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Challenges and Solutions in Carbon Capture and Storage (CCS) Technology

GOOVER DAILY REPORT June 23, 2024
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TABLE OF CONTENTS

  1. Summary
  2. History and Current State of CCS Technology
  3. Major Challenges Facing CCS Technology
  4. Technological Innovations and Leading Companies
  5. Legislation, Policy, and Government Support
  6. Case Studies of Key CCS Projects
  7. Conclusion

1. Summary

  • This report titled 'Challenges and Solutions in Carbon Capture and Storage (CCS) Technology' addresses the primary challenges and emerging solutions within the sector of CCS. It delves into the historical development, current global projects, and significant progress made by key players such as SINTEF and NTNU. The report highlights major challenges including high installation costs, safety and environmental risks, and economic and legal issues, supplemented by the impact of public perception and acceptance. Additionally, it covers technological innovations, notable projects like Aramco's ACCS Project and Equinor's Sleipner Project, and the importance of legislative support and international collaborations. Lastly, it presents smaller-scale innovative efforts like the SINTEF SENSATION project that are pivotal for optimizing CCS technology economically and technically.

2. History and Current State of CCS Technology

  • 2-1. Historical development and early uses of CCS

  • Research and development in Carbon Capture and Storage (CCS) technology have been ongoing for decades. SINTEF, a prominent research entity, along with its partners at NTNU, has been significantly contributing to CCS knowledge. Originally, CCS technology was developed to capture waste CO2 from industrial processes, transport it, and inject it deeply underground to prevent it from entering the atmosphere. The early uses of CCS were primarily in industrial sectors such as cement production, metal production, and waste incineration, which are challenging to decarbonize.

  • 2-2. Current global CCS projects and their capacities

  • The landscape of CCS projects has expanded globally with various initiatives aimed at large-scale deployment. Key projects include Norway's Longship project, which aims to bring CCS technology into the mainstream. SINTEF conducts comprehensive research covering the entire CCS value chain, including capture, transport, and storage of CO2. Specific projects such as SENSATION, AURORA, and collaborations within the ECCSEL network illustrate the depth of ongoing research efforts. The global capacity to store CO2 is growing, with significant research facilities in Norway offering advanced infrastructure for CCS.

  • 2-3. Key milestones and progress in CCS technology

  • Numerous milestones have been achieved in CCS technology, marking significant progress in its development. Notable advancements include the establishment of the Norwegian CCS Research Centre (NCCS) and the successful continuation from the earlier BIGCCS program. The announcement of the Longship project represents a pivotal moment, integrating CCS into national strategies. The development of advanced CO2 capture technologies and large-scale storage solutions has also progressed, addressing key challenges related to cost and safety. Projects such as SENSATION aim to refine sorbent-based capture technologies, signaling ongoing innovation within the field.

3. Major Challenges Facing CCS Technology

  • 3-1. High installation and operational costs

  • Implementing CCS technology demands a significant capital investment. According to the International Institute for Sustainable Development (IISD), the costs associated with the capture process, transportation infrastructure, and storage facilities are considerable. Despite progress, the cost of implementing CCS technology remains persistently high. IISD’s projects in Canada have recorded costs for concentrated CO2 processes and diluted CO2 process streams ranging between CAD 50 and CAD 150. This high expenditure can be a significant barrier for many firms. Although the literature indicates a decrease in costs, the real expenses continue to be substantial.

  • 3-2. Safety and environmental risks of CO2 storage

  • CO2 storage presents safety and environmental risks that need to be managed carefully. Ensuring the safety and integrity of CO2 storage sites is paramount. SINTEF’s research points to the need for robust risk assessment frameworks and regulatory oversight to guarantee safe and effective storage. Innovations and best practices in site selection, characterization, and monitoring are critical to enhancing storage security and reducing environmental risks. For example, the Svelvik CO2 Field Lab in Norway tests technology for monitoring CO2 storage in wells, contributing to safer storage practices.

  • 3-3. Economic and legal issues

  • Economic and legal challenges are significant barriers to the widespread adoption of CCS technology. Financial incentives and subsidies, such as the 45Q tax credit in the US, provide some economic relief to high-emission industries. These incentives help cover the expenses of deploying CCS technology, making it more economically feasible. However, businesses must navigate complex legal landscapes and comply with stringent environmental regulations to avoid fines and sanctions. The Environmental Protection Agency’s Clean Trucks Plan, for instance, mandates significant reductions in greenhouse gas emissions from heavy-duty engines and vehicles by the 2027 model year, compelling businesses to adopt CCS technologies to meet these requirements.

  • 3-4. Public perception and acceptance hurdles

  • Public perception and acceptance are critical to the successful deployment of CCS technology. Despite its potential benefits, CCS faces skepticism and opposition from individuals concerned about the safety and environmental implications of CO2 storage. The importance of engaging with the public and building trust cannot be overstated. Transparency in CCS projects and educating the public on the technology's benefits and safety measures are essential steps to garnering public support.

4. Technological Innovations and Leading Companies

  • 4-1. New materials and efficient capture technologies

  • Advanced carbon capture modules based on novel molecularly engineered materials can further improve their performance. These modules enable solid-state carbon capture and store CO2 efficiently. They can be tailored based on specific industrial operations to capture carbon from different sources, enhancing both efficiency and effectiveness.

  • 4-2. Enhanced underground storage systems

  • Geological storage remains one of the most effective methods for CO2 sequestration. Innovations in this field include the use of exhausted oil and gas reserves and unmineable coal seams for storing CO2. Facilities like the Svelvik CO2 Field Lab in Norway are testing technologies for monitoring CO2 storage in wells to ensure safe and cost-effective large-scale storage methods.

  • 4-3. Carbon Capture Utilization and Storage (CCUS) technologies

  • The integration of Carbon Capture, Utilization, and Storage (CCUS) technologies offers a holistic approach to manage CO2 emissions. CCUS not only captures CO2 but also utilizes it in industrial applications such as enhanced oil recovery (EOR), which helps improve extraction efficiency. Companies are exploring the potential synergies between CCUS and renewable energy technologies to decarbonize hard-to-abate sectors such as heavy industry and aviation.

  • 4-4. Notable CCS and CCUS projects globally

  • One of the most prominent CCS initiatives is Aramco’s Accelerated Carbon Capture and Sequestration (ACCS) project in Saudi Arabia. Upon completion, it will be the world's largest CCS hub. The first phase aims to transport and sequester 9 million tonnes of CO2 per annum by 2027, with future plans to store up to 14 million tonnes per annum by 2035. Another significant project is the Longship CCS project in Norway, which underscores the country’s dedication to CCS technology with substantial government investment in research and infrastructure.

5. Legislation, Policy, and Government Support

  • 5-1. Regulatory Frameworks for CCS

  • The regulation of Carbon Capture and Storage (CCS) is highly variable across different regions and is influenced by national and international policies. In Asia, for instance, the deployment of coal phase-out programs is influenced by the regulatory efforts and investor pressure in the region. According to the MSCI APAC Climate Action Progress Report, the shift to a clean energy economy relies heavily on capital markets to improve the viability of coal phase-out programs. The ASEAN Centre for Energy has noted the need for relaxing coal phase-out target dates and emissions limits for power plants in its sustainable finance rulebook. Moreover, technologies such as CCS are emphasized as a solution to retrofit new coal plants to reduce emissions, given that CCS technology is still in its nascent stages. This suggests that strong regulatory frameworks and significant policy and technology breakthroughs are required to meet emissions standards.

  • 5-2. Government Funding and Policy Initiatives

  • Government support through funding and policy initiatives plays a critical role in advancing CCS technologies. For example, the Asian Development Bank (ADB) has implemented an Energy Transition Mechanism that employs blended finance approaches to accelerate the retirement of coal plants ahead of their planned operational lifespan. This includes innovative market mechanisms like ‘transition credits’ being piloted by the Singapore central bank to retire coal plants in the Philippines early. Such initiatives underscore the importance of financial tools and government intervention in making CCS viable as a technology to mitigate carbon emissions.

  • 5-3. International Collaborations and Agreements

  • International collaborations and agreements are crucial for the development and implementation of CCS technologies. Collaborative efforts often involve multiple stakeholders, including governments, financial institutions, and private companies, to pool resources and share technological advancements. The ASEAN Centre for Energy’s call for a relaxed sustainable finance rulebook tailored to the specific needs of emerging markets illustrates a collaborative approach to align regional policies on CCS and other emission-reducing technologies. It also highlights the necessity of synchronization between local regulations and international standards to facilitate the deployment of CCS technologies.

6. Case Studies of Key CCS Projects

  • 6-1. Saudi Arabia's ACCS project by Aramco

  • The Aramco Accelerated Carbon Capture and Sequestration (ACCS) project in Saudi Arabia aims to establish the world's largest carbon capture and sequestration hub. The project, designed by Wood, involves the capture of carbon emissions from Aramco gas plant facilities near Jubail, as well as from third-party emitters. Upon completion of the first phase, a 200+ kilometre dense-phase CO2 pipeline will transport 9 million tonnes per annum (MTPA) of emissions for sequestration within onshore geological storage by 2027. Aramco has set a target to store up to 14 million tonnes of CO2 equivalent annually by 2035, contributing towards Saudi Arabia's goal of achieving 44 MTPA by the same year. This project underscores Aramco’s ambition to reduce carbon emissions from its upstream operations and aligns with its broader energy transition and security goals. Wood's executive president, Craig Shanaghey, has highlighted the potential of CCS in helping to meet the Paris Agreement’s 2-degree goal.

  • 6-2. Norway's Sleipner project by Equinor

  • The Sleipner project, operated by Equinor on the Norwegian continental shelf, is one of the world's pioneering CCS projects. SINTEF researchers have been deeply involved in CCS development in Norway for decades and leverage extensive research infrastructure to advance CCS technologies. The Longship project, recently announced by the Norwegian government, illustrates the country's commitment to CCS. By utilizing the geological storage capacity within the Norwegian continental shelf, Norway aims to create new green employment opportunities and advance its decarbonization goals. SINTEF has been working on CO2 capture, transport, and storage across the entire value chain, collaborating with both academia and industry to address key technical and cost challenges. The establishment of the Norwegian CCS Research Centre (NCCS), building on the success of the BIGCCS research centre, continues to drive innovation and deployment of CCS solutions.

  • 6-3. Canada's Quest project by Shell

  • The Quest CCS project in Canada, developed by Shell, captures and stores carbon emissions from the company's oil sands operations. SINTEF's research underscores the significance of CCS technology in meeting the Paris Agreement targets, with a portion of emissions reduction dependent on effective CCS implementation. Canada has exhibited leadership in CCS with substantial projects like Quest, addressing technical and economic challenges of capturing, transporting, and storing CO2. Quest is a testament to the feasibility of CCS in high-emission industries and showcases the role of innovative engineering in the transition towards lower carbon footprints.

  • 6-4. Innovative smaller-scale projects

  • Various smaller-scale and innovative CCS projects are contributing to the advancement of carbon capture technology. For instance, SINTEF's SENSATION project focuses on developing a sorbent-based carbon capture technology tailored for low CO2 concentrations, which is essential for capturing air and low-concentration industrial emissions. Additionally, SINTEF's AURORA project aims to further develop and demonstrate advanced CO2 capture technologies for commercial deployment. Projects such as these, which often involve pilot studies and specific localized applications, play a critical role in fine-tuning CCS technologies and making them more economically viable. These efforts are supported by research facilities like the Svelvik CO2 Field Lab, where industry and researchers can test technologies for monitoring CO2 storage.

7. Conclusion

  • The advancement of Carbon Capture and Storage (CCS) technology is of paramount importance to mitigate global carbon emissions and combat climate change. Despite existing challenges such as high costs, safety concerns, and complex regulatory frameworks, significant progress has been made by pioneers like Shell's Quest Project and Equinor's Sleipner Project. The contributions from research entities like SINTEF underscore the continuing innovation and effort required to enhance CCS viability. Government support through funding and policy, as shown by initiatives in the US and Asia, is critical in addressing economic barriers. The role of international collaborations and agreements further bolsters the deployment of CCS technologies. Looking forward, the ongoing and future developments in CCS and CCUS technologies, such as those from companies like Climeworks and Carbon Clean Solutions, hold promise for widespread application in reducing industrial CO2 emissions and achieving a sustainable low-carbon future.

8. Glossary

  • 8-1. Carbon Capture and Storage (CCS) [Technology]

  • CCS is a technology aimed at capturing carbon dioxide emissions from industrial processes and storing them underground or using them in other applications. It is critical for reducing global carbon emissions and combating climate change.

  • 8-2. Aramco's ACCS Project [Project]

  • The Accelerated Carbon Capture and Sequestration (ACCS) project by Aramco in Saudi Arabia aims to be the world’s largest CCS hub, capturing and storing up to 14 million tonnes of CO2 per year by 2035.

  • 8-3. Equinor's Sleipner Project [Project]

  • Located in Norway, the Sleipner project is a pioneering CCS initiative that captures and stores about 1 million tonnes of CO2 annually in an offshore reservoir, serving as a model for successful CO2 reduction efforts.

  • 8-4. Shell's Quest Project [Project]

  • The Quest project in Canada, operated by Shell, captures and stores around 1 million tonnes of CO2 per year, contributing significantly to carbon neutrality goals and exemplifying effective CCS practices.

  • 8-5. SINTEF [Research Organization]

  • SINTEF is a prominent research organization in Norway, actively involved in various CCS research projects such as NCCS, focusing on developing and optimizing carbon capture technologies.

  • 8-6. Climeworks [Company]

  • Climeworks is a leading company in direct air capture (DAC) technology, focusing on removing CO2 directly from the atmosphere and converting it into sustainable products.

  • 8-7. Carbon Clean Solutions [Company]

  • A company specializing in innovative carbon capture solutions, working on transforming captured CO2 into commercially viable compounds, enhancing the economic feasibility of CCS.

9. Source Documents