![]() These facilities are distributed all over the world, with China, Europe, India, and the United States accounting for more than 60 percent of industrial-point-source emissions. Our research shows that more than 25,000 global industrial CO₂ emitters across 11 industrial sectors could be decarbonized through CCUS. 5 Global Energy Perspective 2022, April 26, 2022. To achieve the net-zero commitments pledged by 64 governments at COP26, approximately 715 MTPA are required by 2030 and 4,200 MTPA by 2050. Based on the current CCUS project pipeline, approximately 110 million tons per annum (MTPA) of CO₂ are expected to be captured annually by 2030. That said, several challenges must be overcome before industrial-point-source CCUS can reach scale, especially around policy and regulatory support, cost, and public acceptance. BECCS will be critical as the net-zero transition progresses, particularly as attention further shifts to scaling carbon removal from the atmosphere and nature-based solutions reach their capacity. Predicated on achieving significant cost reductions, DAC has the potential to unleash decentralized carbon removals at scale in combination with a multitude of revenue-producing technologies from sustainable aviation fuel (SAF) to hydrogen production. Industrial-point-source capture is most important for short- and midterm decarbonization because the technology is ready today and has the potential to capture large volumes of CO₂ emissions from hard-to-abate industries that have few other decarbonization options. There are three main types of technological carbon capture today (with many more in development): industrial-point-source CCUS, direct air capture (DAC), and bioenergy with carbon capture and storage (BECCS). An overview of CCUS: Will it finally arrive? ![]() Future articles will discuss other scaling requirements, such as lowering the costs of implementing CCUS and developing hubs and clusters. Specifically, we map how the industry can generate revenues and move beyond a subsidy-only business model, and we discuss what governments, investors, and industry players can do to help scale the technology. This article explains what the CCUS industry can do to overcome historical challenges and reach the scale required for net-zero emissions. Even in conservative scenarios, CCUS demand would reach approximately two GTPA by 2050-a 60-fold increase over today’s pipeline of projects.ĬCUS uptake needs to grow 120 times over by 2050 for countries to achieve their net-zero commitments.ĬCUS is recognized as a necessary and relatively low-risk piece of the decarbonization puzzle, but the technology is not moving fast enough to achieve a 1.5° or even 2.0° pathway. This could lead to CCUS decarbonizing 45 percent of remaining emissions in the industry sector. per annum (GTPA) of CO₂ captured, with some estimates ranging from 6.0 to 10.0 GTPA. (2022).Īccording to McKinsey analysis, CCUS uptake needs to grow 120 times by 2050 for countries to achieve their net-zero commitments 3 A total of 139 countries (covering 91 percent of global emissions) have committed to net-zero emissions., reaching at least 4.2 gigatons 4 Metric tons: 1 metric ton = 2,205 pounds. ![]() 2 For more, see Inflation Reduction Act of 2022, H.R. For example, the recent Inflation Reduction Act (IRA) in the United States includes an enhanced tax credit for the permanent sequestration of CO₂, which could rapidly boost adoption and help scale CCUS facilities. To meet their emissions reduction commitments, governments have begun enacting policies to support the development of CCUS. This article is a collaborative effort by Krysta Biniek, Phil De Luna, Luciano Di Fiori, Alastair Hamilton, and Brandon Stackhouse, representing views from McKinsey’s Oil & Gas Practice. ![]()
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