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Workshop Summary The Critical Role of CCUS: Pathways to Deployment at Scale February 2021
About
Introduction
Chairman
Ernest J. Moniz, Founder & CEO
Author
Anne Canavati, Project Manager and
Contributing Senior Analyst
Additional Contributors
Victor Cary, Research Fellow
Melanie Kenderdine, Managing Principal
Alex Kizer, Research Director
Emelia Williams, Communications Fellow
Layout Design
Natalie Volk, Communications Associate
Sponsors
This workshop was made possible thanks to the support of the Center for Climate and Energy Solutions (C2ES), the
Labor Energy Partnership, BP, and the William and Flora Hewlett Foundation.
About Energy Futures Initiative
The Energy Futures Initiative advances technically-grounded solutions to climate change through evidence-based
analysis, thought leadership, and coalition-building. Under the leadership of Ernest J. Moniz, the 13th U.S. Secretary of
Energy, EFI conducts rigorous research to accelerate the transition to a low-carbon economy through innovation in
technology, policy, and business models. EFI maintains editorial independence from its public and private sponsors.
Suggested Citation: Energy Futures Initiative. “Workshop Summary: The Critical Role of CCUS: Pathways to Deployment
at Scale.” February 2021.
© 2021 Energy Futures Initiative
This publication is available as a PDF on the Energy Futures Initiative website under a Creative Commons license that
allows copying and distributing the publication, only in its entirety, as long as it is attributed to Energy Futures Initiative
and used for noncommercial educational or public policy purposes.
energyfuturesinitiative.org
WORKSHOP SUMMARY: CCUS | Page 2
Introduction
About
Introduction
On December 3, 2020, the Energy emissions economy-wide by highlighting
Futures Initiative (EFI) convened more the importance of power generation or
than 80 representatives from industry to certain communities,
government, industry, labor, academic, economies, and jobs. The insights from
and non-profit organizations to discuss this workshop are summarized in this
the current state of carbon capture, use, document.
and storage (CCUS)a globally, as well as
the opportunities, challenges, and CCUS is Essential for Rapid Deep
solutions necessary to see large-scale Decarbonization. There was general
CCUS deployment in the coming decade. consensus that CCUS is a necessary
component of any global strategy to
This virtual workshop, held under achieve net-zero emissions by
Chatham House rule, featured opening midcentury to avoid the most
remarks by international experts in catastrophic impacts of climate change.
energy, decarbonization, and labor. Carbon capture can be implemented on
Following the keynote discussion, a numerous emissions sources in the
range of experts provided insights into a electricity and industrial sectors, and it
variety of technologies, policies, and is one of the only decarbonization
business model approaches to enable solutions for a number of sectors, such
CCUS in the four main sessions. The as cement and steel.
expert presentations and panel
discussions focused on the role of CCUS According to the International Energy
in clean energy transitions; experiences Agency (IEA), CCUS is currently “in a
with CCUS—the critical niche it fills, the stronger position to contribute to
opportunities, challenges, and lessons sustainable economic recovery plans
learned from existing and planned than after the global financial crisis in
projects; key technologies enabled by 2008-09. A decade of experience in
CCUS; and a roadmap for deploying developing projects and the recent
CCUS in the United States. uptick in activity means that there are a
number of advanced ‘shovel-ready’
The workshop concluded with remarks projects with potential to double CCUS
that again illuminated the importance of deployment and create thousands of
an equitable transition to net-zero jobs worldwide by 2025.”b This is
a. This includes discrete discussions of carbon capture and storage (CCS) and carbon capture and utilization (CCU).
b. IEA (2020), CCUS in Clean Energy Transitions, IEA, Paris https://www.iea.org/reports/ccus-in-clean-energy-
transitions.
ENERGY FUTURES INITIATIVE | Page 3
Introduction
Figure 1
Incremental Value of CCS to Meeting IEA’s Sustainable Development Scenario
Relevant to Its Stated Policies Scenario
TECHNOLOGIES NEEDED TO MEET IEA’S 2050 SUSTAINABLE DEVELOPMENT GOALS
40
Stated Policies Scenario
37% Efficiency
30
GtCO2
32 % Renewables
20
8% Fuel Switching
3% Nuclear
9% CCUS
12% Other
10
Sustainable Development Scenario
2010 2020 2030 2040 2050
This figure shows the emissions reductions by technology category in the IEA’s Sustainable Development Scenario
relative
This figuretoshows
its Stated Policies
the emissions Scenario;
reductions by this includes
technology a nine
category in percent share of CCUS.
the IEA’s Sustainable Source:
Development International
Scenario relative toEnergy
its Stated
Agency, 2019. this includes a nine percent share of CCUS. Source: International Energy Agency, 2019.
Policies Scenario;
important as the world looks to both September 2020, flagship report, CCUS
rapidly reduce emissions and recover in Clean Energy Transitions, the IEA
from the economic devastation of the concluded that “reaching net zero will
COVID-19 pandemic. be virtually impossible without CCUS”
(see Figure 1). This conclusion and the
Finally, CCUS paves the way for growing recognition by scientists,
emerging carbon dioxide removal (CDR) policymakers, and governments that a
strategies, the widespread deployment net-zero emissions target is necessary
of which will likely be essential to limit for holding temperature increases to 1.5
global temperature increases to the 1.5- degrees by mid-century, provided the
degree to 2-degree Celsius scenarios motivation for this workshop.
projected by international bodies like
the Intergovernmental Panel on Climate
Change (IPCC) and the IEA. In fact, in its
c. IEA (2020), CCUS in Clean Energy Transitions, IEA, Paris https://www.iea.org/reports/ccus-in-clean-energy-
transitions.
WORKSHOP SUMMARY: CCUS | Page 4
Introduction
Figure 2
Global CCS Facilities at Various of Development
This figure shows the current state of CCUS projects around the world, showing the increasing interest in the industry
as well as the potential for regional hub systems in America, Europe, Arabia, and East Asia. Source: Global CCS
Institute, Global Status of CCS, 2020
Challenges for Rapid Deployment of neutral measures such as carbon pricing
CCUS. Presently, there are policy, are generally not sufficient. Measures
regulatory, investment, and public targeted at specific CCUS applications,
acceptance challenges in the U.S. and in including capital grants and operational
other countries around the world. IEA support, can help build a business case
describes options to address these for investment and drive widespread
challenges, including the needs of deployment in the near term.”c
individual countries as follows: “There is
no one-size-fits-all policy template: the Supportive, consistent, and durable
appropriate choice or mix of instruments policies and regulations at national,
for each country depends on local regional, and state levels will be
market conditions and institutional necessary to ensure that the
factors. On their own, technology- environment is protected, and the CO2 is
ENERGY FUTURES INITIATIVE | Page 5
Introduction Framing the Issues permanently and securely stored. At the Even with these obstacles and same time, project developers must be considerations, CCUS has been deployed able and willing to navigate the around the world. Figure 2 details the permitting or other policy mechanisms location of existing projects. An essential that make a project financially viable. The component of the EFI workshop was development of strong and predictable highlighting some of these key projects policy and regulatory environments for and hearing the lessons learned from CCUS, especially for geologic storage, specific projects across the range of will also be critical for CDR pathways project types. that require storage, such as direct air capture (DAC), and bioenergy with carbon capture and storage (BECCS). WORKSHOP SUMMARY: CCUS | Page 6
Framing
Introduction
the Issues
Framing the Issues
The workshop began with an others, underscores the critical
acknowledgement that the world is importance of keeping global
currently facing three critical challenges: temperature increases to 1.5 degrees.
the COVID-19 pandemic, the COVID- Meeting a net-zero target, however,
related economic recession, and climate requires support for key policy and
change. These challenges could share technology investments. Speakers
common solutions and needs. expressed optimism that the U.S. Would
join these countries by setting a net-
Rebuilding Global Economies, Post- zero emissions target and taking action
COVID. As the world navigates its way to meet this goal.
out of the pandemic, it could, in the
words of President Biden, “build back As more countries set net-zero targets
better,” by creating jobs and addressing and strategize how to achieve these goals,
the climate challenge at the same time. two main considerations were raised. First,
Doing so could also address equitable the world should build new facilities,
solutions to the climate crisis, build buildings, industrial sites, and power
diverse coalitions needed for rapid plants to be as low emitting as possible.
action, establish strong partnerships as Second, legacy infrastructure must be
the world rebuilds in the post- considered and accommodated to avoid
pandemic era, and encourage stranding investments, other capital-
investments in innovation. intensive assets, as well as the workers
that support operation and maintenance.
CCUS offers an example of a climate
mitigation solution that addresses all of This is a global issue but is especially
these post-COVID concerns. It has the relevant in parts of Asia, where there are
support of a wide range of stakeholders, many power plants—largely coal-fired—
and it can create jobs and aid in the that are less than ten years old. These
clean energy transition. It offers sizeable young plants prove to be problematic in
economic benefits and dramatic the transition to a net-zero world. These
emissions reductions in both the power facilities are critical for electrification and
sector and in vital industrial sectors that economic development; CCUS provides
have few alternatives to decarbonize. an option for ensuring their ongoing
contributions to local economies while
Meeting Net-Zero Targets Across the dramatically reducing emissions. Figure 3
Globe. The increased focus of national shows megawatts of coal plants under
governments on net-zero targets in the construction around the world in 2018.
European Union, UK, Japan, Korea,
Canada, and New Zealand, among
ENERGY FUTURES INITIATIVE | Page 7
Framing the Issues
Figure 3
Megawatts of Coal Plants Under Construction in 2018
China had a significant amount of coal-fired power plants under construction in 2018, despite the imperatives to
transition to cleaner energy sources. CCUS offers an opportunity for countries with significantly younger coal fleets to
continue to utilize those assets, while achieving emissions reductions needed to curb climate change. Source: Global
Energy Monitor, Greenpeace India, and the Sierra Club, 2018.d,e
Addressing Different National, Regional, Session Four), estimated that California
Local Needs. The varying regional needs could meet 15% of its 2030 economy-
for CCUS were highlighted as a key wide emissions reduction target with
framing issue. In the U.S., many states CCUS in the power and the industrial
and cities have decarbonization goals, sectors. In contrast, EFI’s November
and there will be different paths to 2020 study, Net-Zero New England:
decarbonization for various regions; Ensuring Electric Reliability in a Low-
CCUS could play a critical role. For Carbon Future concluded that CCUS is
example, EFI’s October 2020 report, An not a viable option because of the lack of
Action Plan for Carbon Capture and geologic storage potential and historic
Storage in California: Opportunities, challenges with infrastructure siting in
Challenges, and Solutions (discussed in the region. Under the Biden-Harris
d. Global Energy Monitor, Greenpeace Environmental Trust, & Sierra Club (2019), Boom and Bust 2019: Tracking the
Global Coal Plant Pipeline, Global Energy Monitor, Greenpeace Environmental Trust, & Sierra Club, https://
www.greenpeace.org.au/wp/wp-content/uploads/2019/03/BoomAndBust_2019_r6.pdf.
e. McCarthy, Niall (2019), Where The Most Coal Power Plants Are Under Construction, Statista, https://
www.statista.com/chart/17517/megawatts-of-coal-power-capacity-under-construction/.
WORKSHOP SUMMARY: CCUS | Page 8
Framing the Issues
Figure 4
Longship Initiative: Illustration of Carbon Capture from Industrial Facilities/Power
Production, Transport by Pipeline/Ship, Geologic CO2 Storage
A CCUS value chain that encompasses multiple emissions sources and carbon transport options, ultimately securing
emissions in deep geological storage. Source: Norweigan Ministry of Petroleum and Energy, Longship Carbon Capture
and Storage, 2019-2020.
Administration, it is possible that national Overview of Several Successful CCUS
CCUS deployment could be a key climate Projects. The session concluded with a
mitigation opportunity; however, it is brief overview of CCUS efforts in Norway
critical to closely assess the regional (e.g., the recently launched Longship
variations in the applicability of and use initiative, see Figure 4), the UK, Japan, the
cases for CCUS. Middle East, and Canada as successful
examples of public-private partnerships
ENERGY FUTURES INITIATIVE | Page 9Session One
Framing the Issues
supporting CCUS. These initial efforts are new administration. As the Biden-Harris
important first movers for technologies Administration works to restore U.S.
where there will be massive needs in the leadership in clean energy technology
near- and long-term. development and deployment, a central
focus on jobs and other local issues (e.g.,
The speakers noted that the U.S. has siting, public participation, and justice)
historically been the global leader in will be key to success for developing
innovation and clean energy technology CCUS projects at the speed and
and expressed an expectation that this frequency needed to meet near-term and
leadership role would resume with the midcentury climate goals.
WORKSHOP SUMMARY: CCUS | Page 10Framing
Session
the Issues
One
Session One
The Role of CCUS in Clean Energy Transitions
The first session of the workshop was a 2. Providing a platform for low-carbon
presentation on the IEA’s September hydrogen production. Heavy
2020 flagship report, The Role of CCUS industries account for almost 20% of
in Clean Energy Transitions. The report global CO2 emissions today. CCUS is
is part of the IEA’s Energy Technology the only demonstrated technology
Perspectives series, which took a solution for deep emissions
technology-neutral approach to reductions from cement production.
illuminate the opportunities and It is also the most cost-effective
challenges for meeting international approach in many regions to curb
energy and climate goals. The study emissions in iron, steel, and
found that currently, the world’s 20 chemicals manufacturing. Captured
existing largescale CCUS projects, while CO2 is a critical part of the supply
important, are seriously insufficient for chain for synthetic fuels from CO2
meeting a two-degree target by 2050. and hydrogen – one of a limited
New net-zero targets, a broader number of low-carbon options for
experience base, and stronger long-distance transport, particularly
investment incentives are, however, aviation.
building momentum for CCUS.
3. Providing a solution for the most
Strategic Roles for CCUS. As noted challenging emissions. CCUS can
earlier, the IEA study concluded that support a rapid scaling up of low-
“reaching net zero will be virtually carbon hydrogen production to meet
impossible without CCUS.” It identified current and future demand from new
four strategic roles for CCUS applications in transport, industry,
(summarized in Figure 5): and buildings.
1. Dramatically reducing emissions 4. Removing carbon from the
from existing infrastructure. CCUS atmosphere. For emissions that
can be retrofitted to existing power cannot be avoided or reduced
and industrial plants that could directly, CCUS underpins an
otherwise emit 600 billion tons of important technological approach
CO2 over the next five decades – for removing carbon and delivering a
about 17 years’ worth of current net-zero energy system.
annual emissions.
ENERGY FUTURES INITIATIVE | Page 11Session One Figure 5 Four Strategic Roles for CCUS The IEA identified four strategic roles for CCUS in its 2020 flagship report: tackling emissions from existing infrastructure, providing a platform for low-carbon hydrogen production; providing a solution for the most challenging emissions; and removing carbon from the atmosphere. Source: IEA, 2020. WORKSHOP SUMMARY: CCUS | Page 12
Session One
Growing Interest in CCUS. The The session concluded with an overview
recognition of the need for and of the critical need for government and
importance of CCUS is reflected in the industry action in this decade to
growing number of planned projects accelerate the progress of CCUS. The IEA
around the world. In the last three years identified the following four high priority
alone, more than 30 commercial areas for government and industry:
projects have been announced.
Deployment in some crucial sectors, 1. Create the conditions for investment
including steel and cement, however, is by placing a value on reducing
lagging even though CCUS is one of the emissions and providing direct
few emissions reductions opportunities. support for new or developing CCUS
CCUS, on the other hand, is relatively projects.
over-represented in other subsectors,
including natural gas processing and 2. Coordinate and underwrite the
fertilizer production. At the same time, development of industrial hubs with
the project portfolio for CCUS is shared CO2 infrastructure.
growing in diversity to include power
generation, cement, and hydrogen. 3. Identify and encourage the
development of CO2 storage in key
The IEA study concluded that the regions.
success of CCUS will depend on the
deployment of infrastructure to connect 4. Boost innovation to reduce costs and
emissions sources with suitable ensure that critical emerging
geologic storage. A rapidly emerging technologies become commercial,
trend for CCUS is the development of including in sectors where emissions
hubs and cluster models that utilize are hard to abate.
shared CO2 transportation and storage
infrastructure to reduce costs and
optimize infrastructure use.
ENERGY FUTURES INITIATIVE | Page 13Session Two
Session Two
Experiences with CCUS: The Need, Opportunities,
Challenges, and Lessons Learned
This session began with a brief • There are three factors that help
presentation on the Global CCS make the business case for CCS
Institute’s annual Global Status of CCUS around the world:
2020 report. It concluded that despite
the challenges of COVID-19, the pipeline ◦ An enhanced tax credit in the
of projects that are operational and United States
those under development grew for the ◦ Hubs and clusters
third year in a row. The report provides ◦ Hydrogen as the fuel of the
detailed information on and analyses of future
the global CCS facility pipeline,
international policy perspectives, CO2 • Despite the progress on CCS in
storage, and the CCS legal and 2020, to achieve net-zero
regulatory environment. Additional emissions by midcentury, CCS
points highlighted in the presentation: capacity must increase more than
a hundredfold by 2050.
• There are 26 CCS facilities in
operation, three under A Range of Uses for CCUS. Following
construction, 34 under the study overview, the panel discussion
development, and two that have elicited insights from CCUS experts in
suspended operations. There industry who are working on CCUS
were 17 new facilities added to projects around the globe. Each
the pipeline in 2020 alone. representative described their
company’s CCUS project(s), lessons
• The number of countries, cities, learned from previous projects, and
and companies that have insights about the future of CCUS.
committed to net-zero emissions Below is a summary of some of the key
targets increased in 2020 despite insights gleaned from this discussion:
the adversities of the COVID-19
pandemic, accelerating CCS • Bioenergy with CCS (BECCS) is a
development. negative emissions technology
that can play a major role in
• Policy and funding support for reducing emissions, as it is
CCS continued its momentum. relatively simple, does not require
the development of entirely new
WORKSHOP SUMMARY: CCUS | Page 14Session Two
Figure 6
8 Rivers: BECCS, Industrial Carbon Capture, Direct Air Capture
Technical processes developed by 8Rivers Energy facilitate capture, utilization, and storage of carbon dioxide, and can
be adapted for use with bioenergy to ultimately achieve negative emissions. Source: 8 Rivers, 2020.
technologies, and is low cost (see • CCUS in steel manufacturing
Figure 6 for BECCS and zero presents a significant opportunity
carbon electricity). Furthermore, since, according to Our World in
BECCS can be paired with Data, in 2016, steel and iron
renewables to create zero or production contributed 7.2% of
negative carbon transportation global greenhouse gas emissions
fuels that can easily be integrated and has very few other options to
into existing transportation reduce emissions. There are
infrastructure. Finally, BECCS is a currently two projects underway
very suitable technology to deploy in the United Arab Emirates
regionally due to the need for conducted by the Abu Dhabi
networks for gathering feedstocks National Oil Company (ADNOC)
that make clustering suitable. that will reduce an estimated 2.4
MtCO2/year (Figure 7).
ENERGY FUTURES INITIATIVE | Page 15Session Two
Figure 7
CCUS for Steel: Al Reyadah Project Description
This figure shows the processes for a low-carbon steelmaking operation utilizing carbon capture and sequestration.
Source: ADNOC, 2020.
• There is an important role for • The knowledge and experience of
government support of CCUS oil and gas corporations can be
absent internalization of the leveraged to deploy CCUS
external costs of climate change. because it involves many of the
Public-private partnership for same skillsets for planning,
hubs and clusters is emerging as developing, deploying, operating,
the ideal business model for risk monitoring, and testing CO2
sharing and investment in CCUS injection wells. The oil and gas
projects. The Longship project in industry also has significant
Norway, for example, received experience with pipelines,
nearly two-thirds of its funding another skillset that could
from the government to cover support the buildout and
investments and 10 years of maintenance of CCUS
operations; industry will be infrastructure.
responsible for funding the
balance of costs and must build • Financial incentives from
and operate its own facilities. governments are currently the
key driver of CCUS but the
industry needs long-term
WORKSHOP SUMMARY: CCUS | Page 16Session Two
commitments and more durable construction deadline; clarifying
policies to ensure widescale regulation; developing a long-term
deployment. CCUS policy that acknowledges the
geographic and industrial variations of
The session concluded with a “lightning the U.S. (i.e. not a one-size-fits all CCUS
round” of questions in which panelists policy); leveraging partnerships with
provided advice to the Biden-Harris industry to harness expertise and
Administration about lessons learned accelerate development; and
about CCUS deployment. Responses incorporating CCUS development within
included: extending the 45Q tax credit a broader pandemic recovery effort.
ENERGY FUTURES INITIATIVE | Page 17Session Three
Session Three
Key Technologies Enabled by CCUS
The third session of the workshop trade for around $200/ton of CO2
featured executives from three captured and stored.
companies leading in cutting-edge
emissions reduction technologies. The • Oil and gas, power, and chemicals
discussion focused largely on CCUS in are siloed, so breaking down the
cement and power generation, as well barriers between sectors would
as DAC (see Figure 8). be a major opportunity to deploy
cutting-edge CCUS applications
Though these companies’ technologies in efficient ways.
are entirely different in their application
and use, a commonality is that all of • Low-carbon cement policies are
them leverage modular designs that being led by the state and local
enable these technologies to be utilized levels (e.g., procurement
for several applications and scaled up. standards, low-carbon cement
requirements, tax incentives) and
Key insights offered during the these models can serve as a basis
moderated Q&A included: for other jurisdictions.
• There is optimism that more • Policy support is necessary to
supporting policies for DAC in the bridge the financial gap for
U.S. will drive its deployment. various CDR technologies;
Already, DAC facilities anywhere voluntary markets, philanthropies,
in the world are eligible for and corporations wishing to
credits under the CCS Protocol of offset their carbon footprint, will
California’s Low Carbon Fuel be insufficient in the long term.
Standard (LCFS), which currently
WORKSHOP SUMMARY: CCUS | Page 18Session Three
Figure 8
Climeworks: Direct Air Capture Technology
This figure shows Switzerland-based Climeworks’ direct air capture technology. Source: Climeworks, 2020.
ENERGY FUTURES INITIATIVE | Page 19Session Four Session Four Roadmap for Deploying CCUS in the United States The final session began with a Additional opportunities in terms of jobs presentation of the October 2020 EFI and air quality benefits were also and Stanford University Study, An Action identified. This study clearly articulated Plan for Carbon Capture and Storage in the social equity benefits associated with California: Opportunities, Challenges, and the relationship between carbon capture Solutions. This study included a from California’s industrial facilities and technoeconomic analysis to identify the the associated reduction in criteria CCUS opportunity in California: 76 pollutant emissions for residents living emissions sources with capturable near these capture sites (Figure 10). emissions totaling 60 MtCO2/year and saline formations with CO2 storage California offers strong financial support capacity of 100 to 500 gigatons, which is for CCUS through the LCFS CCS enough to store 60 MtCO2 per year for Protocol. This, combined with the federal more than 1,000 years (Figure 9). 45Q tax credit, creates opportunities in Figure 9 Carbon Capture Sources, Notional Infrastructure, Potential Storage Sites in California The analysis in An Action Plan for Carbon Capture and Storage in California identified four potential CCS “hubs” as well as 16 co-located emissions sources and CO2 sinks. Source: Energy Futures Initiative and Stanford University, 2020. WORKSHOP SUMMARY: CCUS | Page 20
Session Four
Figure 10
Social Equity and Community Benefits from Industrial Carbon Capture in California
CCS can provide local air quality improvements on certain facilities, local economic benefits, and job creation and
preservation. Source: Energy Futures Initiative and Stanford University, 2020.
the state for CCUS. There are, however, policies, adjust current policies, and develop
several barriers to its widescale demos, among other recommendations,
deployment. These challenges fall into which are detailed in the study (Figure 11).
four general categories. The recommendations were aimed at
achieving the following goals:
• Ambiguous position of the state
on the future role of CCS • Motivate the private sector to
deeply decarbonize activities
• Complex and untested regulatory
process for getting permits for CCS • Maximize options for meeting
2030 and midcentury greenhouse
• Revenue and cost uncertainty gas targets
discourage project finance
• Enable continued economic and
• The lack of public awareness and reliability benefits from existing
support for CCS industry and electricity generation
To address these challenges and take • Unlock new clean energy
advantage of the CCS opportunity in industries and jobs, including in
California, the state needs to create new hydrogen and DAC
ENERGY FUTURES INITIATIVE | Page 21Session Four
Figure 11
High Level Goals, Strong Foundations, and Actions to Support CCS in California
A POLICY ACTION PLAN FOR CCS IN CALIFORNIA TO MEET THE HIGH-LEVEL GOALS
Enable Continued Unlock new clean energy
Motivate the Private Maximize Options for
Economic and Reliability industries and jobs,
Sector to Deeply Meeting 2030 & Mid-Century
Benefits from Existing Industry including in Hydrogen
Decarbonize Activities Greenhouse Gas Targets
& Electricity Generation and DAC
Support
Support Create CO2
Options to
Innovation Transport
Ensure
at Research and
Adequate
Institutions & Storage
Clean Firm
Laboratories Operator
Power
OPPORTUNITIES TO LEAD
GLOBAL ACTION ON CLIMATE
Improve
Incorporate Support Establish Set
CCS Protocol in Mechanisms to Public-Private Statewide
Cap-and-Trade Make CCS Partnership to Carbon Removal
Projects More Create LA & Bay Targets
Attractive Area Hubs
KEY ENABLERS FOR CARBON NEUTRALITY
Affirm State Improve and Issue Policy Develop State
Issue Guidance
Support for CCS Coordinate CCS Guidance to Clarify Supported CCS
for CO2 Storage
in Meeting Permitting CCS Eligibility Demos with
Emissions Targets Processes Industry
NEAR-TERM ACTIONS FOR MEETING CALIFORNIA CLIMATE TARGETS
Potential to Rapidly Capacity to Store 60 Robust Clean Energy Large Industrial Base Commitment to
Reduce 15% of Today’s MtCO2/yr. for over Policy Frameworks to with Few Alternatives to Equitable Clean Energy
Emissions with CCS 1,000 Years Support CCS Decarbonize Transition
CALIFORNIA’S FOUNDATIONS
California
The analysis has a strong
in this foundation
report informed for CCS development.
the establishment Keyfor
of high-level goals drivers—near-term actions
CCS in California at the for figure.
top of the meeting climate targets,
enablershas
California of acarbon neutrality,forand
strong foundation CCSopportunities
development. Keyto drivers—near-term
lead global action—inform and increase
actions for meeting CCS project development
climate targets,
enablers of carbon
in specific areasneutrality, and opportunities
of recommended to lead
actions. globalEnergy
Source: action—inform
Futuresand increase and
Initiative CCS project development
Stanford in 2020.
University,
specific areas of recommended actions. Source: Energy Futures Initiative and Stanford University, 2020.
WORKSHOP SUMMARY: CCUS | Page 22Session Four
Following the study briefing, the final 101 projects underway at the
panel, comprised of experts in policy, National Energy Technology
advocacy, and research and development, Laboratory (NETL).
discussed options for supporting a U.S.
CCUS roadmap. This panel provided The panelists identified the following
unique perspectives on various elements challenges to CCUS in the U.S.:
of the CCUS landscape in the U.S.
summarized as follows: • Lack of a nationwide carbon
price limits the deployment of
• The midcontinent region has seen CCUS projects to those
significant interest in CCUS and qualifying for existing
activities for deployment as well incentives, namely LCFS and
as earlier stage analysis. There is 45Q; however, these credits
a 16-state carbon capture work alone are not enough to get the
group, which includes more than biggest emitters to pursue
400 stakeholders, and several on- CCUS projects.
going efforts to deploy CCUS,
preserve jobs and industries, and • CCUS needs a broader portfolio
explore additional opportunities approach, utilizing the incentives,
to support CCUS. standards, and other tools
applied for wind, solar, and
• There are opportunities for CCUS energy efficiency to see CCUS
in the power sector to help states deployment at scale.
and utilities achieve net-zero
carbon goals, complementary to • Public acceptance of CCUS and
widescale deployment of skepticism towards fossil fuel
renewables and other carbon-free companies is a major challenge,
generation sources. It is and these companies, many of
imperative to consider the which have decarbonization
impacts on local communities, targets and commitments, should
engage local stakeholders in follow through with these
discussions about CCUS early and commitments by investing in
often, and ensure that decisions decarbonization solutions,
are made with equity and pushing for policies and
environmental justice at the regulations to address climate
forefront. change, and immediately
reducing their own carbon
• DOE’s National Laboratories are a footprints.
locus for innovation and
development of various CCUS
technologies. There are currently
ENERGY FUTURES INITIATIVE | Page 23Session Four
• There is considerable unlocked regulations, and regional variations in
technical potential to develop emissions sources and sinks, require
CCUS in the U.S. where regional planning and solutions to
technology-neutral national optimize infrastructure.
climate policies are likely to
maximize its value. These policies Next, speakers highlighted some of the
should also address current changes that will be necessary for
challenges with the economy and widescale CCUS deployment and the
with social inequality. steps that the Biden-Harris
Administration can take to support this
• The relatively limited experience outcome. Recommendations include:
in saline reservoir CO2 storage as
compared to that for enhanced • Developing a comprehensive and
oil recovery (EOR) is a major sustained policy that supports
challenge because the future of jobs and workforce training, such
CCUS is saline storage, yet the as apprenticeship programs,
vast majority of CCUS projects provides incentives for CCUS, and
currently inject the CO2 for EOR. focuses on difficult to
The EPA UIC Class II well decarbonize sectors with few
permitting process (for EOR) is other options. Such a net-zero
much more straightforward, infrastructure agenda could
tested, and understood, while reconcile the divisions between
only two Class VI permits (for environmental justice and climate
geologic storage) have been advocates and those advocating
issued in the U.S. for carbon capture.
Other major U.S. challenges identified in • Pursuing a much broader RD&D
EFI analysis have limited CCUS agenda, including more projects
deployment. These include the lack of demonstrating storage of CO2 in
large-scale examples and hub models. saline reservoirs as well as
The U.S., for example, has only one analysis of the local air quality
power sector capture project (Petra benefits from carbon capture on
Nova), which was halted during the various sources of emissions.
COVID-19 crisis for economic reasons.
There are also issues with aligning • Establishing policies that provide
players, permitting, and financing for long-term certainty on the need
CCUS that currently contribute to a for permanent solutions to
difficult business environment. Finally, reducing emissions (e.g., a carbon
the untested and uncertain permitting price, border adjustments, etc.) so
requirements for CCUS, including varied companies can be confident that
and conflicting state and local investments will not be stranded.
WORKSHOP SUMMARY: CCUS | Page 24Session Four
• Working across the federal think is missing from the growing
government on a cohesive and coalition around CCUS. This included:
comprehensive climate plan,
articulated and implemented • Environmental justice
across the administration, organizations
including tax and investment
policies that are consistent, • Environmental advocacy
sustained, and focused on organizations that see no role for
achieving overarching goals. fossil fuels in the energy transition
• Collaborating through public- • Many industrial players who have
private partnerships involving not yet put “skin in the game”
state and federal government and
industry to develop shared CO2 • In the U.S., the steel industry has
transportation and storage not yet been included; however,
infrastructure, and creating a there is a huge opportunity for
supportive environment for CCUS carbon capture from steel
through policy- and investment- production that could provide
supported hubs and clusters. dramatic emissions reductions,
jobs, and other local benefits.
• Supporting new business models
for geologic storage (e.g., Overall, this session illuminated
utilities) as well as markets for actionable recommendations that will
carbon capture and removal. be needed from stakeholders in
advocacy, policymakers, and industry
In a final “lightening round” of questions, representatives.
the participants highlighted who they
ENERGY FUTURES INITIATIVE | Page 25Conclusion
Conclusion
The workshop concluded with remarks and from many stakeholders and
from the workshop co-chair who placed advocates of environmental justice,
CCUS in context of the importance of climate justice, environmental
developing a scientifically driven organizations, and labor unions. To
strategy for dramatically reducing summarize these needs, the following
carbon emissions from all sectors of the six key points were offered:
economy, recognizing national, regional,
and global differences, including the • We cannot accelerate climate
different drivers that are affecting solutions without building and
progress on meeting climate goals. sustaining coalitions
Figure 12 shows changes in global CO2
emissions by country/region, • We must recognize regional
demonstrating the uneven reductions needs and opportunities and
around the world. address them. Social equity and
justice must be at the forefront of
Such a strategy would engage a broad regional solutions
coalition from the political left and right,
Figure 12
Change in Energy Related CO2 Emissions by Region, 2018-2019
400
300
200
100
0
-100
EU US Japan Rest of
World
Energy-related CO2 emissions by country and region demonstrate the uneven reductions around the world. Source:
International Energy Agency, accessed March 2020.
WORKSHOP SUMMARY: CCUS | Page 26Conclusion
• Focusing on jobs, especially in climate action plan. CCUS provides
the face of the COVID-19 optionality as the world transitions to
pandemic and the associated lower carbon and enables an equitable
recession, is critical transition by creating new jobs and
preserving existing jobs that may
• Comprehensive energy and otherwise become stranded.
climate policy must maximize
optionality and flexibility—there is Finally, because CCUS is a proven
no “silver bullet” to combating technology that can be deployed
climate change immediately (barring financial and
regulatory barriers), it can provide
• Clean energy solutions must substantial near-term emissions
emphasize secure supply chains reductions across several important
and include embedded emissions economic sectors with few other
in policy solutions options to decarbonize. As the U.S. and
the world look ahead, there are many
• The world needs innovation to steps that can and must be taken to
meet net-zero emissions targets deeply decarbonize the U.S. and global
by midcentury economies.
The workshop underscored the value of
CCUS as a critical component of any
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