CCUS Gains Momentum in Energy Sector Despite Deployment Challenges

A new GlobalData study claims that carbon capture, use, and storage (CCUS) is increasingly becoming a key approach in the worldwide effort to lower emissions from heavy industries and fossil-fuel-based electricity generation. The firm underlines that for decarbonizing industries including cement, steel, refining, and thermal power—which are thought to be challenging to replace with low-carbon alternatives—CCUS technology is especially vital. 

More than 70% of operational and planned CCUS installations around the globe as of 2024 are directly related to energy assets. This shows how the energy industry is increasingly dedicated to use technology innovation to cut its emissions. These initiatives aim to either store carbon dioxide produced by industrial processes or use it in other uses, so lowering the quantity of CO discharged into the atmosphere by capturing it. 

Still, most of the impetus behind CCUS adoption is policies. The commercial environment for CCUS roll-out has been greatly shaped by legal and economic structures. Mechanisms like the European Union Emissions Trading System (EU ETS), Canadas carbon pricing schemes, and the United States' 45Q tax credit have been instrumental in making CCUS financially viable for large-scale implementation. 

Leading oil and gas companies include ExxonMobil, Occidental Petroleum, and Equinor are early-stage CCUS leaders, GlobalData says. To increase carbon capture infrastructure across upstream and downstream activities, these firms are working with well-known engineering and technology companies including Technip Energies, Mitsubishi Heavy Industries (MHI), and SLB. 

17 carbon capture initiatives currently in advanced stages of development are projected to go live within the year. With some 460 CCUS initiatives underway worldwide, there is a lot of room for growth potential throughout the rest of the decade. 

Despite the advances, there are still significant obstacles to the growth of CCUS. A big obstacle is the high cost of building the necessary infrastructure for transportation and storage, as well as the high initial costs. Many systems need retrofitting, which raises technical issues and prices even higher. Conflicting policy frameworks, bureaucratic delays, and hazy obligations for long-term carbon storage also discourage investors. 

According to GlobalData, another impediment is the small market for recovered CO2. Although some captured carbon may find application in enhanced oil recovery or chemical synthesis, practical and financially viable uses are still under development. Furthermore complicating deployment is public mistrust and a lack of consistency throughout the CCUS value chain, which also raises questions on whether CCUS helps to prolong fossil fuel usage rather than promote a real move to clean energy. 

All told, although CCUS is presented as a crucial component of the energy transition, its success relies on ongoing regulatory assistance, infrastructure development, and business cooperation. The increasing number of planned projects indicates optimism about the technologys role, but long-term progress will rely on addressing financial, logistical, and perception-related barriers.