NOVEMBER 2023

GLOBAL STATUS
OF CCS 2023

Japan CCS Forum
November 15, 2023

•The CCS project pipeline has exhibited strong year-on-year growth over the last 6 years, growing at acompound rate of more than 35% per annum since 2017.

•

As of July 2023, there are 392 facilities in the pipeline, representing a 102% year-on-year increase. 41
facilities are in operation, with a capacity to capture and store 49 Mtpa and 351 facilities are indevelopment.

•Growth has been driven by strong policy, particularly in North America and Europe.

•There is increasing diversity in CCS applications across industries; the ongoing development of CCS
networks has resulted in a new industry category of “CO2 transport and storage” facilities.

•Whilst the progress is encouraging, achieving global climate targets will require annual CO2 storage rates ofapproximately 1 Gtpa by 2030 and multiple Gtpa by 2050.

•As more projects progress from planning and development to execution phase, permitting, publicengagement and project management will increasingly become more critical.

In 2023:• Greater recognition of role of CCS in NDCs, National Roadmaps, etc.
• Strengthening general climate policy• Establishment of national CCS targets• Creation of International CCS ambition: Carbon Management Challenge• Strengthening fiscal incentives – operational and capital support• Development of CCS regulations

41 Facilities in operation
26 Facilities in construction
325 Facilities in development*Includes Navigator Heartland Greenway network

2022 to 2023 growth in CCS projects (in development tooperating): top 5 countries

Capture capacity of CCS projects in construction anddevelopment (Mtpa CO2)

Biomass to Power & HeatCement
Chemical

CO2 Transport/Storage

Direct Air CaptureEthanol
H2/NH3/Fertiliser
Fe & Steel Production
Natural Gas Processing
Oil Refining
Power Generation & HeatMore complex CO2 transport logistics emerging

CCS Facility by CO2 Transport Mode

78% of CCS facilities in construction ordevelopment by capacity expected to use
dedicated geological storage
CCS Facility Capacity by Storage TypeIn development
In construction oroperation

Count of CCS Facilities

Pipeline

Ship

Onsite injection

RailPercentage of Capacity of CCS Facilities

Combination

Under evaluation

Dedicated geologicalstorage

Enhanced oilrecovery

Underevaluation

• Financing prospects improved due to strengthened policy support and/or pricesignals• Equity investment and M&A activity in CCS increasing• USD 4.9 billion ExxonMobil acquisition of Denbury• GSR23 notes over USD 2.2 billion investment in CCS companies including
Climeworks, Svante, Summit Carbon Solutions, Amogy, Infinium, Ion Clean
Energy, Heirloom• Project debt finance remains very rare – must become common to support
accelerated deployment•US facility count (all stages of development) increased by 73 compared to GSR2022 – benefitting from Inflation
Reduction Act (2022), CHIPS & Science Act (2022) and Bipartisan Infrastructure Law (2021).
•BIL includes over USD 12 billion in investments in carbon management.

•IRA lowers carbon capture thresholds, increases the dollar value of tax credits and adds provisions for direct
pay and tax credit transferability.

•

Ethanol, ammonia, hydrogen and fertiliser production, as well as power generation and heat are the top
applications for carbon capture in the USA.

•The Department of Interior is developing regulations for offshore storage and the Pipeline & Hazardous Material
Safety Administration is updating CO2 pipeline standards.

•The US EPA has received an unprecedented number of Class VI permit applications (169 wells associated with 58
projects, as of October).

•Regulatory and permitting uncertainty or delays, as well as lack of community support in some areas, pose risks toCCS deployment in the US*.

* Navigator ventures announced cancellation of its pipeline project after the cut-off of the GSR, so not reflected in the report.

Canada• Federal Government released its carbon management strategy* and announced investment tax
credit covering up to 50% of the capital cost of CO2 capture projects until 2030.
• There is also a proposal to introduce carbon contracts for difference (CCfDs).
• Alberta awarded 19 additional CCS hubs under the Technology Innovation & Emissions ReductionRegulations.
Brazil• Petrobras CCS project in the Santos Basin injected 10.6 Mt CO2 in 2022 and aims to inject
cumulative total of 80 Mt CO2 (since start of operations) by 2025.
• CO2 storage regulations bill passed by the Brazilian Senate – yet to pass the Chamber of Deputies.
*Announced after the cut-off of the GSR, so not reflected in the report.

• There are now more than 100 facilities in development in Europe.
• Hydrogen, ammonia and fertilizer, power generation and heat, cement and biomass to power/heatare the top applications for carbon management in Europe.
• Net-Zero Industry Act aims to have 50 Mtpa storage developed by 2030 and seeks to shorten
regulatory timelines.
• The EU through the Innovation Fund, is to invest in 22 CCS and CCU projects (and counting).
• A number of bilateral agreements and declarations are being signed across Europe to facilitatecross-border collaboration and transportation of CO2.
• North Sea sites dominates for CO2 storage in Europe, but other offshore storage opportunities arealso emerging. Denmark, and Poland are also considering onshore storage.

• The Danish Government is supporting CCS with Euro 3.6 billion allocated for two tenders. The
Danish Energy Agency selected Ørsted Bioenergy & Thermal Power for support.
• The UK Government aims to invest GBP 20 billion in CCS to capture 20 - 30 Mtpa by 2030.
Hynet, East Coast, Acorn and Viking CCS Clusters were selected as Track-1 and Track-2 clusters.
• Porthos project in Netherlands reached FID*, whilst Aramis project that will offer CO2 transport
infrastructure from Rotterdam to multiple storage fields in the high North Sea is progressing.
• In Norway, progress on Longship continues whilst other exploration licenses are being awardedfor CO2 storage.
• Germany and France are developing and progressing their CCS strategies and also looking into
carbon contracts for difference.
* Announced after the cut-off of the GSR, so not reflected in the report.

• Regional operational CCS capacity currently accounts for 8% of global total capacity.
• Net-zero targets and strong emphasis on industrial diversification in the region is driving CCS
deployment.
• In the UAE, ADNOC took FID on the Habshan facility*.
• The Al Jubail CCUS industrial hub in Saudi Arabia targets capturing 9 Mtpa by 2027 and 44
Mtpa by 2035.
• Hosting COP28 turns spotlight on region’s commitment to sustainability – making adoption ofCCS even more pressing and attractive.

* Announced after the cut-off of the GSR, so not reflected in the report.

• APAC facility count increased by 34 compared to GSR2022; the region now hosts more than 50
CCS facilities of which 12 are operating and 8 are in construction.
• Natural gas processing and chemical manufacturing are the top applications for CCS in theAPAC region.
• Significant policy/regulation development across the region, but much left to be done.
• Transboundary transport of CO2 emerging as a significant issue and opportunity.
• Projects positioning to receive third party CO2 for storage for a fee.
• Increased international collaboration in the region.

• In China, three projects became operational in 2023 – Asia’s largest coal-power plant CCS
facility, the first offshore CO2 storage facility, and carbon capture at an oil refinery. China now
hosts 11 operating facilities including its first commercial-scale, 109 km long CO2 transportpipeline.
• Japan progressed its CCS roadmap and announced support for seven CCS networks that willcapture CO2 in Japan for storage in the offshore waters off Japan and in the wider Asia-Pacificregion.
• Malaysia, Indonesia, Thailand, Brunei and Timor-Leste are all moving forwards todevelop opportunities to receive CO2 from other countries.
• In Australia, the House of Representatives passed a bill to ratify the 2009 & 2013
amendments to the London Protocol to allow transboundary transport of CO2 for geologicalstorage. The legislation will now be considered by the Senate.

• The US, through the IRA, has given immense stimulus carbon management; numerous analysis
show the US will likely host between 200 and 250 Mtpa of carbon capture capacity by 2030.
• The UK’s CCUS roadmap foresees 20 to 30 Mtpa of installed capacity by 2030.
• The EU needs to have 300 to 550 Mtpa of installed CCUS capacity by 2050 to meet its NZE target.
Net-Zero Industry Act aims to have 50 Mtpa storage developed by 2030.
• Japan announced its CCS Long-Term Roadmap in 2023, setting a target for Japan’s firstcommercial CCS projects to commence by 2030 and storing up to 240 Mtpa of CO2 by 2050.
• The KSA has announced the target of capturing and storing 44 Mtpa by 2035.
• In Brazil, Petrobras aims to inject 40 Mt between 2023 and 2025.

• Reaching the required scale for CCS will require us all to work together.
• Existing pledges and commitments, if delivered, can get us to hundreds of million tonnes perannum scale.
• In order to reach gigatonne per annum scale globally, deployment in emerging markets anddeveloping economies should increase significantly.
• For CCS to be scaled up to the levels required, the highest levels of safety, environmental
stewardship, accountability, community engagement, and societal benefits need to beincorporated into projects.
• Achieving the 2030 level of global deployment required also hinges on cutting project leadtimes.
• Large role for governments in developing policy to drive investment.

GLOBAL STATUS OF CCS REPORT 2023

THANK YOU
Download the report here:

status23.globalccsinstitute.com