Carbon capture utilisation and storage – status barriers and potential, CCC/304

Around 170 GWe of coal-fired power generation with CCUS will be needed by 2050 as part of the transition to a net zero CO₂ emission future. The Asia Pacific, including China, is a key region where this will need to be implemented. This must be achieved as part of a combined approach of limiting global temperature rise, whilst providing access to reliable and affordable energy to support economic development and improved living standards. It forms part of an ‘inclusive transition’ where OECD countries work with developing nations to move towards a lower emissions future that does not disadvantage an important section of the global population. Good progress has been made in reducing the cost of CCUS through the early commercial-scale demonstration projects and the latest front end engineering design (FEED) studies, with CO₂ capture costs now projected to be in the range of 43‑45 US$/tCO₂. Further cost reduction can be expected through ‘learning by doing’ where perhaps 50‑70% cut could be achieved from the current cost of around 65 US$/tCO_2, as the technology is rolled out commercially. However, to kickstart this roll-out, a strong financial and regulatory regime will need to be put in place which delivers more positive carbon pricing signals, provides investment for carbon transport and storage infrastructure and provides more accessible debt and equity financing on the back of lowering CCUS specific project risk.