APR

2024

THE
CARBON
CAPTURE
BLUEPRINT
Navigating the Lifecycle of Carbon
Capture Projects in North America
Table of Contents

Chapter 1: Introduction 03

Chapter 2: Initial Planning and 08

Feasibility Analysis

Chapter 3: Navigating the 13

Regulatory Landscape

Chapter 4: Overcoming 16
Challenges

Chapter 5: Case Studies 18

Chapter 6: The Future of
Carbon Capture
22

02
Chapter 1: Introduction
What is CCUS and its role in achieving net-zero emissions?
CCUS refers to a suite of technologies that enable the mitigation of carbon dioxide
(CO2) emissions from significant point sources such as power plants, refineries, and
other industrial facilities or the removal of existing CO2 from the atmosphere.

CCUS is an important technological option for reducing CO2 emissions in the

energy sector and will be essential to achieving the goal of net-zero emissions.

CCUS can play four critical roles in the transition to net zero:

1. Tackling emissions from existing energy assets;

2. As a solution for sectors where emissions are hard to abate,
3. As a platform for clean hydrogen production and
4. Removing carbon from the atmosphere balances emissions that cannot be
directly abated or avoided.

These roles are evident in the IEA Sustainable Development Scenario, in which
global CO2 emissions from the energy sector fall to zero on a net basis by 2070
worldwide.

The contribution of CCUS to emissions reductions grows over time as the

technology progresses, costs fall, and other cheaper abatement options are
exhausted.

02
03
Historical Evolution of CCUS

The evolution of CCUS research unfolds in three distinct phases.

Phase 1: Originating from MIT in 1989, the academic community probed the
potential environmental impacts of CO2 storage—whether underground, on land,
or at sea. Discussions evolved from identifying storage risks to strategies for
mitigating these concerns, focusing on the role of CCUS in large-scale emission
reduction and its cost-effectiveness.

Phase 2. The second phase shifted towards strategies for the broader adoption of
CCUS, emphasizing economic benefits, life cycle assessment, investment
strategies, and social acceptability. The goal was to integrate CCUS into diverse
financial models to alleviate the funding challenges of such projects, aiming at
achieving emission reduction targets.

Phase 3. In the latest phase, the emphasis is on advancing CCUS technology to

ensure its safety, cost-efficiency, and adaptability. This includes exploring
engineering solutions, carbon capture and separation techniques, and optimizing
CO2 purity.

Now, we are moving into the next phase of CCUS to operationalize and scale
projects across industries. This journey from feasibility to scientific advancement
underscores the multifaceted approach needed to make CCUS a cornerstone to
achieving Net Zero goals.

04
Untapped Opportunities:
With more than $3 billion invested in carbon capture in 2022 and a projected sixfold
increase in global capture capacity by 2030 to 279 million tons of CO2 per year, the
CCUS sector is on the brink of a transformative leap.

14000

12000
Million metric tons of CO2

10000

8000

6000

4000

2000

0
Today 2050 Net-Zero Total Potential Market

This growth is primarily driven by:

Diversification of Applications: By 2030, the majority of capture capacity is

expected to serve the power sector, manufacture low-carbon hydrogen and
ammonia, and decrease emissions from industrial sources. This shift opens new
avenues for CCUS application beyond traditional uses.

Legislative Support: The Inflation Reduction Act in the US, which increased tax
credits for CCUS by 70%, exemplifies the kind of legislative support that can
catalyze the sector. Such incentives are crucial for making CCUS viable across
various industries, including petrochemicals, steel, cement, and power generation.

Direct Air Capture (DAC) Growth: The DAC sector has seen significant
investment, with venture capitalists pouring over $1 billion into the technology in
2022 alone. The Inflation Reduction Act's passage has spurred ambitious projects,
indicating DAC's growing role in achieving net-zero goals.

Carbon Removal as a Net-Zero Strategy: Every long-term net-zero model

includes carbon removal, highlighting its indispensability. Projects aimed at
building substantial carbon removal capacities, such as the five million tons
capacity in Wyoming, underscore the sector's potential and staying power.
The Challenges in CCUS

Despite the optimistic outlook, several challenges persist that could hinder the
sector's growth and its contribution to net-zero targets:

Deployment Speed: The current pace of CCUS deployment needs to be increased

to meet climate goals by the end of the decade. Today's capture capacity accounts
for only 0.1% of global emissions, far from the significant impact required. Industrial
emitters and project developers must find methods to increase the velocity of CCS
development.

Transport and Storage Bottlenecks: A major obstacle to CCS development is the

lack of CO2 transport and storage sites near industrial or power generation point
sources. Expanding these facilities is crucial but challenging.

Mismatch Between Plans and Net-Zero Requirements: To align with net-zero

and less than 2 degrees Celsius warming by 2050, between one and two billion
tons of CO2 must be captured in 2030, significantly more than current projections.

Lack of Supportive Policies and Knowledge To Navigate Them: While recent

legislative efforts have boosted the sector in the United States and Canada, more
comprehensive policies and incentives are required to scale CCUS to its full
potential.

Proven commercial models: Many of the projects in development require

government funding through grants, loans, or awards. To accelerate adoption,
proven commercial models must be developed to accommodate the industrial
emitters needs as well as the transport and storage provider.

While CCUS presents significant untapped opportunities for decarbonizing hard-to-

abate sectors, it requires industry leaders and developers to overcome key barriers in
technology adoption, regulatory compliance, and investment strategies for successful
implementation.

06
This Guide Will Help Readers Learn

01 The Role of CCUS in Achieving Net Zero

Delve into what CCUS is, its critical function in net-zero emissions
strategies, the evolution of this technology, and both the untapped
opportunities and challenges within the field.

02 The Fundamentals of Carbon Capture Projects

Explore the carbon lifecycle in CCS projects, providing a step-by-
step guide on conducting feasibility studies and initial assessments.
+ The importance of TRL (Technology Readiness Level) versus CRI
(Carbon Readiness Index) Characterization

03 Navigating the Complex Regulatory Environment

Unpack the regulatory landscape and provide frameworks to help
project developers understand the range of environmental,
subsurface, and stakeholder requirements.

04 Strategies for Overcoming Industry Challenges

Address common obstacles faced by CCUS projects, from technical
issues to financial and policy-related hurdles, offering practical
solutions to help leaders and developers turn these challenges into
opportunities for growth and innovation.

05 Real-World Insights Through Case Studies

a. BKV's Project Barnett Zero: Analyze how BKV managed to fast-track
CCUS development and secure regulatory approvals efficiently.

b. Boundary Dam 3 CCS Initiative: Examine how Boundary Dam

leveraged policy as a catalyst for innovation and energy
transformation in the CCS sector.

06 Looking Ahead: The Future of CCUS Trends

Provide a forward-looking perspective on the CCUS industry,
discussing emerging trends, potential growth areas, and how
ongoing technological advancements and policy changes might
shape the future landscape of carbon capture, utilization, and
storage.

07
 Chapter 2: Initial Planning
and Feasibility Analysis
Understanding the viability of a Carbon Capture and Storage (CCS) project is
foundational to its success.

The industry is set for a 50% growth spurt since the last iteration of BNEF’s market
outlook, to reach 420 million metric tons per annum by 2035.

This chapter guides you through the essential steps of conducting a comprehensive
feasibility analysis, ensuring your project is technically sound and economically viable.

Characterizing Emissions
Objective and Methods: The journey begins with a deep dive into emission sources.
Accurate characterization, including assessing emission volumes, gas compositions, and
the conditions under which they're emitted, lays the groundwork for the entire CCS
process.

Forecasting Emission Profiles: Anticipating long-term emission profiles is crucial. This

foresight aids in designing a CCS strategy that is effective and adaptable to future
changes, ensuring sustainability and compliance over the project's lifespan.

Evaluating Subsurface Storage Options

Subsurface Analysis: At the heart of CCS is identifying where to store captured CO2. A multi-
disciplinary approach with geosciences and reservoir engineering, this section delves into
assessing geological formations for their capacity to safely and permanently sequester CO2.

08
Reservoir Engineering Considerations: Understanding the nuances of potential
storage sites, from field sizes to overall storage capacity, is essential. This knowledge
ensures that sites are capable of meeting the project’s long-term storage needs.

Assessing Transportation Needs

Infrastructure Planning: Transporting CO2 from capture sites to storage locations
presents its own set of challenges. This segment covers the planning of pipeline
networks and other transportation methods, emphasizing the importance of safety
and efficiency.

Cost Analysis: A detailed look at the costs associated with CO2 transportation is vital
for budgeting and economic feasibility. This analysis helps balance logistical needs
with financial realities.

Planning Wells and Facilities

Design and Monitoring Strategies: Designing the infrastructure for CO2 injection
requires meticulous planning. From determining well counts and locations to
developing monitoring strategies, this section ensures the technical feasibility of
storing CO2 underground.

As of 2023, over 200 CO2 injection wells have been permitted by the EPA in the United
States, demonstrating the regulatory pathway for CCS projects. (Source: U.S.
Environmental Protection Agency).

Building Economic Viability

Cost Analysis and Financial Planning: Every CCS project must stand on solid
economic ground. Here, we break down the financial aspects, from initial cost
estimates to detailed risk assessments, highlighting the importance of economic
analysis in project planning.

Monetization Strategies: Exploring revenue streams, such as the 45Q tax credit, this
part of the chapter discusses how to make CCS projects financially sustainable and
attractive to investors.

The Inflation Reduction Act of 2022 increased the 45Q tax credit for carbon capture
and storage projects from $50 to $85 per ton of CO2, significantly improving project
economics. (Source: U.S. Congress)

Addressing Risks and Uncertainty

Risk Identification and Mitigation: Identifying potential risks, from technical failures
to regulatory changes, is paramount. This section offers strategies to mitigate these
risks, ensuring project resilience.

Regulatory and Market Uncertainties: Navigating the regulatory landscape and

market dynamics can make or break a CCS project. Insights into managing these
uncertainties are provided to help smooth the path to project approval and
implementation
TRL vs. CRI Characterization
Understanding Technology and Commercial Readiness: Distinguishing between the
Technology Readiness Level (TRL) and Commercial Readiness Index (CRI) is crucial for
evaluating the maturity and market readiness of CCS technologies. This part clarifies
these concepts, aiding in technology selection and maturation planning.

As technology progresses through higher TRL levels, it becomes closer to being ready
for practical application, deployment, or commercialization.

TRL enables stakeholders, such as researchers, engineers, investors, and policymakers,

to gauge the progress and potential of innovative capture technology and other CCUS
solutions. This standardized TRL scale helps in managing expectations, allocating
resources effectively, and making informed decisions regarding research funding,
technology investments, and project prioritization.

Additionally, TRL facilitates communication and collaboration among stakeholders by

providing a common language for discussing the readiness and advancement of
technologies across various industries and sectors.

By providing a structured approach to technology assessment, TRL plays a crucial role

in accelerating the adoption from the laboratory to real-world applications, driving
innovation across the CCUS value chain.

10
The figure above shows TRL and CRI mapped more broadly across R&D,
demonstration, and deployment. As a buyer or investor in the technology, this
framework will help answer key questions, such as:
What is the risk for the project if the technology is not yet pilot-scale?
What testing should be considered for technologies below 7 TRL?
How can we collaborate with the technology provider to improve readiness?
How does this technology compare to the landscape for CO2 capture solutions?
What due diligence is needed before engaging in CO2 utilization solutions?

Defining Project Scope and Objectives

Scope Identification: Finalizing the project scope involves strategic decisions, from
identifying CO2 emission sources to setting capacity goals and selecting the
appropriate technology. This foundational step ensures the project aligns with overall
environmental and business objectives.

Objective Setting: Establishing clear, achievable objectives is the keystone of

successful project planning. This section guides readers through setting realistic goals,
ensuring the project’s feasibility, and aligning with broader climate and sustainability
targets.

11
Optimizing CCUS Viability with Technical Analysis
Technical analysis is pivotal in Carbon Capture, Utilization, and Storage (CCUS),
ensuring that every technological factor, from operational costs to IP concerns, is
aligned with commercial viability and environmental mandates.

It validates critical project elements such as CO2 purity for diverse applications, the
project's environmental impact, and the scalability of technology.

Effective technical scrutiny informs equipment design decisions, gauges

sustainability, and streamlines the supply chain.

These analyses are essential in providing the operational assurances needed for long-
term investment decisions, reinforcing the project's market credibility.

Technology Aspect Commercial Considerations

Cost <$65/tonne for potentially uncertain future subsidy environment

Robustness to a range of flue gas conditions and contaminants;

Operating Range
accounting for gas pre-treatment costs

CO2 Output >95%, preferably >98% purity for flexibility in usage

Physical Footprint Reasonable equipment size to accommodate a variety of sites

Preferably minimal air, water, land / biosphere impacts, including from

Environmental
supply chain; Ability to meet permitting requirements; accounting for
Footprint
waste management costs

Solvents, consumables, and key hardware components reliably available

Supply Chain
at commercial scale

Operations Automation, simplicity of operation, high degree of safety

Guarantees Sufficient performance guarantees to support long-term FIDs

Intellectual Liability consideration; guarantees may be needed given very crowded

Property patent landscape

12
Chapter 3: Navigating the
Regulatory Landscape

Regulatory Themes from the Carbon

Management Workshop

During the Carbon Management Workshop in January 2024, participants

identified several key themes to consider across all CCUS projects:

Open records and examples of project applications

Alignment of regulatory bodies across the project (federal, state, local)
State laws changing during the permitting process
Public perception and understanding of subsurface
Legal liability of reservoir modeling
Communication of technical data to regulators during the process
Timeline uncertainty to get Class VI permits through the process

Overview of Regulatory Landscape

CCUS projects involve complex industrial processes to capture, transport, and
store of CO2, requiring diverse permits and regulatory oversight. This oversight
includes Federal and state agencies, including private, local, Tribal, and federal
entities, all play a role in CCUS project authorization.

This chapter highlights the different steps to gain Class VI regulatory approval
at a high level. The Environmental Protection Agency (EPA) in the United
States, along with the states that have regulatory primacy, has the authority to
approve CO2 injection wells.

13
Permitting and Approval
Operators of Class VI wells must obtain permits from the EPA or an authorized
state agency before injecting CO2 into the subsurface. The permitting process
involves submitting detailed applications that demonstrate compliance with
regulatory requirements, including well construction standards, monitoring
and reporting requirements, and plans for site characterization and risk
assessment.

Site Characterization
Before injecting CO2, operators must conduct thorough site characterization
to assess geologic suitability and potential risks associated with the injection
activity. This includes evaluating factors such as the depth, porosity,
permeability, and sealing integrity of the injection zone, the presence of nearby
drinking water sources, and potential migration pathways.

Risk Assessment and Modeling

Operators are required to perform risk assessments and modeling studies to
predict the behavior of injected CO2 over time and evaluate potential impacts
on underground sources of drinking water, surface water bodies, and air
quality. These assessments help inform decisions about well design, operating
parameters, and monitoring requirements to ensure the protection of human
health and the environment.

Modeling Approach
Screening Insights
•Technical screening Screening
(geology, fluids) Models
•Injection rates Mechanistic Studies
•First order economic •Understand key geological &
screen reservoir performance drivers
•Identify additional data needs
Mechanistic •Select key injection intervals
Models •Explore improvement strategy
and opportunities

Field Development
Models

Field Development Planning

• Field development planning
• Well requirements and timing
• Staged development
• Well and facility requirements
• Compression requirements
• Economics to FEED

14
Monitoring and Reporting
Once injection operations commence, operators must implement
comprehensive monitoring programs to track the movement and fate of
injected CO2, detect any leakage or migration into underground sources of
drinking water, and assess the effectiveness of containment measures.

Operators are also required to submit regular reports to the EPA or state
regulatory agencies documenting injection activities, monitoring results, and
any corrective actions taken.

Figure 3. Monitoring and Reporting

The image above shows various techniques to monitor the CO2 plume with
sensors, seismic, injection wells, geochemical data, or satellite imagery. The
approved Class VI and Class II monitoring plans utilize multiple methods of
monitoring to ensure

Closure and Post-Closure Care

When injection operations cease, operators must properly close and abandon
Class VI wells in accordance with regulatory requirements to prevent future
leakage or environmental harm. This may involve procedures such as plugging
and sealing the wellbore, conducting post-closure monitoring for a specified
period, and maintaining financial assurances to cover potential long-term
liabilities.

15
Chapter 4: Overcoming
Challenges
Navigating the complexities of Carbon Capture, Utilization, and Storage (CCUS) projects is no simple
task. Industry leaders and developers face many challenges, from securing funding to integrating
advanced technologies, each with the potential to derail even the most well-conceived plans.

Let’s outline a course through these turbulent waters, providing strategic responses rooted in real-
world experience and data-driven insights. By acknowledging these obstacles and equipping
ourselves with robust strategies, we can address current issues and fortify our projects against
future uncertainties, setting the stage for successful CCUS implementation.

Challenges Strategic Responses

Explore innovative financing options like public-private

High Capital and
partnerships, carbon credits, and grants. Implement cost-
Operational
saving measures through technology optimization and
Costs
economies of scale.

Invest in research and development, pilot projects, and

Technological collaborate with technology providers for robust, scalable
Uncertainties solutions. Utilize performance guarantees from technology
suppliers.

Engage with regulatory experts early in the project to

Regulatory and
understand requirements. Develop a comprehensive
Permitting
permitting strategy that includes stakeholder
Hurdles
engagement and rigorous compliance planning.

Conduct thorough compatibility assessments and

Integration with
retrofitting plans. Where possible, co-locate new projects
Existing
with existing infrastructure to minimize costs and
Infrastructure
disruptions.

Supply Chain Establish robust supply chain networks and secure long-
and Availability of term agreements with suppliers. Diversify supply sources
Materials to mitigate risks associated with material shortages.

16
 Challenges Strategic Responses

Perform rigorous site selection based on geological

CO2 Storage and studies. Monitor storage sites with advanced technologies
Leakage Risks for early detection of leaks and have a contingency plan in
place.

Market Dynamics Conduct market research to identify stable demand for

for CO2 CO2 utilization products. Develop versatile CO2 output
Utilization processes that can cater to multiple markets.

Invest in training programs, collaborate with academic

Skilled Workforce institutions, and offer apprenticeships to develop a skilled
Shortage workforce. Foster a culture of continuous learning and
improvement.

Energy Optimize processes to reduce energy consumption.

Requirements Consider integrating renewable energy sources to power
and Efficiency the capture and storage processes.

Monitoring,
Reporting, and Develop robust MRV protocols and engage third-party
Verification auditors to ensure compliance. Utilize digital tools and
(MRV) platforms for accurate and transparent reporting.
Compliance

Fluctuating
Maintain an adaptive business model that can respond to
Policy and
policy changes. Engage in policy advocacy to support
Incentive
stable and supportive regulatory environments.
Landscapes

Scalability of Design projects with scalability in mind from the outset.

Carbon Capture Focus on modular technologies and processes that can be
Solutions ramped up efficiently

Pro tip: If you think you are facing a unique challenge, always look for case
studies and study how they overcome it!

17
Chapter 5: Case Studies
1. BKV's Project Barnett Zero

How BKV Fast-Tracked CCUS Development and

Regulatory Approvals
BKV officially launches Barnett Zero, its
first commercial carbon capture and
sequestration project.

Today, Barnett Zero can remove enough

carbon to offset the emissions of
approximately 45,000 automobiles.

It's projected to sequester up to 210,000

metric tons of CO2e annually, putting
BKV on the path to achieving net zero
for all upstream carbon emissions by
the early 2030s.

Before the Project:

Challenges: High CO2 emissions from natural gas production, complex regulatory landscape,
and the high cost and time-consuming nature of traditional CCS project development.
Market Conditions: Increasing demand for sustainable energy solutions amidst growing
environmental regulations.
Technological State: Limited application of innovative monitoring and tracing technologies in
CCS projects.

Project Execution and Timeline:

1. March 2022: Initial planning begins.

2. June 2022: BKV dCarbon Ventures & Enlink reach Phase I FID.
3. July 2023: Compressors/drivers shipped to site, marking significant progress in infrastructure
setup.
4. November 2023: First CO2 injection, achieving a major milestone in commercial operations
within approximately 20 months from FID.

After the Project:

Innovation: Implementation of advanced downhole pressure and temperature gauges, as well as

CO2 stream tracer technology, for enhanced monitoring and environmental safety.

18
 Regulatory Strategy: Swift acquisition of a Class II permit by leveraging Texas's regulatory primacy,
streamlining the project's approval process.
Market Impact: Establishment of a scalable and economically viable model for CCS projects,
supported by enhanced 45Q tax incentives.

Key Takeaways:

Strategic Regulatory Navigation: BKV's approach to regulatory engagement, opting for a Class II
permit with Class VI specifications, significantly expedited project timelines.
Advanced Monitoring Techniques: The application of unique tracer technology and comprehensive
data logging provided unparalleled understanding and management of CO2 sequestration.
Scalability and Replication: Project Barnett Zero's success serves as a blueprint for future CCS
projects, demonstrating the viability of rapid development and close-to-source sequestration
strategies.
Economic and Environmental Synergy: Enhanced 45Q tax credits and innovative project design
align financial incentives with substantial environmental benefits, setting a precedent for future
CCS initiatives.

Conclusion:

BKV's Project Barnett Zero showcases a breakthrough in CCS project development and regulatory
approval and illuminates a path forward for the industry.

Through strategic planning, innovative technology application, and adaptive regulatory engagement,
BKV has laid the groundwork for accelerating the adoption of CCS solutions—turning challenges into
opportunities for sustainable growth.

2. Boundary Dam 3 CCS

How Boundary Dam Used Policy as a Catalyst

for Innovation and Energy Transformation
Boundary Dam Power Station's Unit 3 (BD3) in Saskatchewan, Canada, represents a landmark
achievement in carbon capture and storage (CCS).

Operated by SaskPower, BD3 underwent a significant refurbishment, including a CO2 collection

facility, marking it as the world's first fully integrated and full-chain CCS facility on a coal-fired power
plant.

This case study explores the transformative journey of BD3 and emphasizes the role of supportive
policies like the CCUS investment tax credit in fostering CCS projects.

19
Before the Project:

Before the CCS initiative, BD3 was a conventional coal-fired power unit.

The pressing need to reduce greenhouse gas emissions and transition to cleaner energy sources
prompted SaskPower to explore CCS technologies to extend the aging facility's life while
significantly reducing its carbon footprint.

Project Execution:

The upgrade of BD3 included the installation of a carbon capture facility capable of capturing
approximately 1 Mtpa of CO2.

This CO2 is primarily used for enhanced oil recovery (EOR) and partly for geological storage at
the Aquistore Project.

The initiative demonstrates the feasibility of CCS technology in reducing emissions from coal-
fired power generation and provides a blueprint for similar projects worldwide.

After the Project:

Post-refurbishment, BD3 has become a beacon of sustainable energy production, capturing up

to 90% of carbon dioxide and 100% of sulfur dioxide and significantly reducing NOx emissions.

The project contributes to cleaner energy production and supports economic growth by
generating high-quality jobs and fostering economic partnerships, particularly with Indigenous
groups.

20
Project Execution: Lessons Learned and Policy Impact

Supportive Policies: The Government of Canada's proposed regulations for a CCUS investment
tax credit (CCUS-ITC) have been pivotal. By covering up to 50% of the capital cost of CO2 capture
projects (and higher for direct air capture), the policy significantly enhances the economic
viability of CCS projects.

Labour Provisions: The CCUS-ITC includes provisions to support fair labor practices, requiring
prevailing wage payments and a minimum percentage of work to be performed by apprentices.
This approach supports job creation and ensures a skilled workforce for the burgeoning CCS
industry.

Integrated Operations: BD3's success underlines the importance of an integrated full-chain CCS
approach, from capture and transportation to utilization and storage. This comprehensive
strategy is crucial for demonstrating the operational feasibility and environmental benefits of
CCS.

Economic and Environmental Benefits: Beyond reducing emissions, BD3 showcases how CCS
projects can transform CO2 from a waste product into a commodity, creating new revenue
streams through EOR and other uses. This model presents a compelling case for the commercial
viability of CCS technologies.

Key Takeaways:

The Boundary Dam 3 CCS project is a testament to the critical role of supportive government
policies in accelerating the deployment of CCS technologies.

The CCUS-ITC, with its strong focus on job creation and fair labor practices, not only incentivizes CCS
projects but also ensures they contribute positively to the economy and the environment.

BD3's journey from a conventional coal-fired unit to a pioneering CCS facility illustrates CCS's
potential to play a central role in global decarbonization efforts, providing valuable insights for
future projects across heavy-emitting industries.

As Canada aims to triple its national CCS capacity by 2030 and achieve net-zero emissions by 2050,
BD3 stands as a model for integrating policy support, technological innovation, and economic
incentives to advance CCS technologies.

Conclusion:

The Boundary Dam 3 CCS project exemplifies how forward-thinking policies and innovative
technologies can converge to address the pressing challenge of cleaner energy.

BD3 serves as a global model, offering stakeholders a clear view of how CCS projects can be
effectively implemented, their advantages, and their growth potential. It is leading the charge
towards a more sustainable and cleaner tomorrow.

21
Chapter 5: The Future of
Carbon Capture
Just a few years ago, CCUS was a developing concept with only a few pilot
projects to demonstrate the value. With nearly 200 projects announced across
North America, multiple industries are working towards making CCUS a reality.

Studies from the US Department of Energy along with other academic studies
suggest that reaching U.S. energy transition goals will require capturing and
storing 400 to 1,800 million tonnes (MT) of carbon dioxide (CO2 ) annually by
2050. Similarly, Canada aims to capture and store 15 million tons of CO2 by 2030.

In the near term, spanning through 2030, industries with high-purity CO2
streams such as ethanol, natural gas processing, and hydrogen production offer
the most favorable project economics. For instance, there are 20+ ethanol CCUS
projects expected to be operational in 2025.

From 2030 to 2050, project economics must improve for low-purity CO2 stream,
common in power plants, petrochemicals, steel, and cement. Demonstration
projects from the present through 2030 will play a crucial role in supporting cost
reductions, primarily through experiential learning and the standardization of
project development frameworks. Technology and infrastructure expansion are
required to capture, transport, and store the low-purity CO2 streams.

Source: Princeton NZA Study

22
Common themes as the industry evolves:

1. Strategic Partnerships for Innovation: For clean energy leaders and CCUS
developers, forming strategic partnerships with technology providers, research
institutions, and government bodies is crucial for driving innovation and reducing
costs.

These collaborations can lead to breakthroughs in carbon capture technologies and

processes, enhancing efficiency and scalability.

2. Access to Carbon Markets: Organizations holding carbon credits can benefit

significantly from the growing global carbon market.

By 2025, the voluntary carbon market alone is expected to quadruple in size,

reaching up to $1 billion.

Engaging in this market allows organizations to monetize their carbon reduction

efforts, providing both financial incentives and contributing to climate goals.

3. Optimizing on Regulatory Landscape and Incentives: Policies like the EU Green

Deal and the US Clean Air Act amendments are creating more opportunities for
funding, subsidies, and incentives for carbon capture and storage projects.

This evolving policy environment can significantly impact project viability and
investment decisions.

4. Sustainable Finance and Investment Trends: The sustainable finance market is

projected to reach a valuation of $60 million in 2024 and surpass a valuation of
$3,760 million by 2034.

Financial institutions are innovating by introducing sustainable financial products,

such as green bonds and sustainability-linked loans.

5. Technology Integration and Optimization: For CCUS facility developers,

integrating new technologies and optimizing existing processes are key to
maximizing efficiency and reducing costs.

Advances in AI and machine learning for process optimization and new materials
for CO2 capture can offer competitive advantages.

23
6. Net-Zero Commitments Driving Demand: As more organizations commit to
achieving net-zero emissions by 2050, the demand for CCUS technologies and carbon
credits is expected to surge.

This presents a significant opportunity for CCUS facility developers and organizations
with carbon credits to position themselves as essential partners in global
decarbonization efforts.

7. International Cooperation and Frameworks: Engaging in international frameworks

and cooperation, such as the Paris Agreement and the Carbon Offsetting and
Reduction Scheme for International Aviation (CORSIA), can provide access to new
markets and opportunities for clean energy leaders and CCUS developers.

8. Emerging Markets for CCUS: Identifying and entering emerging markets with high
carbon capture potential, such as Southeast Asia and Africa, can offer new growth
opportunities. These regions are increasingly focusing on reducing emissions and need
advanced CCUS technologies and expertise.

9. Public and Stakeholder Engagement: Building public support and engaging

stakeholders are critical for the success of CCUS projects. Transparent communication
and education efforts can help overcome misconceptions and build a positive
perception of carbon capture technologies.

10. Leveraging Carbon Credits for Sustainable Growth: For organizations with carbon
credits, leveraging these assets through strategic sales or investments in sustainability
projects can support environmental goals while providing economic benefits.
Innovative approaches to using carbon credits, such as funding reforestation or
renewable energy projects, can enhance an organization's sustainability profile.

24
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15+ FREE Go-To Resource List ⚡

1. International Energy Agency (IEA):
The IEA has produced numerous studies and reports on CCUS, making it a valuable
resource for information on global trends, policies, and technological
advancements.

2. Global CCS Institute:

An international member-led organization is driving the large-scale deployment of
carbon capture and storage (CCS) as a vital climate change solution.

3. U.S. Department of Energy (DOE)'s National Energy Technology Laboratory

(NETL):
NETL focuses on advancing the energy goals of the United States, and it has
significant resources and projects dedicated to CCUS.

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4. Carbon Capture and Storage Association (CCSA):
Based in the UK, CCSA promotes the commercial deployment of carbon capture and
storage (CCS) technology.

5. CO2CRC Limited:
An Australian research organization that has been pioneering advances in carbon
capture and storage.

6. European Technology Platform for Zero Emission Fossil Fuel Power Plants (ZEP):
A coalition of stakeholders united in their support for CO2 capture and storage as a key
technology for combating climate change.

7. Carbon Utilization Research Council (CURC):

An industry coalition focused on technology solutions for the responsible use of fossil
energy. They advocate for and support the development and deployment of CCUS
technologies.

8. Clean Air Task Force:

CATF works towards this goal by developing and advocating for policies aimed at
making carbon capture, removal, and storage technologies cost competitive with using
unabated fossil fuels for power generation and for use in the industrial sector, globally.

9. NCCS: Norwegian CCS Research Centre Research Centre (NCCS):

NCCS aims to fast-track CCS deployment by serving as a hub for international
cooperation on CCS R&D.

10. International CCS Knowledge Centre:

The International CCS Knowledge Centre is a non-profit organization dedicated to
advancing large-scale carbon capture and storage (CCS) as a critical means of
managing greenhouse gas emissions and achieving the world’s ambitious climate
goals.

11. Wood Mackenzie: Global perspective of carbon capture projects

12. McKinsey & Company provide great quarterly insights on industrial decarbonization.

13. Net Zero Tracker: Tracks the net zero pledges across countries, regions, cities, and
companies. (We used this at Decarbonfuse as inspiration for our industrials company
database)

14. S&P Global: Offers market news and analyses specifically related to energy markets,
including CCS.

15. BloombergNEF: A leading source for investment analysis of the CCS market,
investment trends, and economic implications of various decarbonization strategies.

16. Sustainable Development Technology Canada - Technologies du Développement

Durable Canada Canada (SDTC): Although Canada-specific, SDTC invests in clean
technology projects, including carbon capture, utilization, and storage, offering insights
into investment trends in the sector. .

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20 Essential CCUS Acronyms ⚡
▶️CCUS - Carbon Capture, Utilization, and Storage
▶️BECCS - Bioenergy with Carbon Capture and Storage
▶️DAC - Direct Air Capture
▶️EOR - Enhanced Oil Recovery
▶️CCS - Carbon Capture and Storage
▶️CCU - Carbon Capture and Utilization
▶️CDR - Carbon Dioxide Removal
▶️NET - Negative Emissions Technology
▶️LCA - Life Cycle Assessment
▶️PC - Post-combustion Capture
▶️PCC - Pre-combustion Capture
▶️OCC - Oxy-fuel Combustion Capture
▶️MVA - Monitoring, Verification, and Accounting
▶️MRV - Monitoring, Reporting, and Verification
▶️GtCO2 - Gigatonnes of Carbon Dioxide
▶️MtCO2 - Megatonnes of Carbon Dioxide
▶️SMR - Steam Methane Reforming
▶️ATR - Autothermal Reforming
▶️PSA - Pressure Swing Adsorption
▶️TNS - Transportation and Storage

References
1. IEA Website
2. https://www.sciencedirect.com/science/article/pii/S2325426222000390
3. BKV Website
4. Boundary Dam Website
5. https://about.bnef.com/blog/global-carbon-capture-capacity-due-to-rise-
sixfold-by-2030/
6. Canadian CCS Projects Report, 2022
7. U.S. Carbon Capture and Storage Market Forecast, 2023-2032
8. Ecosystem Marketplace, 2020

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END

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