Jakarta – The latest “Carbon Capture and Storage” report, released by research and analytics firm GlobalData in mid-July, found that more than 50 commercial-scale Carbon Capture, Utilisation, and Storage (CCUS) facilities will be operational in the energy sector alone by 2024 with a total carbon capture capacity of 45 million tonnes of CO₂ per year (Mtpa). At the end of 2024, more than 70% of operating and planned CCUS facilities are associated with energy companies.
CCUS technology is becoming a mainstay in decarbonising hard-to-abandon heavy industry sectors, such as cement, steel, oil refineries, and coal-based power plants and is led by oil and gas companies. On the other hand, environmental observers and activists view the technology as a false solution because it is expensive and inefficient and is often implemented to mask fossil fuel dependence and delay real emissions reductions.
“We do not view CCUS as a viable climate solution. It is a deceptive, dangerous distraction and ultimately a false solution. This technology carries significant uncertainties, long-term liabilities, and serious environmental and social risks, all of which could impose substantial costs on both the government and the public,” said a release in response to Malaysia’s recent CCUS bill.
Oil and gas company dominance and the role of regulation
GlobalData’s report states that, unlike other clean energy trends often driven by consumer demand, CCUS adoption is fueled by policy support and economic incentives. “If all currently designed CCUS projects are successfully realised, global capacity could jump to nearly 316 Mtpa by 2030,” the report said.
Ravindra Puranik, oil and gas analyst at GlobalData, explained that policies such as the European Union’s emissions trading system (ETS), Canada’s carbon tax, and the United States’ 45Q tax credit are key drivers. “These frameworks have helped offset the high capital and operational costs of CCUS deployment, especially in energy-intensive industries, and fuelled the emergence of large-scale projects globally,” Puranik said.
Several global oil and gas giants, such as ExxonMobil, Occidental Petroleum, and Equinor, have been recognised as early adopters of CCUS. They are collaborating with industrial engineering companies, such as Technip Energies, Mitsubishi Heavy Industries, and Schlumberger (SLB), to design and build end-to-end carbon capture systems.
GlobalData noted that at least 17 CCUS projects in the final stages of development are expected to start operations by the end of 2025. Additionally, over 460 other projects are being developed across various industrial sectors, including petrochemicals and power generation.
Puranik added that cross-border regulatory aspects such as long-term storage permits and CO₂ transport between countries remain unclear. This situation makes investors cautious. On the other hand, there is also public scepticism. Some have criticised CCUS as an attempt to prolong the use of fossil fuels, rather than a real solution to reduce emissions.
GlobalData believes that with the right policy support and cross-sector collaboration, CCUS still has a bright future. Moreover, this technology can be a kind of “safety belt” in energy transition efforts, especially for heavy industries that do not yet have economically viable low-carbon alternatives. (Hartatik)
Banner photo: North Sea Gas Platform – D15-A. Gary Bembridge/Wikimedia commons.
