The global CO2 capture capacity will rise sixfold by 2030 to 279 million tons, according to a new report by BloombergNEF. The study titled 2022 CCUS Market Outlook shows that the expected capacity for 2030 has increased by 44% this year due to drastic market growth.
Carbon capture, utilization and storage (CCUS) technology is key to decarbonization, yet it is not being deployed fast enough to meet climate targets at the end of this decade, according to the BNEF report.
While carbon capacity is currently used mostly for enhanced oil recovery or to capture CO2 from natural gas-processing sites, by 2030 most CO2 capacity will be used for the power sector, the production of green hydrogen and ammonia, or to abate industrial emissions.
Carbon capture currently accounts for 45 million tons or only 0.1% of all emissions. If the report’s prognosis comes true, that would mean CO2 capture will abate 0.6% of today’s emissions.
The BNEF report also states that by 2030, 66% of carbon will go to storage sites and the amount of CO2 that goes to enhanced oil recovery will decrease.
“CCS is starting to overcome its bad reputation,” said David Lluis Madrid, CCUS analyst at BNEF and lead author of the report. The technology is now used as a decarbonization tool, which requires CO2 storage, and a lack of transport and storage locations may impede CCS development, according to Madrid. “But we are already seeing a big increase in these projects to serve that need,” he added.
Despite current growth, the world is still lagging on net-zero targets, which is why the government has created incentives for the industry. Most notably, the Inflation Reduction Act in the U.S. increased tax credits for CCUS by 70%.