Carbon capture, utilisation, and storage (CCUS) is emerging as a key solution in the global energy transition, particularly when it comes to the decarbonisation of hard-to-abate sectors such as cement, steel, refining, and thermal power generation, GlobalData has said.
According to the research firm, more than 70% of the operational and planned CCUS facilities are associated with energy assets as of 2024, indicating a ‘growing commitment by the energy sector to reduce its emissions intensity through innovation in carbon capture and storage technologies’, GlobalData said.
Regulatory frameworks
“Unlike consumer-driven clean energy trends, CCUS adoption is largely influenced by regulatory and economic frameworks, with limited visibility to end users,” commented Ravindra Puranik, oil and gas analyst at GlobalData.
“Policies such as the EU Emissions Trading System (ETS), Canada’s carbon pricing mechanism, and the US 45Q tax credit have been instrumental in unlocking commercial opportunities for CCUS. These frameworks have helped offset the high capital and operational costs of CCUS deployment, particularly in energy-intensive industries, and are driving the emergence of large-scale projects globally.”
As GlobalData noted, leading oil and gas companies, including ExxonMobil, Occidental Petroleum, and Equinor have embarked on early CCUS initiatives, supported by the likes of service companies such as Technip Energies, Mitsubishi Heavy Industries (MHI), and SLB.
‘These firms are leveraging their deep expertise in industrial-scale project delivery to develop and execute carbon capture strategies across upstream and downstream operations,’ it noted.
Some 17 carbon capture projects are in advanced stages of development, and are expected to commence operations later this year. In addition, around 460 CCUS projects are currently in development around the world, representing substantial growth potential through to the end of the decade.
Scale-up challenges
“Despite its momentum, CCUS still faces a range of challenges that threaten to slow its scale-up,” Puranik added. “Key among these are the high upfront costs, the lack of fully developed CO₂ transport and storage infrastructure, and limited commercial applications for captured CO₂. Retrofitting existing facilities often adds further complexity, making project economics difficult without consistent policy support.
“Additionally, regulatory uncertainty around permitting processes, cross-border CO₂ transport, and long-term liability for stored carbon continues to pose risks for investors. Public skepticism also persists, with some critics viewing CCUS as a strategy to extend the life of fossil fuels rather than as a legitimate tool for emissions reduction. The absence of standardisation and the fragmented nature of the CCUS value chain further limit the ability to implement integrated, scalable solutions.” Read more here.
