CARBON CAPTURE AND STORAGE(CCS):KEY ENABLERS TO DEPLOYING CCS IN
ASIA PACIFIC

Japan CCS ForumKenneth Freeman
Asia Pacific Policy Director
Low Carbon Solutions

1CCS WILL PLAY AN IMPORTANT ROLE IN THE ENERGY TRANSITION
Global CO2 emissions

Global CCS industry capacity and project pipeline trends1(GT CO2)

(MTA)

50

1,20040Level to achieve IEA Net Zero 2050 Scenario2

3020
100(10)
(20)

2010

2020

2030

2021 IEA STEPS

2040

2050
2021 IEA NZE

2060

2070

2080

2090

2100

IP CC Lower 2°C Scenarios

Source: IEA World Energy Outlook 2021, IPCC Sixth Assessment Report, ExxonMobil analysis. Land use and natural sinks are excluded

2023
Current

2024

2025

2026

2027

2028

2029

2030

ProjectedSource: 1. CCS Project data based on Wood MacKenzie., 1Q23 CCUS Market Tracker | 2. IEA World Energy Outlook 2022

•CCS is a key GHG mitigation technology•

Only ~50MTA of CCS capacity is operational today; if all projects proceed, society will still be 3x short of the pathway needed to achieve IEANet Zero Emissions 2050 Scenario•We need to identify enablers for exponential acceleration to meet societal emissions goals
2

COMBINATION CREATES STRONG U.S. GULF COAST POSITION• Advantaged capture-to-sequestration capabilities• Pipelines in close proximity to emitters-ExxonMobil industrial locations
Third-party existing/future customers
Brownfield and greenfield opportunities• High-quality, well-located storage space

Close proximity to ExxonMobil industrial sites :~50 miles to ExxonMobil Baytown site
~4 miles to ExxonMobil Beaumont site
~9 miles to ExxonMobil Baton Rouge site

Note: all information shown is approximate (e.g. storage / pipeline location) and has potential to change as projects are developed and implemented.

3

ASIA PACIFIC SCENE SET• Asia Pacific accounts for ~52% of global CO2 emissions• Advanced economies have more aggressive decarbonization plans
but limited access to low carbon sources of energy and CO2 storage• Emerging economies have potential for large CO2 storage and lowcarbon energy exports• CCS and hydrogen will require cross border value chains, adding
additional complexity

Current ExxonMobil CCS Opportunities (AP) /Exploring potential sources of emissions

4ASIA PACIFIC CCS CHALLENGES
COUNTRY A, B, C

LCO2 Shipping
Transportation• Transport regulations/ London Protocol• MMRV standards• Enforcement/offsets for venting• Land access for pipelines

Customer Country• Cost of capturing, liquefying andtransporting CO2• Government incentives that drive
customer capture/storage

Storage Country• New CCS regulatory frameworks which address long term liability, porespace access, fit-for-purpose well design standards• Efficient and streamlined permitting, licensing, and contracting process• Public acceptance of storage from third party countries
COUNTRY X, Y, Z

Carbon Credit
Government Agreements on Credits (baselines & revenue)• Alignment on standards between customer and storage countries• Accreditation/ baseline reductions/ Article 6• MMRV standards for credits used in ETS system or applied to carbon tax regime
5

POLICY ENABLERS FOR CCS
Growth Phase“0 →1”“1 →10”“10 →100”

Approx. timeframe

2022-2027

2028 – 2032

2032+

Policy to activate

Policy to grow and sustain

Strategic vision

Strategy addressing role of CCS in reducing country’s emissions
Storage Co.
IncentiveEmitterIncentiveGrants, Loans
Tax Credits, Contracts for Difference, etc.
Carbon Price (ETS, carbon tax)
Grants, Loans
Tax Credits or Incentives for Capture

Ability toOperate

Pore Space (operational requirements, risk allocation and long term liability, fees)
Pipelines / Transportation (incl. access to land)
Permits for Transportation and Storage (regulatory authority, regulatory capacity, implementing regs, timely permitting)Public Confidence

Notes:- Inter-governmental arrangements may be required to enable cross-border projects (e.g., relating to London Protocol or allocation of carbon reduction credits against country
targets and related measurement/reporting methodologies)- Not all instruments will be used in all jurisdictions

6

STAY CONNECTED

Kenneth J Freeman
AP VP Advocacy & Policy Development

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ExxonMobil Advancing Climate Solutions@ExxonMobil@ExxonMobil@ExxonMobil@ExxonMobil
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