Store or Utilize? The Prospects of CCUS Projects

The Carbon Capture, Utilization, and Storage (CCUS) process plays a critical role in reducing CO₂ emissions and transitioning to a carbon-neutral economy. CCUS involves capturing CO₂ from major sources, such as power plants and industrial facilities powered by fossil fuels or biomass. If the captured CO₂ is not used on-site, it is compressed and transported via pipelines, rail, ships, or trucks for use in various applications (CCU) or injected into deep geological formations (CCS) such as depleted oil and gas reservoirs or saline aquifers.

From the perspective of reducing greenhouse gas emissions, priority is given to long-term carbon storage (permanent sequestration) rather than utilization. According to the International Energy Agency (IEA), in its net-zero scenario, 95% of captured CO₂ is expected to be stored, while only 5% will be utilized. Carbon utilization has a climate impact only if the carbon remains stored in manufactured products, such as construction materials or plastics, that do not emit greenhouse gases during their use over a long time, unlike fuels or chemicals.

Additionally, Varvara Gryaznova, a chief specialist in the climate projects development department, emphasizes the need for consistent technological development to make CCUS commercially viable.

"This category of projects can become a popular method of carbon sequestration and attract carbon financing through the sale of carbon units only with the development of technologies and innovations in this field," notes Gryaznova.

Current Registration and Implementation Status

Climate projects related to CCS can currently be registered under existing methodologies in all major registries, including Verra, Global Carbon Council, and American Carbon Registry, but such projects are not yet present in these registries. For CCU, several methodologies are under review in the Verra registry. For instance, eight projects using CO₂ in concrete (VM0043) are being implemented at various stages as of December 2024. However, this is still relatively few, isn't it?

Why Has CCUS Not Gained Wide Adoption?

Despite its potential, implementing climate projects under CCUS faces several challenges:

1.  High Cost of Carbon Units:
   The cost of a single carbon unit under a CCUS project can reach $200, whereas the current market price ranges between $86 and $100. Most projects aimed at reducing the carbon footprint of production are funded by governments rather than through the sale of carbon units.

2. Technological Limitations:
   Current systems capture about 90% of CO₂ from flue gases. Increasing this to 98–99% requires significant energy input and additional investment in equipment. However, studies suggest that achieving 99% capture is possible with minimal additional costs.

3. Challenges with the Principle of Additionality:
   In CCU projects, revenue can be generated not only from the sale of carbon units but also from the sale of the resulting products, which sometimes raises questions about their status as climate projects.

What is Needed for CCUS Competitiveness?

To ensure the success of CCUS projects, developers must:

1. Reduce Costs: Seek ways to optimize processes and expenditures.
2. Improve Capture Efficiency: Increase the volume of captured CO₂ without significantly increasing marginal costs.
3. Maintain Additionality: Ensure that projects meet international standards for climate initiatives.
4. Achieve Long-Term Impact: Guarantee the carbon remains stored in manufactured products or geological formations.

The Future of CCUS: Challenges and Opportunities

Despite existing barriers, CCUS remains a key tool in combating climate change. Technological advancements, government support, and increased investment can make these projects economically viable and globally competitive. Whether to capture or utilize carbon is not always an obvious choice, but step by step, CCUS brings us closer to a sustainable future.