Urgency Grows to Achieve 7B Tonnes Carbon Capture Goal by 2050, Advises Wood Mackenzie
Wood Mackenzie, an advisory firm, is sounding the alarm regarding the pressing need to meet the global net zero goals by capturing seven billion tonnes of carbon by 2050. The firm emphasizes that energy efficiencies, renewables, and alternative fuels alone will not be sufficient to achieve a net zero carbon footprint. Carbon capture, utilization, and storage (CCUS) are essential to decarbonize industries and the power sector, especially in those areas that are not easily reached by green electrification or alternative technologies.
During a recent event in Houston, Mhairidh Evans, the head of CCUS at Woodmac, delivered a clear message about the urgency of the situation. Currently, the world is on track to capture and remove two billion tonnes of CO2 annually by 2050, which corresponds to a scenario where global warming reaches 2.5 degrees. However, to achieve the more ambitious target of limiting global warming to 1.5 degrees and reaching net zero by 2050, the annual carbon capture needs to increase to seven billion tonnes. Evans stresses the importance of swift action, stating, To come close, we need to get shovels in the ground quickly.
Presently, Woodmac is monitoring the global planned capacity for CCUS, which stands at 1,400 million tonnes of CO2 across various projects encompassing capture, transport, and storage. The United States leads the way in this field, accounting for 33% of all projects. Evans highlights the attractiveness of the US market for CCUS businesses, citing the significant support provided by the government to incentivize emitter decarbonization and the development of CO2 transport and storage infrastructure through tax credits and investment initiatives. Additionally, the US possesses abundant geological carbon storage resources, making it an optimal market for launching CCUS ventures.
Despite the potential for growth, the CCUS sector faces challenges that hinder its scalability. Evans points out that cost remains a major concern, as the existing tax credits might not fully cover the expense of carbon capture for every project. However, Woodmac expects costs to decrease by up to 30% during this decade, although reliance on the current tax credit system could lead some companies to delay project commitments until costs fall further. This delay could impede progress with detrimental effects on combating climate change.
Australia’s Resources Minister, Madeleine King, recognizes the vital role of CCUS in reducing carbon emissions, particularly in challenging sectors. With several CCUS projects in progress, Australia aims to sequester 20 million tonnes of CO2 per year by 2035. King also announced the opening of bidding for the 2023 Offshore Greenhouse Gas Storage Acreage Release, indicating the government’s commitment to supporting offshore CCS projects.
While the urgency to meet the seven-billion-tonne carbon capture goal by 2050 intensifies, governments and developers continue to grapple with obstacles such as high costs, evolving technologies, unclear business models, and nascent policies and regulations. Despite these challenges, the global push to achieve net zero remains steadfast, with carbon capture playing a crucial role in making this ambition a reality.
