Technology readiness: Implementation of CO2 capture, utilisation and removal measures
Iron and steel
Current status of implementation and existing gaps
CO2 capture, utilisation and storage measures can be retrofitted to existing traditional fossil fuel-based steel production. However, progress has been limited for decades. As of 2024, six commercial-scale CO2 capture, utilisation, and storage projects for iron and steelmaking are under development (Global CCS Institute, 2024a).
Examples and initiatives
The only operational plant where CO2 capture and storage is used solely with the DRI process for enhanced oil recovery is the Al Reyadah project by Emirates Steel in the United Arab Emirates. In 2023, around 26.6% of the gas-based steel plant’s emissions were captured (IEEFA, 2024).
Chemical and petrochemical
Current status of implementation and existing gaps
There has been progress in deploying CO2 capture plants in the chemical industry; a few are operational, and several are in the pipeline. CO2 capture can be economically competitive for cases with chemical processes that have a relatively large CO2 capture stream. However, large-scale deployment is hampered by high costs and nascent transport and storage chains.
Most of the CO2 captured today is used for oil recovery. As the energy sector moves away from fossil fuels, the CO2 captured will likely play a large role in the development of e-fuel production facilities for the shipping and aviation sectors.
Examples and initiatives
The Guanghui Energy plant in China commenced operations in 2023, capturing 100 000 tonnes of CO2 annually from methanol production Global CCS Institute, 2024a).
Cement
Current status of implementation and existing gaps
CO2 capture, utilisation and storage (CCUS) for high capture rate technologies with pre-commercial demonstrations are at various development stages. The cement industry is increasing investments in CCUS with a goal of capturing up to 14 MtCO2 by 2030 (Cembureau, 2024)
Over 30 commercial-scale projects are in development, in China, Europe and North America. The GCCA roadmap set a milestone of 10 industrial-scale plants with CCUS by 2030; however, large-scale financing with initial capital investments including very high operational costs remains a barrier (GCCA, 2024).
Examples and initiatives
The Brevik CCS Project in Norway, the first full-scale cement CCUS plant, is expected to capture 400 000 tonnes of CO2 per year (Global CCS Institute, 2022).
Heidelberg Materials is developing North America’s first large-scale CCUS facility in Edmonton, Alberta, in Canada. It is expected to capture 1 MtCO2 per year (GCCA, 2024)
CNBM Qingzhou in China is the world’s largest cement CCUS project, expected to capture about 200 000 tonnes of CO2 per year (GCCA, 2024).
Enablers
Enablers (39)
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Policy and regulation
- 1 Sector-specific emission reduction targets
- 2 Carbon pricing mechanisms
- 3 Economic support for green commodities and fuels: Subsidies
- 4 Economic support for green commodities and fuels: Taxation
- 5 Economic support for green commodities and fuels: Carbon Contracts of difference
- 6 Demand stimulation policies: Green public procurement
- 7 Demand stimulation policies: Mandates and quotas
- 8 Demand stimulation policies: Emission reduction standards
- 9 Demand stimulation policies: Phase out of ICE Vehicles
- 10 Carbon limits in end products
- 11 Product definitions, standards, certification schemes and emission accounting frameworks
- 12 Fast-tracked permitting
- 13 Research and development support
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Technology infrastructure and system operation
- 14 Technology readiness: Reduced demand and improved energy efficiency
- 15 Technology readiness: Direct use of clean electricity
- 16 Technology readiness: Direct use of renewable heat and biomass
- 17 Technology readiness: Direct use of sustainably sourced biomass and biofuels
- 18 Technology readiness: Indirect use of clean electricity via synthetic fuels
- 19 Technology readiness: Implementation of CO2 capture, utilisation and removal measures
- 20 Physical infrastructure: Power grids modernisation and expansion
- 21 Physical infrastructure: Electric charging facilities for EVs
- 22 Physical infrastructure: Hydrogen networks
- 23 Physical infrastructure: CO2 capture and storage networks
- 24 Physical infrastructure: Ports and airports
- 25 Digital technologies and infrastructure
- 26 Quality infrastructure
- 27 Supply-side flexibility and demand-side management via smart electrification strategies
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Market conditions business and finance
- 28 Early market creation measures: Offtake agreements and long-term contracts
- 29 Early market creation measures: Industry coalitions
- 30 Early market creation measures: Emerging business models
- 31 Corporate climate commitments and transition plans
- 32 Ecolabels of green products
- 33 Sustainability-linked investments, climate bonds and sustainable finance taxonomies
- 34 Financing programmes and de-risking instruments
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Supply chain skills and community engagement