as heavy industry and carbon removal.They are one of the few options available for addressing indu

86、strial process emissions,and they can also help to balance the intermittency of renewable energy through the decarbonisation of base load power generation.While CO2 use can deliver climate benefits,it is a complement rather than an alternative to CO2 storage,which is expected to be deployed at a muc

87、h larger scale in order to reach international climate goals.In the IEA Net Zero Emissions by 2050 Scenario(NZE Scenario),around 95%of total captured CO2(across all CCUS applications)is destined for CO2 storage rather than use.CCUS Policies and Business Models:building a commercial market Chapter 1:

88、Setting the context PAGE|15 I EA CC BY 4.0.Carbon dioxide removal(CDR)can balance out residual emissions from sectors such as heavy industry and long-distance transport.Technology-based CDR includes BECCS and DACS.BECCS involves capturing and permanently storing CO2 from processes where biomass(whic

89、h extracts CO2 from the atmosphere as it grows)is refined or burned to generate energy.DACS involves the capture of CO2 directly from ambient air(as opposed to a point source)for permanent storage.These technology-based approaches are part of a much broader CDR portfolio including nature-based solut

90、ions(such as afforestation and reforestation)and enhanced natural processes(such as biochar and enhanced weathering).Bioenergy with carbon capture and direct air capture are also able to supply CO2 that is not fossil-based for CO2 utilisation.Schematic of a potential CO2 management value chain IEA.C

91、C BY 4.0.Notes:CO2 transport can also include barges,train and tank trucks.In this report:Carbon capture and storage(CCS):includes applications where the CO2 is captured and permanently stored.This includes DACS and BECCS.Carbon capture and utilisation(CCU)or CO2 use:includes applications where the

92、CO2 is captured and used,for example in the production of fuels CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|16 I EA CC BY 4.0.and chemicals.This includes both bioenergy with carbon capture and direct air capture for CO2 utilisation.Carbon capture

93、,utilisation and storage(CCUS):includes CCS,CCU,as well as applications where the CO2 is both used and stored,for example in enhanced oil recovery(EOR)or in building materials,where the use results in some or all of the CO2 being permanently stored.From a commercial perspective,CO2 separation techno

94、logies have been successfully implemented and operated for decades where it makes commercial sense to do so,for instance to separate CO2 from methane after it is extracted from a natural gas reservoir,or to separate CO2 from hydrogen during ammonia production(in order to produce urea).Despite the fi

95、rst CCUS projects having been operational since the 1970s and 1980s,progress towards CCUS as a climate change mitigation approach has been slow.The lack of dedicated revenue streams,incentives and regulations for carbon capture applications aimed at emissions reduction has translated into low deploy

96、ment of CCUS for dedicated CO2 storage purposes.Of the 41 facilities capturing CO2 today,2 only 9 are transporting CO2 to dedicated CO2 storage sites,while the remainder are injecting the CO2 for the purpose of increasing production from depleting oil fields through EOR,or for other industrial uses.

97、2 Includes the Petra Nova plant in the United States which resumed operation in September 2023.CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|17 I EA CC BY 4.0.Large-scale CCUS projects,operating and under construction,2023 IEA.CC BY 4.0.Notes:Large

98、-scale refers to a capture capacity equal to or above 100 000 t CO2/yr(or 1 000 t CO2/yr for direct air capture applications).Storage includes both dedicated CO2 storage and CO2-enhanced oil recovery(EOR).While most of the CO2 injected for EOR is retained in the reservoir over the life of the projec

99、t,additional monitoring and verification is required to confirm that the CO2 has been permanently stored.Source:IEA(2023),CCUS Projects Database.Some progress has been recorded during the past five years,with over 500 projects currently in development globally across the entire CCUS value chain,and

100、new policies to support commercial deployment being proposed.While this positive momentum is encouraging,even if all these projects materialise into operating plants,they would only represent just over a third of what is needed in 2030 to get on track with the NZE Scenario.3 Achieving the 2030 level

101、 of global deployment of CCUS in the NZE Scenario hinges on planned projects reaching completion,as well as a reduction in project lead times,which currently average around 6 years.4 Adoption of best practices could compress lead times to around 3 to 4 years,if CO2 transport and storage infrastructu

102、re is already in place.On a global scale,if the current momentum continues until 2026 and project lead times(from announcement to operation)decrease to around 4 years on average,5 the 2030 deployment target in the NZE Scenario could be achieved.3 This report is based on an updated and revised NZE Sc

103、enario,which sets out a pathway for the global energy sector to achieve net zero CO2 emissions by 2050.4 Project lead time is defined here as the total time required between conception and commissioning of a facility.5 Please refer to the section Long lead times for the assumptions behind this estim

104、ate.CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|18 I EA CC BY 4.0.Evolution of the CO2 capture project pipeline,2012-Q2 2023 IEA.CC BY 4.0.Notes:Includes commercial-scale projects with a capture capacity over 100 000 t CO2/yr(or 1 000 t CO2/yr fo

105、r direct air capture applications).Includes capture projects for dedicated storage,enhanced oil recovery(EOR),and use as long as CO2 is used in fuels,chemicals,polymers,building materials,or for yield boosting.Within planned industrial clusters,only identified CO2 capture projects are included(not t

106、he full potential capture capacity of industrial clusters for which capture sources are not specified).Under construction also includes projects which have reached a final investment decision(FID)and for which construction is imminent.Source:IEA(2023),CCUS Projects Database.Net zero pledges and the

107、role of CCUS The number of countries that have pledged to achieve net zero emissions has grown rapidly over the past few years.When the IEA released its landmark Net Zero by 2050 report in 2021,our analysis showed that pledges at that time even if implemented in full and on time would still put the

108、world on a path to 2.1C of warming by the end of the century,missing the goals of the Paris Agreement and hugely increasing climate risks.Since then,countries have raised their ambitions and more have pledged to reach net zero by 2050 or soon after.Our updated analysis of these new targets on top of

109、 all of those made previously shows that if they are met in full and on time,they would be enough to hold the rise in global temperatures to 1.7C by the end of the century.As of October 2023,93 countries plus the European Union have pledged to meet a net zero emissions target.Representing more than

110、85%of global energy-related CO2 emissions,these net zero pledges are either enshrined in legislation(i.e.legally mandated),mentioned in a policy document,or announced.Governments are increasingly recognising the role that CCUS can play in achieving their net zero ambitions.Of the countries with a ne

111、t zero pledge in place,0 100 200 300 400 500200002120222023Q2Number of capture facilitiesConcept and feasibilityAdvanced developmentUnder constructionOperatingCCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|19 I EA CC

112、 BY 4.0.around half have identified CCUS as contributing in some way to the target,though there is a wide range across countries.For example,some countries see CCUS as a key pillar of economy-wide decarbonisation,including CCUS as an option to decarbonise the power and industrial sectors.Others see

113、CCUS as having a very limited role,such as focusing only on cement decarbonisation,or technology-based carbon removals,or restricting CCUS activities to R&D efforts.This is also reflected in some countries Nationally Determined Contributions(NDCs)under the Paris Agreement.While the level of detail c

114、an vary considerably across NDCs,more than 15 NDC submissions(out of 168)include CCUS.6 Among them,only Saudi Arabia and Bahrain explicitly mention direct air capture(DAC).Countries with a net zero target explicitly mentioning CCUS Country Target Year Legally Mandated CCUS in NDC Guyana Achieved No

115、No Finland 2035 Yes No Iceland 2040 Yes Yes Germany 2045 Yes No Nepal 2045 No No Sweden 2045 Yes No Australia 2050 Yes Yes Cambodia 2050 No No Canada 2050 Yes Yes Denmark 2050 Yes No France 2050 Yes No Greece 2050 Yes No Hungary 2050 Yes No Ireland 2050 Yes No Italy 2050 No No Japan 2050 Yes Yes Kor

116、ea 2050 Yes No Latvia 2050 No No Lithuania 2050 No No Malta 2050 No No Morocco 2050 No Yes Netherlands 2050 Yes No New Zealand 2050 Yes No Norway 2050 No Yes Oman 2050 No No Singapore 2050 No No Slovak Republic 2050 No No 6 Australia,Bahrain,Canada,China,Egypt,Iceland,Iran,Japan,Morocco,Norway,Pakis

117、tan,Saudi Arabia,Trkiye,United Arab Emirates,United Kingdom,United States and Viet Nam.CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|20 I EA CC BY 4.0.Country Target Year Legally Mandated CCUS in NDC Slovenia 2050 No No South Africa 2050 No No Spai

118、n 2050 Yes No Sri Lanka 2050 No No Switzerland 2050 Yes No Tunisia 2050 No No United Arab Emirates 2050 No Yes United Kingdom 2050 Yes Yes United States 2050 No Yes Viet Nam 2050 No Yes Trkiye 2053 No Yes Bahrain 2060 No Yes China 2060 No Yes Ghana 2060 No No Indonesia 2060 No No Kazakhstan 2060 No

119、No Saudi Arabia 2060 No Yes Ukraine 2060 No No Thailand 2065 No No India 2070 No No Nigeria 2070 Yes No Notes:New Zealand has only identified direct air capture as a possible removal solution;Sweden only identifies biogenic carbon capture as a possible removal solution;Slovenias net zero goal is und

120、er proposed legislation;Malta has identified CO2 use as a promising research area.Source:IEA Climate Pledges Explorer and Clean Air Task Force.In step with the recognition of CCUS in net zero plans,governments are also starting to issue carbon management and CCUS strategies to signal how they intend

121、 to deploy CCUS and in what areas.These strategies,which may also include specific CO2 capture or storage targets,can be in the form of technology roadmaps or high-level plans.In other cases,such as in Denmark and the Netherlands,these strategies are enshrined in broader legislation or political str

122、ategy.There are currently at least six strategies in place all of which have been published in the past few years and at least another five in development.Selected carbon management and CCUS strategies Government Strategy Name Specific Target or Capacity Status Canada Carbon Management Strategy 2030

123、:16.3 Mt CO2/yr Published Denmark Agreement on Strengthened Framework Conditions for CCS in Denmark No specific target,but the strategy expects around 3.2 Mt CO2/yr by 2030 Published Japan CCS Long-Term Roadmap 2030:6-12 Mt CO2/yr 2050:120-140 Mt CO2/yr Published Netherlands National Climate Agreeme

124、nt No specific target,but the strategy set an initial cap at 7.2 Mt CO2/yr by 2030 Published United Kingdom CCUS Net Zero Investment Roadmap 2030:20-30 Mt CO2/yr Published CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|21 I EA CC BY 4.0.Government S

125、trategy Name Specific Target or Capacity Status United States Strategic Vision Published European Commission Industrial carbon management strategy In development France CCUS Strategy 2030:4-8.5 Mt CO2/yr 2050:15-20 Mt CO2/yr In development Germany Carbon Management Strategy In development India 2030

126、 Roadmap for CCUS for Upstream E&P exploration and production Companies In development Trkiye Carbon Dioxide Capture and Utilization Technologies Roadmap and Implementation Plan In development Notes:This does not represent an exhaustive list;in the case of Denmark and the Netherlands,the strategy is

127、 enshrined in broader legislation rather than a separate documented implementation plan;the Netherlands strategy originally suggested a 7.2 Mt CO2/yr cap for its subsidy scheme,however this cap was then increased and subsequently removed in terms of Mt/yr;Canadas capacity in 2030 represents a point-

128、in-time estimate based on existing policy commitments and assumptions regarding the timing of project investment decisions,approvals and construction.Is CCUS on track?Overall deployment Today,more than 45 countries have CCUS projects in development.If all announced capture projects are built,around

129、400 Mt CO2 could be captured every year globally by 2030 more than eight times current capacity.Currently,around 65%of operating CO2 capture capacity is at natural gas processing plants,one of the lowest-cost CO2 capture applications,but new CCUS developments are increasingly targeting other applica

130、tions.Based on the current project pipeline,by 2030 annual capture capacity from both new construction and retrofits could amount to around 80MtCO2 from hydrogen production,around 80MtCO2 from power generation and around 35MtCO2 from industrial facilities(e.g.cement and steel production).Planned cap

131、acities for CO2 transport and storage have also increased.Based on the current project pipeline,CO2 storage capacity could reach more than 430 Mt CO2 per year by 2030.Despite recent momentum,deployment of CCUS projects has been very slow over the longer term,to a large extent due to the lack of poli

132、cies and business cases that would make investment possible.This points to the need for a more comprehensive approach to policy-making for CCUS.The lack of progress has led to progressive downward revisions of the role of CCUS in climate mitigation scenarios,including the updated NZE Scenario.Gap be

133、tween announced deployment and the NZE Scenario Despite the recent surge in CCUS announcements for capture,transport,storage and full-chain projects,it is still the case that CCUS deployment by 2030 would CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PA

134、GE|22 I EA CC BY 4.0.remain substantially below(little more than one-third of)the around 1 Gt CO2 per year that is required in the NZE Scenario.This gap between the CCUS project pipeline and the 2030 NZE Scenario deployment target highlights the urgent need for further industry efforts and policy su

135、pport.While announcements indicate that the balance between dedicated CO2 storage supply and planned demand based on capture capacities for 2030 can level out globally,gaps could emerge on a regional scale,particularly given the long lead times associated with developing new CO2 storage resources.In

136、 the absence of further efforts to accelerate CO2 storage development through government or private sector resource assessment,the availability of well-characterised CO2 storage sites could become a bottleneck to CCUS deployment.Capacity of current and planned large-scale CO2 capture and storage pro

137、jects vs.the Net Zero by 2050 Scenario,2022-2030 IEA.CC BY 4.0.Notes:NZE=Net Zero Emissions by 2050 Scenario.The difference between CO2 captured and stored in 2030 in the NZE Scenario is due to CO2 captured for utilisation in synthetic fuel production.Storage includes both dedicated CO2 storage and

138、CO2-enhanced oil recovery(EOR).While most of the CO2 injected for EOR is retained in the reservoir over the life of the project,additional monitoring and verification is required to confirm that the CO2 has been permanently stored.Source:IEA(2023),CCUS Projects Database.CO2 capture applications are

139、diversifying There are now 41 commercial capture facilities in operation globally,applying CCUS to industrial processes,fuel transformation and power generation.Global capture capacity culminates at just over 45 Mt CO2/yr.Most installed capture capacity is associated with natural gas processing(65%o

140、f total operational capture capacity),followed by hydrogen production in fertiliser,refining and coal-to-gas plants(25%),and coal-based power(5%).0 400 8001 200CaptureStorageCaptureStorageCaptureStorageCaptureStorageCaptureStorage20222024202620282030Mt CO per yearOperatingUnder constructionAdvancedd

141、evelopmentConcept andfeasibilityGap to NZE:storageGap to NZE:utilisationCCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|23 I EA CC BY 4.0.So far,project developers have announced ambitions to reach over 400 MtCO2 per year of installed capture capacit

142、y by 2030.Based on the current project pipeline,capture applications are likely to diversify over time:by 2030 the share of annual capture capacity from both new construction and retrofits could amount to 20%from merchant hydrogen and ammonia production,20%from power generation,15%from DAC and 8%fro

143、m industrial facilities(mostly cement and chemicals production).On the other hand,only around 25 commercial capture projects under development(6%of planned capacity for 2030)have taken a final investment decision(FID)7.CCUS is one of the main decarbonisation pillars required to get on track towards

144、net zero,and its large-scale deployment is therefore necessary.However,it is currently not cost competitive,not financeable and not even legal for many applications and regions.The gap between planned deployment and needed level by 2030 is particularly pronounced for industry and power generation(se

145、e Capture Dashboard).Operating and planned CO2 capture capacity by application,Q2 2023 vs.2030 IEA.CC BY 4.0.Note:Merchant hydrogen or ammonia excludes on-site hydrogen production in industry(included in other industry or other fuel transformation).Source:IEA(2023),CCUS Projects Database.7 Project u

146、pdates are as of Q2 2023,with the exception of major project updates which include projects(re)entering operation or construction,which are included up to October 2023.0%10%20%30%40%50%60%70%80%90%100%2030OperatingShare of capacity(%)Natural gas processingMerchant hydrogen or ammoniaBiofuelsOther fu

147、el transformationPower and heatCementIron and steelOther industryDirect air captureCCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|24 I EA CC BY 4.0.More countries are developing CCUS projects Plans for CO2 capture facilities are expanding globally.C

148、urrently,90%of operational capacity is located in the United States,Brazil,Australia,the Peoples Republic of China(hereafter China),Canada and Qatar.Out of the four CCUS projects that became operational during the first half of 2023,three are based in China,8 while one is based in the United States.

149、9 The United States also hosts three of the five largest capture facilities,10 while the largest is in Brazil,11 and the third largest plant12 in Australia.However,the geographic distribution of CO2 capture projects in development is diversifying,with projects now being developed in more than 45 cou

150、ntries.Advanced economies are contributing substantially to the total number of announced projects to 2030,with North America and Europe together making up over 70%of planned capacity by 2030.In contrast,emerging economies are lagging behind,with little over 10%of planned capacity by 2030(with the l

151、arge majority of it to be located in China,Indonesia and the Middle East).Good progress has been made in the Asia Pacific region(where around 20 capture projects have been announced since January 2022,which would bring total capture capacity to around 45 MtCO2 per year by 2030)and the MiddleEast(whe

152、re around 10projects are in development across the region,in addition to the 3 already in operation).Many advanced economies have recently proposed new policies to support CCUS deployment,including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act in the United States,the CC

153、US Investment Tax Credit in Canada,the Net Zero Industry Act in the European Union,the 2023 Spring Budget in the United Kingdom,and the CCS Roadmap in Japan.On the other hand,despite emerging economies having the youngest industrial and power fleets,they are typically trailing behind on CCUS with on

154、ly a few countries taking steps towards deployment.Examples include Indonesia,which has adopted the first CCUS legal and regulatory framework in Southeast Asia,and a few new operational projects in China.As first-of-a-kind CCUS hubs are firing up in advanced economies,there is a need to translate bu

155、siness models and policies for emerging economies.8 China Energy Taizhou power plant,CNOOC Enping offshore CCS plant,Jiling Petrochemical CCUS plant 9 Global Thermostat headquarters plant.10 The Century plant in Texas,and the original plant and expansion of the Labarge Shute Creek Gas Processing Pla

156、nt in Wyoming.11 Petrobras Santos Basin pre-salt oilfield EOR project.12 Gorgon CCS.CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|25 I EA CC BY 4.0.Operating and planned CO2 capture capacity by region,Q2 2023 vs.2030 IEA.CC BY 4.0.Note:Unknown refe

157、rs to company announcements with no disclosed location.Source:IEA(2023),CCUS Projects Database.Development of dedicated CO2 storage accelerates Over the past year,there has been a large acceleration of dedicated geological storage development.Total planned storage capacity has more than doubled sinc

158、e January 2022,reaching over 430 Mt CO2/yr by 2030.Generally,this provides a positive outlook for CCUS,signalling strengthened market conditions driven primarily by policy implementation and co-ordinated alignment of the CCUS value chain by operators.A monumental shift from EOR towards dedicated CO2

159、 storage in the near future is a sign of strengthened action towards net zero commitments.Today,just over 10 Mt CO2/yr of captured CO2 is injected for dedicated storage within nine commercial-scale sites,but based on the project pipeline,dedicated storage capacity could increase to over 350 Mt CO2/y

160、r by 2030.The substantial move away from EOR(from around 80%of capacity today to little over 10%of capacity in 2030)towards dedicated storage is driven by a combination of factors,including the recognition of CCUS in facilitating the transition to net zero(see previous section Net zero pledges and t

161、he role of CCUS)and the dedicated storage requirements in some policies in order to receive public funding(see Chapter 2).0%20%40%60%80%100%2030OperatingShare of capacity(%)North AmericaEuropeChinaOther Asia PacificAustralia and New ZealandCentral and South AmericaMiddle EastAfricaEurasiaUnknownCCUS

162、 Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|26 I EA CC BY 4.0.Operating and planned CO2 storage facilities by type of storage,2023 IEA.CC BY 4.0.Notes:EOR=enhanced oil recovery.While most of the CO2 injected for EOR is retained in the reservoir over

163、the life of the project,additional monitoring and verification is required to confirm that the CO2 has been permanently stored.Source:IEA(2023),CCUS Projects Database.Increasing options for CO2 transport There are at least 14 500 km of CO2 pipelines currently under different stages of development ar

164、ound the globe,as well as many projects that are yet to disclose their planned pipeline length.In the United States,in addition to the approximate 9 000 km of operating pipeline that is transporting around 70 Mt of CO2 annually,three cross-state pipeline projects across the Upper Midwest region had

165、been planned to collectively add nearly 6 000 km of new pipeline to the existing infrastructure network.However,recent rejections of permit applications have created setbacks for these projects,and resulted in the cancellation of the Heartland Greenway pipeline(planned to be longer than 2 000 km).In

166、 Europe,multiple cross-border infrastructure projects are being developed to access storage resources in the North Sea.In March 2023 Wintershall Dea and Fluxys jointly proposed a major open-access CO2 transmission network to connect industrial clusters in Germany to Belgiums Zeebrugge Port,with capa

167、city to transport 30 MtCO2/yr.There are also plans for an onshore carbon transit grid that will serve as a collection point at the Zeebrugge port to facilitate onwards transport for storage in the North Sea by the offshore Belgium-Norway trunk line(1 000 km).This joint venture between Equinor and Fl

168、uxys will aim to transport 20 to 40 MtCO2/yr.In addition to pipeline development,shipping is also considered to be an economical option that provides access for first-comer emitters to offshore 0%20%40%60%80%100%OperatingPlanned for 2030Share of capacity(%)Unspecified storage typeCO-EORDedicated sto

169、rageCCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|27 I EA CC BY 4.0.trunklines.Incremental expansion of multi-user transport networks can be an attractive approach for project investors when there are demand uncertainties for such a service as is t

170、he case for the Northern Lights transport network13 in Norway.The project will consist of shipping(initially three dedicated CO2 vessels,each with a capacity of 7 500 m3,to transport 1.5 Mt CO2/yr)and an offshore pipeline(100 km with a capacity of 5 Mt CO2/yr).In early 2023,in Denmark,the pilot phas

171、e of Project Greensand pioneered the first cross-border CO2 shipment from Belgium to an offshore depleted oil field in the Danish North Sea for storage.This project notably facilitated by the first-ever bilateral agreement of its kind highlights a landmark achievement that paves the way for future c

172、ross-border CO2 transportation and storage,especially given that the London Protocol has thus far been posing a significant barrier to transnational export and storage of CO2.CCUS dashboards Following the 2023 Net Zero by 2050 report,the dashboards below present the major milestones for the main CCU

173、S steps(capture,transport,storage)and technologies on the pathway to reach net zero emissions from the global energy sector by 2050.13 Northern Lights is the transport and storage part of the Longship CCS project.Capture Mt CO2 per year 2023 2030 Planned NZE Power 3 79 233 Cement 0 15 167 Other indu

174、stry 4 20 104 Natural gas processing 31 70 92 Biofuels 1 28 114 Hydrogen 0 80 161 Other 8 46 74 DAC 0.01 68 80 Mt CO2 per year 2023 2030 Planned NZE Advanced economies 32 316 471 Emerging economies 15 53 553 Unknown 0 38 0 North America 26 192.5 Europe 2 105.0 China 3 14.9 Middle East 4 14.0 Rest of

175、 the world 13 80.3 41 capture facilities in operation worldwide capturing around 45 Mt CO2 per year.7 new plants coming online since January 2022 in China,the United States and Europe.Around 400 Mt CO2 of capacity planned for 2030.United States and Europe lead capture developments,but over 10 projec

176、ts announced in China,the Middle East and Southeast Asia since January 2022.Less than 10%of planned capture capacity has reached a final investment decision.Deployment by sector Deployment by region Technology Readiness Level(selected technologies)Costs depend on:CO2 concentration in the gas stream

177、Number of points of capture Capture technology Capture efficiency/rate Energy source and heat integration Retrofit or new-build Scale Impurities in stream.Costs 0 20 40 60 80 100 120 140Gas processingBiofuelsAmmonia(partial)Hydrogen(full)Coal PCPower(biomass)Steel blast furnaceAmmonia(full)Gas CCGTC

178、ementRefinery(FCC)ConcentratedDilutedUSD/t COCost range0 100 200 300 400 500 600 700DACAirCoal powerGas powerBiomass powerCementSteelHydrogenChemicalsBiofuelsRefineryDACGas processingChemical absorptionPhysical separationOxy-fuellingMembraneSolid loopingPCIGCCPCCCGTKiln(partial)Kiln(full)L-DACS-DACA

179、mmonia(partial)Ammonia(full)DRIBlast-furnaceFluid catalytic crackerPre-CSMR(partial)SMR(partial)SMR(full)Corn ethanolBiodiesel FTDrying and compression Technology Readiness Level Key cost factors include:Location,which determines accessibility and the unique site characteristics,i.e.the geology Exis

180、ting infrastructure(e.g.platforms,wells)that can be used Uncertainty in storage-specific regulations Social acceptance Contingencies to compensate for uncertainties in flow behaviour.Storage Mt CO2 per year Planned for 2030 Capture Storage North America 190 165 Europe 101 143 China 13 13 Middle East

181、 14 23 Rest of the World 79 91 Mt CO2 per year 2023 2030 Planned NZE Total 45 435 997 Dedicated 10 355 EOR 35 55 Unspecified/unknown 0 49 TRL Notes Depleted fields 7-8 The first injection of CO2 within depleted fields has been completed in 2023 during the pilot phase of Project Greensand in the Dani

182、sh North Sea.Saline aquifers 9 CO2 injection in saline aquifers has been successfully demonstrated over the past two decades with many operational large-scale first-of-a-kind projects around the world(e.g.Sleipner in Norway,Quest in Canada).Dissolved CO2 injections 5 Aqueous injections,where CO2 is

183、dissolved in water and injected into mafic igneous rocks,have been demonstrated by Carbfix in Iceland.In Oman,two pilots have been conducted injecting CO2 dissolved in rainwater into peridotite formations for accelerated mineralisation and sequestration of CO2.Advanced monitoring technologies 7-8 Ad

184、vanced monitoring technologies,such as offshore seismic monitoring methods are currently being demonstrated as part of project Greensand in Denmark.They provide an alternative solution for taking seismic surveys more efficiently than traditional methods.Projects Capacity Capital cost(USD million)(Mt

185、 CO2/yr)Sleipner 1 180 Snhvit 0.7 260(initial)+275（mitigation)Gorgon 4 2240 Quest 1.2 100 Deployment by storage type Deployment by region Costs More than 390 Mt of new annual CO2 storage capacity announced since January 2022.Total planned storage capacity has more than doubled since January 2022,rea

186、ching around 430 Mt CO2/yr by 2030.Planned global storage capacity of CO2 for 2030 is currently greater than planned capture.CO2 storage projects are shifting away from EOR towards dedicated storage.-40-200 20 40 60 8000708090100USD/t COin%of total storage capacity Offshore-40-200 20 40 6

187、0 8000708090in%of total storage capacity Onshore Technology Readiness Level(selected technologies)Transport Projects Capacity(Mt CO2/yr)Length(km)Unit cost(USD/t CO2/yr)Quest 1.2 80 30 Alberta Carbon Trunk Line Operating:1.6 240 2 Design capacity:15 240 21 km 2023 2030 Planned NZE Pipelin

188、es 9 500 14 500 30 000 50 000 TRL Notes Pipelines 10 CO2 pipelines have been extensively used for EOR,and more recently for dedicated storage,with around 9 500 km deployed.Shipping 6-7 Low-volume CO2 vessels are operating around the world at median pressure(15 bar)for the food industry.Three 7 500 m

189、3 and medium pressure ships operating are being built for the Northern Lights project.Higher volume ships(e.g.40 000-70 000 m3)operating at lower pressure(7 bar)are currently at prototype scale.Rail 6-7 The Morecambe Net Zero Cluster in the United Kingdom plans to transport CO2 from the Peak cluster

190、 via rail.Multi-user CCUS hubs are gaining momentum over the world,with around 90 dedicated CO2 transport projects(some including storage)in planning.North Sea region:around 40 dedicated transport projects in planning,and the pilot phase of Project Greensand pioneered the first cross-border CO2 ship

191、ment in early 2023.Construction is underway for the first CO2-receiving terminal and three dedicated CO2 ships(Northern Lights project)in Norway,for commissioning in 2024.North America:nearly 9 000 km of CO2 pipeline in operation and around 20 projects in planning.New pipeline developments are facin

192、g social opposition with Heartland Greenway recently cancelled following permit rejection.Asia Pacific:around 20 transport projects in planning,including plans for cross-border shipping between Singapore and Australia,and Japan,Australia and Malaysia.Costs 0 5 10 15 203 Mtpa10Mtpa30Mtpa3 Mtpa10Mtpa3

193、0MtpaOnshoreOffshoreUSD/t CO/250 kmPipelinesMedianRange0 20 40 6005001000USD/t CODistance kmOffshore pipelines and shipping(capacity:2 Mtpa)Offshore pipelineShippingPipeline capacity is the leading factor influencing cost.Costs decrease from USD 9-11/t CO2 for a 3 Mt CO2/yr pipeline down to USD 2-3/

194、t CO2 for a 30 Mt CO2/yr pipeline over 250 km distance.Other factors impacting transport costs include:Distance Mode of transport(e.g.pipeline,ship,truck,barge)Transport condition of CO2 Topology Deployment CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context

195、PAGE|31 I EA.CC BY 4.0.CCUS hubs CCUS projects in development now increasingly follow a many-to-many deployment model,where capture projects are developed as part of CCUS hubs that consist of shared transport and storage infrastructure connecting multiple emitters(often part of an industrial cluster

196、).There are now at least 110 storage hubs in development around the world,with plans to sequester around 280 Mt CO2 per year by 2030,mainly in Europe and North America,with a few examples starting to emerge in Asia and the Middle East as well.Selected storage hubs in development by region,2023 Regio

197、n/country Number of storage hubs in development Total storage capacity in planning by 2030(Mt)Total storage capacity in planning(Mt)North America 59 107 192 Europe 29 134 219 Australia and New Zealand 12 14 52 Japan 4 8 8 China 4 6 16 Indonesia 1 0 0 Saudi Arabia 1 9 9 Malaysia 1 2 2 Total 112 279 5

198、00 Source:Analysis based on IEA(2023),CCUS Projects Database.The CCUS hub model spreads infrastructure costs between emitters and generates economies of scale,allowing emitters that are smaller in scale or farther away from identified CO2 storage sites to still be able to connect to the common infra

199、structure.The mainstreaming of this model could also help reduce lead times,as new capture facilities could connect to an existing CCUS hub in around 3 to 4 years.Large trunklines with under-used CO2 infrastructure capacity are available and planned in some regions.Depending on location,this can ena

200、ble a greater number of small-scale emitters to consider CO2 capture a feasible option for decarbonising their operations.Examples of major pipeline networks run by specialist operators where this may be possible include:The 240kmAlberta Carbon Trunk Line(ACTL)in Canada,owned and operated by Wolf Mi

201、dstream since 2020,transports 1.6 Mt CO2/yr from two industrial sources for utilisation and permanent storage.With a design capacity of around 15 MtCO2/yr,ACTL was developed with excess capacity to connect more facilities in the future.In September 2023,Wolf Midstream announced that a new 40 km pipe

202、line extension is underway,the Edmonton Connector,which will expand the ACTL network into the Edmonton region to enable greater emissions-reduction CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|32 I EA.CC BY 4.0.opportunities.This includes an agree

203、ment with Air Products to transport CO2 from their new,under construction,Net Zero Hydrogen Energy Complex.In continental Europe,multiple cross-border infrastructure projects are being developed to access storage resources in the North Sea.The latest announcement,from March 2023,includes a major ope

204、n-access CO2 transmission network jointly proposed by,Wintershall Dea and Fluxys to connect industrial clusters in Germany to Belgiums Zeebrugge Port.Despite the numerous advantages of the hubs and clusters model,this approach also comes with challenges related to the co-ordination of the various st

205、eps of the chain and the various players(see Chapter 4).Moreover,a non-negligible share of dispersed and small-scale applications are unlikely to be within a reasonable distance of industrial clusters and therefore less likely to benefit from economies of scale in connecting to the storage hub.Final

206、ly,CCUS hubs relying on oversized transport and storage infrastructure increase counterparty risk for transport and storage developers,potentially making it harder for those projects to get financing.The IEA CCUS Handbook series Meeting net zero goals will require a rapid scale-up of CCUS globally,f

207、rom tens of millions of tonnes of CO2 captured today to over a billion of tonnes by 2030.A small number of countries alone cannot meet this goal,and getting on track with a net zero emissions future will require a truly global effort.The IEA CCUS Handbook series aims to support the accelerated devel

208、opment and deployment of CCUS by sharing global good practice and experience.The handbooks provide a practical resource for policy makers and stakeholders across the energy industry to navigate a range of technical,economic,policy,legal and social issues for CCUS implementation.This handbook aims to

209、 provide governments with a policy toolkit to build a commercial market for CCUS.Policies to date have allowed the existing fleet of projects to move into operation,but a more holistic view of the challenges facing CCUS deployment is needed in order to deploy at the pace and scale required in the NZ

210、E Scenario.Overcoming these challenges is entirely possible with the right policy environment and investment from industry.Chapter 2 provides a comprehensive list of existing policies to facilitate and promote CCUS deployment,highlighting country examples across five macro-categories of policies.Cha

211、pter 3 outlines emerging business model trends for CCUS,including how both new and old players are working to split up and specialise across the CCUS value chain.Chapter 4 identifies the major challenges to large-scale CCUS deployment,including economic viability,long lead times,innovation gaps and

212、project complexity.Finally,keeping in mind these emerging CCUS Policies and Business Models:building a commercial market Chapter 1:Setting the context PAGE|33 I EA.CC BY 4.0.business model trends and overarching challenges to deployment,Chapter 5 presents a policy toolkit to aid governments in estab

213、lishing an economically sustainable market for CCUS deployment,in developed as well as emerging economies.This is the third in the IEA CCUS Handbook series and complements the handbooks on Legal and Regulatory Frameworks for CCUS and on CO2 Storage Resources and their Development.As such,this handbo

214、ok does not go into great detail on the legal and regulatory considerations for enabling CCUS deployment,nor does it cover the technical and process matters associated with developing CO2 storage.We refer those interested in these topics to the other handbooks.CCUS Policies and Business Models:build

215、ing a commercial market Chapter 2:Policy trends PAGE|34 I EA.CC BY 4.0.Chapter 2:Policy trends Overview Initial deployment and scale-up of energy technologies generally requires some level of risk-sharing between the public and private sectors to get first projects off the ground and eventually crea

216、te an economically sustainable and viable market.Successful policy frameworks for energy technologies have typically relied on multiple,sustained layers of support that work by sharing risks between the public and private sectors and increasing the value proposition of the technology.Governments aro

217、und the world have taken different approaches to supporting carbon capture,utilisation and storage(CCUS)projects.Some have taken a broad approach that is not focused on a particular project,while others have concentrated incentives on a few selected projects.As a start,including CCUS in climate and

218、energy policies can send a clear signal to investors and project developers on the importance and strategic value of CCUS.From there onwards,governments have a range of policy mechanisms available to support the deployment of projects.These can be broadly classified into five general categories:enab

219、ling legislation and rules,cost reduction measures,regulation of industrial activities,strategic signalling and revenue support.Every country with an operating CCUS project has at least one of these policy mechanisms currently in place,and countries with a healthy project pipeline tend to have multi

220、ple mechanisms in place or in planning.While the latter four mechanisms focus on promoting and encouraging CCUS deployment,the first(enabling legislation and rules)facilitates by creating the enabling conditions necessary for CCUS activities.These policy mechanisms generally apply to projects within

221、 a countrys borders,especially if public funds are used.For example,public funding to reduce the cost of CCUS typically requires the funding recipient to be located within that country.However,there can be exceptions to this in some countries if part of the CCUS projects value chain is linked to the

222、 funding country.For example,in June 2023 the Japan Organization for Metals and Energy Security(JOGMEC)selected seven CCUS projects to support financially,two of which would transport CO2 that is captured in Japan to other countries for storage.Other examples include the European Unions Innovation F

223、und and Connecting Europe Facility.The types of policy mechanisms that more commonly include international aspects are regulation of industrial activities,which can include carbon pricing programmes CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|35 I EA.C

224、C BY 4.0.that extend beyond a countrys borders,and enabling legislation and rules,which can have specifications for the cross-border transport and storage of CO2.There is no one-size-fits-all solution when it comes to policy-making for CCUS,but projects tend to have the most success when countries p

225、ut in place multiple layers of policy support.Current policy mechanisms for CCUS Category Types and Description Enabling legislation and rules This mechanism facilitates and provides a platform for CCUS deployment.Legal and regulatory frameworks set a legal basis for CCUS activities and ensure the s

226、afe and secure storage of CO2.Nearly every operating CCUS project has benefited from the establishment of a legal and regulatory framework.Cost reduction measures Government support can reduce the capital and/or operating costs of CCUS projects.This is a common mechanism that has been applied to man

227、y operating projects to date.Grants are a common financing mechanism that have been used by the majority of CCUS projects to date and can help fund expensive activities such as feasibility or Front-End Engineering and Design(FEED)studies.Grant funding can also drive advances in R&D and innovation.Go

228、vernments can also provide loan support,such as through preferential interest rates,access to debt capital and loan guarantees.Tax credits can reduce costs by allowing projects to recover capital or operating costs associated with investment in qualified equipment or per tonne of CO2 stored.For some

229、 countries,partially or fully state-owned enterprises(SOEs)have been directly involved in CCUS projects.This can indirectly reduce costs by allowing the public sector to manage more of the investment risks.Regulation of industrial activities Putting a price on CO2 can incentivise emitters to invest

230、in technologies to reduce emissions.This can be in the form of a carbon tax or through carbon markets,such as an emissions trading scheme,where facilities are penalised for emitting CO2 or other GHGs,encouraging investment in emissions-reduction technologies.Strategic signalling Governments can send

231、 strategic signals that work to incentivise long-term investment in CCUS projects.For example,deployment targets that outline a certain level of desired CCUS capacity can communicate a governments clear intention.Revenue support Newer policy mechanisms that seek to provide a predictable revenue stre

232、am for CCUS projects are being considered,such as(carbon)contracts-for-difference and the regulated asset base model.While these mechanisms have been used for other clean energy technologies,they are now being tested in some countries for CCUS.Source:For more information on policies and measures to

233、support CCUS please visit the IEA Policies and Measures(PAMS)database.Existing CCUS policies In total,around 15 countries have CCUS policies on the books that go beyond R&D initiatives.A roughly equal number of countries have CCUS projects in operation.Two policy mechanisms in particular have common

234、ly supported CCUS projects in operation:enabling legislation and rules and cost reduction measures.In CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|36 I EA.CC BY 4.0.advanced economies,enabling legislation and rules(through the establishment of legal and

235、 regulatory frameworks for CCUS)have provided the necessary platform for the first projects storing CO2 at dedicated sites.In addition,cost reduction measures in some countries,such as one-off grants to specific projects and tax credits for the storage or use of CO2,have moved projects to a point wh

236、ere they could start operation.In emerging markets and developing economies(EMDEs),as well as some advanced economies,cost reduction measures have been seen through state-owned enterprises(SOEs)that offload investment risks from the private sector.This has had a noticeable impact on the types of app

237、lications where CCUS is deployed.As shown in Chapter 1,most of the installed CO2 capture capacity(two-thirds)is associated with natural gas processing,one of the lowest-cost CO2 capture applications.This is,in part,a function of the types of policy mechanisms that governments have employed over the

238、years:enabling legislation and rules and certain cost reduction measures incentivise the“low-hanging fruit”(i.e.the lowest-cost applications)first.As a result,the gap in deployed projects is particularly pronounced for higher-cost applications such as power generation and industry(see the Capture da

239、shboard).At the same time,governments have also implemented regulations on industrial activities to promote emissions-reduction technologies commonly through carbon pricing programmes.However,in practice these programmes have shown that carbon pricing on its own(if too low and too volatile)is not en

240、ough to incentivise CCUS deployment.Deployment of CCUS beyond low-cost applications requires several,if not all,types of policy mechanisms.Experience has shown that enabling frameworks and cost reduction policies are the minimum needed to get projects off the ground,but a global scale-up of CCUS at

241、the rate required in the Net Zero Emissions by 2050 Scenario(NZE Scenario)requires policies to support revenue,strategic targets to signal long-term commitment and regulation of industrial activities to drive market demand.Moving forward,the CCUS project pipeline shows a greater diversity in CO2 cap

242、ture applications as well as a greater geographic distribution of projects.This partially reflects government action to propose policies that fit across all categories.In fact,for countries with CCUS projects in the pipeline but no projects currently in operation,policies tend to span multiple mecha

243、nisms.CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|37 I EA.CC BY 4.0.Existing CCUS policy mechanisms by country Country Operational and planned capture capacity(Mtpa)Enabling legislation and rules Cost reduction measures Regulation of industrial activit

244、ies Strategic signalling Revenue support United States 21(operation)140(planned)X X Brazil 8.7(operation)0.4(planned)X Australia 4(operation)11(planned)X X X Canada 4.1(operation)27(planned)X X X X China 3(operation)12(planned)X X Qatar 2.1(operation)2.9(planned)X Norway 1.7(operation)2.8(planned)X

245、X X Saudi Arabia 0.8(operation)X United Arab Emirates 0.8(operation)7.4(planned)X Japan 0.2(operation)X X United Kingdom 57(planned)X X X X X Netherlands 14(planned)X X X X Indonesia 10(planned)X X X France 4.7(planned)X X X X Denmark 1.8(planned)X X X X Notes:Planned capture capacity only includes

246、projects with an announced timeline before 2030 and clearly identified facilities.Countries in grey do not have any operating CCUS projects at the time of publication.Countries that only fund CCUS R&D are not included.The United States does not have a carbon pricing programme at the national level,b

247、ut there are various carbon pricing programmes at the state level.Countries in the European Union are eligible for EU cost reduction programmes and are required to implement the European Unions carbon pricing and regulatory framework as such only countries with support mechanisms in addition to thos

248、e of the European Union are included.Australia previously provided cost reduction support to CCUS projects,though this funding programme has since been cancelled and replaced by a smaller programme to support emerging CO2 capture and utilisation in sectors where emissions are hard to abate.Enabling

249、legislation and rules Enabling legislation and rules provide a supportive environment for CCUS and act as a platform to build from.This policy mechanism facilitates CCUS deployment,rather than promotes.It often involves the establishment of legal and regulatory frameworks for CCUS that provide a leg

250、al basis for the effective stewardship of CCUS activities and the safe and secure storage of CO2.Several countries have already developed comprehensive legal and regulatory frameworks for CCUS.These form a valuable knowledge base for the growing number of countries that have identified a role for CC

251、US in meeting their climate goals,but which are yet to establish a legal foundation for CCUS,and particularly for CO2 storage.Over 20 jurisdictions(subnational,national or regional)have legal and regulatory frameworks in place for CCUS projects.Indonesia is one of the most recent countries to put a

252、legal framework in place for CO2 storage,and Brazil is working to finalise its first framework for dedicated CO2 storage.CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|38 I EA.CC BY 4.0.Legal and regulatory frameworks of selected countries Country Policy

253、European Union The CCS Directive establishes the legal framework in the European Union for geological storage of CO2.The state assumes responsibility of the CO2 storage site following a minimum 20-year period from the closure of the site,and only after the storage operator provides evidence indicati

254、ng that the stored CO2 will be completely and permanently contained,and that there has been a financial transfer which covers monitoring costs for approximately 20 years.Canada Canada does not have a comprehensive regulatory framework for CO2 storage in federal jurisdictions,but the provinces of Alb

255、erta,British Columbia and Saskatchewan have frameworks in place to support safe and secure geological CO2 storage.Other provinces,such as Manitoba,Ontario and Nova Scotia,are taking steps towards developing enabling frameworks for CO2 storage.United States The legal framework for CO2 storage in the

256、United States is based in the countrys underground drinking water legislation,and only applies to pore space that is privately owned or under state jurisdiction;there is no legal framework for CO2 storage in federal jurisdiction(onshore and offshore).As such,there is no transfer of liability at the

257、federal level,though operators are required to monitor the CO2 storage site for up to 50 years after its closure.Several states have their own legal frameworks for CCUS on top of the federal requirements.This includes Indiana,Kansas,Louisiana,Montana,Nebraska,New Mexico,North Dakota,Texas and Wyomin

258、g.Out of the nine states with a framework,six have provisions for the transfer of site ownership or liability to the government after the storage site is closed.Australia In Australia,the legal framework for CO2 storage only applies to offshore areas within the federal governments jurisdiction,while

259、 states and territories have their own legal frameworks for onshore and offshore storage.Queensland,South Australia and Victoria have comprehensive CCUS frameworks in place,while Western Australia has specific legislation to enable the Gorgon project.United Kingdom The United Kingdoms legal framewor

260、k follows the European Unions CCS Directive,including the transfer of responsibility to the government after a 20-year period following the closure of the CO2 storage site.Japan Japan currently does not have a legal framework for CO2 storage,however it is in the process of designing legislation to e

261、nable the country to start storing CO2 by 2030.Indonesia Indonesias framework is based in its upstream oil and gas regulation.Holders of oil and gas leases are allowed to store CO2 within existing leasing areas,such as in depleted oil and gas fields.The framework allows for the capture of CO2 outsid

262、e of the oil and gas industry,but the CO2 must ultimately be stored in a lease area.In addition to the technical and legal requirements needed to ensure safe and secure CO2 storage,the framework also outlines several business and economic aspects.For example,the framework outlines potential pathways

263、 to monetising carbon credits for the project and its partners.In addition,the framework outlines conditions under which storage operators may grant third-party access to storage facilities.Source:IEA(2022),CCUS Legal and Regulatory Database.Cost reduction measures Energy projects tend to be capital

264、-intensive and to involve large amounts of up-front investment.To reduce these costs,governments can provide grants,loans and tax credits.Cost reduction measures such as these are the most common policy mechanism employed by governments and can cut across several different policy programmes in a giv

265、en country.Another cost reduction measure that governments can take is through the involvement of SOEs.By including SOEs in CCUS projects,costs are indirectly reduced by shifting some of the investment risk associated with the project to the public sector.CCUS Policies and Business Models:building a

266、 commercial market Chapter 2:Policy trends PAGE|39 I EA.CC BY 4.0.Grants are a direct financial contribution that can either be provided specifically to targeted projects or through competitive programmes.While grants can cover various upfront costs of CCUS projects,such as construction costs,severa

267、l countries have targeted grant funding for feasibility and Front-End Engineering and Design(FEED)studies.A FEED study is a comprehensive(and often costly)effort that requires significant engineering and design work to inform whether or not a project moves forward.Grants have also been used to fund

268、geological storage atlases to identify potential CO2 storage resources.Governments can also provide loan support to projects for which the commercial lending sector might not be as active.This can be an effective policy tool for clean energy technologies such as CCUS that have difficulty accessing d

269、ebt from private lenders.This can be in the form of providing debt capital(i.e.a direct loan)with preferential rates or via loan guarantees(whereby the government promises to purchase the debt from the private lending institution and take on responsibility for the loan in the event that the borrower

270、 defaults).Tax credits are a common policy mechanism to promote specific behaviours or encourage the adoption of certain practices,technologies or equipment.A tax credit allows an individual or company to subtract an amount of money directly from the taxes that they owe(i.e.their tax liability).For

271、example,an investment tax credit allows the company to subtract a certain percentage of its investment costs in a project from its tax liability.Well-designed tax credits can allow for the transfer of the credit to other project partners(for instance,if the company receiving the credit does not have

272、 a high enough tax liability it may be eligible to pass the credit to an investor in exchange for financing).Further,refundable investment tax credits for CCUS projects can be paid to the taxpayer as a refund in situations where the credit exceeds the taxpayers liability or in the absence of any tax

273、 liability.This is expected to benefit earlier stage companies that do not yet have the taxable income to benefit from a non-refundable investment tax credit.Canada is now finalising the details of its investment tax credit for CCUS,which was first proposed in 2021.In 2023,Malaysia proposed an inves

274、tment tax credit for CCUS.In addition to covering capital expenditures,tax credits can also cover operating expenses,or in the case of CCUS projects provide a credit amount for the amount of CO2 stored on a per tonne basis.Currently this form of tax credit for CCUS projects is only available in the

275、United States.In the Netherlands,the Stimulation of sustainable energy production and climate transition(SDE+)subsidy scheme provides subsidies for qualifying clean energy technologies.For CCUS projects,the subsidy is awarded to the capture project over a 15-year period and bridges the cost gap betw

276、een production with CCUS and without CCUS,linked to the carbon price under the EU emissions trading system(ETS).Under the SDE+the project operator is not required to pay the government back should the EU ETS price go above the operators production CCUS Policies and Business Models:building a commerc

277、ial market Chapter 2:Policy trends PAGE|40 I EA.CC BY 4.0.costs in this case,the project would no longer require public funding as the carbon price would be enough to cover the projects costs.Under the scheme,four emitters associated with the Porthos projects were selected to receive up to EUR 2.1 b

278、illion(USD 2.5 billion),and eight emitters associated with the Aramis project were selected to receive up to EUR 6.7 billion(USD 7 billion).Cost reduction policies Country Policy European Union The Innovation Fund provides regular grants that support up to 60%of a low-carbon technology projects cost

279、s,with up to 40%of the grant available to projects before operation,provided certain milestones are met.The Fund has issued three funding calls each for large-scale(capital costs above EUR 7.5 million USD 8.2 billion)and small-scale projects,awarding over EUR 1.7 billion(USD 1.9 billion)to 15 projec

280、ts with a CCUS component since 2020.The third large-scale funding call selected seven CCUS projects,though the exact funding amount for each has yet to be announced.Norway and Iceland are also eligible under this fund.The Connecting Europe Facility(CEF)awards grants to cross-border energy,transport

281、and digital infrastructure projects that connect two or more member states.CO2 transport and storage infrastructure(including pipelines,storage facilities linked to cross-border transport of CO2,and fixed facilities for liquefaction and buffer storage)are eligible for funding.Early CEF funding for C

282、CUS projects focused on feasibility studies,with more recent funding allocated to FEED studies and infrastructure development.In total,nearly EUR 300 million(USD 334 million)has been allocated to CCUS projects since 2020,with the largest amount of funding given to the AntwerpC CO2 Export Hub project

283、(EUR 145 million USD 152 million)and the Porthos project(EUR 102 million USD 117 million).The Recovery and Resilience Facility is the European Unions stimulus package in response to the COVID-19 pandemic,and provides over EUR 700 billion(USD 828 billion)to member states in the form of grants and loa

284、n support.CCUS projects are eligible for grants under seven member state plans approved by the European Commission.United States The Infrastructure Investment and Jobs Act(IIJA)provides approximately USD 12 billion for CCUS through 2026.This includes USD 937 million for large-scale CO2 capture pilot

285、 projects,USD 2.5 billion for CO2 capture demonstration projects,USD 2.5 billion for large-scale CO2 storage projects and associated transport infrastructure,USD 75 million for CO2 storage permitting,and USD 3.5 billion for regional direct air capture(DAC)hubs.The funding under the IIJA for CCUS is

286、mainly in the form of cost-shared grants.The 45Q tax credit provides projects with a credit of up to USD 85/t CO2 permanently stored and USD 60/t CO2 used or through EOR,provided emissions reductions can be clearly demonstrated.The credit amount significantly increases for DAC projects to USD 180/t

287、CO2 permanently stored and USD 130/t CO2 for CO2 use.There is a direct pay and transferability option for developers who receive the credit,meaning that the developer can monetise the credit or transfer it to project partners or investors with a large enough tax liability.The IIJA also establishes t

288、he USD 2.1 billion CO2 Transportation Infrastructure Finance and Innovation Act(CIFIA)programme,which will provide loans,loan guarantees and grants to large-capacity CO2 transportation projects.Projects must be common carrier,meaning access to the transportation infrastructure is shared,and non-disc

289、riminatory under a publicly available tariff,and have project costs over USD 100 million.The United States provides loans and loan guarantees through its Loan Programs Office(LPO)for clean energy and energy infrastructure projects,including CCUS.Eligible projects can receive favourable interest rate

290、s,set at the US Treasury rate,plus a liquidity spread and risk-based charge.Although no CCUS projects have received LPO loan support to date,projects across the value chain(including point-source carbon capture,transport,utilisation,and storage,and atmospheric carbon dioxide removal)are eligible.Gra

291、nt Tax credit Loan Grant Tax credit Loan CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|41 I EA.CC BY 4.0.Country Policy Canada The refundable Investment Tax Credit(ITC)is available to CCUS projects that permanently store CO2 with eligible capital expense

292、s at the following rates:DAC equipment(60%),equipment to capture CO2 in all other CCUS projects(50%),and transportation,storage and use equipment(37.5%)from 2022-2030.These rates will be reduced by 50%for the period from 2031 through 2040 to encourage industry to move quickly.The government will als

293、o undertake a review of ITC rates before 2030 to ensure that the proposed reduction in rates aligns with the governments environmental objectives.The Energy Innovation Program is delivering CAD 319 million(Canadian dollars)(USD 245 million)in funding over 7 years to CCUS RD&D projects,including up t

294、o CAD 50 million(USD 38 million)in funding specifically for nine selected CCUS FEED studies.The CAD 15 billion(USD 12 billion)Canada Growth Fund is a new arms length public investment vehicle designed to attract private capital for clean technology and decarbonisation projects,including CCUS.When es

295、tablished,it will have at least four distinct investment offerings for projects:concessional equity or debt,contracts-for-difference,anchor equity and offtake contracts.The Canada Infrastructure Bank invests in CCUS infrastructure projects,including through its Project Acceleration funding for FEED

296、capital expenditures.The Net Zero Accelerator initiative is providing up to CAD 8 billion(USD 6.5 billion)over 7 years to support large-scale investments in clean technologies,including CCUS.The Strategic Innovation Fund under this initiative includes funding for CCUS deployment projects.At the prov

297、incial level,Albertas Carbon Capture and Storage Fund is providing CAD 1.24 billion(USD 95 million)in grant funding for up to 15 years to the Quest and Alberta Carbon Trunk Line(ACTL)projects.Up to 40%of the funds were allocated before operation,provided certain milestones were met,another 20%of the

298、 funds were allocated upon commencement of operations,and the final 40%will be disbursed during operation for up to 10 years.Additionally,Emissions Reduction Alberta has invested over CAD 160 million(USD 123 million)in CCUS projects,which includes grant funding for pre-construction studies,while the

299、 Industrial Energy Efficiency and CCUS Program provides grants that cover up to 75%of project costs(up to a CAD 20 million USD 15 million maximum)with CAD 40 million(USD 30 million)to date related to CCUS projects.United Kingdom The Carbon Capture and Storage Infrastructure Fund supports the capital

300、 costs of strategic CCUS infrastructure through the identification of key clusters.The GBP 1 billion(USD 1.3 billion)fund provides grant funding to CO2 transport and storage networks and early industrial carbon capture projects.Grants for industrial carbon capture projects are capped at up to 50%of

301、total capital costs and are not to be used for pre-FEED and FEED costs.The Spring Budget 2023 is providing up to GBP 20 billion(USD 24 billion)for CCUS projects under its cluster sequencing process.The Industrial Energy Transformation Fund provides grant funding for feasibility and FEED studies of c

302、lean energy technologies,including CCUS.The Fund has announced three phases and to date has issued over GBP 400 000(USD 500 000)in grant funding to CCUS projects.The Industrial Decarbonisation Challenge provides grant funding for feasibility and FEED studies of CCUS and hydrogen industrial clusters

303、from 2019 through 2024.The Challenge has issued over GBP 170 million(USD 234 million)in funding to six large industrial clusters.Australia The Carbon Capture Technologies Program provides grants up to AUD 15 million(Australian dollars)(USD 10 million)for RD&D projects that focus on emerging CO2 capt

304、ure technologies,DAC,bioenergy with CCS and CO2 utilisation technologies,among other areas.The Low Emissions Technology Demonstration Fund,now closed,provided funding to demonstrate low-emissions technologies.Chevrons Gorgon project received AUD 60 million(USD 42 million)in funding under this fund.G

305、rant Tax credit Loan Grant Tax credit Loan Grant Tax credit Loan CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|42 I EA.CC BY 4.0.Country Policy Denmark The Energy Technology Development and Demonstration Program(EUDP)provides grants to clean energy proje

306、cts up to Technology Readiness Level(TRL)8.The EUDP has funded Project Greensand with DKK 197 million(Danish kroner)(USD 31 million)and Project Bifrost with DKK 75 million(USD 12 million).In August 2023,the Danish government proposed a plan to merge two funding pools into two tenders totalling EUR 3

307、.6 billion.Approximately EUR 1.4 billion(USD 1.5 billion)will be allocated to the first tender,which aims to result in 0.9 Mt of stored CO2,and EUR 2.2 billion(USD 2.3 billion)will be allocated to the second tender,which aims to result in 1.4 Mt CO2 stored.The funding will be allocated over a 15-yea

308、r period,with projects starting in 2029.Japan JOGMEC provides financial and technical support to CCUS projects in the form of equity investments,loan guarantees and funding for feasibility studies and storage resource assessments.In June 2023,under its Advanced CCS Projects scheme,JOGMEC selected se

309、ven projects to receive funding to reduce project capital costs.Although the exact funding amount for each project has yet to be determined,Japan has allocated an initial USD 25 million to support these projects.Notes:Programmes that only focus on R&D are excluded from this table;Technology Readines

310、s Levels(TRLs)are used to measure progress in the development(TRL1-9)and deployment(TRL 9-11)of a particular technology,from concept to market-wide adoption.In some cases,governments have used their SOE system to deploy or become heavily involved in CCUS projects.This has been a common route in seve

311、ral countries where SOEs already own a significant number of energy and related infrastructure projects,such as in the Middle East and China.Currently,around a dozen projects in operation are owned and operated by an SOE.In China,SOEs Sinopec,PetroChina,CHN Energy and CNOOC own and operate nearly ev

312、ery operating project in the country,with the exception of the Karamay methanol plant operated by the private Dunhua Oil Company.Likewise,in the Middle East,SOEs Saudi Aramco,Qatar Energy(with ExxonMobil)and ADNOC dominate the regional CCUS projects in operation.In addition to China and the Middle E

313、ast,Norway has relied heavily on its SOE ecosystem to develop and deploy CCUS projects.For example,the Norwegian Government is the majority shareholder in Equinor,which has nearly three decades of experience operating commercial CCUS projects(e.g.the Sleipner project commissioned in 1996 and the Snh

314、vit project commissioned in 2008).In addition to Equinor,the Norwegian Government established Gassnova in 2005 as the SOE dedicated to developing CCUS technologies through administrating a research and financing programme and serving as the key government adviser on CCUS.Falling under the Norwegian

315、Ministry of Petroleum and Energy,Gassnova was closely involved in the early planning of the Longship CCS project,producing early phase studies and acting as a project integrator.State-owned enterprises involved in CCUS Country SOEs China Sinopec,PetroChina,CHN Energy and CNOOC Saudi Arabia Saudi Ara

316、mco Qatar Qatar Energy United Arab Emirates ADNOC Norway Gassnova Grant Tax credit Loan Grant Tax credit Loan CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|43 I EA.CC BY 4.0.Country SOEs Japan JOGMEC Netherlands Energie Beheer Nederland(EBN)and Gasunie B

317、razil Petrobras Indonesia Pertamina Thailand PTT Exploration and Production India Indian Oil Corporation Malaysia Petronas Timor-Leste TIMOR GAP Regulation of industrial activities Governments can also promote CCUS deployment through the regulation of industrial activities that seek to reduce emissi

318、ons from one or multiple sectors.Carbon pricing has been one option within broader climate and energy policy to reduce emissions and help foster clean energy transitions.It can influence the economic choices of investors and technology developers by encouraging emitters to invest in technologies to

319、reduce emissions or face a penalty.Confidence in rising future carbon prices can be a strong driver for investment in clean energy technologies and their RD&D,but low and volatile carbon prices are not enough to drive long-term investment.Indeed,carbon pricing alone has not been enough to incentivis

320、e CCUS projects.The notable exception is in Norway,where the countrys carbon tax played an important role in the development of the Sleipner CCS project.There are two general approaches to putting a price on carbon:a carbon tax and carbon markets.Under a carbon tax,the government sets a price per to

321、nne of CO2 that emitters must pay.The tax can increase over time,providing a signal to emitters that they will need to invest in technologies that are able to provide substantial emissions reductions.This provides a greater level of certainty about future prices,but governments have less control ove

322、r the actual level of emissions reduction.Carbon markets can be further divided into emissions trading systems(ETS)and carbon crediting.In an ETS,the government typically sets an emissions cap and allocates a certain number of per-tonne allowances to emitters that is consistent with that cap.Emitter

323、s covered under the ETS may buy and sell allowances those that reduce their emissions can sell excess allowances to emitters that are unable to do so.The government lowers the cap over time,so that total emissions fall.In contrast to a carbon tax,an ETS allows the market to determine the price on ca

324、rbon.It provides a greater level of certainty about future emissions,but not necessarily about the price of those emissions.Of the ETS CCUS Policies and Business Models:building a commercial market Chapter 2:Policy trends PAGE|44 I EA.CC BY 4.0.currently in force,only five have regulations specific

325、to CCUS:those of California,the European Union,New Zealand,Quebec and the United Kingdom.14 Each approach can vary in coverage(such as economy-wide or sector-specific)as well as scope(CO2 emissions or other GHGs).As of September 2023,over 70 jurisdictions(subnational,national or regional)have a carb

326、on pricing system in place,roughly equally split between a carbon tax programme and an ETS.In total these carbon pricing systems cover around one-quarter of global GHG emissions.Other countries,such as China,India and Japan,have recently implemented(or will soon implement)a carbon pricing system.Reg

327、ardless of the approach,the revenues from a carbon pricing system could be used to fund or finance climate activities(as is the case for the European Unions Innovation Fund)or supportive measures that can offset the cost burden for the most vulnerable consumers and firms.In addition to carbon pricin

328、g,researchers have recently suggested adoption of a“polluter pays”principle,whereby CO2 storage obligations would be placed on fossil fuel suppliers.Known as a carbon takeback obligation,fossil fuel producers and importers would be required to store a percentage of the CO2 generated by the fuels the

329、y sell,and this obligation would increase progressively over time.Carbon pricing policies of selected jurisdictions Country Policy European Union The EU ETS is the oldest and largest ETS(in revenue terms)operating worldwide and applies to all EU countries as well as Iceland,Liechtenstein and Norway.

330、The ETS covers around 38%of EU GHG emissions and applies to emissions from activities in the power sector,manufacturing industry,and intra-EU aviation.In 2023,the European Union adopted reforms to the ETS,which includes a more ambitious reduction target for the EU ETS sectors of 62%by 2030;the phase

331、-out of free allocation in some sectors accompanied by the phase-in of the Carbon Border Adjustment Mechanism(CBAM);revised parameters for the Market Stability Reserve;the expansion of the EU ETS to cover maritime shipping;a new and separate ETS for buildings,road transport,and additional sectors;an

332、d a strengthened commitment to use ETS revenues to address distributional effects and spur innovation.According to the EU legal framework,CO2 that is captured and safely stored is considered as“not emitted”under the ETS.Since 2015,capture,transport and storage installations have been explicitly incl

333、uded in the ETS.Norway Norway was one of the first countries to introduce a CO tax.The tax covers 63%of Norways GHG emissions and applies to CO2 emissions from combustion of all liquid and gaseous fossil fuels and incineration of waste,CO2 and CH4 fugitive emissions,and emissions of hydrofluorocarbons(HFCs)and perfluorocarbons(PFCs).Operators covered by the EU ETS are exempt from the carbon tax,ex