Today is Monday, 8 July 2024.
Last week we commented about Verra’s newest Carbon Capture and Storage (CCS) Methodology for carbon credits, a topic of special interest for hard-to-abate sectors, such as cement, oil and natural gas, and fossil fuel power generation.
A variation of CCS is CCUS, meaning Carbon Capture, Utilization and Storage.
Today we cover the article “CCUS Market Outlook 1H 2024: Trough of Disillusionment” from BloombergNEF (BNEF).
Why this title?
According to BNEF, “After two years of consecutive and dramatic growth, activity in the carbon capture industry is starting to slow in leading markets. The United States remains the top player with a 39% market share in proposed capture capacity by 2035, but the delay in finalizing 45Q guidelines is stalling projects.”
Considering that tomorrow we will post again about form 45Q, Carbon Credit Markets readers already know something about it and other incentives, particularly through the article “There Are Fortunes to Be Made in the Carbon Capture Gold Rush”, a post from early 2023.
Making specific references to United States, United Kingdom, Canada, Netherlands, Australia, China, Norway and Brazil, BNEF reports that the total proposed carbon capture capacity to be installed by 2035 will reach 424 million tons per year.
With Oil and gas majors driving the market and first movers, only in 2023 the investments in carbon capture projects and technologies amounted US$ 11.3 billion.
From the technological point of view, BNEF quoted that “capture technologies such as liquid absorption will continue to dominate the market through the decade. However, the technology landscape is beginning to fragment. Solid adsorption, especially metal organic frameworks for cement CO2 capture, is gaining traction as technology providers form partnerships. These new technologies will help lower capture costs and are likely to scale up by 2035.”
They also make reference to the largest direct air capture facility that began operations in May, a key milestone. We will post about this project in the coming days.
Click at the image below for the article “CCUS Market Outlook 1H 2024: Trough of Disillusionment”.
BNEF clients can access the full report.
