BAKU, Azerbaijan, Jan.6. 2023 will be the year that Carbon capture, utilization and storage (CCUS) moves from niche concept to mainstream investment theme, Trend reports with reference to Wood Mackenzie.
The latest report from WoodMac reveals that the global CCUS project pipeline has increased by over 50 percent throughout 2022 to 1.05 Btpa.
“Next year will see a shift from announcement to action, with our risked view expecting up to 90 projects to reach FID across capture, transport and storage scopes. Through a combination of standalone projects and larger hubs, the potential CO2 storage capacity entering development throughout 2023 is 166 Mtpa. However, only 98 Mtpa of capture capacity is aiming for FID, representing a significant capture-storage gap,” the company experts say.
WoodMac expects emitters to sign up once hubs are established, although many projects won’t be online until the end of the decade.
“Geographically, North America is set to dominate from a pure project count perspective, however the scale of individual projects reaching FID is small. For example, the Summit Carbon Solutions Cluster has 33 individual emitting facilities, only representing 8 Mtpa of capture capacity. In Europe, big hubs to watch are Porthos, Polaris, HyNet North West and the East Coast Cluster. If all of these projects progress, they would represent a significant step-up compared to current global capture capacity of around 50 Mtpa,” reads the report.
The company experts believe that despite the ample CO2 storage capacity identified to date, additional investment will be required to move prospective sites to development.
“Much of the global prospective storage capacity is under-appraised and only a small fraction is associated with FID projects. Appraisal of depleted reservoirs will dominate the landscape in 2023.”
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