Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Contributor Roles: Conceptualization, Investigation, Writing – original draft
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
CCUS is internationally recognized as one of the three major pathways to achieve carbon neutrality goals. It is an important choice for realizing zero emissions from large-scale fossil energy utilization and a feasible technological solution to offset carbon emissions in industries such as power, steel, and cement where emissions reductions are challenging. Systematic analysis of the development and policy evolution of the CCUS industry at home and abroad can provide theoretical basis and practical guidance for China's energy transition and development under the background of carbon emission peaking and achieving carbon neutrality. Guided by the strategic goals of national energy security, carbon emission peaking, and achieving carbon neutrality, this study aims to analyze the global development process and stage characteristics of the CCUS industry, investigate the supporting policies in the CCUS field and their evolution patterns, summarize the current status and trends of the CCUS industry at home and abroad, and provide reference for the implementation of national energy green and low-carbon transformation and the construction of a new energy system. In terms of industry, European and American countries emphasize national-level technological guidance and macro-control. The United States has introduced the progressive 45Q tax credit policy, and the European Union has included CCUS in its carbon trading system. The US National Carbon Capture Center provides a testing environment and facilities for CCUS technology research and development, and has established a carbon dioxide industry cluster and transportation hub. In terms of policies, tax credits and carbon trading policies in Europe and America have attracted various types of capital investment, establishing a relatively complete legal framework system. These regions have been leading in CCUS technology research and deployment, holding dominant positions and decision-making power in mainstream international CCUS organizations such as the CSLF, IEA, GCCSI, and OGCI. This study benchmarks the forward-looking and strategic development status of the CCUS industry at home and abroad, elucidates the challenges facing CCUS industry development, and proposes future trends and policy support needs for the CCUS industry. The research reveals that Europe and America emphasize national-level technological guidance and macro-control, focusing on the construction of regional industrial networks and having established a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish national-level guidance on CCUS development, regional carbon dioxide capture and transportation networks, and enact specific laws, regulations, and technical standards for CCUS.
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
CCUS, Industry, Development Trend, Challenges, Energy Transformation
1. Introduction
The CCUS technology, as an indispensable and important component in achieving carbon neutrality goals, is a primary technological means for large-scale low-carbon utilization of fossil energy at the current stage
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. This technology provides technical support for China's energy structure to transition smoothly towards a green and low-carbon direction, and it plays a crucial role in supporting the construction of a clean, low-carbon, safe, and efficient energy system
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. A systematic analysis of the development process and policy evolution characteristics of the domestic and international CCUS industry is essential to understand the development trends and policy demands for the future of the CCUS industry
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This study conducts research on the development process and stage characteristics of the CCUS industry domestically and internationally, systematically analyzes the current status of the CCUS industry development, summarizes the development trends of the CCUS industry, and dissects the relevant supporting policies and their evolution characteristics. This research aims to provide references for the country's implementation of energy green and low-carbon transformation and the construction of a new energy system.
2. The Development Process of the Global CCUS Industry
According to the status of CCUS technology development and application, the development of CCUS has gone through three stages: exploration stage, pilot testing, and demonstration application.
2.1. Early Preparation and Exploration Stage (1950s to early 1980s)
The gestation stage of CCUS technology began in the early 1950s, with American scientist Whorton and others obtaining the world's first patent for injecting CO2 to enhance crude oil recovery technology in 1952
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Stalkup, F. I. Carbon Dioxide Miscible Flooding: Past, Present, And Outlook for the Future. Journal of Petroleum Technology, 1978, 30(08): 1102-1112.
. In 1958, Shell was the first to implement a CO2 flooding oil recovery test in the Permian Basin in the United States, demonstrating that injecting CO2 into reservoirs could supplement reservoir energy and increase crude oil production. In 1963, Daqing Oilfield conducted the first carbonated water injection test, showing that the technology could potentially increase recovery rates by 10 percentage points. In 1972, the United States began commercial application of CO2 enhanced oil recovery (EOR) technology and implemented the first CCUS-EOR project in the Kelly-Snyder oilfield, initially increasing individual well production by more than three times
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Global CCS Institute. Global status of CCS report 2022.
. The success of this project marked the maturity of CO2 flooding technology.
2.2. Reserve Development and Testing Stage (Early 1980s to 2005)
From 1980 to 1992, in response to the oil crisis, the United States enacted laws and regulations to incentivize investment in the energy sector, mobilizing the enthusiasm of oil companies and private capital, and promoting the rapid development of CCUS-EOR technology. During this period, the number of CCUS-EOR projects increased from 17 to 54
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, and EOR annual production increased from 10,000 tons to 7.83 million tons. In 1988, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP) established the IPCC to initiate a research platform and project plan for CCS technology. In 1989, MIT initiated the first carbon capture and storage technology project (CC&ST)
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Chai Jun. Research on the Development Status and Strategy of Carbon Capture and Storage Technology. Hangzhou: Zhejiang University of Technology, 2013.
. In 1991, the International Energy Agency Greenhouse Gas R&D Programme (IEAGHG) project organization was established, with CCS technology as a key focus
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Zhang Xian, Li Yang, Ma Qiao, et al. Research on the Development of Carbon Capture, Utilization, and Storage Technology in China. China Engineering Science, 2021, 23 (6): 70-80.
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. In 1996, Norway completed the world's first commercial project for carbon capture and dedicated storage—Sleipner, with a storage scale of 1 million tons per year
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JIANG K, ASHWORTH P, ZHANG S Y, et al. China's carbon capture, utilization and storage (CCUS) policy: A critical review. Renewable and Sustainable Energy Reviews, 2020, 119: 109601.
JIANG K, ASHWORTH P, ZHANG S Y, et al. China's carbon capture, utilization and storage (CCUS) policy: A critical review. Renewable and Sustainable Energy Reviews, 2020, 119: 109601.
. During this stage, CCUS technology gained recognition and attention globally, entering a phase of rapid development.
2.3. Engineering Demonstration and Application Stage (2006 to Present)
After 2006, countries such as the European Union, the United States, and Australia launched large-scale plans to promote the research and demonstration of CCS technology, including Norway's Mongstad project and the EU's Flagship project. China successively carried out pilot tests and expanded trials of CCUS, represented by CO2 miscible flooding in Jilin Oilfield. In 2009, Australia initiated the establishment of GCCSI. Jilin Oilfield continued to promote industrial applications of CCUS, conducting full life cycle evaluation trials and industrial application trials of CO2 miscible flooding
[16]
European Commission. Horizon Europe work programme 2021-2022 climate, energy and mobility [EB/OL]. (2021-08-09) [2021-08-18].
. From 2006 to 2014, international crude oil prices continued to rise and surpassed $100 per barrel, creating substantial profit margins for CO2 flooding projects. During this period, the number of CCUS-EOR projects in the United States increased from 67 to 137
[11]
Qin Jishun, Han Haishui, Liu Xiaolei. Application and Inspiration of CO2 Flooding Technology in the United States. Petroleum Exploration and Development, 2015, 42(2): 8.
, and EOR annual production increased from 9.63 million tons to 13.71 million tons
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Qin Jishun, Han Haishui, Liu Xiaolei. Application and Inspiration of CO2 Flooding Technology in the United States. Petroleum Exploration and Development, 2015, 42(2): 8.
. In 2015, Jilin Oilfield established China's first carbon capture, storage, and enhanced oil recovery (CCUS-EOR) development company and built a national-level CCUS-EOR pilot mining test area
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Institute of Environmental Planning, Ministry of Ecology and Environment, Wuhan Institute of Geotechnical Mechanics, Chinese Academy of Sciences, China Agenda 21 Management Center. China Carbon Dioxide Capture, Utilization and Storage (CCUS) Annual Report (2021): China CCUS Path Research. Beijing: Institute of Environmental Planning, Ministry of Ecology and Environment, 2021: 6, 14-15, 19, 34, 44-49.
. In 2018, the Gates Foundation decided to support air carbon capture technology to address climate change
[11]
Qin Jishun, Han Haishui, Liu Xiaolei. Application and Inspiration of CO2 Flooding Technology in the United States. Petroleum Exploration and Development, 2015, 42(2): 8.
He Xuan, Huang Ying, Liao Cuiping. The formation of foreign CCS policy and regulatory systems and their implications for China. New Energy Progress, 2014, 2 (2): 157-163.
. In the same year, Jilin Oilfield completed the first domestic CO2 cyclic injection station with a daily re-injection capacity of 200,000 cubic meters. Influenced by factors such as the international financial crisis and climate change policies, global CCUS technology research and demonstration projects progressed slowly in the past decade, but overall, they continue to develop and have entered the industrialization stage
[20]
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[20]
.
3. Current Status and Development Trends of CCUS Industry at Home and Abroad
3.1. Global CCUS Development Status and Trends
3.1.1. Current Status of CCUS Development
According to IEA data, in 2022, more than 140 new CCUS projects were announced globally, increasing the global planned carbon storage capacity by 80% and the planned carbon capture capacity by 30%
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Peng Sizhen. Development of Carbon Capture, Utilization, and Storage (CCUS) Projects and Related Policies at Home and Abroad. Low Carbon World, 2013, (1): 18-21.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
1) Regional Distribution The largest number of projects and capture capacity are in North America, accounting for 37% and 61% respectively
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Zhang Xian, Li Yang, Ma Qiao, et al. Research on the Development of Carbon Capture, Utilization, and Storage Technology in China. China Engineering Science, 2021, 23 (6): 70-80.
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Zhong Ping, Peng Sizhen, Zhang Jiutian, et al. Carbon capture, utilization, and storage technologies in developed countries and their implications. China Population, Resources, and Environment, 2012, 22(4): 4.
. The projects under construction and planning show a dominance of North America and Europe. The project numbers and capture capacity in North America account for 39% and 46% respectively, while in Europe, they are 36% and 34% respectively
[4]
Li Yang. Development of carbon capture, utilization and storage technology in China. Beijing: Chinese engineering science; 2021, 023(006): 70-80.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Wei Feng, Li Xiaochun, Liu Mei, etc Analysis of the Progress of CCS International Standardization and Its Inspiration for China. Science and Technology Management Research, 2014, 34(304): 201-205.
. The largest CCUS projects in terms of processing capacity are located in the United States, including the Shute Creek gas processing plant and the Century processing plant. Among the top 12 largest CCUS projects globally, five are in the United States and three are in Canada
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Huang Jing. Several Studies on the Development of Carbon Capture, Utilization and Storage (CCUS) Technology. China's Population, Resources, and Environment; 2023, 33(1): 100-100.
. The largest CCUS project is a natural gas processing facility in Wyoming with a planned annual capture capacity of 7 million tons, operated by ExxonMobil
[26]
Zheng C, Liu Z, Xiang J, et al. Fundamental and technical challenges for a compatible design scheme of oxyfuel combustion technology coal technology-article. 2019.
. The second-largest project is a fertilizer plant in Texas operated by Occidental Petroleum, currently capturing over 5 million tons per year.
2) Industry Distribution In terms of industry distribution, the majority of operational projects are focused on natural gas processing, accounting for over 87%
[12]
Chai Jun. Research on the Development Status and Strategy of Carbon Capture and Storage Technology. Hangzhou: Zhejiang University of Technology, 2013.
Peng Sizhen. Development of Carbon Capture, Utilization, and Storage (CCUS) Projects and Related Policies at Home and Abroad. Low Carbon World, 2013, (1): 18-21.
. Projects under construction and planning are predominantly in power generation and chemical production, accounting for over 71%
[14]
JIANG K, ASHWORTH P, ZHANG S Y, et al. China's carbon capture, utilization and storage (CCUS) policy: A critical review. Renewable and Sustainable Energy Reviews, 2020, 119: 109601.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
3) Utilization and Storage Types In terms of utilization and storage types, EOR is predominant in operational projects, accounting for over 61%, while geological storage is dominant in projects under construction and planning, accounting for approximately 80%
[23]
Zhong Ping, Peng Sizhen, Zhang Jiutian, et al. Carbon capture, utilization, and storage technologies in developed countries and their implications. China Population, Resources, and Environment, 2012, 22(4): 4.
Wei Feng, Li Xiaochun, Liu Mei, etc Analysis of the Progress of CCS International Standardization and Its Inspiration for China. Science and Technology Management Research, 2014, 34(304): 201-205.
Huang Jing. Several Studies on the Development of Carbon Capture, Utilization and Storage (CCUS) Technology. China's Population, Resources, and Environment; 2023, 33(1): 100-100.
Figure 1. The carbon capture capabilities of major CCUS operating projects worldwide
[20]
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[22]
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Zheng C, Liu Z, Xiang J, et al. Fundamental and technical challenges for a compatible design scheme of oxyfuel combustion technology coal technology-article. 2019.
1) CCUS is a Key Pathway to Achieve Global Near-Zero Emissions Goals. In various global pathways analyzed by international organizations such as the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) to address climate change, CCUS is identified as a key pathway to achieving temperature control this century and realizing near-zero emissions goals, with its irreplaceable status. CCUS is an important technological choice for large-scale decarbonization of fossil energy currently
[18]
Institute of Environmental Planning, Ministry of Ecology and Environment, Wuhan Institute of Geotechnical Mechanics, Chinese Academy of Sciences, China Agenda 21 Management Center. China Carbon Dioxide Capture, Utilization and Storage (CCUS) Annual Report (2021): China CCUS Path Research. Beijing: Institute of Environmental Planning, Ministry of Ecology and Environment, 2021: 6, 14-15, 19, 34, 44-49.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Wei Feng, Li Xiaochun, Liu Mei, etc Analysis of the Progress of CCS International Standardization and Its Inspiration for China. Science and Technology Management Research, 2014, 34(304): 201-205.
. Industries such as steel and cement, which are difficult to decarbonize, rely on CCUS technology for achieving net-zero emissions.
2) Integrated Development of CCUS Networks is the Future Trend. According to ExxonMobil's projections, the potential market size of CCUS is expected to reach $2 trillion per year by 2040, with an average annual growth rate of 35%
[20]
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[21]
Peng Sizhen. Development of Carbon Capture, Utilization, and Storage (CCUS) Projects and Related Policies at Home and Abroad. Low Carbon World, 2013, (1): 18-21.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Zhong Ping, Peng Sizhen, Zhang Jiutian, et al. Carbon capture, utilization, and storage technologies in developed countries and their implications. China Population, Resources, and Environment, 2012, 22(4): 4.
. To achieve such a large market size, complementary infrastructure needs to be accelerated. The formation of long-distance, shared CO2 transport networks can significantly reduce project costs.
3) Role of Negative Emission Technologies such as Direct Air Capture and Bioenergy with Carbon Capture and Storage will be Highlighted in the Future. Direct Air Capture (DAC) technology captures CO2 directly from the air, offering greater flexibility compared to traditional industrial centralized carbon capture and can be flexibly matched with CO2 utilization processes. The key to future development lies in the research and development of efficient and low-cost absorption/adsorption materials and equipment. Bioenergy with Carbon Capture and Storage (BECCS) technology has a wide range of applications, with power plants, biomass refineries, or biomass gasification plants utilizing BECCS to achieve CO2 negative emissions. The future focus will be on integrating biomass utilization and CCUS technology to achieve negative emissions
[19]
He Xuan, Huang Ying, Liao Cuiping. The formation of foreign CCS policy and regulatory systems and their implications for China. New Energy Progress, 2014, 2 (2): 157-163.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Yin Conghui, Yu Xiang. Practical Experience and Inspiration of European Carbon Capture and Storage Knowledge Sharing Platform. China Science and Technology Forum. 2016(5): 7.
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
Zhong Ping, Peng Sizhen, Zhang Jiutian, et al. Carbon capture, utilization, and storage technologies in developed countries and their implications. China Population, Resources, and Environment, 2012, 22(4): 4.
Yin Conghui, Yu Xiang. Practical Experience and Inspiration of European Carbon Capture and Storage Knowledge Sharing Platform. China Science and Technology Forum. 2016(5): 7.
3.2. Current Status and Trends of CCUS Development in China
3.2.1. Current Status of CCUS Development
The "Annual Report on Carbon Capture, Utilization, and Storage (CCUS) in China (2023)" indicates that by the end of 2022, China had nearly a hundred operational and planned CCUS demonstration projects. Over half of these projects were operational, with a CO2 capture capacity of approximately 4 million tons per year and an injection capacity of about 2 million tons per year, representing an increase of around 33% and 65% respectively compared to 2021
[13]
Zhang Xian, Li Yang, Ma Qiao, et al. Research on the Development of Carbon Capture, Utilization, and Storage Technology in China. China Engineering Science, 2021, 23 (6): 70-80.
[15]
LEE Beck. The US section 45Q tax credit for carbon oxide sequestration: An update [EB/OL]. (2020-04) [2021-01-08].
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
1) Industry Distribution In terms of industry distribution, the coverage has expanded, with major industrial sectors conducting relevant demonstrations, primarily in petrochemicals, coal chemicals, and power generation.
2) Utilization and Storage Types Regarding utilization and storage types, geological utilization (mainly CO2-EOR) currently dominates, but chemical and biological utilization projects are increasing annually.
Zhang Xian, Li Yang, Ma Qiao, et al. Research on the Development of Carbon Capture, Utilization, and Storage Technology in China. China Engineering Science, 2021, 23 (6): 70-80.
[28]
Chen Qiuyan. Overview of Large scale Carbon Capture and Storage (CCS) Project Construction at Home and Abroad. Technology and Market, 2013, 20 (7): 222-224.
Based on research findings from both domestic and international sources, there is a significant demand for CCUS emissions reduction in China under the carbon neutrality goals. Currently, China is continuously developing technologies to reduce costs, optimizing the entire CCUS process engineering, accelerating breakthroughs in large-scale integrated demonstration projects, advancing the planning and layout of CCUS pipelines, and constructing industrial cluster infrastructures. With the establishment of a low-cost, low-energy consumption, safe, and reliable CCUS technology system and industrial cluster in the future, the CCUS industry in China is expected to create hundreds of billions in value
[12]
Chai Jun. Research on the Development Status and Strategy of Carbon Capture and Storage Technology. Hangzhou: Zhejiang University of Technology, 2013.
. Over the past decade, China has seen rapid development in pre-combustion capture, chemical utilization, geological utilization, and storage technologies, which are generally on par with international standards
[15]
LEE Beck. The US section 45Q tax credit for carbon oxide sequestration: An update [EB/OL]. (2020-04) [2021-01-08].
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[15, 20]
. However, there are still certain gaps in post-combustion capture, pipeline transportation, enhanced oil and gas recovery, deep saline water extraction and storage, among others
[20]
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[22]
Xue Bo, Liu Yong, Wang Chen, et al. Research progress on carbon capture, storage and utilization technology and coal seam CO2 storage. Chemical World, 2020, 61 (4): 294-297.
. China has shown limited attention to DAC and BECCS, with relatively weak research in these areas. Strengthening innovation and reserves in DAC and BECCS-related technologies and accelerating the pace of demonstration projects are key directions for future development.
4. CCUS Related Support Policies and Evolution
Support policies for CCUS development cover areas such as climate change policy, energy policy, industrial development policy, and research and innovation policy, which are crucial for the advancement of technology and demonstration projects. These policies play an important role in enhancing the economic benefits of CCUS demonstration projects and boosting investor confidence.
The evolution of CCUS support policies has transitioned from relatively vague to gradually clearer, encompassing four main aspects: policies involving all technological aspects of CO2 capture, utilization, and storage; policies supporting technology research and demonstration project construction; policies aimed at enhancing and improving the commercial and financial ecosystem for CCUS development; and policies promoting international cooperation platforms and strategies for CCUS
[15]
LEE Beck. The US section 45Q tax credit for carbon oxide sequestration: An update [EB/OL]. (2020-04) [2021-01-08].
Institute of Environmental Planning, Ministry of Ecology and Environment, Wuhan Institute of Geotechnical Mechanics, Chinese Academy of Sciences, China Agenda 21 Management Center. China Carbon Dioxide Capture, Utilization and Storage (CCUS) Annual Report (2021): China CCUS Path Research. Beijing: Institute of Environmental Planning, Ministry of Ecology and Environment, 2021: 6, 14-15, 19, 34, 44-49.
He Xuan, Huang Ying, Liao Cuiping. The formation of foreign CCS policy and regulatory systems and their implications for China. New Energy Progress, 2014, 2 (2): 157-163.
Qin Jishun, Li Yongliang, Wu Debin, et al Global Progress of CCUS and Suggestions for China's Countermeasures. Oil and Gas Geology and Recovery, 2020, 27(1): 9.
[21]
Peng Sizhen. Development of Carbon Capture, Utilization, and Storage (CCUS) Projects and Related Policies at Home and Abroad. Low Carbon World, 2013, (1): 18-21.
4.1. Support Policies in Major Developed Economies
Major developed economies began researching CCS technology as early as the 1980s. Compared to CCS, CCUS incorporates CO2 utilization, but the fundamental principles of both are similar, primarily aimed at reducing carbon emissions. Currently, although there are differences in the terminology used internationally, the concept of CCUS has been widely accepted worldwide
[21]
Peng Sizhen. Development of Carbon Capture, Utilization, and Storage (CCUS) Projects and Related Policies at Home and Abroad. Low Carbon World, 2013, (1): 18-21.
. To standardize and promote industrial development, countries such as the United States, the European Union, and Australia have successively issued a series of policies related to planning, legislation, tax incentives, technical standards, and more
[18]
Institute of Environmental Planning, Ministry of Ecology and Environment, Wuhan Institute of Geotechnical Mechanics, Chinese Academy of Sciences, China Agenda 21 Management Center. China Carbon Dioxide Capture, Utilization and Storage (CCUS) Annual Report (2021): China CCUS Path Research. Beijing: Institute of Environmental Planning, Ministry of Ecology and Environment, 2021: 6, 14-15, 19, 34, 44-49.
. Overall, the CCUS policies of developed economies like the United States, the European Union, and Australia are relatively proactive, with actions focused on increasing financial and tax incentives, boosting investment in technology research and development, strengthening risk management, and promoting the orderly advancement of CCUS optimization and commercialization based on their respective circumstances
[2]
Global CCS Institute. Global status of CCS report 2022.
Since 2018, continuous revisions and improvements have been made, and incentives have been strengthened. The maximum tax deduction for carbon oxides in geological storage can reach $50/ton, and the maximum tax deduction for carbon oxides in oil recovery and other uses can reach $35/ton. It is known as the "most advanced CCS special incentive measure in the world"
California government low-carbon fuel standards
Carbon credit trading prices continue to rise, exceeding $200/ton in 2020, effectively promoting the commercialization development of CCUS
Technology R&D investment
In 2020, the US Department of Energy invested $270 million to develop CCUS technology
European Union
The European Green Agreement and the European Climate Act
In 2019, the European Green Agreement was implemented, and in 2021, the European Climate Act was passed, transforming the EU's political commitment to carbon neutrality into a legal obligation and giving rise to more policies supporting CCS development
EU Innovation Fund
Established in 2020, with a total amount of 10 billion euros, it is widely regarded as an effective source of funding for the subsequent development of CCS in the European Union
Horizon Europe Plan (2021-2027)
We plan to allocate a budget of 32 million euros and 58 million euros respectively for 2021 and 2022 to fund CCUS technology research and development
Australia
Framework for Accelerating the Promotion of Low Emission Technologies
Released in 2020, the deployment path of CCS in ammonia production and other applications was discussed
4.2. Evolution of CCUS Related Support Policies in China
Compared to developed economies, China's work on CCUS started relatively later and placed greater emphasis on the value development of CO2 resource utilization. The concept of CCUS was first proposed in 2006 in China
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, suggesting that recent CO2 emissions reduction must be closely integrated with utilization, primarily through enhanced oil recovery and resource utilization
[14]
JIANG K, ASHWORTH P, ZHANG S Y, et al. China's carbon capture, utilization and storage (CCUS) policy: A critical review. Renewable and Sustainable Energy Reviews, 2020, 119: 109601.
Wei Feng, Li Xiaochun, Liu Mei, etc Analysis of the Progress of CCS International Standardization and Its Inspiration for China. Science and Technology Management Research, 2014, 34(304): 201-205.
Huang Jing. Several Studies on the Development of Carbon Capture, Utilization and Storage (CCUS) Technology. China's Population, Resources, and Environment; 2023, 33(1): 100-100.
In 2006, efforts were made to promote the "decarbonization" of fossil energy sources, followed by the release of national plans and special actions for climate change response, officially advocating for the vigorous development and application of CCUS technology at the national level.
In 2009, significant attention was given to the deployment of carbon geological storage, adaptive assessment, and pilot projects for saline aquifer storage.
Pilot Demonstration Stage (2011-2020)
In 2011, China first outlined the development goals and priorities for different stages of CCUS.
In 2013, the establishment of the Carbon Capture, Utilization, and Storage Industry Technology Innovation Strategic Alliance promoted collaboration between industry, academia, and research.
In 2019, China further clarified its CCUS technology strategic positioning, proposing the overall vision of building a low-cost, low-energy consumption, safe, and reliable CCUS technology system and industrial cluster. During this stage, China deepened its positioning and layout for CCUS technology and industrial development, conducting practices in environmental risk assessments, technical standard construction, investment and financing support, and further advancing pilot demonstration project construction, effectively promoting the standardized development of CCUS.
Industrial Demonstration Stage (2021-Present)
In 2021, CCUS was included in the "Green Bond Support Project Catalog (2021 Edition)" for the first time, effectively broadening investment and financing channels. Since the second half of 2021, a series of directives have been intensively released by the State-owned Assets Supervision and Administration Commission of the State Council, focusing on promoting high-quality development in central enterprises to achieve peak carbon emissions and carbon neutrality. These directives are expected to provide strong support for the industrial development of CCUS under the driving force of the subsequent "Dual Carbon" goals.
5. Insights on the Development of CCUS Industry
5.1. Industrial Development Aspects
Since 2006, China has introduced relevant policies to promote the development of CCUS industry, advocating for low-cost CCUS technology innovation and the construction of full-process, integrated, and large-scale CCUS demonstration projects. However, compared to the advanced international status, there still exists a certain gap in the development of CCUS in China.
5.1.1. Lack of Top-Level Strategic Planning
Countries and regions such as the United States, the United Kingdom, Australia, and the European Union have issued CCUS technology development roadmaps and strategic plans, clearly defining short-term, medium-term, and long-term demonstration project support policies, technological directions, and research and development priorities, strengthening national-level technical guidance and macro-control. China has not yet established a national-level CCUS development strategy, only mentioning the development of CCUS in some policy documents, primarily focusing on guidance and encouragement, lacking specific implementation plans.
5.1.2. Lack of Cost Mitigation Mechanisms
The United States provides a progressive subsidy through the 45Q tax credit policy, significantly increasing the enthusiasm of high-emission enterprises to construct CCUS projects. The European Union has integrated CCUS into the carbon trading system, relying on relatively high carbon trading prices to reflect the emission reduction value of CCUS. It has been estimated that the full-process cost of CCUS capturing CO2 after coal combustion is 400-500 yuan per ton, with carbon capture equipment adding 0.26-0.4 yuan per kilowatt-hour to electricity generation costs
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Chen Qiuyan. Overview of Large scale Carbon Capture and Storage (CCS) Project Construction at Home and Abroad. Technology and Market, 2013, 20 (7): 222-224.
. However, China has not established specific financial and tax support and incentive mechanisms for CCUS. The average carbon trading price in China is only about one-tenth of that in the European Union, making it difficult to effectively incentivize the implementation of CCUS projects.
5.2. Policy Support Aspects
Over the past decade, national and local governments have issued a series of CCUS-related policies, promoting the advancement of technical capabilities in carbon capture, transportation, utilization, and storage in China. China has operationalized over 20 CCUS pilot demonstration projects
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, with an annual carbon capture capacity exceeding 2 million tons
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Huang Jing. Several Studies on the Development of Carbon Capture, Utilization and Storage (CCUS) Technology. China's Population, Resources, and Environment; 2023, 33(1): 100-100.
Chen Qiuyan. Overview of Large scale Carbon Capture and Storage (CCS) Project Construction at Home and Abroad. Technology and Market, 2013, 20 (7): 222-224.
. Under the model of policy guidance and active corporate participation, China's CCUS industry has gained a certain scale of practical experience. Compared to major developed economies abroad, China still lags behind in terms of both technological advancement and scale levels in CCUS.
5.2.1. Lack of Financial Incentives or Subsidy Policies, Insufficient Industrial Investment and Financing Capabilities
Foreign CCUS projects have seen a trend of investment shifting from self-funded by enterprises to government assistance, joint investments by enterprises, or the establishment of joint venture companies. China has yet to introduce specific financial incentives or subsidy policies for CCUS, with investment in pilot demonstration projects mainly coming from key state-owned enterprises, and very low participation from private capital.
5.2.2. Slow Progress in Legal Regulations and Standard System
Construction, Challenges in Ensuring Standardized Development Countries such as the United States, the European Union, and Australia have established relatively comprehensive legal and regulatory frameworks for the CCUS industry, with related standards being progressively developed, while China has not yet issued specific laws and regulations for CCUS, with a limited number of technical standards released, and related work still in its nascent stages.
6. Conclusions
This study analyzes the development process and stage characteristics of the global CCUS industry, summarizes the development trend of the CCUS industry, analyzes the relevant support policies and evolutionary characteristics of CCUS, and provides reference for the implementation of green and low-carbon energy transformation and the construction of new energy systems in the country. Research has found that Europe and America emphasize national level technical guidance and macroeconomic regulation, pay attention to the construction of regional industrial networks, and have formed a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish a national level CCUS development strategy guidance and a regional CO2 capture and transportation network, and issue CCUS specific laws, regulations, and technical standards.
Abbreviations
CCUS
Carbon Capture, Utilization and Storage
DAC
Direct Air Capture
BECCS
Bioenergy with Carbon Capture and Storage
Acknowledgments
This research was one of the projects financially endorsed by China National Petroleum Corporation's Soft Science Research Project "Research on Strategic Measures for Accelerating China's Shale Oil and Gas Revolution through Engineering Technology Business" (CNPC Research 20240111-5), as well as Strategic Research and Consulting of the Science and Technology Committee of China National Petroleum Corporation Limited "Research on Iterative Upgrading and Development of Engineering Technology and Equipment" (2023DQ0715).
Author Contributions
Jing Yu: Conceptualization, Investigation, Writing – original draft
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Yu, J., Zhou, B., Fang, P., Li, B., Sun, W., et al. (2024). Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. International Journal of Environmental Protection and Policy, 12(3), 64-72. https://doi.org/10.11648/j.ijepp.20241203.12
Yu, J.; Zhou, B.; Fang, P.; Li, B.; Sun, W., et al. Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. Int. J. Environ. Prot. Policy2024, 12(3), 64-72. doi: 10.11648/j.ijepp.20241203.12
Yu J, Zhou B, Fang P, Li B, Sun W, et al. Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. Int J Environ Prot Policy. 2024;12(3):64-72. doi: 10.11648/j.ijepp.20241203.12
@article{10.11648/j.ijepp.20241203.12,
author = {Jing Yu and Bo Zhou and Pingliang Fang and Bing Li and Wenchao Sun and Long Chang},
title = {Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad
},
journal = {International Journal of Environmental Protection and Policy},
volume = {12},
number = {3},
pages = {64-72},
doi = {10.11648/j.ijepp.20241203.12},
url = {https://doi.org/10.11648/j.ijepp.20241203.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijepp.20241203.12},
abstract = {CCUS is internationally recognized as one of the three major pathways to achieve carbon neutrality goals. It is an important choice for realizing zero emissions from large-scale fossil energy utilization and a feasible technological solution to offset carbon emissions in industries such as power, steel, and cement where emissions reductions are challenging. Systematic analysis of the development and policy evolution of the CCUS industry at home and abroad can provide theoretical basis and practical guidance for China's energy transition and development under the background of carbon emission peaking and achieving carbon neutrality. Guided by the strategic goals of national energy security, carbon emission peaking, and achieving carbon neutrality, this study aims to analyze the global development process and stage characteristics of the CCUS industry, investigate the supporting policies in the CCUS field and their evolution patterns, summarize the current status and trends of the CCUS industry at home and abroad, and provide reference for the implementation of national energy green and low-carbon transformation and the construction of a new energy system. In terms of industry, European and American countries emphasize national-level technological guidance and macro-control. The United States has introduced the progressive 45Q tax credit policy, and the European Union has included CCUS in its carbon trading system. The US National Carbon Capture Center provides a testing environment and facilities for CCUS technology research and development, and has established a carbon dioxide industry cluster and transportation hub. In terms of policies, tax credits and carbon trading policies in Europe and America have attracted various types of capital investment, establishing a relatively complete legal framework system. These regions have been leading in CCUS technology research and deployment, holding dominant positions and decision-making power in mainstream international CCUS organizations such as the CSLF, IEA, GCCSI, and OGCI. This study benchmarks the forward-looking and strategic development status of the CCUS industry at home and abroad, elucidates the challenges facing CCUS industry development, and proposes future trends and policy support needs for the CCUS industry. The research reveals that Europe and America emphasize national-level technological guidance and macro-control, focusing on the construction of regional industrial networks and having established a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish national-level guidance on CCUS development, regional carbon dioxide capture and transportation networks, and enact specific laws, regulations, and technical standards for CCUS.
},
year = {2024}
}
TY - JOUR
T1 - Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad
AU - Jing Yu
AU - Bo Zhou
AU - Pingliang Fang
AU - Bing Li
AU - Wenchao Sun
AU - Long Chang
Y1 - 2024/06/21
PY - 2024
N1 - https://doi.org/10.11648/j.ijepp.20241203.12
DO - 10.11648/j.ijepp.20241203.12
T2 - International Journal of Environmental Protection and Policy
JF - International Journal of Environmental Protection and Policy
JO - International Journal of Environmental Protection and Policy
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UR - https://doi.org/10.11648/j.ijepp.20241203.12
AB - CCUS is internationally recognized as one of the three major pathways to achieve carbon neutrality goals. It is an important choice for realizing zero emissions from large-scale fossil energy utilization and a feasible technological solution to offset carbon emissions in industries such as power, steel, and cement where emissions reductions are challenging. Systematic analysis of the development and policy evolution of the CCUS industry at home and abroad can provide theoretical basis and practical guidance for China's energy transition and development under the background of carbon emission peaking and achieving carbon neutrality. Guided by the strategic goals of national energy security, carbon emission peaking, and achieving carbon neutrality, this study aims to analyze the global development process and stage characteristics of the CCUS industry, investigate the supporting policies in the CCUS field and their evolution patterns, summarize the current status and trends of the CCUS industry at home and abroad, and provide reference for the implementation of national energy green and low-carbon transformation and the construction of a new energy system. In terms of industry, European and American countries emphasize national-level technological guidance and macro-control. The United States has introduced the progressive 45Q tax credit policy, and the European Union has included CCUS in its carbon trading system. The US National Carbon Capture Center provides a testing environment and facilities for CCUS technology research and development, and has established a carbon dioxide industry cluster and transportation hub. In terms of policies, tax credits and carbon trading policies in Europe and America have attracted various types of capital investment, establishing a relatively complete legal framework system. These regions have been leading in CCUS technology research and deployment, holding dominant positions and decision-making power in mainstream international CCUS organizations such as the CSLF, IEA, GCCSI, and OGCI. This study benchmarks the forward-looking and strategic development status of the CCUS industry at home and abroad, elucidates the challenges facing CCUS industry development, and proposes future trends and policy support needs for the CCUS industry. The research reveals that Europe and America emphasize national-level technological guidance and macro-control, focusing on the construction of regional industrial networks and having established a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish national-level guidance on CCUS development, regional carbon dioxide capture and transportation networks, and enact specific laws, regulations, and technical standards for CCUS.
VL - 12
IS - 3
ER -
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Planning and Support Research Institute, China National Petroleum Corporation Engineering Technology Research and Experimental Development Company Limited, Beijing, China
Yu, J., Zhou, B., Fang, P., Li, B., Sun, W., et al. (2024). Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. International Journal of Environmental Protection and Policy, 12(3), 64-72. https://doi.org/10.11648/j.ijepp.20241203.12
Yu, J.; Zhou, B.; Fang, P.; Li, B.; Sun, W., et al. Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. Int. J. Environ. Prot. Policy2024, 12(3), 64-72. doi: 10.11648/j.ijepp.20241203.12
Yu J, Zhou B, Fang P, Li B, Sun W, et al. Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad. Int J Environ Prot Policy. 2024;12(3):64-72. doi: 10.11648/j.ijepp.20241203.12
@article{10.11648/j.ijepp.20241203.12,
author = {Jing Yu and Bo Zhou and Pingliang Fang and Bing Li and Wenchao Sun and Long Chang},
title = {Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad
},
journal = {International Journal of Environmental Protection and Policy},
volume = {12},
number = {3},
pages = {64-72},
doi = {10.11648/j.ijepp.20241203.12},
url = {https://doi.org/10.11648/j.ijepp.20241203.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijepp.20241203.12},
abstract = {CCUS is internationally recognized as one of the three major pathways to achieve carbon neutrality goals. It is an important choice for realizing zero emissions from large-scale fossil energy utilization and a feasible technological solution to offset carbon emissions in industries such as power, steel, and cement where emissions reductions are challenging. Systematic analysis of the development and policy evolution of the CCUS industry at home and abroad can provide theoretical basis and practical guidance for China's energy transition and development under the background of carbon emission peaking and achieving carbon neutrality. Guided by the strategic goals of national energy security, carbon emission peaking, and achieving carbon neutrality, this study aims to analyze the global development process and stage characteristics of the CCUS industry, investigate the supporting policies in the CCUS field and their evolution patterns, summarize the current status and trends of the CCUS industry at home and abroad, and provide reference for the implementation of national energy green and low-carbon transformation and the construction of a new energy system. In terms of industry, European and American countries emphasize national-level technological guidance and macro-control. The United States has introduced the progressive 45Q tax credit policy, and the European Union has included CCUS in its carbon trading system. The US National Carbon Capture Center provides a testing environment and facilities for CCUS technology research and development, and has established a carbon dioxide industry cluster and transportation hub. In terms of policies, tax credits and carbon trading policies in Europe and America have attracted various types of capital investment, establishing a relatively complete legal framework system. These regions have been leading in CCUS technology research and deployment, holding dominant positions and decision-making power in mainstream international CCUS organizations such as the CSLF, IEA, GCCSI, and OGCI. This study benchmarks the forward-looking and strategic development status of the CCUS industry at home and abroad, elucidates the challenges facing CCUS industry development, and proposes future trends and policy support needs for the CCUS industry. The research reveals that Europe and America emphasize national-level technological guidance and macro-control, focusing on the construction of regional industrial networks and having established a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish national-level guidance on CCUS development, regional carbon dioxide capture and transportation networks, and enact specific laws, regulations, and technical standards for CCUS.
},
year = {2024}
}
TY - JOUR
T1 - Research on the Development and Policy Evolution of CCUS Industry at Home and Abroad
AU - Jing Yu
AU - Bo Zhou
AU - Pingliang Fang
AU - Bing Li
AU - Wenchao Sun
AU - Long Chang
Y1 - 2024/06/21
PY - 2024
N1 - https://doi.org/10.11648/j.ijepp.20241203.12
DO - 10.11648/j.ijepp.20241203.12
T2 - International Journal of Environmental Protection and Policy
JF - International Journal of Environmental Protection and Policy
JO - International Journal of Environmental Protection and Policy
SP - 64
EP - 72
PB - Science Publishing Group
SN - 2330-7536
UR - https://doi.org/10.11648/j.ijepp.20241203.12
AB - CCUS is internationally recognized as one of the three major pathways to achieve carbon neutrality goals. It is an important choice for realizing zero emissions from large-scale fossil energy utilization and a feasible technological solution to offset carbon emissions in industries such as power, steel, and cement where emissions reductions are challenging. Systematic analysis of the development and policy evolution of the CCUS industry at home and abroad can provide theoretical basis and practical guidance for China's energy transition and development under the background of carbon emission peaking and achieving carbon neutrality. Guided by the strategic goals of national energy security, carbon emission peaking, and achieving carbon neutrality, this study aims to analyze the global development process and stage characteristics of the CCUS industry, investigate the supporting policies in the CCUS field and their evolution patterns, summarize the current status and trends of the CCUS industry at home and abroad, and provide reference for the implementation of national energy green and low-carbon transformation and the construction of a new energy system. In terms of industry, European and American countries emphasize national-level technological guidance and macro-control. The United States has introduced the progressive 45Q tax credit policy, and the European Union has included CCUS in its carbon trading system. The US National Carbon Capture Center provides a testing environment and facilities for CCUS technology research and development, and has established a carbon dioxide industry cluster and transportation hub. In terms of policies, tax credits and carbon trading policies in Europe and America have attracted various types of capital investment, establishing a relatively complete legal framework system. These regions have been leading in CCUS technology research and deployment, holding dominant positions and decision-making power in mainstream international CCUS organizations such as the CSLF, IEA, GCCSI, and OGCI. This study benchmarks the forward-looking and strategic development status of the CCUS industry at home and abroad, elucidates the challenges facing CCUS industry development, and proposes future trends and policy support needs for the CCUS industry. The research reveals that Europe and America emphasize national-level technological guidance and macro-control, focusing on the construction of regional industrial networks and having established a relatively complete legal and regulatory framework system. Compared to other countries, China needs to establish national-level guidance on CCUS development, regional carbon dioxide capture and transportation networks, and enact specific laws, regulations, and technical standards for CCUS.
VL - 12
IS - 3
ER -
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