Carbon capture and storage (CCS) is shedding its image as a futuristic concept, rapidly emerging as a viable tool for companies and governments aiming to cut greenhouse gas emissions and achieve climate targets.
A new report from GlobalData underscores the sector’s momentum, with over 54 commercial-scale CCS projects active in the energy sector worldwide as of 2024.
That figure is projected to surge to more than 350 by 2030, as over 80 per cent of these projects are tied to energy assets amid a global push for decarbonisation.
“Over the past few years, CCS has gained significant momentum across the oil, gas and power sectors, driven by a convergence of technological advancement, policy support and investor demand for decarbonisation,” the report notes.
It further adds: “Companies are increasingly retrofitting facilities with advanced CCS technologies to reduce emissions, while governments in regions such as the US, UK and Norway are backing these efforts through targeted incentives and funding programmes.”
Despite this progress, the wider carbon capture, utilisation and storage (CCUS) industry continues to confront substantial challenges.
As outlined in the GlobalData report: “Despite the progress, carbon capture and storage does still face economic, regulatory and infrastructure barriers.”
Chief among these are the high capital and operational costs associated with CCS technologies, relatively limited commercial uses for captured carbon dioxide, and a lack of robust market incentives.
The report states: “Infrastructure gaps, particularly in CO₂ transport networks and storage facilities, compound the issue, as does the complexity of retrofitting capture systems onto existing industrial emitters.”
Regulatory uncertainty represents another major hurdle.
The report highlights that “Regulatory uncertainty, particularly around cross-border CO₂ transport, permitting delays and undefined long-term liability for stored CO₂, further discourage investment, while the fragmented nature of the CCUS value chain makes end-to-end integration difficult”.
Beyond economic and regulatory challenges, CCUS also faces issues related to social acceptance and the technical complexities of the technology.
The report warns: “Not only can it be viewed as a tool to prolong fossil fuel use rather than a genuine climate solution, but there is also a lack of public understanding about CCUS.”
Additional technical barriers include ongoing concerns with capture efficiency, the monitoring of CO₂ storage, the safety of carbon pipelines, and the lack of standardised protocols for project implementation.
As investment and government support ramp up, the sector is poised for substantial growth, but the path ahead remains complex.
Overcoming the current barriers is widely seen as essential for carbon capture to realise its role as a meaningful contributor in the fight against climate change.
