A new report from the International Energy Agency (IEA) shows that in 2022, the world’s planned carbon storage capacity saw an 80% increase.
Furthermore, the IEA report demonstrates a 30% increase in global planned carbon capture capacity.
Thus, 2022 was a very significant year for carbon capture, utilization, and storage (CCUS), with over 140 new projects announced, some of which will be launched in seven additional countries around the world.
This brings the number of countries with planned CCUS projects up to 45, where the latest additions are nations in the Middle East, Southeast Asia, and central and southern Europe.
The dramatic increase in projects and final investment decisions made throughout last year is a clear sign of stronger confidence in the emerging carbon industry and a wider acceptance of the pressing need to limit CO2 emissions in order to mitigate climate change.
In part, the positive shift is driven by policy incentives directed specifically towards carbon capture, most notably the Inflation Reduction Act in the US, but also similar incentives seen in Canada, the United Kingdom and other parts of the world.
Another factor, as the report shows, is the rising price of carbon in both compliance and voluntary carbon markets.
The many different planned and operating CCUS projects of scale globally are detailed in the IEA’s CCUS projects database, which was released this week and which alongside the 2022 CCUS handbooks is designed to help businesses and policymakers further advance the growth of CCUS.
With that said, one of the most notable growth spurts in the CCUS value chain has been in the development of the transport and storage infrastructure for CO2, particularly with pipelines and shipping coming into strong focus.