UK expertise in carbon capture, utilization, and storage (CCUS) could play a central role in accelerating project deployment across the Asia Pacific (APAC) region, according to a new report from global energy consultancy Xodus.
Commissioned by the UK Department for Business, Innovation, Science and Trade, the APAC CCUS Regional Assessment points to strong alignment between the technical, regulatory, and commercial hurdles facing APAC developers and the specialized capabilities built up within the UK’s domestic CCUS sector.
The study highlights key transferrable UK competencies, including subsurface appraisal, saline aquifer screening, early-stage FEED engineering, monitoring, reporting, and verification (MRV) frameworks, and transport infrastructure design for dense-phase CO2 and shipping networks.
APAC currently accounts for over half of global CO2 emissions. Under Xodus’ accelerated deployment model, the regional CCUS market could reach up to £187.8 billion ($251 billion) by 2035, with seven nations exporting 83 million tons of CO2 annually by 2030.
Navigating Cross-Border Storage and Regulatory Gaps
A core challenge identified in the report is the geographic mismatch between high-emitting industrial hubs in Northeast Asia—such as Japan, South Korea, and Taiwan, and prospective storage hubs in Southeast Asia and Australasia.
While Malaysia and Indonesia possess massive potential storage capacity for imported emissions, cross-border shipping networks and harmonized regulatory frameworks remain critical bottlenecks.
“Asia Pacific does not lack ambition or potential for CCUS, but its challenge is turning that potential into investable projects,” said Andrew Taylor, Head of Advisory, APAC at Xodus.
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“The UK has already developed solutions to many of these challenges… Applying that experience in partnership with governments, project developers, and local supply chains across Asia Pacific can help projects progress more quickly.”
The report notes that regulatory readiness varies widely across the region. While Japan, South Korea, Malaysia, and Australia are advancing dedicated CCUS legislation, neighboring markets lag in establishing long-term stewardship, liability mechanisms, and carbon pricing structures.
Taylor added that early UK collaboration on project design and policy structures will be vital to creating investable, safe, and scalable carbon management networks across the region.
Read more: Xodus: APAC Set To Dominate Global CO2 Shipping Market
