Unlocking The Potential of Carbon Transportation: Paving the Way for CCUS Service in the UAE
Authors: Diaz S. , Jain S. , AliHassan M. , Calderon L. , Tardio M. , Baobaid O. , Suboyin A. , Nagalia A. , Lopez S. , Aneke M. , Vega L. F. , Haghighi H. 
Published: November 2024

Abstract
Carbon Capture, Utilization, and Storage (CCS) technology is one of the most relevant technologies aimed at reducing GHG emissions. It is vital for the energy sector and industry, especially the hard-to-abate industries, to decarbonize them. When the CO2 is utilized, instead of stored, the overall technology is known as CCUS, where the "U" stands for utilization; although the market for CO2 utilization is small compared to the produced amount of CO2, it adds an attractive alternative to the storage, and it allows to introduce new or improved products into the market. To assess the commercial viability of CCUS and the measures to incentivize their deployment as a service, which can only emerge through adequate policies and technical assessments, where CO2 transportation is a key enabler. The objective of this paper is to analyze the UAE’s potential as a CCUS regional cluster to support the UAE and international net-zero ambitions within the tightening environmental regulatory landscape and expansion in the carbon market coverage. UAE’s strategic location, existing oil and gas infrastructure, and CCUS end-to-end value chain expertise represent relevant competitive advantages.
This paper also focuses on identifying the key drivers for the success of global CCUS as a service deployment, which can broadly be classified under four distinct criteria: 1) net environmental impact, 2) economic viability, 3) technology in transportation, and 4) social aspects. The methodology of this paper is based on a primary literature review of current advancements in CO2 transportation by sea, pipeline, & road transportation, and scenario assessments through a criteria matrix and relevant interviews. A carbon mapping assessment is also integrated, considering storage potential, risks, and utilization options in the UAE to develop optimal logistics solutions.
The UAE’s vast CO2 storage capacity and potential as a regional CCUS hub provide opportunities to receive CO2 from locations with limited subsurface storage space. This requires appropriate vessel designs and transportation mechanisms, such as green maritime corridors for long distances and pipelines and road transport for shorter routes. However, technical, regulatory, financial, and logistical challenges must be carefully managed and addressed to ensure safety, compliance, and economic feasibility. Scenario planning highlights the importance of international CO2 connectivity by sea, a well-structured UAE carbon accounting mechanism, storage service fees, and a robust liability system to accelerate CCUS service establishment.
This study represents a novel assessment to determine the feasibility of CO2 transportation (port-storage-final storage sinks and port-to-port) as a key enabler for the UAE’s positioning in this domain, considering the main identified clusters and diversification strategies with significant economic & social implications. Additionally, CCUS service providers can assist clients in navigating carbon markets, leveraging credits or offsets to monetize CCUS activities, and providing incentives for developing complementary technologies like Carbon Dioxide Removal (CDR), and carbon dioxide utilization as feedstock for fuel and chemical production. Continuous research and development are essential to improve CCUS technology efficiency and cost-effectiveness while ensuring compliance with safety standards, public acceptance, and environmental regulations.