SEPTEMBER 2023

A GLOBAL PERSPECTIVEON CCS
CLEAN COAL DAY

JARAD DANIELS
CEO, GLOBAL CCS INSTITUTE

THE GLOBAL CCS INSTITUTE
Accelerating the deployment of CCS
for a net-zero emissions future.
WHO WE AREInternational CCS think tank with offices around the world.
Over 200 members across governments, global corporations,private companies, research bodies and NGOs, all committed
to a net-zero future.
WHAT WE DO
Fact-based influential advocacy, catalytic thought leadership,
authoritative knowledge sharing.

CCS AND REACHING NET-ZERO
Achieving deep decarbonisation in hard-to-abate industry.
Enabling the production of low-carbon hydrogen at scale.
Providing low carbon dispatchable power.
Delivering negative emissions.

CCS FACILITY PIPELINE GROWINGStatus* By capture capacity

GSR 2022

CO2RE 2023

Operation

30

37

Construction

1120Adv Dev

78

97

Early Dev

75103

Total

194257

COUNTRIES SHOWING INCREASING AMBITION• The EU needs to have 300 to 550 mtpa of installed CCUS capacity by 2050 to meet its NZEtarget. Net-Zero Industry Act aims to have 50 mtpa storage developed by 2030.
• The UK’s CCUS roadmap foresees 20 to 30 mtpa of installed capacity by 2030.
• The US, through the Inflation Reduction Act (IRA), has given immense stimulus to thedeployment of CCUS and Direct Air Capture (DAC) and could increase the deployment of CCS by
13-fold* compared to existing policy to between 200 and 250 mtpa of capacity by 2030.
• Japan announced its CCS Long-Term Roadmap in January 2023, setting a target for Japan’s
first commercial CCS projects to commence by 2030 and aiming to store up to 240 Mtpa ofCO2 by 2050.
• The KSA has announced the target of capturing and storing 44 mtpa by 2035.
• In Brazil, Petrobras injected more than 10 mt of CO2 in 2022, a world record for a company,and aims to inject 40 mtpa between 2023 and 2025.
* According to analysis carried out by REPEAT projectGLOBAL ACTION GOING INTO COP28• Global Carbon Management Challenge• Australia, Canada, Egypt, EU, Japan, Saudi Arabia, United Arab Emirates, United States,
United Kingdom, Norway, Denmark, Brazil and Sweden• Global Decarbonisation Alliance• Private sector initiative under the COP28 Presidency• IEA’s Credible pathways to 1.5°C Four pillars for action in the 2020s• CEM-14 in July 2023

• Side events on Cement and CCS, Financing CCS and Carbon Management Challenge

SCALING UP THROUGH 2030
• According to IEA NZE, 1.2 GtCO2 perannum should be captured by 2030,
including for removals.
• Capturing 1.2 GtCO2 by 2030 asmodelled, requires 25-fold increase overcurrent operational capacity and 4 times
increase over the current pipeline.
• CCUS is required across diverse sectors
and is increasingly important to industry.
• Stronger policy to incentivise rapid CCSinvestment is needed.

Total CO2 capture by sector and type in the NZE, 2030

CASE STUDY: US POLICY AND PROJECT PROGRESS• Bipartisan Infrastructure Law included over $12 billion in investments innext-generation carbon capture, direct air capture, integrated CCUS
demonstrations, and industrial emissions reduction demonstration projects, aswell as CO2 transport and storage infrastructure.
• Inflation Reduction Act provides tax credits of $85 per tonne of CO2 captured
and stored and $180 for every tonne of CO2 removed through direct air captureand permanently stored.
• A study from Princeton shows that the total volume of CO2 captured for transportand geologic storage across energy & industry could reach 200 million tons per
year by 2030, a 13-fold increase compared to previous policy.
• Currently there are 14 commercial facilities in operation in the US, and close to
90 facilities under development.

EVOLUTION OF STORAGE• 13 of the 37 facilities currently operating use
dedicated geological storage with the remainderusing EOR.
• 70% of the commercial CCS projects indevelopment aim to use dedicated geologicalstorage (deep saline formations, depleted oil andgas fields).
• Operational facilities, on average, can inject around
1 mtpa CO2. That average could more than double
within a decade. Many storage sites associatedwith the development of CCS networks generally
have rates of around 5 Mtpa.

* Analysis of 108 facilities in development with dedicated storage sites

CARBON DIOXIDE REMOVAL• CDR continues to gain momentum and is viewed
as critical to net-zero.
• Engineered-CDR costs, specifically of DACCS, arecurrently relatively high but projected to fall overtime.
• The extent to which costs fall will determine
deployment.
• CDR can play an important role in drawing down
historical emissions even after we reach net-zeroand provides a safety net.

Image: Carbon Engineering

FINANCE AND INVESTMENT• Private finance with government incentivization is key to deploying at scale.
• Capital investment of $655 billion - $1.28 trillions required over the next 30 years.
• Taxonomies emerging in various jurisdictions – efforts to adopt common principles key toa consistent approach.
• Carbon Markets – Compliance and Voluntary- becoming increasingly important.
Convergence expected, but time frame uncertain.
• ESG-related reporting remains important to commercial activity:• Demand for detailed disclosure remains critical for investors.
• Companies with significant emissions under pressure to report.
• Although CCS not excluded, a clearer reporting pathway would be beneficial

CCS DEVELOPMENTS AROUND THE WORLD• EUROPE• CCUS in Net-Zero Industry Act; EC developing CCUS strategy• The EU through, the Innovation Fund, to invest in 22 CCS and CCU projects (and counting)• Netherlands, Denmark, the UK are progressing their CCS policies and projects.

• NORTH AMERICA• The US leads globally with project and policy development.
• In Canada, CCUS Strategy under development and CCUS investment tax credit in federal budget.

• MENA• 3 facilities in operation in the region, equivalent to ~10% of global capture capacity.
• Ambition and momentum going into COP28.

• APAC• JOGMEC selected 7 candidate projects for feasibility studies in Japan and overseas• China’s first 1 Mtpa CCUS facility started operations in 2022, with several other projects now inconstruction or in development.
• Project progress in Malaysia, Indonesia, and Australia

LESSONS LEARNED• Despite significant progress since 2017, more is required, urgently.
• CCS capacity needs to scale from 50 million tons today to multiple gigatons bymid-century.
• Capital investment of $655 billion - $1.28 trillion is required over the next 30years.
• Governments to establish appropriate policies; Industry to build, own, andoperate CCS facilities at scale and the Finance Sector to include CCS in theirportfolios, ESG and green taxonomies.
• Stronger policy coupled with strong action by 2030 is crucial.

WHAT IS NEEDED GLOBALLY?
 Define the role of CCS and CDR in meeting national climate strategies andplans, set and communicate targets.
 Create a long-term, high value on the storage of CO2.
 Support the identification and appraisal of geological storage resources.
 Develop specific CCS laws and regulations.
 Identify opportunities for CCS networks and facilitate the establishment oftransport and storage infrastructure.
 Enable investment in CCS through appropriate policy and market mechanisms.

THANK YOU