#1GLOBAL CCS INSTITUTE GLOBAL STATUS OF CCS 2022 CTION#2ABOUT THE REPORT The Global CCS Institute is a leading international carbon capture and storage (CCS) think tank. Our mission is to accelerate the global deployment of CCS as a vital part of tackling climate change and delivering climate neutrality. Our diverse international membership includes governments, corporations, private companies, research bodies and NGOs, all with a commitment to CCS as part of achieving a net-zero future. We have offices in Washington DC, Houston, London, Brussels, Abu Dhabi, Beijing, Tokyo and Melbourne. ABOUT THE REPORT CCS is an emissions reduction technology critical to meeting global climate targets. The Global Status of CCS 2022 documents important milestones for CCS over the past 12 months, its status across the world and the key opportunities and challenges it faces. We hope this report will be read and used by governments, policy-makers, academics, media commentators and the millions of people who care about our climate. AUTHORS This report was coordinated by Matt Steyn, Jessica Oglesby, Guloren Turan, Alex Zapantis, and Ruth Gebremedhin. The team of authors included Alex Zapantis, Noora Al Amer, lan Havercroft, Ruth Ivory-Moore, Matt Steyn, Xiaoliang Yang, Ruth Gebremedhin, Mohammad Abu Zahra, Errol Pinto, Dominic Rassool, Eric Williams, Chris Consoli, and Joey Minervini. [2] GLOBAL CCS INSTITUTE#319 29 38 49 49 53 24557225502233332124+2 2 3 3 63 GLOSSARY ACCU Australian Carbon Credit Unit ADNOC Abu Dhabi National Oil Company BECCS Biooenergy with CCS CCS Carbon Capture and Storage CCUS Carbon Capture Utilisation and Storage CDR Carbon Dioxide Removal CO2 Carbon Dioxide COP Conference of the Parties DAC Direct Air Capture DACCS Direct Air Capture with Carbon Storage DOE US Department of Energy EC European Commission EOR Enhanced Oil Recovery EPA Environmental Protection Agency EPC Engineer, Procure, Construct EPSS Emission Performance Standards ESG Environmental, Social and Corporate Governance ETS Emissions Trading System EU European Union FEED Front-End Engineering Design GFC The Green Climate Fund GHG Greenhouse Gas Gt Gigatonne GW Gigawatt IEA International Energy Agency IEA-SDS IEA's Sustainable Development Scenario IMO International Maritime Organisation IPCC Intergovernmental Panel on Climate Change IRS Treasury and Internal Revenue Service JCM Joint Crediting Mechanism JOGMEC Japan Oil, Gas and Metals National Corporation LCFS Low Carbon Fuel Standard LEDS Long Term Low Greenhouse Gas Development Strategies LNG Liquified Natural Gas MEE Ministry of Ecology and Environment MMV Monitoring, Measurement and Verification Mt Million Metric Tonnes MTPA Million tonnes per annum MW Megawatt NDC Nationally Determined Contribution NET Negative Emissions Technology NETL National Energy Technology Laboratory NPV Net present value NZE Net zero emissions PV Photovoltaic R&D Research and Development RD&D Research, Development and Demonstration SDS Sustainable Development Scenario SLL Sustainability Linked Loan SMR Steam Methane Reforming SOE State Owned Enterprise TWH Terrawatt Hour UNFCCC United Nations Framework Convention on Climate Change UAE United Arab Emirates UN SDGS UN's Sustainable Development Goals VCM Voluntary Carbon Market WTE Waste to Energy TABLE OF CONTENTS ABOUT THE REPORT 1. FROM THE CEO 2. AMBITION TO ACTION 3. GLOBAL STATUS OF CCS 3.1 GLOBAL FACILITIES AND TRENDS 3.2 POLICY, LEGAL, AND REGULATORY UPDATE 4. REGIONAL OVERVIEW 4.1 REGIONAL OVERVIEW: AMERICAS 4.2 REGIONAL OVERVIEW: ASIA-PACIFIC 4.3 REGIONAL OVERVIEW: EUROPE AND THE UK 4.4 REGIONAL OVERVIEW: MIDDLE EAST AND NORTH AFRICA (MENA) REGION 5. ANALYSIS 5.1 CARBON MARKETS 5.2 CARBON REMOVALS 5.3 HYDROGEN 5.4 FINANCE 5.5 INDUSTRY 5.6 EVOLUTION OF STORAGE 5.7 INFRASTRUCTURE 5.8 TIMELINES FOR CCS PROJECT DEVELOPMENT 6. APPENDICES 6.1 CO2 GEOLOGICAL STORAGE 6.2 2022 FACILITIES LIST 7.0 REFERENCES [3] GLOBAL CCS INSTITUTE#4AMBITION MUST NOW TRANSLATE TO URGENT, BROAD, AND LARGE-SCALE ACTION IF WE ARE TO MAINTAIN A LIVABLE CLIMATE. JARAD DANIELS CEO, Global CSS Institute WATCH THE VIDEO FROM THE CEO As we deliver the Global Status of CCS 2022, it is clearer than ever that CCS is one of the critical tools we must use now to address the climate crisis. In fact, without CCS, reaching our shared climate goals is practically impossible. When it comes to limiting global warming, the last few years have been marked by growing ambition from both countries and companies alike. That ambition must now translate to urgent, broad, and large-scale action if we are to maintain a livable climate. In the solution space, the momentum behind carbon capture and storage has continued to build. As a mature, well-understood technology, companies seeking to deploy CCS have embraced robust policy to strengthen the business case for doing so. As we publish the Global Status of CCS report this year, there are over 190 facilities in the project pipeline. In 2022, we've seen CCS becoming increasingly commercial and competitive in many countries. We expect to see more strategic partnerships and collaboration driving deployment, particularly through CCS networks. Clean hydrogen and other low-carbon fuels are also part of the CCS growth story, with dozens of blue hydrogen projects now in development around the world. This year we've also seen unprecedented interest and engagement in direct air capture with CCS or DACCS, with billions of dollars in funding allocated to scale-up this essential technology. The outlook for CCS has never been more positive, which is good news more broadly for climate change mitigation. However, global efforts to reduce emissions, including investment in CCS, are still grossly inadequate. Private capital must be met with government policy to unlock the full potential of CCS and keep global warming below 1.5 degrees. Put simply, we must move from ambition to action. [4] GLOBAL CCS INSTITUTE#52.1 AMBITION TO ACTION The past few years have witnessed an escalation in the language of climate change. Transforming the global economy to achieve net-zero greenhouse gas emissions by mid-century is now accepted as the objective in the global climate change discourse. This level of ambition, essential to avoid dangerous anthropogenic interference with the climate system, requires an acceleration in investment in near-zero emissions technologies of all types across all sectors. Put simply, the global response to climate change is advancing from ambition to action and this is clearly evident in data on the level of investment in carbon capture and storage (CCS). The significant increase in activity to develop carbon capture and storage projects reported in the Global Status of CCS 2021 report has continued throughout this reporting period. As of September 2022, the total capacity of CCS projects in development was 244 million tonnes per annum (Mtpa) of carbon dioxide (CO2) - an increase of 44 per cent over the past 12 months, as shown in Figure 1. This growth arises from the private sector's response to the rising expectations of civil society to move to a net-zero emissions future and the evolution of government policy and regulation that is strengthening the business case for investment in CCS. The business risks and opportunities created by climate change are receiving closer analysis. For some businesses, CCS is a critical tool in reducing their exposure to CO2 emissions, either directly or in their value chain, mitigating a strategic business risk. For others, CCS is an opportunity to supply a new and growing industry. Similarly, governments seeking to chart the lowest-cost, most efficient pathway toward net-zero are identifying CCS alongside all other mitigation options as essential to meeting climate targets, while ensuring a just transition for their communities. 2021 (using 2022 approach) 2022 0 20 40 60 80 100 120 CAPTURE CAPACITY (Mtpa) OPERATIONAL ADVANCED DEVELOPMENT OPERATION SUSPENDED FIGURE 1: CAPACITY OF CCS FACILITIES IN DEVELOPMENT [5] IN CONSTRUCTION EARLY DEVELOPMENT 眼 DEMAND FOR ECONOMIC PROSPERITY AND A JUST TRANSITION CCS Ooooo DEMAND FOR ENERGY, FERTILISER, STEEL, CEMENT, CHEMICALS ETC. DEMAND FOR GREENHOUSE GAS EMISSION REDUCTION SERVICES FIGURE 2: DEMAND DRIVERS FOR CCS GLOBAL CCS INSTITUTE#6If the provision of emission reduction services is considered in the same way as the market for any other service, investment in CCS would be expected to continue to grow. Demand for emission reduction services is rising as the carbon budget consistent with climate targets is depleted. Future demand is projected to rise even more steeply, creating an expectation of a rapidly growing industry to meet that demand. Simultaneously, demand for energy and the essential materials and products upon which modern society is built, such as fertiliser, steel, chemicals and cement, is also rising as emerging economies develop and their standard of living moves toward developed economies. CCS is at the centre of the Venn diagram of these demand drivers and economic growth, delivering emission reduction services in essential industries while supporting employment and economic prosperity. Recognising the potential of CCS, government policy continues to strengthen, which is incentivising greater levels of investment by the private sector. North America, Europe and the UK, regions containing established leaders in CCS-relevant policy, maintained or strengthened their positions over the past 12 months. Developments are described in greater detail in later sections of this report, but here are a few examples. In the US, the Infrastructure Investment and Jobs Act (US) passed into law, providing over US$12 billion for CCS and related activities, including: • $2.5 billion for carbon storage validation $8 billion for hydrogen hubs, including blue hydrogen ⚫ over $200 million announced or awarded by the US Department of Energy for CCS technology development. The US also enacted the historic Inflation Reduction Act, which includes enhancements to the 45Q tax credit and accelerates the deployment of CCS by extending the start of construction timing, lowering capture thresholds, and expanding transferability. US states, notably Pennsylvania, West Virginia, North Dakota, and California, advanced legislation related to CO2 storage, and/or proposed or established programs to support CCS. Canada established a C$2.6 billion tax credit for CCS projects and Saskatchewan extended its 20 per cent tax credit under the province's Oil Infrastructure Investment Program to pipelines carrying CO2. In Europe, Denmark announced €5 billion in subsidies for CCS, Norway announced NOK1 billion (US$100 million) to support three large blue hydrogen projects, and four of the seven projects selected for grant preparation under the first call of the European Union's Innovation Fund were CCS projects. These projects are a bioenergy with CCS facility in Stockholm; a cement facility in France; a hydrogen production facility in Finland; and a hydrogen, ammonia and ethylene plant in Belgium. A further seven CCS projects were selected in the second call of the Innovation Fund. The UK Government released its CCUS Investor Roadmap setting out its approach to delivering four CCUS low-carbon industrial clusters by 2030, and selected the first two clusters - East Coast and HyNet. North America and Europe host the most robust climate and CCS policy mechanisms, but policy is also advancing in the Asia-Pacific region. The Australian Government released additional acreage for geological storage of CO2, approved a method to allow CCS to create Australian carbon credits, and announced over A$200 million in funding to support CCS. The Japanese Government approved its Sixth Strategic Energy Plan describing how Japan will achieve net-zero emissions by 2050, in which CCS has a prominent role. The Chinese State Council has now issued more than 10 national policies and guidelines promoting CCS, including the Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and Vision 2035 of China. Both Indonesia and Malaysia took steps to develop legislation for the geological storage of carbon dioxide and the government of Thailand indicated that it will also develop legislation. This observed ramp-up of policy and legislation by national governments is consistent with a growing sense of urgency to drastically reduce greenhouse gas emissions. In charting a course to net-zero greenhouse gas emissions by 2050, the year 2030 has become a significant milestone in international climate negotiations and national emission reduction target setting. In addition to the fundamental relationship between atmospheric CO2 concentration and global average temperature, these challenging targets recognise that achieving net-zero emissions by 2050 requires a nation's emissions to be well on that glide path by 2030. Whereas historically, public discussion of emission reduction targets was almost exclusively concerned with 2050, the end of this decade is now receiving greater focus. In some respects, 2030 has become the new 2050. The outlook for CCS has never been more positive. However, global efforts to reduce emissions, including investment in CCS, remain grossly inadequate. Following the COVID shock to the global economy, emissions have returned to trend. Near-zero emission technologies must be deployed at unprecedented rates to cease the steady rise in emissions. While the private sector has the capital, the resources, and the expertise to meet that challenge, governments have the capacity to unleash that potential and drive investment in CCS through policy. [6] GLOBAL CCS INSTITUTE#7[7] 150 CAPACITY OF CCS FACILITIES CO2 (Mtpa) 100 50 50 250 200 300 3.1 GLOBAL FACILITIES AND TRENDS New CCS projects have been announced each month in 2022. As of September 2022, there are 196 (including two suspended) projects in the CCS facilities pipeline. This is an impressive growth of 44 per cent in the number of CCS facilities since the Global Status of CCS 2021 report and continues the upward momentum in CCS projects in development since 2017. Figure 3 shows the increase in the capacity of CCS projects from 2010 until September 2022 (the final bar represents the project development status as of mid-September 2022). In 2022, the Institute has formally adopted a revised approach to estimating total CCS capacity (see below). EARLY DEVELOPMENT IN CONSTRUCTION 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YEAR 2020 2021 2022 ADVANCED DEVELOPMENT OPERATIONAL FIGURE 3: PIPELINE OF COMMERCIAL FACILITIES SINCE 2010 BY CAPTURE CAPACITY (MTPA) * 2021 capacities adjusted to reflect this year's change to how capacity tonnages are interpreted, to facilitate comparison with 2022 figures. 1 This includes dedicated transport and storage projects. NUMBER OF FACILITIES OPERATIONAL IN CONSTRUCTION ADVANCED DEVELOPMENT EARLY DEVELOPMENT 30 11 78 75 75 OPERATION SUSPENDED CAPTURE CAPACITY (Mtpa) 42.5 9.6 97.6 91.8 2.3 243.9 TOTAL 2 196 FIGURE 4: COMMERCIAL CCS FACILITIES BY NUMBER AND TOTAL CO₂ CAPTURE CAPACITY (MID-SEPTEMBER 2022) The facility counts in Figure 4 also include transport and storage projects that do not include capture. These provide essential infrastructure for the industry to develop. As explained in the notes below, they do not contribute to capture capacity tonnage figures, to avoid double-counting of project capacities. GLOBAL CCS INSTITUTE#8Notable project developments in the 12 months since the last Global Status report include: • . • . . Drax Power Station in the UK announced the world's single largest bioenergy with CCS (BECCS) project, with a world-scale 8.0 Mtpa capacity across two units. The Klemetsrud Waste-to-Energy CCS project in Norway moved to In Construction, having secured funding. This is the first commercial-scale CCS project applied to a waste-to-energy facility. Glacier CCS Project - capture technology firm, Entropy, commissioned a CO2 capture facility on a natural gas-fired reciprocating engine, the first of its kind at commercial scale and an important milestone given the importance of future capture from natural gas combustion streams worldwide. Air Products announced its blue hydrogen project in Louisiana, incorporating natural gas gasification technology. ORCA, the world's first commercial direct air capture with carbon storage (DACCS) facility, was commissioned in Iceland. Its follow-up, the MAMMOTH project, was then announced. In Australia, the Bayu-Undan project by Santos has moved into Front End Engineering and Design (FEED). This project will capture CO2 from LNG production in Darwin and transport it via pipeline across the maritime border between Australia and Timor- Leste for offshore geological storage. A key feature of this project is repurposing an existing natural gas pipeline for CO2 Occidental, in partnership with DACCS technology company Carbon Engineering, announced that construction will commence on a 500 ktpa direct air capture project in the Permian Basin in the US. The plant is said to be capable of scaling up to a 1 Mtpa capacity. This is in the context of Occidental's stated plans to develop a fleet of 70 135 such facilities around the world by 2035. [8] GLOBAL CCS INSTITUTE#9[9] MEASURING GLOBAL CCS CAPACITY BY CAPTURE CAPACITY In prior years, most CCS projects were full-value chain. This means they tended to incorporate a single CO2 capture plant with its own dedicated CO2 compression, transport (usually pipeline) and storage systems. This meant that when describing the CO2 flow capacity (in tonnes per year) of these systems, the capacity of the capture plant, transport and storage systems were all aligned and operating as a single integrated system. Today, CCS networks are becoming the predominant method of CCS deployment. CCS networks involve the use of shared transport and storage infrastructure. Some CCS-related developments, such as shipping projects, pipelines, or new storage facilities, do not involve CO2 capture at all, and handle CO2 captured by third parties. If the CO2 flow capacities of these non-capture sites were counted in our statistics, there would potentially be a double-counting of global CCS capacity, as CO2 capacity would have already been included in our figures for capture plants upstream. To avoid this problem, and ensure compatibility with our historical capacity statistics, only CO2 capture capacity will be included when determining global CCS system capacity (Mtpa). This is why project pipeline charts and figures now explicitly refer to 'by capture capacity', a change from the earlier title "Capacity of CCS facilities". Dedicated transport and/or storage projects will still be counted in total facility numbers, but will not contribute to global CCS system capacity. Facility counts can be somewhat arbitrary depending upon where the boundaries between transport and storage facilities in networks are drawn. Therefore, total system capacity is a better guide to the growth of the CCS sector than facility counts. NOTE ON THE CHANGE TO THE INTERPRETATION OF CAPACITY TONNAGES IN 2022 Historically, Global Status of CCS reports have reported tonnage in millions of tonnes per annum (Mtpa) based on the mean of the proponent-reported range of plant capacities. For example, if a proponent said it was targeting 1-1.3 Mtpa for its project, our reports have stated this as 1.15 Mtpa. For projects in the Early Development stage, such ranges are often provided because there is uncertainty about the final specifications for the project. However, as projects progress to later stages and to construction, design capacities are typically locked into a single design capacity figure. This can make these ranges misleading, especially if the lower-end estimate is carried over from earlier project stages. The effect has been an overall understatement of CO2 capture capacity for the sector as a whole. Beginning with this report, design capacities (upper end of ranges, if given) will be used. If a range is revised when moving from Early Development to Advanced Development, for example, the new capacity figure will be used and the facility entry updated accordingly. This may mean a given project's stated capacity will be adjusted one or more times over the project life cycle. One effect of this change is that the 2022 capture capacity in the project pipeline bar chart is not directly comparable with previous capture capacities. A portion of the increase from 2021 to 2022 is due to this measurement change, and a portion is due to growth in projects. GLOBAL CCS INSTITUTE#10The project pipeline, in terms of facility numbers and capture capacity, is now at a record high. Since 2017, capture capacity has grown at a compound rate of over 34 per cent per annum. - Capture capacity (on a 2022 basis see explanatory note above) in the pipeline has grown substantially in the past 12 months. This includes an impressive near-doubling of capture capacity in the Advanced Development state (projects undergoing Front End Engineering Design), from 49.4 Mtpa in 2021 to 97.6 Mtpa in 2022. Advanced Development means projects have received significant funds for engineering development, demonstrating a higher level of commitment to project development and a higher probability of moving to funding approval and construction, so this increase is significant for future project growth. By facility count growth, the US continues to lead the way globally, with 34 new projects since 2021. Other leading countries in the past year include Canada (19 new projects), the UK (13), Norway (8), and Australia, the Netherlands and Iceland (6 each). OPERATIONAL EARLY DEVELOPMENT ADVANCED DEVELOPMENT ● IN CONSTRUCTION FIGURE 5: WORLD MAP OF CCS FACILITIES AT VARIOUS STAGES OF DEVELOPMENT [10] GLOBAL CCS INSTITUTE#11Significant contributors to the growth of Early Development and Advanced Development pipelines are featured in the tables below. TITLE COUNTRY INDUSTRY CAPTURE CAPACITY (MTPA) TITLE The Illinois Clean Fuels Project US Chemical Production 8.1 Drax BECCS Project Bayu-Undan CCS FACILITY COUNTRY INDUSTRY CAPTURE CAPACITY (MTPA) Timor-Leste Natural Gas Processing 10.0 UK Power Generation 8.0 Deer Park Energy Centre CCS Project US Power Generation 5.0 Damhead Power Station 듯 UK Power Generation 7.6 Federated Co-operatives Limited Canada Ethanol Production 3.0 Net Zero Teesside - BP H2Teesside UK Hydrogen Production 2.0 Huaneng Longdong Energy Base Carbon Capture and Storage China Power Generation 1.5 Cyclus Power Generation US Bioenergy 2.0 Federated Co-operatives Limited (Refinery) Canada Oil Refining 1.0 South East Australia Carbon Capture Hub Australia Natural Gas Processing 2.0 FIGURE 6 - SIGNIFICANT CONTRIBUTORS TO EARLY DEVELOPMENT GROWTH IN 2021-22 [11] FIGURE 7 - SIGNIFICANT CONTRIBUTORS TO ADVANCED DEVELOPMENT GROWTH IN 2021-22 GLOBAL CCS INSTITUTE#123.2 POLICY, LEGAL, AND REGULATORY UPDATE CLIMATE POLICY TRENDS AND ANALYSIS The publication of the much anticipated Intergovernmental Panel on Climate Change (IPCCC) Working Group III (WG3) Report, Mitigation of Climate Change, has increased awareness of the need for CCS, illustrating its effectiveness and viability through widescale deployment across various scenarios and sectors. However, while large- scale fossil-based energy and industry sources are posed to increasingly include CCS in modelled pathways to limit warming to 1.5°C, current rates of deployment are far below those found in the modelled pathways. The relationship between CCS and technology-based carbon dioxide removal (CDR) is highlighted in counterbalancing emissions where they cannot be mitigated. Widening the lens to consider overall social, environmental and economic impacts across mitigation options, an analysis of the relationship of CCS to the sustainable development goals (SDG) found synergies in goals 3, 7, 8, 9 and 12. A brief published by the Global CCS Institute discusses in further detail the key takeaways for CCS in the WG3 report (1). 1 6 [12] NO POVERTY 2 ZERO HUNGER SSS 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION CLEAN WATER AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 11 SUSTAINABLE CITIES AND COMMUNITIES 12 16 PEACE, JUSTICE AND STRONG INSTITUTIONS RESPONSIBLE CONSUMPTION AND PRODUCTION QO 17 PARTNERSHIPS FOR THE GOALS 9 AND INFRASTRUCTURE AND INFRASTRUCTURE 5 GENDER EQUALITY 10 REDUCED INEQUALITIES 13 CLIMATE ACTION 14 LIFE BELOW WATER 15 LIFE ON LAND SUSTAINABLE DEVELOPMENT GOALS FIGURE 8: THE UN SUSTAINABLE DEVELOPMENT GOALS (SOURCE: THE UNITED NATIONS) GLOBAL CCS INSTITUTE#13In current international climate negotiations, Articles 6 (market mechanisms and non- market approaches) and 14 (global stocktake) of the Paris Agreement remain the most relevant for CCS. As Article 6 matures with significant developments in the technical work and the establishment of its supervisory body, clarity is still needed on the transfer of existing CCS methodologies from the Clean Development Mechanism (CDM) to the upcoming mechanism under Article 6. Looking at Article 14, the global stocktake (GST) which runs until 2023 and repeats in five-year cycles - presents a timely opportunity for CCS experts to engage in technical dialogues (TD) with parties that could inform updated nationally determined contributions (NDC) at the heart of achieving the objectives of the Paris Agreement. - YEAR AUSTRALIA BAHRAIN CANADA CHINA EGYPT EL SALVADOR ICELAND IRAN IRAQ JAPAN MALAWI MONGOLIA NORWAY PAKISTAN QATAR SAUDI ARABIA SOUTH AFRICA UAE UNITED STATES KUWAIT TOGO TUNISIA INDC FIRST NDC FIRST NDC UPDATE SECOND NDC TOWARD CLOSER REGIONAL COOPERATION The role of closer, regionally focused cooperation in achieving CCS deployment has arisen as a further and important consideration for both governments and industry over the past 12 months. The emergence of new markets and applications for CCS technologies, enhanced national commitments to achieving net-zero and the commercial opportunities posed by the deployment of CCS networks, has led to greater scrutiny of opportunities beyond national boundaries. Further progress with projects under development in the North Sea, as well as proposed activities in Southeast Asia and the wider Asia-Pacific region, are indicative of this approach. To support this ambition, attention has inevitably turned to the requirements necessary for achievement and, in particular, the development of a supportive policy, legal and regulatory landscape. National governments and corporations with an interest in developing projects with a transnational element are now actively considering and promoting issues surrounding transboundary regulation, as well as the development of regional frameworks and mechanisms that will support the development of CCS networks. The challenges associated with a more regionally focused approach are particularly significant where CO2 is transported from one country for storage in another nation's territory. The ability of project proponents to fully recognise the contribution of these transboundary storage activities within national and international accounting and crediting schemes has been raised by several government and industry parties as an important issue to be addressed. Similarly, the absence of detailed legal and regulatory regimes for the technology in many nations worldwide also creates uncertainty as to how storage operations will be regulated. In addition, these transboundary storage projects will also call into play several wider international, regional and domestic legal frameworks that will all require careful navigation to ensure they do not unwittingly pose further barriers to proposed activities. Few examples exist where these CCS-specific issues have been addressed. However, the consideration of transboundary issues within the international marine agreements provides an important model. The amendments to the London Protocol and the approach adopted by the parties to date, are indicative of the need to swiftly address these challenges. NDC MENTIONS CCS ■NDC DOES NOT MENTION CCS NOT AVAILABLE FIGURE 9: CCS IN COUNTRY NDCS AND CCS INTERNATIONAL LEGISLATION [13] GLOBAL CCS INSTITUTE#14The 2019 agreement by the parties to the protocol, to allow for the provisional application of a 2009 amendment to Article 6, finally enables parties to avail themselves of provisions explicitly aimed at supporting the transboundary transportation of CO2 for the purposes of geological storage. To date, however, only the Republic of Korea, Denmark, the Netherlands and Norway have formally submitted a declaration on the provisional application of the 2009 amendment. The Institute's own analysis demonstrates there is significant potential for further activity within the auspices of the London Protocol to address these challenges and drive regional collaboration (2). An increasing focus on the development of regional networks or individual projects, which in many instances will require the transportation of CO2 across international maritime boundaries, emphasises the need for a renewed focus on the role of the treaty and the national frameworks in supporting deployment. REGIONAL POLICY, LEGAL AND REGULATORY DEVELOPMENTS The global policy, legal and regulatory environment for CCS remains dynamic, with significant developments in many jurisdictions over the past year. While a number of early-mover nations have adopted a renewed focus toward addressing these issues, several countries are now in the initial stages of developing their policy response to support and facilitate the technology's deployment. In North America, regulators and policymakers have continued to strengthen their existing CCS-specific frameworks to offer further financial incentives and provide new and additional regulatory frameworks. Canada's robust policy and regulatory environment has been further strengthened by a proposed federal investment tax credit for CCS, while in the US, the federal government has committed further project- specific and infrastructure funding through its Infrastructure Investment and Jobs Act (US). Additional enhancements to the US's successful 45Q tax credit scheme were made through the introduction of the Inflation Reduction Act (US) of 2022, while expansion of the nation's CCS-specific legislation also continues, with planned state-level legislation and new federal legislation to regulate leasing and provide oversight of offshore CCS operations. The announcement of project support through the EU's Innovation fund for CCS, coupled with a buoyant EU Emissions Trading Scheme (EU ETS) and further policy initiatives from individual member states, continues to strengthen the supportive policy environment for the technology in Europe. Several countries within the region have sought to build upon this momentum, announcing new initiatives and committing further support to projects. In the UK, the government has progressed its post-Brexit plan for energy transition, announcing two initial hubs and further refining its business model for transport and storage. Norway and the Netherlands have also sought to strengthen policy and regulatory commitments to the technology and the two nations were the first to deposit declarations on the provisional application of the London Protocol amendments. On another positive note, several other member states are also seeking to complete regulatory frameworks, remove barriers and provide policy support. Recent policy, legal and regulatory developments across the Asia-Pacific region highlight the increasing focus of government and industry on the technology as well as the significance of these issues in supporting its more widespread deployment. In Australia, the new Labor government has committed to strengthening baselines for major emitters under the existing safeguard mechanism, a decision that may offer further support to CCS projects. The development complements the earlier release of the CCS-specific methodology under the national Emission Reduction Fund, which will provide a formal revenue pathway through the generation of carbon credit units. The governments of Japan and China have also taken further steps in the past year, introducing new climate and energy policies and in the case of Japan, announcing a commitment to the development of a CCS-specific regulatory framework. Significant regional potential for the technology has led to several important developments in Southeast Asia. The governments of Indonesia and Malaysia have made several policy announcements in line with their commitments to supporting more widespread deployment. The government of Indonesia has released a draft of its region-first CCS-specific legal and regulatory framework, with Malaysia also indicating that it too is in the process of developing a CCS-specific regulatory regime. While other countries within the region have announced projects or taken tentative steps toward deployment, their policy and regulatory regimes remain underdeveloped and will require further intervention to support more widespread deployment. [14] GLOBAL CCS INSTITUTE#154.1 REGIONAL OVERVIEW: AMERICAS The Americas, particularly North America, continue leading the world in CCS deployment. In the US, the Biden Administration finds that achieving an equitable transition to a net- zero economy by 2050 must include policies that provide significant funding for cutting- edge technologies to safely and efficiently capture, remove, and store carbon dioxide. Carbon capture and storage has bipartisan political support in the US. Likewise, in Canada, CCUS is critical in its economic and environmental path to meeting its net-zero by 2050 objective. The role of environmental, social, and governance (ESG) principles continues to increase. NORTHWEST TERRITORIES Territorial carbon tax SASKATCHEWAN Federal fuel charge, provincial OBPS on some sectors, federal OBPS on others ALBERTA Federal fuel charge, provincial OBPS BRITISH COLUMBIA Provincial carbon tax ONTARIO Federal fuel charge, provincial OBPS as of January 1, 2022 CANADA PROVINCIAL/TERRITORIAL SYSTEM APPLIES FEDERAL BACKSTOP APPLIES IN PART QUEBEC Cap-and-Trade NEWFOUNDLAND AND LABRADOR Provincial carbon tax and OBPS PRINCE EDWARD ISLAND Provincial fuel charge, federal OBPS NOVA SCOTIA Cap-and-Trade NEW BRUNSWICK Provincial fuel charge, provincial OBPS as of January 1, 2021 ■FEDERAL BACKSTOP APPLIES IN FULL OUTPUT-BASED PRICING SYSTEM (OBPS), A REGULATORY TRADING SYSTEM FOR INDUSTRY FUEL CHARGE POLICY In November 2021, the Province of Saskatchewan announced the eligibility of pipelines transporting CO2, for CCUS including enhanced oil recovery (EOR), for the provincial oil infrastructure investment program (OIIP) (1). The province of Alberta also announced in the fourth quarter of 2021 the Alberta Hydrogen Roadmap, outlining Alberta's intention to become an international leader in clean hydrogen. CCUS is key in the roadmap (2). In the first quarter of 2022, the government of Canada released its 2030 Emissions Reduction Plan (3). Canada's goal is to position its industries to be green and competitive, which includes developing a CCUS strategy to incentivise the development and adoption of this technology. The plan provides a roadmap for how Canada will meet its enhanced Paris Agreement nationally determined contributions (NDC) target to reduce greenhouse gas emissions to 40-45 per cent below 2005 levels by 2030 across the Canadian economy, and puts the country on a path to achieving net-zero emissions by 2050. FIGURE 10: CARBON PRICING ACROSS CANADA Following the release of the plan, Canada issued its 2022 federal budget, which strongly supports CCUS via an investment tax credit (4). The tax credit rate is 60 per cent for direct air capture projects, 50 per cent for all other carbon capture projects, and 37.5 per cent for transportation, storage, and use from 2022 through 2030. After that, from 2031 to 2040, the tax rates drop to 30 per cent, 25 per cent, and 18.75 per cent, respectively. The tax credit can be claimed by businesses that, beginning 1 January 2022, incur eligible expenses related to purchasing and installing equipment used in a suitable new project that captures CO2. Companies can claim the tax credit only if they agree to abide by a validation and verification process, prove that the project meets CO2 storage requirements, and produce a climate-related financial disclosure report. [15] GLOBAL CCS INSTITUTE#16ENVIRONMENTAL, SOCIAL AND GOVERNANCE In December 2021, Canada's Prime Minister, Justin Trudeau, directed Cabinet ministers to move toward mandatory climate-related financial disclosures as part of Canada's strategy to transition to net-zero by 2050 (5). The 2022 Budget included this mandatory reporting requirement across a broad spectrum of the Canadian economy, based on the international Task Force on Climate-related Financial Disclosures (TCFD) framework (6). OTHER PROVINCES - ONTARIO Hard-to-decarbonise sectors of Ontario's economy, such as steelmaking and cement, do not have obvious paths to a carbon-neutral future. In these sectors, CCS likely provides the most viable decarbonisation option. Therefore, the government is evaluating CO2 storage as a decarbonisation option. The likely storage area will be in the western part of the province in saline aquifers. But existing laws prohibit storage, so the province must revise the governing statutes by narrowing the prohibition on the injection of CO2 into a well regulated under the Oil, Gas, and Salt Resources Act (Canada), and by enabling authorisation to store carbon on Crown land under the Mining Act (Canada) (7). PROJECTS Canada's CCUS-specific action and strategy primarily lies in the provinces of Alberta and Saskatchewan. Alberta is developing carbon storage hubs to help cut climate- warming emissions by permanently sequestering CO2 underground. In March 2022, the province selected six proposals to move forward with developing Canada's first carbon storage hubs servicing Alberta's industrial heartland region near Edmonton. The selected proposals came from: Enbridge Inc.; Shell Canada Limited; ATCO Energy Solutions Ltd; Suncor Energy Inc.; Wolf Carbons Solutions; Bison Low Carbon Ventures; Enhance Energy; and a joint-venture project from TC Energy and Pembina Pipeline Corp. (8,9). Alberta's abundance of geological formations for CO2 storage makes it an ideal location to develop a series of CCUS hubs (10). Entropy Inc. announced that it has begun commissioning its first post-combustion CCS project at the Glacier Gas Plant in Alberta. The project is considered to be the world's first commercial project to capture and store carbon dioxide from the combustion of natural gas (11). The government of Saskatchewan's Ministry of Energy and Resources and others will support a study, developed by the Transition Accelerator and the Saskatchewan Research Council, to provide investors with an analysis of commercial-scale hydrogen opportunities and synergies with CCUS infrastructure in Saskatchewan. UNITED STATES POLICY The national climate goals of 100 per cent clean electricity by 2035 and achieving a net- zero emissions economy by 2050 involve significant reliance on CCS. Through enacted legislation in late 2021 and during 2022, the US committed to record investments into carbon capture technologies, while also addressing environmental justice concerns. LEGISLATIVE In November 2021, the US enacted the Infrastructure Investment and Jobs Act (IIJA) (US), which included over US$12 billion to be spent on CCS over the next five years. The legislation includes funding for CCUS research, development, and demonstration, CO2 transport and storage infrastructure, carbon utilisation market development and four regional direct air capture with carbon storage (DACCS) hubs, and DAC Technology Competition (12). The US enacted the bipartisan Creating Helpful Incentives to Produce Semiconductors for America fund in 2022, or the CHIPS Act (US). CHIPS provides funding for increased carbon removal research, development and demonstration (13). The US also enacted the historic Inflation Reduction Act (US) of 2022, which includes enhancements to Internal Revenue Service section 45Q. The Act increases the credit amount per tonne for entities satisfying prevailing wage and apprentice requirements (14,15). The legislation also extends the start of construction timing to the end of 2032; lowering capture thresholds, including direct pay; and expanding transferability. [16] GLOBAL CCS INSTITUTE#17POLICY GUIDANCE AND ANNOUNCEMENTS The Council on Environmental Quality (CEQ) issued guidance to promote the responsible development and permitting of CCUS projects. Guidance elements include facilitating federal decision making on CCUS projects and CO2 pipelines, public engagement, understanding of environmental impacts, and carbon dioxide removal (16). The Department of Energy Office of Fossil Energy and Carbon Management (FECM) published its strategy for advancing CCS. The Strategic Vision establishes a framework for making informed carbon management decisions regarding deep decarbonisation and addressing legacy emissions. FECM prioritises justice, labour and engagement; carbon management approaches toward deep decarbonisation; and technologies that lead to sustainable energy (17). The Pipeline and Hazardous Materials Safety Administration (PHMSA) announced new safety measures for CO2 pipelines and initiated new rulemaking. PHMSA also issued an updated advisory bulletin addressing issues resulting from geological hazards (18). The Bureau of Land Management (BLM) issued guidance for CO2 storage in line with the Federal Land Management Policy Act (US). BLM's instruction memorandum addressed carbon storage on public lands, including pore space managed by BLM (19). OFFSHORE STORAGE The IIJA legislation amends the Outer Continental Shelf Lands Act (US), directing the Department of Interior to develop regulations for establishing a permitting framework for offshore CO2 storage. JUDICIAL The US Supreme Court issued its decision in West Virginia v United States Environmental Protection Agency (USEPA), a case challenging the 2015 Obama administration's Clean Power Plan's (CPP) rule. The court held that the USEPA exceeded its statutory authority under the Clean Air Act (US) in attempting to regulate the nation's energy sector by adopting the CPP. The court ruled that the agency could not "force a nationwide transition away from the use of coal" (21). The decision limits the USEPA's ability to regulate greenhouse gases. States will likely use their authority to regulate GHGs. STATES Several states are progressing carbon management policies. The California Air Resources Board (CARB) released its Draft 2022 Scoping Plan for comment. The Scoping Plan presents a path for carbon neutrality by 2045, while supporting economic, environmental, energy security, justice, and health priorities. The Scoping Plan calls for the deployment of CCS technology in sectors where non-combustion options are not technically or economically viable for meeting 2045 goals (22). Several other states have enacted legislation or policies covering CO2 storage. These include Indiana, West Virginia, and Wyoming. States continue to face permitting concerns where only two states, Wyoming and North Dakota, have primacy for issuing permits for Class VI wells under the Underground Injection Control Program, which covers injection wells for geologic storage of CO2. The existing permitting process can take years. The state of Louisiana has a primacy permit application pending. Texas, Arizona, and West Virginia are in the pre-application primacy application process. ENVIRONMENTAL, SOCIAL AND GOVERNANCE The Securities and Exchange Commission proposed a rule addressing climate-related disclosures. The proposed rule would require company disclosure on how it plans to attain climate-related targets (such as investing in renewable energy or carbon capture technology). The proposal recognises that CCS will likely have a role to play in the governance of some companies regarding ESG. (20) [17] GLOBAL CCS INSTITUTE#18DIVERSE PARTNERSHIPS PROMOTE CCS DEPLOYMENT Significant momentum for CCS project developments and announcements in various sectors continues. The high level of activity related to CCS project developments is likely due to a number of reasons that include collaboration and partnerships between companies with differing capabilities and requirements in the CCS value chain; policy changes such as enhanced 45Q tax credits; and innovative pipeline service changes from natural gas to CO2 transport conversions. Examples of some these innovative projects include: • • Talos Energy, Carbonvert, and Chevron announced an expanded joint venture to develop the Bayou Bend CCS hub, with Talos being the operator. (23) NEXT Carbon Solutions and California Resources Corporation jointly announced an agreement to explore further the decarbonisation of CRC's Elk Hills Power Plant. The companies seek to capture and utilise the emissions from the Elk Hills Power Plant for permanent storage in oil-producing reservoirs. (24) • Carbon America will finance and operate systems to capture and store underground 95 per cent of CO2 emissions from two Colorado ethanol plants. (25) • Tallgrass plans to convert its Trailblazer natural gas pipeline to transport CO2 captured from a carbon capture project at an ADM corn processing complex in Nebraska. The 400 mile (644 km) pipeline expands the reach of its Eastern Wyoming Sequestration Hub. (26) ⚫ The Red Trail Energy CCS project at its ethanol facility near Richardton, North Dakota, is officially operating. The project is the first in the US to operate under a state-led regulatory authority for carbon storage (27). The Red Trail project was aided by benefits from the 45Q tax credit. • • More companies announced support for the massive proposed carbon capture and storage hub in the Houston Ship Channel, bringing the number of industrial facilities to 14. (28) Occidental plans to build 70 - 135 carbon capture facilities by 2035. The facilities are expected to each remove as much as 1 Mtpa of CO2 directly from the atmosphere. (29) DEVELOPMENTS IN BRAZIL Brazil hosts an operating CCS facility in the Santos Basin where Petrobras continues progressing toward its goal of injecting 40 million tonnes of CO2 by 2025. Significant policy developments regarding CCS deployment occurred in 2021 and 2022 in Brazil. In addition to updating its NDC, significant legislation was introduced into Brazil's legislature (30). Bill 1.425/2022 establishes a legal framework for the geological storage of carbon dioxide, addressing pore space property rights, long-term responsibilities and its transfer from private to public agent, the definition of regulatory agencies, and the period of monitoring. (31) Additionally, Decreto 11.075/2022 establishes the procedures for the preparation of "Sectoral Plans for Mitigation of Climate Change" and sets the National System for the Reduction of Greenhouse Gas Emissions (31). [18] GLOBAL CCS INSTITUTE#194.2 REGIONAL OVERVIEW: ASIA-PACIFIC 250 CCS in the Asia-Pacific region, as part of broader climate mitigation, remains a continuing contrast between significant development and lagging deployment. While the public and private sectors across the region continue to release climate mitigation plans and ramp up decarbonisation efforts, much more is required and soon (1). Part of the complexity of regional climate ambition is that many Asian economies, particularly those in Southeast Asia, are reliant on fossil fuels to drive their growth. Many also remain home to a substantial portion of the world's emissions-intense industries, highlighting the necessity of CCS in managing the dual challenge of growth and decarbonisation. Some notable progress has been made over the past 12 months. Several new projects have been announced, including the first commercial project in Thailand, and institutional momentum is clear as CCS regulations and policy mechanisms have begun to emerge at national and sub-national levels. Collaboration continues to accelerate, with MOUS proliferating across both the private and public sectors. However, three broad barriers to CCS remain across the region to varying extents geological storage resource data, legal and regulatory frameworks, and incentivising policy. MtCO2 200 150 100 50 [19] 2030 FUEL TRANSFORMATION INDUSTRY POWER 2040 2050 FIGURE 11: CCUS DEPLOYMENT IN SOUTHEAST ASIA IN THE SUSTAINABLE DEVELOPMENT SCENARIO (SOURCE: INTERNATIONAL ENERGY AGENCY 2021) * Values shown are from the IEA Sustainable Development Scenario, corresponding CCUS deployment levels are generally higher in the IEA Net-Zero 2050 roadmap GLOBAL CCS INSTITUTE#20MALAYSIA Malaysia, in large part through its well-established oil and gas industry, is positioning itself to be a CCS leader in Southeast Asia. At a Global CCS Institute event in April, a representative from Malaysian national oil and gas operator, Petronas, stated that the national vision was to become an offshore storage hub by the end of the decade (2). MPM Senior Vice President, Mohamed Firouz Asnan, publicly said that "sixty per cent of storage capacity will be allocated to Malaysia - for Petronas and our partners - while the remaining 40 per cent will be made available to other users" (3). In the same plan, the President announced the introduction of a carbon pricing mechanism (6). However, little information has been released as to rates and administration. A national climate change legal framework is expected near the end of 2022. CCUS regulations are believed to be under development. INDONESIA Indonesia remains a CCS proponent and appears to be a deployment frontrunner in Southeast Asia. Like Malaysia, the broad vision for Indonesian CCS is delivering project- level abatement, while also opening the opportunity for the country to become a storage facility in the region. The Indonesian Government is progressing policy and regulatory development as foreign oil and gas operators drive projects. PROJECTS More information has been released regarding the Kasawari CCS project, located offshore from Sarawak. Linked to the Kasawari Ph2 Field, the project forms part of a strategy to monetise high CO2 gas resources and part of the organisation's broader objective of achieving net-zero by 2050. The project seeks to capture approximately 4.5 Mtpa CO2, beginning in 2025, transported via pipeline 135 km to a depleted reservoir in the M1 field (2). The second project emerging in Malaysia is the Lang Lebah CCS project. Offshore from Sarawak, Lang Lebah is the largest discovery from PTTEP, Thailand's national oil operator (4). The reservoir is estimated to contain 17 per cent CO2, necessitating CCS (5). POLICY In September 2021, during the release of the 12th Malaysia Plan 2021-2025, the Malaysian Government committed to achieving net-zero by 2050 'at the earliest', with a commitment to a 45 per cent reduction in emissions by 2030, based on 2005 levels (6). The national commitment, in line with the same commitment from Petronas, highlights a necessary role for CCS for the world's fourth-largest liqufied natural gas (LNG) producer (7). PROJECTS In late 2021, bp announced that the Indonesian oil and gas regulator, SKK Migas, had approved the expansion of the Tangguh LNG project and the development of the Vorwata CCUS project (8). The project, slated for completion by 2026 or 2027, will inject up to 4 Mtpa for incremental gas recovery and permanent storage (9). Repsol is planning its first injection at its Sakekamang CCS project by 2027, which is estimated to be able to permanently store 2.5 Mtpa. In May, Pertamina announced it would collaborate with Air Liquide Indonesia to develop CCUS technology at the Balikpapan Refinery Processing Unity, with CO2 utilised or stored in the Kutai Basin (10). Elsewhere, four organisations, Japan Oil, Gas and Metals National Corporation (JOGMEC); Mitsubishi Corporation (MC); Bandung Institute of Technology (ITB); and PT Panca Amara Utama (PAU), have agreed to conduct a joint study on the production of ammonia with CCS. [20] GLOBAL CCS INSTITUTE#21POLICY AND REGULATORY DEVELOPMENTS Indonesia established a taskforce in mid-2021, coordinated by the Ministry of Energy and Mineral Resources, to draft CCUS regulations. The regulations are expected to be disseminated by the end of 2022. The Presidential Regulation 98/201 on the Instrument for the Economic Value of Carbon for the Achievement of the NDC and Control, a carbon pricing mechanism, was meant to launch in early 2022, but has been delayed several times. The mechanism effectively sets up a legal framework for both domestic pricing and trading of carbon and will operate in conjunction with the carbon tax set to be imposed on coal-fired power plants (at US$2.09 per tonne) of carbon dioxide. AUSTRALIA PROJECTS NEW AND UPDATED - Perhaps the most significant development in the Australian CCS project landscape has been the progress of the Middle Arm Sustainable Development Precinct, a natural gas processing and low-carbon manufacturing hub in the Northern Territory. The Middle Arm hub is now in the early planning phases, having received project commitments from the previous federal government, as well as major natural gas operators INPEX and Santos, in the past 12 months. In November 2021, Santos announced a final investment decision on its Moomba CCS project, which will commence operations in 2024 and inject 1.7 Mtpa (11). Santos entered into the FEED phase in March for the proposed Bayu-Undan CCS project, located offshore from Timor-Leste (12). Bayu-Undan could store up to 10 Mtpa CO2, acting as a regional storage hub (12). In April, ExxonMobil, through Esso Australia, signalled it was undertaking pre-FEED studies to determine the potential for a CCS hub in the Gippsland Basin (13). Woodside, BP, and Japan Australia LNG are undertaking feasibility studies for a CCS network on the Burup Peninsula in North-West Australia. (14) Mitsui E&P Australia is assessing the feasibility of commercialising the Mid-West Modern Energy Hub, a natural gas processing and blue hydrogen facility (15). POLICY AND REGULATORY DEVELOPMENTS Notably, a new Australian Government was elected in May. The Labor Government has pledged to strengthen baselines for major emitters under the existing safeguards mechanism, effectively meaning that companies will be able to emit less each year or else pay for offsets. Significantly for CCS, deployment may be spurred in hard-to-abate industrial sectors as a result. In late 2021, a CCS methodology was included under the Emissions Reduction Fund, allowing projects to generate Australian carbon credit units (ACCU) and thereby generate income (16). In June, the Minister for Climate Change and Energy, Chris Bowen, announced an independent review into the Emissions Reduction Fund, highlighting CCS among several recently adopted methodologies for specific scrutiny. In March, the Western Australian Minister for Mines and Petroleum, Bill Johnston, approved the drafting of the Greenhouse Gas Storage and Transport Bill, which will underpin the regulatory regime for CCS in the state (17). JAPAN A reliance on energy imports and limited CO2 storage capacity, coupled with a net-zero by 2050 commitment and associated decarbonisation targets, has driven Japan to act as a convenor for climate and energy in the region. In line with this, Japan continues to promote bilateral and multilateral CCUS collaboration in the Asia-Pacific region. PROJECTS AND NOTABLE UPDATES Japanese shipping companies are increasingly active in liquefied CO2 transportation for CCS. Japan CCS is working with Kansai Electric Power on a demonstration project to transport CO2 from Kansai Electric Power's coal-fired power complex in Kyoto to the Tomokomai CCS project, commencing operation in 2024 (18). NYK and the Knutsen Group have established a new business for liquefied CO2 transportation and storage; Mitsubishi Shipbuilding is working on the construction of a CO2 demonstration ship; and MOL and Petronas have signed an MOU on liquefied CO2 transportation for CCUS (19-21). [21] GLOBAL CCS INSTITUTE#22In January, the Suiso Frontier, the world's first liquefied hydrogen carrier, arrived in Victoria, Australia to transport hydrogen to Japan (22). The shipment marked an important milestone for the Hydrogen Energy Supply Chain (HESC), a coal gasification hydrogen pilot project. If the HESC moves to the commercial phase, captured CO2 will be stored at the Carbon Net CCS project. Elsewhere in Australia, INPEX is playing a leading role in the development of the Middle Arm CCS hub in Darwin. J-POWER and ENEOS have announced a feasibility study for a domestic CCS project, with a potential final investment decision (FID) projected for 2026 and subsequent commencement in 2030 (23). The project aims to decarbonise oil refining and coal-fired and biomass-fired plants and stored CO2 in western Japan. CHINA OVERVIEW CCUS has been the subject of increasing attention in China over the past 12 months. Research has highlighted the potential role for CCUS under the carbon neutrality target, suggesting the technology suite may account for reductions of 0.6-1.45 billion tonnes of CO2 per annum by 2050 and 1-1.82 billion tonnes per annum by 2060 (24). POLICY AND REGULATORY DEVELOPMENTS A new strategic energy plan was approved by Cabinet in late 2021, mapping a pathway toward a 46 per cent greenhouse gas emissions reduction by 2030 (based on 2013 levels) and carbon neutrality by 2050. Hydrogen is expected to play a key role in achieving the plan. The Ministry of Economy, Trade and Industry has drafted a long-term CCS roadmap, aiming to store 120-240 Mt CO2 offshore from Japan by 2050. PROJECTS Major state-owned energy companies are leading project development. China's first integrated million tonne (1 Mtpa) CCUS project, developed by SINOPEC, came into full operation at the end of August 2022. The captured CO2 from Qilu Petrochemical plant is transported to the Shengli Oil Field for Enhanced Oil Recovery. Huaneng has commenced construction on a 1.5 Mtpa coal-fired power CCUS project in the Ordos basin, widely anticipated to be the world's largest coal power CCUS project. CNOOC is starting China's first CO2 offshore storage in the mouth of the Pearl River. On June 27 2022, ExxonMobil, Shell and CNOOC signed a MoU with Guangdong Provincial Government to evaluate a world-scale hub project in Dayawan Petrochemical Industry Park. Additionally, several private companies, including Guanghui and Hengli, have announced CCUS projects. 1 Guanghui Industry Investment is mainly engaged in automobile dealership, energy, real estate, and logistics businesses. Hengli Group produces and sells crude oils, aromatics, purified terephthalic acids, polyester, and other products. Hengli Group also produces textile materials. [22] GLOBAL CCS INSTITUTE#23POLICY AND REGULATORY DEVELOPMENTS In 2020, China announced its 30/60 climate policy framework, outlining a goal of achieving carbon peaking by 2030 and climate neutrality before 2060. The 1+N framework lays some of the groundwork for CCUS policy directions. The People's Bank of China launched a carbon emissions reduction facility, a structural monetary policy instrument providing financial institutions with low-cost loans to support decarbonisation projects, in which CCUS was included (25). Despite progress and some policy documents outlining a role for CCUS, lack of a policy- based, sustainable business model for CCUS remains a deployment hurdle. TOTAL 2000 1500 1000 [23] 500 2030 2035 2040 2050 2060 YEAR MIN MAX FIGURE 12: POTENTIAL CCUS DEPLOYMENT CHINA (24) GLOBAL CCS INSTITUTE#24REST OF ASIA PACIFIC THAILAND In June, Thailand's national oil and gas operator, PTTEP, announced the country's first CCS project[3] (26). The project, located at the Arthit offshore gas field, has entered FEED and is expected to commence operations in 2026. PTTEP has also signed an MOU with Japan's JGC Holdings and INPEX on the Thailand Carbon Capture and Storage Initiative, a feasibility study investigating the potential for deployment across oil and gas, hard-to-abate industrial sectors, and power generation (27). SINGAPORE Shell and ExxonMobil (the latter through its Low Carbon Solutions business unit), both with oil refining and petrochemical manufacturing plants in Singapore, are investigating regional CCS hubs to capture CO2 and transport it to nearby storage (28). Capture could span petrochemicals, biofuels, refineries, and hydrogen development (28). THE REPUBLIC OF KOREA Korean energy company, SK E&S, signed an MOU with Australia's Santos to support and collaborate on the development of CCS projects and hubs in Australia and at Bayu- Undan (29). Korea's domestic petrochemical industry continues to investigate and deploy CCUS at feasibility study and pilot demonstration levels. 4.3 REGIONAL OVERVIEW: EUROPE AND THE UK For yet another year, carbon capture and storage has seen a promising increase in projects across the European region. Today, there are 73 CCS facilities in various stages of development across Europe and the UK. Notable factors driving CCS momentum include supportive climate policy programs and measures by the European Commission, including an increase to the number of projects funded through the EU Innovation Fund - a grant program launched in 2020 that aims to support the Commission's 2050 climate neutrality targets (1). Similarly, in the Netherlands, the Sustainable Energy Transition Subsidy Scheme (SDE++), under which CCS projects are eligible for funding, increased from €5 billion to €13 billion over the last year alone(2) In the UK, through its CCUS Infrastructure Fund (CIF), the government committed to establishing two CCS clusters by the mid-2020s, and two more by 2030 (3). The past 12 months have illustrated a promising trajectory of industry deploying CCS projects on the foundation of existing policy. POLICY AND FINANCE DEVELOPMENTS Legislative proposals are being developed to introduce regulatory mechanisms in the EU that could further support CCS deployment, including carbon removal certification, which remains underway. In December 2021, the European Commission released a formal communication on sustainable carbon cycles, which affirmed that reaching climate objectives will require a significant scale-up of carbon removal solutions, particularly within the next 10 years. The Commission further acknowledged that accounting for CO2 removals accurately and transparently will be needed, and legislated, if carbon removal options are to be further realised. The communication seeks to incorporate CDR into the EU's regulatory and compliance framework, as it relates to Europe's climate neutrality targets (4). [24] GLOBAL CCS INSTITUTE#25EUROPEAN UNION CCS FUNDING The EU Innovation Fund, which aims to invest around €38 billion by 2030 toward innovative clean technologies in Europe (based on the auctioning of 450 million allowances from 2020 to 2030), announced its first successful grant recipients following the first and second call for projects (5). Out of a total seven successful applicants, four projects selected in the 2021 first call had a CCS component. CCS facilities in Finland, Belgium, Sweden and France will all be beneficiaries of funding to support their CCS projects in hydrogen, chemical, bioenergy and cement production, respectively (5). Results of the second call announced in 2022 saw seven CCS and CCU projects awarded with funding. Projects in Bulgaria, Iceland, Poland, France, Sweden and Germany have been selected, ranging from low-carbon cement production, carbon mineral storage site development and sustainable aviation fuel production (6). The upcoming third call will have a funding pool of around €3 billion, up from €1.5 billion for the previous call, in an effort to accelerate green transition (7). [25] ELIGIBLE PROPOSALS PRE-SELECTED PROPOSALS 7 65 RENEWABLE POWER (15/1) PRODUCTION FACILITY (5/1) GREEN H2 (19/2) CCU (12/1) RECYCLING/REUSE (18/1) RENEWABLE HEAT (14/1) STORAGE (16/0) BLUE H2 (4/2) ELECTRIFICATION (7/1) RENEWABLE FUELS (12/1) H2 FOR TRANSPORT (1/0) CCS (7/4) BIO-BASED (12/1) FIGURE 13: EU INNOVATION FUND APPLICATIONS AND CCS CONTENDERS - FIRST CALL (NUMBER OF APPLICATIONS/NUMBER OF PRE-SELECTED PROPOSALS) GLOBAL CCS INSTITUTE#26TRANSPORT MODALITIES The broadening of CO2 transport modalities in the Trans-European Energy Networks regulation (TEN-E), which would include shipping, trains and trucks, did not progress further in 2021 (8). As the TEN-E goes under review, CO₂ transport modalities aside from pipelines are not favoured according to a provisional agreement and recent trialogue discussions between the European Commission (EC), the Council of the European Union and the European Parliament (EP). Consequently, CCS efforts looking to be included in the EU's Projects of Common Interest - a designation which eases permitting processes, along with providing access to funding - will not be explicit in legislation. REPOWEREU The European Commission has responded to the energy crisis prompted by the Russia- Ukraine conflict through the development of the REPowerEU Plan. Under the plan, the Commission announced aims to end the EU's reliance on Russian energy resources while also tackling climate change. Although carbon capture and storage is not explicitly mentioned in the REPowerEU communication, the Commission notes its intention to further support Europe's hydrogen economy. In August 2022, as part of the Track 1 clustering process, the UK Government announced the shortlist of 20 CCUS capture projects that can receive possible support from government, once it has established that the projects represent a "value for money" investment for the taxpayer. POLICY Over the last 12 months, the UK Government focused its CCS policy sights on building a cadence around CCS funding programs and policy announcements made in 2020. The government's 10-Point Plan for a Green Industrial Revolution committed to investing in carbon capture usage and storage. This gave way to a number of CCS-specific policies and funds, including the UK CCUS Innovation Programme, which aims to enhance CCS research and innovation programs along with the CCS Infrastructure Fund, that are intended to support the development of four CCS networks (11). - To further highlight the breadth of public-private partnerships and funding efforts across the UK region - including the CIF, the UK CCUS Innovation Fund and more the UK Government released a CCUS Investor Roadmap, illustrating its CCUS delivery plan from 2021 to 2035 (12). Following the announcement of CIF recipients in England, where HyNet and East Coast Cluster consortiums were selected to progress as part of Track 1 projects, the national government increased its CCUS funding commitment and ambitions. If selected as part of the CIF-awarded applicants, the Aberdeenshire-based Acorn project will see the Scottish Government provide £80 million to launch the initiative a project, the government says, that is required if Scotland is to meet its net-zero targets (13). - UNITED KINGDOM FUNDING PROGRAMS Following a £1 billion announcement in 2020 to develop CCUS clusters through the UK Government's CCS Infrastructure Fund, the first two recipients of the grant were announced in late 2021, with an expected completion date by the mid-2020s. The HyNet Cluster consortium operating in North West England and North West Wales, and the East Coast Cluster along England's North Sea shore by Humber and Teesside, will enter the Track 1 project negotiations as preferred beneficiaries of the CIF (9). Scotland's CCS project, Acorn, has been placed on the "back-up" to the Track 1 clusters. Through the CIF-selected projects, the UK Government aims to capture and store 20 to 30 Mtpa CO2 by 2030 onward (10). [26] GLOBAL CCS INSTITUTE#27INDUSTRIAL CLUSTERS UK GOVERNMENT FUNDING Track-1 Cluster Sequencing process Track-1 Cluster FEED Announcement of shortlisted CO2 emitters that will proceed to negotiations Track-1 negotiations with transport and storage companies and emitters Track-1 Cluster construction Track-2 Second Cluster Sequencing development, launch, negotiations and construction Launch Phase-2 of the Cluster Sequencing process Design of hydrogen business model complete Launch £140m Industrial Decarbonisation & Revenue Support scheme Publication of UK Hydrogen Strategy Launch £240m Net Zero Hydrogen Fund (NZHF) Confirmation of £1bn CCUS infrastructure Fund (CIF) Announce winners of £70m DACCS & other GGRs innovation programme Publication of T&S, ICC and power business model updates 2021 2022 2023 GOVERNMENT ACTIVITY INDUSTRY ACTIVITY JOINT GOVERNMENT & INDUSTRY ACTIVITY FIGURE 14: UK GOVERNMENT CCUS DELIVERY PLAN 2024 At least one power CCUS plant by mid 2020s Capture 20-30 MtCO2 pa by 2030 including 6 MtCO2 from industrial CCS Deploy at least 5 MtCO2 of engineered greenhouse gas removals (GGRS) by 2030 Track-1 Commiss ioning At least two clusters by the mid 2020s GOVERNMENT TARGET 2025 Up to 1GW of CCUS-enabled hydrogen Deliver a fully decarbonised power system by 2035 4 CCUS clusters by 2030 Up to 10GW of hydrogen production Legally binding target of 78% emissions reductions by 2035 2030 2035 KEY MILESTONES THE NETHERLANDS In 2020, the Dutch Government expanded the Sustainable Energy Transition Subsidy Scheme (SDE+) into the SDE++ to include support for renewable energy projects and CO2 reduction efforts, such as CCS. In 2022, the Dutch Government announced it would more than double the annual budget for the SDE++, increasing it from €5 billion to €13 billion (14). The Porthos Project, which aims to store CO2 in the North Sea sub-surface and had previously been announced as a grant recipient, was awarded nearly half of the 2021 budget (15). The SDE++ funding commitment will continue until 2035. DENMARK Through three government programs, the Danish Government announced it would invest a total of €5 billion in support of carbon, capture and storage projects (16). Part of the funding will be rolled out across a period of ten years under the Energy Technology Development and Demonstration Programme (EUDP), with Project Greensand and Total Energies-led Bifrost having already received funding from the Danish Government (16). The EUDP aims to support Denmark's target of reducing emissions by 70 per cent by 2030 Europe's most ambitious 2030 target thus far (17). - In addition to funding support, the Danish Government has entered a bi-lateral agreement with the Belgian Government, along with Flanders, which aims to support cross border CO2 transport between the two countries (18). The move follows EU Innovation Funding approval of the Kairos@C project - a cross-border CCS effort led by BASF's Belgian operations, alongside Air Liquide (19). The bi-lateral agreement is expected to lead the way for transboundary CCS, both in Europe and beyond. [27] GLOBAL CCS INSTITUTE#28NEW CCS MARKETS Several countries in Europe are entering the CCS market for the first time, including Bulgaria, Poland and Finland. Enabling these projects is the EU Innovation Fund's granting program (19, 20). • • EU INNOVATION FUND PROJECTS - COMMERCIAL CCS PROJECTS Holcim Deutschland's Carbon2Business project will retrofit its German cement plant with CCS to capture over 1 Mtpa CO2. The full-scale ANRAV project will capture CO2 from cement facilities in Bulgaria and store it in an offshore storage site in the Black Sea. Coda Terminal, by Carbfix, will develop a mineral storage hub in Iceland with the capacity to store 880 million tonnes of CO2. Perstorp's Project Air will develop a full-scale fossil-free methanol plant in Sweden. Shell's HySkies project will produce sustainable aviation fuel through waste-to- energy CCUS operations in Sweden. The GO4ECOPLANET project in Poland will capture and store CO2 from Larfarge Cement's Kujawy cement production operations. The CalCC project in France will capture CO2 emissions from exhaust gases, produced during lime production, for permanent storage. Kairos-at-C will mitigate 14.2 million tonnes of CO2 through a cross-border CCS value chain in Belgium, the Netherlands and Norway, which includes CO2 capture from hydrogen and chemical plants. BECCS@STHLM will capture and store 7.8 million tonnes of CO2 over 10 years from Exergi's Stockholm-based biomass plant. The K6 Program in France will capture 8.1 million tonnes of CO2 from its cement plant, to be stored in the North Sea. The SHARC effort in Finland will reduce CO2 emissions from a diesel refinery through green and blue hydrogen production. NORTH SEA With its substantial storage capacity, carbon capture and storage projects are being established with the aim of storing CO₂ beneath the North Sea basin: The Norcem Brevik Cement Plant in Norway, operated by HeidelbergCement, will capture and store 0.4 Mtpa CO2. Once completed, it will be the first cement plant with a full-scale CCS facility (21). The UK's largest power station, Drax, seeks to retrofit its biomass-powered facility with CCS. The project will be part of the Zero Carbon Humber consortium operating on England's North Sea coast (22). The H21 North of England project will decarbonise power, heating and transport across the north of England, and will be inclusive of CCS. It aims to convert the UK gas grid from natural gas to zero-carbon hydrogen. By 2035, the project will have the potential to have one of the world's largest CCS schemes (23). [28] GLOBAL CCS INSTITUTE#294.4 REGIONAL OVERVIEW: MIDDLE EAST AND NORTH AFRICA (MENA) REGION The Middle East and North Africa (MENA) is the largest oil-exporting region in the world. Around 85 per cent of the greenhouse gas (GHG) emissions in the region come from energy production, electricity generation, the industrial sector, and domestic energy consumption. The MENA region is considered one of the most carbon- intensive, with countries such as Qatar, Kuwait, the United Arab Emirates (UAE), Bahrain, and Saudi Arabia among the world's top 10 per capita carbon emitters. Without a change in energy policies and energy consumption behaviour, MENA's energy-related GHG emissions will continue to grow (1). The figure below shows the GHG emissions in the individual MENA region countries (2). Moreover, the MENA region holds a major stock of the world's oil and gas reserves and has always been a key player in the geopolitics of energy. To maintain this position, the region is required to invest in decarbonisation and clean energy technology options. CCS represents an opportunity in the region to reduce carbon dioxide emissions. Three operational CCS facilities in the UAE, Saudi Arabia and Qatar already account for around 10 per cent of global CO2 captured each year (3). Moreover, the region has extensive experience in CO2 injection and storage with the In Salah CCS project in central Algeria being a world-pioneering onshore CO2 capture and storage project, which has built up a wealth of experience highly relevant to CCS projects worldwide (4). MOROCCO (92) TUNISIA (37) SYRIA (46) IRAQ IRAN (828) (216) ALGERIA (219) LIBYA (103) JORDAN (36) EGYPT (329) KUWAIT (143) QATAR (100) UAE (263) 0-249 250-499 500-749 750-1000 MtCO2PA FIGURE 15: GREENHOUSE GAS EMISSIONS ACROSS THE MENA REGION DJBOUTI (1) The potential for CCS growth in the MENA region is driven by multiple factors: SAUDI ARABIA (638) OMAN (82) YEMEN (22) Different MENA countries such as Saudi Arabia, the UAE, Bahrain, Egypt, Iraq, and Iran have explicitly included CCS in their nationally determined contribution (NDC) registry maintained by the United Nations Framework Convention on Climate Change (5). The announced commitment to net-zero and emissions targets. The UAE and Saudi Arabia announced their net- zero target by 2050 and 2060, respectively. Oman has set a net-zero target by 2050, Qatar has committed to emissions reductions of 25 per cent by 2030 and Bahrain 30 per cent by 2035 (6). The launch of the Saudi Arabian and Middle East Green Initiatives. The increasing potential for the MENA region to be a hub of low carbon hydrogen (7). Future industrialisation plans with a major focus on clean and sustainable industries (8). The region has the required geological formation and expertise in managing subsurface injection of CO2. [29] GLOBAL CCS INSTITUTE#30PROJECTS CCS project activity is spread across Qatar, Saudi Arabia, and the UAE - more specifically in Abu Dhabi. The combined annual capture capacity is around 3.7 Mtpa of CO2 at three CCS facilities: • Qatar Gas captures 2.2 Mtpa of CO2 from the Ras Laffan gas liquefaction plant. Saudi Aramco captures 0.8 Mtpa of CO2 at its Hawiyah Naturals Gas Liquids plant. The CO2 is used to demonstrate the viability of enhanced oil recovery (EOR) at the Uthmaniyah oil field. In Phase I (of at least three phases) of Abu Dhabi National Oil Company's (ADNOC) Al Reyadah project, 0.8 Mtpa of CO2 is captured at the Emirates Steel plant in Abu Dhabi. Aiming to develop a fully integrated CCUS supply chain, the MENA region shows a very high potential for CCUS hubs. A recent study conducted by AFRY and GaffneyCline on behalf of the Oil and Gas Climate Initiative (OGCI) evaluated the potential for carbon capture and CCUS hubs in the Gulf Cooperation Council (GCC) countries (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman) (13). With current carbon capture facilities, industrial facilities, available natural CO2 sinks and future plans in the GCC countries, the GCC countries could be a world-class hub for CCS. In addition, CCUS has promising applications across multiple industrial activities in the GCC countries and will play a role in the decarbonisation of hard-to-abate industries. KUWAIT Both the Ras Laffan and Al Reyadah projects are already developing expansion plans: Qatar Gas expects to expand its capture rate to 5 Mtpa by 2025 (9). This carbon capture new phase is expected to be accelerated after the announcement that the North Field expansion is the world's largest liquefied natural gas (LNG) project (10). ADNOC estimates that Phase II and Phase III will capture about 5 Mtpa of CO2 before 2030. This is expected to be captured from two sources: 2.3 Mtpa of CO2 from the Shah sour gas plant and another 1.9 Mtpa from the Habshan and Bab gas processing facility (11,12). There are two regional CO2 utilisation facilities: Saudi Basic Industries Corporation captures 0.5 Mtpa of CO2 at its Jubail ethylene facility for use in methanol and urea production. Qatar Fuel Additive Company captures 0.2 Mtpa of CO2 at its methanol refinery. ■CORE AREA OF STORAGE PLAY [30] QATAR SAUDI ARABIA FIGURE 16: GEOLOGICAL STORAGE MAP IN GCC REGION YEMEN UAE OMAN GLOBAL CCS INSTITUTE#31AFRY and Gaffney Cline have revealed the significant subsurface potential for storage in the GCC countries, both in depleted gas reservoirs and saline aquifers, with the greatest opportunity found in the Rub'al Khali Basin and in the sequences beneath Kuwait. Based on this study, the current estimated storage capacity for the GCC countries is 170 Gt of CO2 - see the figure above, which shows potential locations for CO2 geological storage in the Gulf Cooperation Council region. Moreover, the AFRY and GaffneyCline study revealed that the Gulf Cooperation Council region has the potential to develop active CCUS hubs due to the availability of natural sinks and concentrated sources of CO2 emissions. Clusters of high-purity, low-cost capture industries coupled with nearby geological storage make it possible to develop hubs that could benefit from economies of scale. This study has identified 10 promising hub locations with the most favourable being in Jubail (Saudi Arabia), northern Qatar, and Abu Dhabi (see figure below). In addition to the Gulf Cooperation Council, other countries in the MENA region and wider Africa could form a potential location for CCUS hubs. The region in the north of Egypt with its current natural gas facilities and gas reservoirs has great potential. The potential for CCS in Egypt, Nigeria, South Africa, and other countries in the region is being evaluated. The World Bank Group has been aiding its partner countries on carbon capture capacity-building and the evaluation of CO2 geological storage potential. The most recent study on the potential for CCS in Nigeria was announced in 2022 (14). 3 41.6 Mt SAUDI ARABIA 4 21.3 Mt KUWAIT 2 20.8 Mt 126.8 Mt 17.7 Mt 5 6 68.8 Mt QATAR 7 26.8 Mt 9 26.4 Mt 42.5 Mt 8 10 25.9 Mt UAE OMAN oooooooooo 10 ALUMINIUM ETHYLENE ■NG PROCESSING OIL ■FERTILISERS POWER & WATER ■GTL ■LNG PROPYLENE METHANOL STEEL FIGURE 17: POTENTIAL HUBS ACROSS THE GCC COUNTRIES (SOURCE: ENERGY REVIEW MENA) (10) [31] GLOBAL CCS INSTITUTE#32POLICY Most countries in the MENA region have introduced climate policies, but not CCS- specific policies. Ahead of COP26 in Glasgow in November 2021, Lebanon, Israel, the UAE, and Yemen pledged to be carbon neutral by 2050, Turkey by 2053, and Saudi Arabia and Bahrain by 2060. Jordan, Morocco, Oman, Palestine, Tunisia, and Qatar submitted more ambitious nationally determined contributions and increased their gas emissions reduction goals (1). The trend of CCS growth in the region is driven by the commitments and vision of national governments, which makes it less dependent on policy incentives than other parts of the world. The governments in the region are focusing on the environmental impact and strategic growth of decarbonisation technologies. In addition, the deployment of CCS in the region could be driven by EOR value, low-carbon hydrogen production and the potential of the region as a hub for CCUS and carbon trading. Saudi Arabia, the UAE and Egypt have announced the establishment of voluntary carbon market initiatives and fully regulated carbon trading exchange and trading schemes (15-17). The establishment of such platforms is expected to drive the carbon market in the region, which benefits all decarbonisation technologies, including CCS. OUTLOOK The UN climate change partners organised the first MENA region climate week in 2022, with the aim of enhancing regional collaboration (18). In addition, the region will also welcome COP27 and COP28, in Egypt and the UAE respectively in 2022 and 2023. This will bring outstanding opportunities to push forward negotiations on vulnerability points for the two countries. From a regional perspective, in October 2021 Saudi Arabia launched the first Middle East Green Initiative, which gathered leaders from the region and foreign partners to exchange opinions on regional climate action. With the current international geopolitical situation, the growth in LNG exports from the different countries in the region presents an opportunity for low carbon fuels and CCS. Being one of the major LNG exporters in the region, Qatar has announced the extension of the North Field capacity to produce 126 Mtpa by 2027 (10). This extension will also be integrated with CCS to reduce emissions (19). The Global CCS Institute has been actively monitoring CCS development in the MENA region. To build on this momentum and future activities, the Institute has established its presence in the region with a regional office in Abu Dhabi. In addition, the Institute is working on increasing its MENA-based members. [32] GLOBAL CCS INSTITUTE#335.1 CARBON MARKETS Carbon markets refer to the trade of carbon credits between parties and are either compliance or voluntary. By leveraging market forces, carbon markets enable least- cost pathways toward emissions reductions targets and incentivise investment in CCS infrastructure and networks. Carbon markets have grown considerably over recent years, and with such rapid growth, there is a current need for collective understanding of how CCS can work in current and future markets. COMPLIANCE CARBON MARKETS Compliance carbon markets (CCMs) are implemented and regulated by national or regional authorities. Compliance markets typically utilise cap-and-trade schemes, whereby the cap represents a limit of how many tonnes of CO2 can be emitted by the industries covered in the scheme. This leads to a specific number of tradeable carbon allowances given to each company over a fixed period of time, giving them the legal right to emit an equivalent amount of CO2. In principle, a company reduces its emissions below the limit, unused allowances can be traded with other companies that require additional allowances. The price of allowances is determined by the market, so emitters can choose the most cost-effective approach between purchasing allowances and investing in technologies to reduce their emissions. Over time, governments may reduce allowances given to emitters to meet more ambitious emissions targets. This increases the scarcity of allowances, thereby increasing their price. As the price of allowances increases, investing in technologies such as CCS becomes economically more viable for emitters. Compliance markets, known as emissions trading systems (ETS), are increasing in number and distribution. Based on data from the International Carbon Action Partnership, an estimated 25 national and sub-national ETSs are in force, nine are in development and 14 are under consideration (1). Currently, there are two large jurisdictions for compliance markets that include CCS protocols - the EU ETS and the California Low-Carbon Fuel Standard (2,3). Cap-and- trade systems in Tokyo and Quebec do not have CCS protocols, but since they operate in countries with CCS activity, CCS could potentially be included in the future (4,5). This was seen in California, which instituted a CCS protocol under the Low-Carbon Fuel Standard years after it launched its ETS (3). Similarly, the EU ETS adopted a CCS directive some years after it was launched. VOLUNTARY CARBON MARKETS Voluntary carbon markets (VCM) are created by private organisations and are self- regulated. VCMs underwent record growth last year, and the market could reach US$50-100 billion per year by 2030, driven by net-zero commitments from the private sector (6). VCMs enable investors, governments, non-government organisations and businesses to purchase carbon offsets, called verified emissions reductions (VERS), from project developers and other third parties. VERS are generated by projects that are assessed using greenhouse gas (GHG) reduction methodologies. Projects are then registered in a VCM registry, which tracks the generation of and trade in VERS. As organisations make increasingly ambitious climate pledges, many of them have few cost-effective options to reduce their emissions. Carbon offsets provide companies with a practical and scalable means through which they can achieve emissions reductions. In practice, a company's carbon offset strategy operates in tandem with efforts to reduce emissions directly. THE ROLE OF ARTICLE 6 CCMs and VCMs use different standards and systems, meaning that project developers must satisfy the requirements of multiple methodologies for different systems. This diminishes the potential impact of carbon markets, increasing the cost of decarbonising the world's economy. Article 6 of the Paris Agreement has the potential to overcome this challenge by increasing coordination between governments and the private sector to harmonise project methodologies. Specifically, Article 6 enables countries to trade with one another to achieve their nationally determined contributions (NDC). It has been estimated that US$250 billion per year in savings can be attained by 2030 as a result of Article 6, although this will be much determined by how well it functions (7). In July 2022, the supervisory body responsible for implementing the mechanism for trade under Article 6 was operationalised. Precedents exist for some market linkages, such as between Switzerland's ETS and the EU ETS, and between Quebec's and California's systems. Other types of overlaps found in markets today see emission allowances traded alongside carbon offsets. For example, California's Cap-and-Trade Compliance Offsets Program allows entities covered by the cap to satisfy a percentage of their regulatory obligations through the trade of VERS under the Verra registry. 1 Verra is one of the leading VCM registries with almost 1,600 registered projects. [33] GLOBAL CCS INSTITUTE#34NEWFOUNDLAND AND LABRADOR NOVA SCOTIA NEW BUNSWICK PRINCE EDWARD ISLAND NORWAY SWEDEN FINLAND SHENYANG SAITAMA ESTONIA LATVIA DENMARK SHANGHAI LITHUANIA NETHERLANDS UK TAIWAN IRELAND POLAND GERMANY CZECHIA UKRAINE BELGIUM AUSTRIA SLOVAKIA سد HUNGARY FRANCE ITALY BULGARIA ROMANIA CROATIA SPAIN SLOVENIA SWITZERLAND The need to include CCS in Article 6 is underpinned by the fact that carbon dioxide removal (CDR) is vital to unlocking the 'net' in net-zero emissions and achieving the 1.5°C goal of the Paris Agreement. The use of CCS networks can further streamline cost and resource efficiency, especially when planned on a regional or global level. TOKYO OUTLOOK FOR CCS IN CARBON MARKETS CCS plays a versatile role in supplying point-source capture and storage as well as CDR, while offering the capacity to store CO2 over longer and more permanent timeframes than other mitigation/removal options. While the price of a CCS carbon credit will be determined by underlying market supply and demand interactions, credits generated by CCS projects could attain higher values because geological storage of CO2 is much more secure than storage via nature based solutions (eg, storage in trees or soil). Prices of CCS-generated credits could also increase if market participants would be willing to pay a premium for innovative and novel solutions such as DACCS and BECCS, which currently have no standardised methodologies in place. To further unlock and scale up CCS-related climate action in carbon markets, the CCS+ Initiative² is working on delivering an integrated methodological framework for generating carbon credits for the full suite of CCS activities for the VCMs and Article 6 (8). The upcoming years will indeed be critical to establishing ways to direct investment and climate finance to CCS, with current thought leadership in academic and industry circles focusing on carbon sequestration/storage units (CSU) and carbon storage obligations (CSO)/carbon takeback obligations as a solution to enhancing the expected value resulting from permanent geological storage (9-11). PORTUGAL ETS IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION ■CARBON TAX IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION ETS & CARBON TAX IMPLEMENTED OR SCHEDULED SERBIA GREECE MONTENEGRO ETS IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION, CARBON TAX UNDER CONSIDERATION CARBON TAX IMPLEMENTED OR SCHEDULED FOR IMPLEMENTATION, ETS UNDER CONSIDERATION ETS OR CARBON TAX UNDER CONSIDERATION FIGURE 18: WORLDWIDE CARBON MARKETS - COMPLIANCE AND VOLUNTARY (SOURCE: WORLD BANK 2022) 2 The CCS+ Initiative includes the plus sign to indicate the use of CCS at point-source, CCUS and CDR in carbon markets. [34] GLOBAL CCS INSTITUTE#35[35] IPCC 5.2 CARBON REMOVALS NECESSITY OF CARBON REMOVALS Carbon dioxide removal (CDR) technologies remove carbon dioxide from the atmosphere. The Intergovernmental Panel on Climate Change (IPCC) finds that all scenarios that limit warming to no more than 1.5°C deploy CDR technologies. Further, most models are unable to find pathways that limit warming to 1.5°C without CDR technologies (1). Direct air carbon capture and storage (DACCS) removes CO2 directly from the atmosphere, while bioenergy with carbon capture and storage (BECCS) captures CO2 from bioenergy combustion. Because BECCS provides both CDR and usable energy, BECCS is typically a lower cost option than DACCS. BECCS, though, is limited by the sustainable biomass available for energy, approximately 131 EJ per year globally (2). Recent economic modelling by the Global CCS Institute found that reaching net-zero (based on IPCC SSP1-1.9) is expected to require the maximum possible deployment of BECCS (3), which is determined by the availability of sustainable biomass. The deployment of DACCS however is determined by its future cost, which is uncertain. To understand the potential role of DACCS in achieving net-zero, the Institute examined a range of possible DACCS costs from US$137 per tCO2 to US$412 per tCO2 (compared to the IPCC DACCS cost range of US$100-300 per tCO2). The Institute's model provided results that are broadly consistent with the IPCC's projections of DACCS & BECCS deployment. Staying within the remaining carbon budget through this century will be more difficult and costly without CDR. The scale of the energy transition to net-zero is staggering. Advanced fuels and their infrastructure must be developed, the electricity sector must decarbonise, and industry and transport must be transformed. CDR can buy time so that the rate of transformation is more manageable for the hardest-to-abate, highest-cost applications (3). CDR can also act as insurance if unexpected constraints arise in other decarbonisation pathways (3). Global DACCS cost USD per tCO2 400 350 300 250 Global CCS Institute FIGURE 19: CUMULATIVE CDR THROUGH 2100 (GTCO₂)¹ 150 BECCS DACCS Total CDR 200 226-842 109-539 333-1,221 491-510 1.2-786 511-1,277 DACCS IS ECONOMIC DACCS IS UNECONOMIC 2050 1 The model for the Institute's analysis runs to the year 2065. The CDR results for 2065 were assumed to repeat for years 2061-2100 to arrive at an approximate value for the 21st century for comparison with the IPCC results. 2055 FIGURE 20: BREAKEVEN COSTS FOR DACCS OVER TIME (ASSUMES NO DACCS-SPECIFIC INCENTIVES) GLOBAL CCS INSTITUTE 2060 2065#36[36] ECONOMIC POTENTIAL OF DACCS Another result from the Institute's modelling is that the earliest DACCS would be deployed on an economic basis without any dedicated DACCS incentives is 2043, with the lowest-cost DACCS assumption (US$137 per tCO2), but not until 2062 with the highest-cost assumption (US$412 per tCO2). Figure 21 shows the economic breakeven point by year and cost of DACCS. The economic deployment of DACCS beyond the breakeven point depends on how low the cost of DACCS is and how early that breakeven occurs. Very little DACCS is deployed if the cost is higher than US$350 per tCO2. Significant levels of DACCS are economic between US$137 and US$223 per CO2 (16 GtCO2 and 8 GtCO2, respectively, by 2065). Figure 22 shows how different DACCS cost assumptions affect other types of CCS, including BECCS, electricity fossil CCS, industry CCS, and hydrogen CCS. BECCS remains constant regardless of the cost of DACCS, as do, for the most part, industry and electricity CCS. The lower the cost of DACCS, the more it is cost-effective in offsetting emissions that would otherwise be decarbonised through a hydrogen pathway, which in turn reduces the need for both green and blue hydrogen and the CCS associated with blue hydrogen. DACCS COST (USD PER CO₂) 412 406 403 395 382 375 362 354 344 335 326 316 307 298 289 281 271 262 253 243 233 223 214 204 195 185 176 166 156 147 137 FIGURE 21: QUANTITIES OF CO2 STORED FROM DACCS AT DIFFERENT COSTS OVER TIME 2022 2024 2026 2028 2030 2032 2034 2036 0 1 2 3 4 5 6 7 2038 abor 2042 2044 8 9 10 11 12 13 14 15 DACCS STORED (GtCO2) 2046 2048 2050 2052 2054 2056 16 2058 2060 2062 2064 GLOBAL CCS INSTITUTE#37[37] 400 Global DACCS Cost (USD per tCO2) 200 600 800 137.1825 156.2966 175.5225 DACCS 194.5599 213.674 233.1551 252.5705 HYDROGEN CCS 271.4131 289.3849 307.3766 325.7602 343.8663 362.4646 382.4709 403.0618 412.4078 BECCS DRIVERS AND INCREASING SUPPORT The primary driver for CDR is the pathway toward net-zero emissions by mid-century. All available BECCS is likely to be deployed because it offers CDR and energy. The lower the cost of DACCS, the more it will be deployed, the lower the price of CO2 that will result, and the lower the cost of the transition to net-zero. According to Institute's modelling, the potential cost savings are huge. If the future cost of DACCS can be reduced to US$ 200 per tonne of CO2, the net present value of savings in the global energy system would be around US$1 trillion (3). If the future cost of DACCS can be reduced to US$137 per tonne of CO2, the net present value of savings in the global energy system would be around US$3 trillion. In an effort to drive DACCS technology toward commercialisation to reduce the overall costs of reaching net-zero, governments are implementing specific policies for DACCS. For example, the US Department of Energy announced in May 2022 that it would provide US$3.5 billion in funding to four direct air capture hubs over the next five years (4). DACCS also qualifies in the US for 45Q tax credits of US$180 per tCO2 stored (5). Canada recently announced an investment tax credit of 60 per cent for direct air capture equipment till 2030 and 30 per cent till 2040 (6). An individual country is unlikely to invest in DACCS at a level needed for globally optimal benefits. Therefore, cooperation among countries is critical to ensuring that DACCS can reach levels that benefit all. This cooperation would fall within Article 6 of the Paris Agreement and the UNFCCC process. One possible approach would be for a group of like-minded countries to form a club and pool money to invest in DACCS projects to drive commercialisation (7). Gt CO2 INDUSTRY CCS ELECTRICITY CCS FIGURE 22: CUMULATIVE CO₂ STORED FROM 2022 TO 2065 BY CCS TYPE AS THE COST OF DACCS CHANGES GLOBAL CCS INSTITUTE#385.3 HYDROGEN Hydrogen produced with very low life cycle greenhouse gas emissions (clean hydrogen) has broad application in supporting the achievement of net-zero emissions. For example, clean hydrogen can be combined with carbon to create synthetic fuels to replace conventional fossil fuels. It can be used in fuel cells to generate electricity and may be used as a feedstock for many chemical processes. Projections of future clean hydrogen demand exceed 500 Mtpa by 2050 compared to total hydrogen production today of approximately 120 Mtpa, including clean hydrogen production of only around 1 Mtpa¹ (1). Potential suppliers of blue hydrogen, produced with fossil fuels and CCS, have responded by investing in new projects. As of September 2022, there were 40 hydrogen facilities with CCS in varying stages of development including 7 in operation. The production capacity of each of these facilities ranges from tens of thousands² to hundreds of thousands of tonnes of hydrogen per year. A large investment in hydrogen transport infrastructure will be required to deliver hydrogen to demand centres. The expected international trade in clean hydrogen will require a fleet of purpose-built ships together with loading and offloading terminals at ports. The Hydrogen Energy Supply Chain (HESC) pilot project has demonstrated the transport of liquid hydrogen from Victoria in Australia to Kobe in Japan. Port infrastructure was constructed at the Port of Hastings in Victoria and in Kobe, and a purpose-built ship, the Suiso Frontier, successfully unloaded the liquid hydrogen on 25 February 2022 (2). Hydrogen has an extremely low boiling temperature of -253°C, which adds to the cost of cooling and transporting hydrogen by ship. Consequently, other options, such as the transport of hydrogen as ammonia (NH3), are also being pursued. There is already significant international shipping of ammonia across a network of 120 ports with appropriate facilities and using 120 ships that are capable of carrying semi-refrigerated ammonia as cargo (3). Blue hydrogen project developers are predominantly from the petroleum and industrial chemical industries who currently produce hydrogen using conventional emissions- intense methods such as reformation of natural gas or gasification of coal without CCS. For these companies, moving from conventional hydrogen production to blue hydrogen production is evolutionary, not revolutionary, from a business perspective. Hydrogen production and the management of gases are their core competencies. Oil and gas producers also understand the behaviour of fluids (such as dense phase CO2) in the subsurface, and operating injection and production wells, and implementing subsurface monitoring programs are routine operations for them. Further, these industries have a strong strategic driver to shift their businesses to support the achievement of net-zero emissions. Production of blue hydrogen allows them to apply their existing knowledge and expertise to a new business opportunity, and in some cases, to use infrastructure and resources (for example, pipelines and platforms) that would otherwise become redundant. These industries are very well positioned to win a large share of any future clean hydrogen market due to the cost competitiveness of blue hydrogen compared to green hydrogen; the scale of their operations; existing competencies and resources, including financial resources; and strong strategic motivation. Over time, newer technologies, such as Shell's Gas Partial Oxidation process, will replace older technologies such as steam methane reformation. The current fleet of operating hydrogen production facilities with CCS - the oldest being 40 years old - are retrofits of CCS to existing hydrogen production facilities. They were not designed to achieve very high CO2 capture rates because there was no requirement or financial incentive to do so. Consequently, they only capture around 60 per cent of their scope one emissions. The next generation of blue hydrogen facilities is being designed from the ground up to achieve very high capture rates. Ninety-five per cent capture is becoming the default capture rate, with some facilities expected to approach 100 per cent capture. Ultimately, the market will demand hydrogen with very low life cycle emission intensity. Clean hydrogen production facilities will need to demonstrate they meet this high standard to access this market, and new facilities are being designed on that basis. 1 The model for the Institute's analysis runs to the year 2065. The CDR results for 2065 were assumed to repeat for years 2061-2100 to arrive at an approximate value for the 21st century for comparison with the IPCC results. 2 Includes hydrogen produced in synthesis gas [38] GLOBAL CCS INSTITUTE#39STATUS OPERATIONAL IN CONSTRUCTION 10 15 20 20 25 30 35 55 TOTAL ADVANCED DEVELOPMENT EARLY DEVELOPMENT FIGURE 23: NUMBER OF HYDROGEN PRODUCTION FACILITIES WITH CCS BY DEVELOPMENT STATUS³ [3] 3 Includes hydrogen produced in synthesis gas [39] 40 40 45 While production of blue hydrogen can ramp up relatively quickly, this is contingent on there being sufficient demand to justify the investment. The cost of clean hydrogen is a significant factor in creating demand. Hydrogen must compete with conventional fossil energy, which is relatively low cost and enjoys all the benefits of incumbency (for example, distribution infrastructure, supply chains, and mature utilisation technologies). Creating demand for clean hydrogen requires policy that creates value from the emission abatement it provides, as well as significant investment in hydrogen production, storage and distribution infrastructure. Governments have recognised this; the IEA reports that 15 national governments plus the European Union have adopted national hydrogen strategies, almost all with targets and funding (4). Nine of those national strategies, and the European Union strategy, include blue hydrogen. GLOBAL CCS INSTITUTE#405.4 FINANCE The role of finance in supporting the more widespread deployment of CCS is critical. At the country level, several governments have again sought to prioritise the technology through the provision of a variety of targeted incentives and grants. In parallel, however, it is clear that far greater support from the private finance sector will be required to align investments with a net-zero pathway and provide more tangible assistance to enable widespread CCS deployment. In line with the wider shift toward green lending and sustainable investing, increased focus has been placed on the role of green or sustainability-focused taxonomies. Taxonomies of this nature now provide guidance to investors as to which activities and investments may formally be classified as environmentally sustainable. In several jurisdictions, regulations and secondary guidance setting out the application and scope of these taxonomies is already in place, while work is underway in many other jurisdictions to develop further examples in the coming years. Efforts to harmonise approaches and adopt the use of common principles has been highlighted by many as an important approach toward a globally consistent approach. Significantly, CCS has already been formally recognised as an economic activity within the EU's taxonomy, with the subsequent delegated Act setting out technical screening criteria. While this approach has afforded the technology a pathway within the EU model, it will be critical to ensure that other schemes in development around the world also reflect this view and approach. The examination of environmental social and governance (ESG) factors is increasingly a feature of wider financing and investment decisions. Recent years have seen ESG factors rise from the periphery to become an important aspect of corporate decision making. Climate-related issues have become synonymous with the "E" factor, occupying a significant space within the ESG landscape, and have resulted in increasingly detailed consideration by corporations, investors and the wider public. While financial and litigation risks continue to motivate companies to focus on climate considerations in their reporting, a focus on mandatory reporting obligations is now expected to drive further climate-related disclosures in the future. Public and private sector net-zero commitments are also a key driver for closer scrutiny of ESG disclosures by shareholders and financiers. Investors are now keen to ensure that companies are aligning their activities with their net-zero commitments and as a result, are looking for companies to provide clear and consistent disclosure statements. The emergence of several net-zero disclosure frameworks, standards and protocols are indicative of the weight that is now afforded to this information. Where CCS fits within the ESG reporting space, if at all, has been the subject of previous analysis undertaken by the Global CCS Institute. Although clearly not excluded, the quality and utility of information generated through current reporting methodologies may not meet the needs of either project proponents or end-users of this information. The Institute's recent analysis, however, has considered in greater detail how project proponents and investors may leverage the benefits of their CCS-related investments and project operations in the context of the wider reporting environment. In accordance with the prevalent view that far greater consolidation and harmonisation of reporting schemes will be required, the Institute has proposed a methodology that aims to highlight how CCS-specific factors may be included within the parameters of existing, well-defined reporting pathways. 1 An ESG Reporting Methodology to Support CCS-related Investment https://www.globalccsinstitute.com/resources/publications-reports-research/an-esg-reporting-methodology-to-support-ccs-related-investment/ [40] GLOBAL CCS INSTITUTE#415.5 INDUSTRY CCS is an essential pathway for key industrial applications. Industries such as cement, iron and steel, and chemicals all have characteristics that make them challenging for decarbonisation (the so-called "hard-to-abate" industries). CO2 is an unavoidable chemical by-product of the calcination reaction that is at the heart of cement manufacturing. On top of this, cement is produced at temperatures well above 600°C; temperatures typically produced by the combustion of fossil fuels. As such, even if biofuels or other low-carbon sources of heat are used in cement kilns, this CO2 will still need to be managed. This dual-sourcing, as well as the vast global demand for cement for construction, makes the cement industry highly CO2 emissions- intensive, accounting for around eight per cent of global anthropogenic greenhouse gas emissions (1). The world's first cement CCS project is under construction at the Norcem cement plant in Brevik, Norway. Part of the Langskip network, this project is intended to capture 400,000 tonnes per year of CO₂ with an amine-based absorption capture plant. It is expected to be operational in 2024 and will liquefy CO2 for ship transport to the Naturgassparken CO2 facility for ultimate storage under the North Sea. Larger scale cement CCS projects are in early development by LafargeHolcim (US) and Hanson Cement (UK). Cement is proving to be an active sector for new CO2 capture innovations. Technology company Calix is testing its novel calciner reactor in the LEILAC project in Belgium. This reactor is novel in that it keeps calcination CO2 (high purity) and the heat sources separate, with indirect heating through a tubular reactor wall. Effectively a form of inherent capture (CO2 is produced in a pure state), this approach offers a new pathway for the cement sector in the future, as well as the potential to exploit new heat sources such as renewable electricity, further decarbonising the process. Many of the world's cement kilns produce CO2 at much smaller scales than seen in natural gas processing plants or in thermal electricity generation. This scale impacts on CO2 capture cost, as capture cost per tonne typically rises with reduced scale of the CO2 source (2). As such, cement kilns can have higher capture costs than some other applications. This represents an opportunity for capture technology companies to bring their cost advantage to bear on this sector. Firms such as Carbon Clean and Svante are good examples of capture technology development that is ideally placed for medium- scale applications, such as in the cement sector. The global iron and steel sector is also a major contributor to global CO2 emissions. During iron production from iron ore, carbon-based reductants (such as coal) react with oxygen in the ore to form CO2. There is one operational CCS plant in this sector, at the Emirates Steel facility in Abu Dhabi. This amine-based capture plant has a capacity of 800,000 tonnes per year of CO 2, significantly reducing the emissions of its host Direct Reduced Iron facility. Alternative, non-carbon-based ironmaking pathways are also in development, based on hydrogen as a reductant. These may form a basis for new iron and steelmaking facilities into the future. If successful, they could become another use for decarbonised hydrogen - including hydrogen produced from natural gas with CCS. The global chemicals sector is another significant emitter of CO₂ globally, especially ammonia and ammonia-derived fertilisers (such as ammonium nitrate). Ammonia is synthesised using a reaction of nitrogen and hydrogen. Almost all the hydrogen used in ammonia production today is produced from fossil fuels, primarily with steam-methane reforming. A shift to decarbonised hydrogen, including blue hydrogen in large utility- scale hydrogen plants, would enable deep decarbonisation of this essential sector. [41] GLOBAL CCS INSTITUTE#425.6 EVOLUTION OF STORAGE The rate of carbon dioxide storage, currently with a capacity of around 40 million tonnes per year must grow to billions of tonnes per year to meet climate targets. Historically, most CO2 has been used for enhanced oil recovery (EOR). Whilst effectively all CO2 injected for EOR is ultimately permanently trapped in the pore space that previously held the oil, the majority of future storage will not be associated with EOR. The historic dominance of CO2 stored through EOR is understandable given the CCS industry was born out of EOR in the US. These facilities showed that million-tonne CO2 injection rates at multimillion-tonne storage sites were possible. Importantly, monitoring confirms that all the CO2 injected is ultimately stored. This monitoring has laid the foundation for CCS to become a critical climate change technology. Today, deep saline formations are the most common type of CO2 storage reservoir across all storage facilities (over 150) at all stages of development from operational through to early development phases, and including completed facilities (Figure 25). CCS deployment is expanding with a greater diversity of geographies and storage targets. CO2 storage facilities targeting deep saline formations are most substantial in North America and the North Sea. Storage in depleted oil fields is also set to become more common, for example in the UK and in Australia and Southeast Asia. Storage in deep saline aquifers is increasing in frequency whilst storage through EOR is decreasing in frequency. This is clearly evident in Figure 26 particularly for projects in advanced development where the ratio of projects storing in saline aquifers to projects storing through EOR or depleted oil and gas fields is more than 6 to 1. A preference for deep saline formations over depleted oil and gas fields is an interesting development. Historically, the expectation was that the low-cost, fast-to-develop depleted fields would be targeted first. But new project most commonly target deep saline formations. This is occurring in both North America and a lesser extent in Europe (Figure 25). Two reasons emerge for this choice. First, CCS networks that dominate the development pipeline focus on deep saline formations; those networks have multimillion-tonne-per- annum injection rates. Second, the pipeline includes a substantial portion of facilities from the US and the North Sea (UK and Europe). Both these regions have access to volumetrically significant (over 1,000 Mt), high-quality deep saline formations as their nearest and therefore first option for storage. Enhanced oil recovery Under Evaluation Deep Saline Formation Depleted Oil and Gas Reservoir 0 10 20 30 40 50 60 70 COUNT OF CCS FACILITIES INCLUDING DEMONSTRATION AND COMMERCIAL FACILITIES (over 100,000 tpa) AFRICA NORTH AMERICA ASIA PACIFIC SOUTH AMERICA EUROPE MIDDLE EAST 0 FIGURE 24: COUNT OF COMPLETED, CURRENT AND FUTURE CO₂ STORAGE PROJECTS ACROSS STORAGE TYPES AND GEOGRAPHIES. DATA DERIVED FROM OVER 150 CCS FACILITIES, INCLUDING COMMERCIAL AND DEMONSTRATION PROJECTS (OVER 100,000 TPA CO₂) ACROSS ALL STAGES OF DEVELOPMENT. 80 There is clear evidence in comparing operational facilities today with the pipeline in the future, that there is a greater diversity of storage targets. Depleted fields are significant to future project development, mainly in the UK North Sea. In addition, the EOR pipeline is still growing, particularly in the US and Middle East. [42] GLOBAL CCS INSTITUTE#43Completed Operational In Construction Advanced Development Early Development 0 10 20 30 40 50 60 60 COUNT OF CCS FACILITIES INCLUDING DEMONSTRATION AND COMMERCIAL FACILITIES (over 100,000 tpa) ENHANCED OIL RECOVERY DEEP SALINE FORMATION UNDER EVALUATION DEPLETED OIL AND GAS RESERVOIR AVERAGE CO2 INJECTION RATE (Mtpa) 3 DEVELOPMENT STAGE EARLY DEVELOPMENT IN CONSTRUCTION OPERATIONAL ADVANCED DEVELOPMENT COMPLETED FIGURE 25: POTENTIAL AND CURRENT CO₂ STORED ACROSS STORAGE TYPES AND DEPLOYMENT STATUS. DATA DERIVED FROM OVER 150 CCS FACILITIES, INCLUDING COMMERCIAL AND DEMONSTRATION PROJECTS (OVER 100,000 TPA CO₂) ACROSS ALL STAGES OF DEPLOYMENT FIGURE 26: THE AVERAGE INJECTION RATE (MILLION TONNES PER ANNUM) OF COMMERCIAL CCS FACILITIES IN THE DEPLOYMENT PIPELINE. DATA DERIVED FROM OVER 30 CCS FACILITIES WITH DEDICATED GEOLOGICAL STORAGE, INCLUDING COMMERCIAL AND DEMONSTRATION PROJECTS (OVER 100,000 TPA CO₂), ACROSS ALL STAGES OF DEVELOPMENT. Perhaps the most important trend in geological storage is that the average injection rate per project is increasing. Operational facilities, on average, inject just over 1 Mtpa CO2. That average could more than double within a decade as new larger projects commence operation. Storage projects associated with CCS networks in development generally have injection rates of around 5 Mtpa. Further, storage operators are now announcing 10 Mtpa CO2 rates or more (1). This growth in injection rate has emerged in the past two to three years. The geological characteristics of dedicated storage resources (i.e. non EOR) vary widely. Facilities are targeting or actively injecting into thin reservoirs with low permeability, through to multi-Darcy (very high permeability - almost like sand on the beach) reservoirs hundreds of metres thick. The highest quality deep saline formation is not necessarily the best option, with operators needing to balance many factors. For example, injecting into a higher quality formation means the CO2 spreads further, increasing the monitoring area required. [43] GLOBAL CCS INSTITUTE#44CAPTURE CAPACITY (MTPA) 1 5 10 Whilst the range of reservoir permeabilities and thicknesses that have been utilised for CO2 storage is quite broad, there appears to be a geological sweet spot at a permeability of around 300 millidarcies and a formation thickness of 100-200 metres. This combination may be described quantitatively by injectivity potential which is the mathematical product of reservoir permeability and thickness. Most projects inject between 1 and 10 Mtpa of CO2 into storage reservoirs with injectivity potential of between 10 and 100 Darcy-metres according to Hoffman et al. (2015) (2). The diversity of storage types, geological conditions, and injection rates will likely increase with the ongoing development of storage resources across new geographies and geological basins. Much like sectors adopting CCS for decarbonisation, the geological sites for storage are diversifying as more resources are developed. THICKNESS (METRES) 1000 100 [44] 10 1 10 10 DARCY-METRES 100 PERMEABILITY (MILLIDARCIES) 1000 100 DARCY-METRES FIGURE 27: INJECTIVITY OF STORAGE SITES ACROSS THE ENTIRE PIPELINE OF FACILITIES. ADAPTED AND MODIFIED FROM HOFFMAN, N., GEORGE CARMAN, MOHAMMAD BAGHERI, TODD GOEBEL, & THE CARBONNET PROJECT. (2015). SITE CHARACTERISATION FOR CARBON STORAGE IN THE NEAR SHORE GIPPSLAND BASIN. GLOBAL CCS INSTITUTE#455.7 INFRASTRUCTURE As CCS networks have emerged as a key CCS deployment model, the development of shared transport and storage infrastructure has become a focus for project developers and policymakers. Shared infrastructure includes all the capital equipment required to move CO2 from capture plants to its ultimate permanent storage site: pipelines; compression systems; ships; port facilities, such as CO2 liquefaction plants and temporary holding tanks; and ultimately storage installations where multiple CO2 sources can be injected into storage in shared wells. Infrastructure projects enable better economics for the transport and storage of CO2. By taking advantage of economies of scale, shared pipelines enable long-distance transport at a much lower cost per tonne of CO2 than would be possible with dedicated, smaller capacity pipelines. Infrastructure also enables more rapid deployment of CCS at scale, by aggregating the parts of the life cycle (pipelines and storage) with longer timelines. Infrastructure projects are under development by existing players in the oil and gas sector who have long histories of building pipeline projects and drilling wells. These projects fit well with the experience and core competencies of these companies. In the US, ExxonMobil is leading the Houston Ship Channel CCS infrastructure project. Incorporating 14 companies operating emissions-intensive businesses in the Houston region, this world-scale network project will involve the development of shared CO2 pipelines in the Houston Ship Channel region. Companies such as Air Liquide, BASF and Shell have agreed to participate in the project (1). The use of shared infrastructure (pipelines and offshore storage wells in the Gulf of Mexico) will greatly improve the economics of CO2 transport and storage in the region. In the UK, the East Coast Cluster is working to aggregate CO2 captured from a multitude of industrial and energy facilities. In addition to these onshore pipeline networks, supporting infrastructure in the form of offshore pipelines and offshore storage facilities is being developed under the Northern Endurance Partnership (2). This large-scale offshore storage project will become essential infrastructure for the entire Humber and Teesside industrial region, enabling up to 27 Mtpa of captured CO2 to be stored far more cost effectively than multiple, smaller storage projects. In Europe, Equinor and Fluxys have announced plans for a world-scale CO2 subsea pipeline from Belgium to storage sites in the Norwegian North Sea (3). This 1,000 km long pipeline, with an anticipated capacity of 20-40 Mtpa, is intended to support the transport of captured CO2 from Belgium and surrounding countries as an open-access transport system. This would form an essential backbone of CO2 pipeline infrastructure across Northwestern Europe. In the Dutch North Sea, the Aramis project will provide open-access CO2 transport and storage services through an offshore pipeline to depleted gas fields. As well as pipelines, shipping is emerging as an essential transport vector for CO2- often when CO2 sources and storage sites are too far apart for pipelines. Ship-based CO2 transport relies on the refrigeration of CO2 to liquefy it, making it denser and enabling ships to transport larger tonnages for a given volume. Early ship designs, such as those used in the Langskip network in Norway, are dedicated carriers shuttling CO2 from particular individual CO2 capture facilities in Oslo and Brevik. As such, their 7,500 m3 CO₂ volume is determined by logistics, with shipping distance and annual CO2 volume the key considerations (4). These early ships were adapted from existing LPG carrier designs. It is anticipated that future CO2 ships will likely be developed with larger capacities to facilitate longer open water shipping routes, using clean sheet designs. In Iceland, CO2 storage company Carbfix is developing the Coda project (5). Leveraging the low-cost basalt storage available in Iceland, this CO2 terminal will enable CO2 to be shipped from across Northwestern and Western Europe. CO2 port infrastructure like Coda is expected to become a common feature of coastal CCS networks more generally. Ship-based CO2 movements increase the scale of CCS networks and will require CO2 loading facilities (at source ports) and unloading facilities (at receiving ports). A key advantage of port facilities is that CO2 transport routes can change over time (unlike pipelines), allowing ships to take CO2 to the lowest-cost storage facilities in a region. As well as industrial players, governments play a key role in the incentivisation and development of CCS infrastructure. For example, the Carbon Net pipeline and storage project in Victoria, Australia has been an ongoing effort to develop a new storage sector for energy and industrial businesses in the state. Similarly, the Alberta Carbon Trunk Line (ACTL) project in Alberta, Canada has benefited from public support to kickstart the CCS sector in the region, building a world-scale pipeline connecting CO2 sources to storage resources 240 km away. [45] GLOBAL CCS INSTITUTE#46This support goes beyond technical work - it includes supportive regulations to enable a firm legal basis to undertake storage, guidance for pipeline route development, and government support for early-stage exploration to confirm storage resource quality. These are key roles for governments to help overcome some of the early barriers to infrastructure development. The continued growth to enable CCS to move to gigatonne scales globally, will depend on more pipelines, storage projects and shipping infrastructure over the coming decades. [46] GLOBAL CCS INSTITUTE#475.8 TIMELINES FOR CCS PROJECT DEVELOPMENT YEAR APPROVALS Geological storage exploration permitting Geological storage resource declaration as Building a new CCS facility or retrofitting CCS to an existing facility is a major industrial project requiring the full suite of studies, from concept through pre-feasibility and feasibility, before detailed engineering studies commence. The complexities of identifying and negotiating commercial agreements with counterparties where required (for example, CO2 offtake agreements) and completing environmental impact assessment processes, as well obtaining the necessary tenements and approvals for geological storage of CO2 from regulators, generally requires years to complete. This is assuming that appropriate legislation for the regulation of CCS has been promulgated; in most jurisdictions, this is still not the case. The development of a CCS project shares many similarities with mining and mineral processing and oil or gas production projects; a large complex CCS project may take a decade to progress from concept to operation. GEOLOGICAL STUDIES CO2 CAPTURE & TRANSPORT STUDIES CONTRACTING PROJECT EXECUTION Environmental Impact Assessment & Approvals Geological storage injection permitting Basin Screening (desktop) Initial Inventory Review (desktop) Storage Site Identification & Appraisal (data collection) Storage Field Development & Engineering Design CO2 Capture & transport Scoping & Pre-feasibility Studies CO2 Capture & Transport Feasibility Studie: CO2 Capture & Transport FEED Studies Financial Investment Decision Counterparty Commercial Negotiations CO2 Capture & Transport Detailed Engineering Procurement [47] Construction Commissioning Operation FIGURE 28: SIMPLIFIED GANTT CHART FOR A COMPLEX CCS PROJECT 1 2 NI MI H1 H2 H1 H2 H1 H2 4 H1 H2 IG 6 5 H1 H2 H1 7 8 H2 H1 H2 H1 I H2 9 H1 H2 GLOBAL CCS INSTITUTE#48The identification and appraisal of geological resources for the storage of CO2 is a costly and time-consuming process. It requires a desktop review of existing geological models covering the area in question, "imaging" of the subsurface using seismic techniques and complex data processing, and finally, the drilling of a well to collect core samples for analysis and to undertake small scale injection testing. These activities typically take a few years to complete and are subject to the availability of geoscientists with appropriate experience and the critical equipment required to collect data and drill wells. Storage appraisal is on the critical path for CCS deployment. Figure 28 is a highly simplified Gantt chart for the development of a complex CCS project, assuming appropriate CCS regulation is in place and there is no significant community opposition. It is possible to deliver a complex project in less time if relevant pre-existing studies are available (for example, storage site appraisal or capture engineering studies). At the other end of the spectrum, less complex CCS projects can be developed in less than five years. These projects will generally require CO2 capture processes that are simple to integrate with the CO2 source, are vertically integrated (no offtake agreements), utilise existing infrastructure and/or access rights, and access geological storage resources that are already well characterised and not facing any significant risk of community opposition. An excellent example of a less complex CCS project is Santos's Cooper Basin CCS Project in Australia, which is scheduled to commence operation in 2024. This project will capture CO2 from gas processing facilities and, using an existing pipeline corridor, transport it 50 km to a depleted hydrocarbon reservoir for storage. Santos will own and operate every element of the project, which is in a remote part of Australia with extremely low population density. While there are likely many opportunities around the world to develop less complex CCS projects such as the Cooper Basin CCS Project, these represent a minority of the total capacity required to meet climate targets. CCS projects in development today typically have disaggregated value chains and connect to a CO2 transport and storage network because of the cost and the risk benefits that networks provide. The downside is increased complexity and longer development timelines. In the last few years, as CCS networks have emerged, the scale and complexity of CCS projects has increased significantly. A large majority of these projects are leveraging some existing studies, most commonly related to geological storage resources. Those with access to pre-existing studies would be expected to advance to operation in less than nine years, but some may take longer. Large industrial projects take time to develop. If ambitious climate targets are to be met, the majority of projects that will deliver multi- mega-tonne-per-year-abatement in the 2030s need to commence development in the 2020s. In addition, less complex projects that can be delivered in five years or less should be pursued with urgency. Policymakers must take these timelines into account and develop policy that incentivises investment in more complex and less complex CCS projects to support net-zero strategies. Further, capacity-building across all relevant disciplines, especially geoscience, will be necessary in some developing countries, particularly those without a well developed petroleum production industry. [48] GLOBAL CCS INSTITUTE#49APPENDICES 6.1 CO₂ GEOLOGICAL STORAGE SUMMARY OF STORAGE MECHANISMS AND SECURITY Four mechanisms exist for trapping CO₂ in the subsurface. These mechanisms occur simultaneously upon injection but occur at different rates (Appendix figure 1). The relative contribution of each trapping mechanism - physical, residual, dissolution, mineralisation - changes with time and with a CO2 plume's evolution. In the initial decades of a standard storage operation, physical trapping of free-phase CO2 is the primary trapping mechanism. Trapping of CO2 is strongly dependent on a site's geology and local formation conditions (in-situ fluids, pressure, temperature). A portion of the CO2 plume may always remain in its free phase, but physical trapping is permanent when the geologic setting is stable and the CO2 plume is behaving in the reservoir as predicted. PHYSICAL TRAPPING Physical trapping occurs when buoyant, free-phase CO₂ migrates into a body of rock that has been folded or faulted into a subsurface structure (or "trap"), which closes in three or four directions, and is contained below a low-permeability caprock (or "seal") (see Appendix figure 2). Physical trapping is the same mechanism that traps hydrocarbons in the subsurface. Appendix figure 2 illustrates types of physical traps, including independent folded rock bodies and fault-dependent folds (which rely on closure against a fault for CO2 containment). In certain geological settings, physical trapping of CO2 occurs when a reservoir thins laterally and ultimately pinches-out. This is called a stratigraphic trap and is shown at "E" in Appendix figure 2. B A CONTRIBUTION TO CO: TRAPPING (%) 100 STRUCTURAL TRAPPING Caprock Mmm 10 100 TIME AFTER CO2 INJECTION (YEARS) RESIDUAL TRAPPING DISSOLUTION TRAPPING ~10-50μm Caprock "0.5mm 10,000 MINERAL TRAPPING Caprock "0.5mm D C STORAGE FORMATIONS FAULTS ✓ INJECTED CO2 SPILL POINTS (FAULT DEPENDENCY OF STRUCTURAL CLOSURES) A RESIDUAL TRAPPING (MONOCLINE FOLD) B FAULT-INDEPENDENT STRUCTURAL TRAP (ANTICLINE FOLD) CFAULT-DEPENDANT STRUCTURAL TRAP (EXTENSIONAL FAULT) D FAULT-DEPENDANT STRUCTURAL TRAP (CONTRACTIONAL FAULT) E STRATIGRAPHIC TRAP (PINCH OUT) E APPENDIX FIGURE 1: (LOWER PANEL) THE FOUR TRAPPING MECHANISMS OPERATING IN THE SUBSURFACE TO PERMANENTLY STORE CO2. (UPPER PANEL) RELATIVE CONTRIBUTION OF THE FOUR TRAPPING MECHANISMS TO PERMANENT CO₂ STORAGE THROUGH TIME. EACH MECHANISM OPERATES SIMULTANEOUSLY UPON CO₂ INJECTION, BUT THEY OCCUR AT DIFFERENT RATES. SOURCE: IPCC (2005) APPENDIX FIGURE 2: SCHEMATIC ILLUSTRATION OF PHYSICAL TRAPS IN THE SUBSURFACE. CIRCLES SHOW "SPILL POINTS" OR FAULT DEPENDENCY OF STRUCTURAL CLOSURES. (A) Residual trapping can be the dominant trapping mechanism in gently dipping (that is, relatively flat-lying) rock bodies that do not exhibit structural closure. (B) A fault-independent folded rock body (anticline) can trap buoyant CO2 down to its "spill point", below which CO2 will migrate out of the folded trap. (C) A fault-dependent (extensional fault) folded closure relies on the juxtaposition of sealing lithologies across the fault plane to prevent CO2 migration out of the trap. (D) A fault-dependent (contractional fault) folded closure relies on the juxtaposition of sealing lithologies across the fault plane to prevent CO2 migration out of the trap. (E) A stratigraphic trap relies on lateral changes in lithology (often lateral stratigraphic terminations or "pinch-outs") to prevent CO2 migration out of the trap. [49] GLOBAL CCS INSTITUTE#50RESIDUAL TRAPPING As a CO2 plume migrates through a reservoir, a portion of the plume will become trapped in the pore space and micro-scale reservoir heterogeneities by capillary forces (see Appendix figure 1). This process is called residual trapping and is controlled by the connectivity between pores, pore throat size, reservoir lithology, and pre-existing pore fluid chemistry. Pores in suitable reservoirs are typically <1 mm in size, well connected, and often make up 10-30 per cent of the bulk rock volume. Buoyancy forces of the CO2 plume are generally strong enough to overcome capillary forces in rock pores; however, along the margins and tail of a migrating plume, capillary forces are strong enough to "snap-off" small amounts of CO2 from the plume. These small amounts of CO2 are held permanently in pores against the surface of mineral grains. As the CO2 plume migrates away from the higher pressures at an injection well, residual trapping becomes increasingly important. Although residual trapping occurs at the micro-scale, the mass of CO2 trapped by this mechanism becomes significant at the reservoir scale (tens of metres of thickness and over an area of hundreds of square kilometres). Residual trapping contributes significantly to permanent storage in the early decades of a storage project. DISSOLUTION TRAPPING Dissolution trapping is a simple mechanism that occurs when injected CO2 comes into contact with a brine and the CO2 is able to dissolve into the brine solution. CO₂ solubility is dependent on brine salinity and the temperature and pressure conditions of a reservoir. A CO2-saturated brine solution is denser than unsaturated brine and will sink in a reservoir. Dissolution trapping is considered permanently trapped. Over time, the CO2-saturated brine diffuses and disperses within the regional hydrogeological system of the basin. Dissolution trapping happens immediately on contact, but only becomes a significant contributor to storage at decadal to century timescales. MINERAL TRAPPING Mineral trapping occurs when injected CO2 chemically reacts with the minerals in a reservoir rock to form solid stable product minerals often carbonate minerals. Mineral trapping is a permanent form of storage. Reaction rates and the mineralogy of product minerals depend on reservoir pressure, temperature, and reservoir mineralogy. Reservoirs targeted for CO2 storage often have favourable conditions for mineralisation. Mineral carbonation begins immediately upon injection, but is generally a minor component of a storage project until thousands of years have passed. At this timescale, in a conventional storage reservoir, the majority of CO2 will have already been permanently stored by the three mechanisms discussed above. However, injection into some rock formations (such as basalts) that contain reactive iron and magnesium minerals can result in rapid mineralisation of the majority of the CO2 in as quickly as two years (2). CO₂ STORAGE RESOURCE CATALOGUE The CO2 Storage Resource Catalogue is a comprehensive global database of storage resources classified according to their commercial readiness using the 2017 Society of Petroleum Engineers Storage Resources Management System (SRMS). The purpose of the catalogue is to accelerate the commercial-scale development of CCS projects, build confidence in storage resource estimates, provide a consistent global picture of storage potential, and to establish the SRMS as a robust and authoritative reporting mechanism for storage resources. The catalogue is a six-year project funded by the Oil and Gas Climate Initiative, with technical assessments undertaken by the Global CCS Institute and Storegga. It is expected that by 2025, the catalogue will have assessed all countries across the globe. The SRMS classifications are shown in Appendix figure 3. The Global CCS Institute in partnership with Storegga developed a series of guiding questions to help users classify their storage resources correctly. There are four major resource classes in the SRMS - these are Stored, Capacity, Contingent, and Prospective resources. Each class implies a different level of commercial maturity, with Prospective resources being the least mature and Stored being the most mature. Together, these make up the total storage resource base. [50] GLOBAL CCS INSTITUTE#51[51] UNDISCOVERED DISCOVERED COMMERCIAL TOTAL STORAGE RESOURCES PROSPECTIVE SUB-COMMERCIAL CONTINGENT CAPACITY INJECTED FINAL INVESTMENT DECISION Have the storable quantities Y Y Is the project actively injecting? Does the project have all the been injected into the formation? N necessary approvals for development? ECONOMIC VIABILITY → → 333 YH STORED ON INJECTION APPROVED FOR DEVELOPMENT NJUSTIFIED FOR DEVELOPMENT YDEVELOPMENT PENDING Can a commercial development be progressed without a significant delay? N DEVELOPMENT ON HOLD Does the project hold N DEVELOPMENT UNCLARIFIED Are the storable quantities considered commerical with a firm intention to proceed? DISCOVERY a storage license? Is there an active appraisal or evaluation plan? Can the resource be accessed with existing physical or regulatory Nconstraints? Are the storable quantities the subject of a viable drilling target? N→ DEVELOPMENT NOT VIABLE NINACCESSIBLE YPROSPECT NLEAD ECONOMICALLY NOT VIABLE ECONOMICALLY VIABLE INCREASING CHANCE OF COMMERCIALITY HIGHLY SUITABLE ■SUITABLE POSSIBLE UNLIKELY APPENDIX FIGURE 4: RESULTS FROM ASSESSMENT CYCLE 3 OF THE CO₂ STORAGE RESOURCE CATALOGUE. SOURCE: OGCI ET AL. (2022) Have the storable quantities been discovered? Has a nominal storge site been identified? Has the evaluation specified a geological sequence by name? Can the resource be accessed with existing physical or Nregulatory constraints? NSEQUENCE PLAY N➡ BASIN PLAY NINACCESSIBLE APPENDIX FIGURE 3: THE STORAGE RESOURCE MANAGEMENT SYSTEM CLASSIFICATION SYSTEM FOR CO₂ STORAGE RESOURCES. FOLLOW THE QUESTION FLOW CHART (BLUE BOXES) TO GUIDE YOUR RESOURCE CLASSIFICATION. SOURCE: OGCI ET AL. (2022) Assessment cycle 3 increased the number of storage sites to 852 and the number of assessed countries to 30. Appendix figure 4 shows the total discovered and undiscovered storage resource. Just over 577 Gt of storage resources (or 4.1 per cent of the total global resource base) have been discovered - meaning they have been proven with subsurface data such as a well and seismic surveys. Unfortunately, only a very small fraction of the total global storage resource base can be considered commercial resources - just 253 MtCO2 (or 0.002 per cent). Commercial resources must be ready for a storage operation to proceed and have: The third annual assessment cycle ("Cycle 3" in OGCI et al. (2022)) was completed in March 2022 and added approximately 1,000 gigatonnes of CO2 (GtCO2) of storage resources to the global resource base, which stands at 13,954 GtCO2. . a legal and regulatory framework that enables CO2 storage . a thorough technical assessment and understanding of the storage complex • a notional project development plan • no significant barrier causing delay in development of the project. GLOBAL CCS INSTITUTE#52[52] The order of magnitude difference between sub- commercial resources and commercial resources suggests a significant opportunity exists to explore, develop, and appraise storage resources globally (Appendix figure 5). The CO2 Storage Resource Catalogue can only use data in the public domain, so classifications in Appendix figure 5 likely underestimate resource commerciality because companies tend to keep their CCS project information private. In February 2022, Santos became the first company to officially claim ownership of (or "book") CO2 storage resources using the SRMS system (4). It has booked 100 Mt of storage resources in the Cooper Basin of Australia ahead of its Moomba CCS Project, which has reached its final investment decision (FID). Santos booked nine Mt of 2P (proved plus probable) resource and 91 Mt of contingent (2C) resource. CO2 STORAGE RESOURCE (Mt) 10,000,000 1,000,000 100,000 10,000 1,000 100 10 1 USA CANADA MEXICO BRAZIL CHINA AMERICAS APAC STORED KAZAKHSTAN AUSTRALIA SOUTH KOREA JAPAN MALYSIA CAPACITY INDIA PAKISTAN VIETNAM BANGLADESH INDONESIA THAILAND BRUNEI SRI LANKA NORWAY SUB-COMMERCIAL APPENDIX FIGURE 5: CO₂ STORAGE RESOURCES (WHICH ARE ASSOCIATED WITH STORAGE PROJECTS) BY COUNTRY AND SRMS MATURITY CLASS. SOURCE: OGCI ET AL. (2022) UK DENMARK EUROPE MENA UNDISCOVERED GLOBAL CCS INSTITUTE GERMANY UAE SAUDI ARABIA KUWAIT QATAR SOUTH AFRICA MOZAMBIQUE#536.2 2022 FACILITIES LIST OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY Mtpa CO2 FACILITY STORAGE CODE TERRELL NATURAL GAS PROCESSING PLANT (FORMERLY VAL VERDE NATURAL GAS PLANTS) USA Operational 1972 Natural Gas Processing 0.5 Enhanced Oil Recovery ENID FERTILIZER USA Operational 1982 Fertiliser Production 0.2 Enhanced Oil Recovery SHUTE CREEK GAS PROCESSING PLANT USA Operational 1986 Natural Gas Processing 7 Enhanced Oil Recovery MOL SZANK FIELD CO2 EOR Hungary Operational 1992 Natural Gas Processing 0.16 Enhanced Oil Recovery SLEIPNER CO2 STORAGE Norway Operational 1996 Natural Gas Processing 1 Dedicated Geological Storage GREAT PLAINS SYNFUELS PLANT AND WEYBURN-MIDALE USA Operational 2000 Synthetic Natural Gas 3 Enhanced Oil Recovery CORE ENERGY CO2-EOR USA Operational 2003 Natural Gas Processing 0.35 Enhanced Oil Recovery SNOHVIT CO2 STORAGE Norway Operational 2008 Natural Gas Processing 0.7 Dedicated Geological Storage ARKALON CO₂ COMPRESSION FACILITY USA Operational 2009 Ethanol Production 0.29 Enhanced Oil Recovery CENTURY PLANT USA Operational 2010 Natural Gas Processing 5 Enhanced Oil Recovery PETROBRAS SANTOS BASIN PRE-SALT OIL FIELD CCS** Brazil Operational 2011 Natural Gas Processing 7 Enhanced Oil Recovery BONANZA BIOENERGY CCUS EOR USA Operational 2012 Ethanol Production 0.1 Enhanced Oil Recovery AIR PRODUCTS STEAM METHANE REFORMER USA Operational 2013 Hydrogen Production 1 Enhanced Oil Recovery COFFEYVILLE GASIFICATION PLANT USA Operational 2013 Fertiliser Production 0.9 Enhanced Oil Recovery PCS NITROGEN USA Operational 2013 Fertiliser Production 0.3 Enhanced Oil Recovery BOUNDARY DAM 3 CARBON CAPTURE AND STORAGE FACILITY Canada Operational 2014 Power Generation 1 Various KARAMAY DUNHUA OIL TECHNOLOGY CCUS EOR China Operational 2015 Methanol Production 0.1 Enhanced Oil Recovery Dedicated Geological QUEST Canada Operational 2015 Hydrogen Production 1.3 Storage UTHMANIYAH CO2-EOR DEMONSTRATION Saudi Arabia Operational 2015 Natural Gas Processing 0.8 Enhanced Oil Recovery [53] GLOBAL CCS INSTITUTE#54FACILITY OPERATIONAL COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY FACILITY STORAGE CODE Mtpa CO2 ABU DHABI CCS (PHASE 1 BEING EMIRATES STEEL INDUSTRIES) ILLINOIS INDUSTRIAL CARBON CAPTURE AND STORAGE CNPC JILIN OIL FIELD CO2 EOR United Arab Emirates Operational 2016 Iron and Steel Production 0.8 Enhanced Oil Recovery USA Operational 2017 Ethanol Production 1 Dedicated Geological Storage China Operational 2018 Natural Gas Processing 0.6 Enhanced Oil Recovery GORGON CARBON DIOXIDE INJECTION Australia Operational 2019 Natural Gas Processing 4 Dedicated Geological Storage QATAR LNG CCS Qatar Operational 2019 Natural Gas Processing 2.2 Dedicated Geological Storage ALBERTA CARBON TRUNK LINE (ACTL) WITH NORTH WEST REDWATER PARTNERSHIP'S STURGEON REFINERY CO2 STREAM Canada Operational 2020 Oil Refining 1.6 Enhanced Oil Recovery ALBERTA CARBON TRUNK LINE (ACTL) WITH NUTRIEN CO2 STREAM Canada Operational 2020 Fertiliser Production 0.3 Enhanced Oil Recovery ORCA Iceland Operational 2021 Direct Air Capture Dedicated Geological 0.004 Storage GLACIER GAS PLANT MCCS Canada Operational 2022 Natural Gas Processing 0.2 Dedicated Geological Storage SINOPEC QILU-SHENGLI CCUS RED TRAIL ENERGY CCS CNOOC SOUTH CHINA SEA OFFSHORE CCS China Operational 2022 Chemical Production 1 USA Operational 2022 Ethanol Production 0.18 Enhanced Oil Recovery Dedicated Geological Storage China In Construction 2023 Natural Gas Processing 0.3 Enhanced Oil Recovery GUODIAN TAIZHOU POWER STATION CARBON CAPTURE China In Construction 2023 Power Generation 0.3 Enhanced Oil Recovery SANTOS COOPER BASIN CCS PROJECT Australia In Construction 2023 Natural Gas Processing Dedicated Geological 1.7 Storage MAMMOTH Iceland In Construction 2024 Direct Air Capture 0.03 Dedicated Geological Storage NORCEM BREVIK - CEMENT PLANT Norway In Construction 2024 Cement Production 0.4 N/A NORCEM BREVIK - SHIPPING ROUTE Norway In Construction 2024 Cement Production N/A NORTHERN LIGHTS - STORAGE Norway In Construction 2024 Various Dedicated Geological Storage 1POINTFIVE DIRECT AIR CAPTURE FACILITY USA In Construction 2024 Direct Air Capture 0.5 Dedicated Geological Storage HAFSLUND OSLO CELSIO- KLEMETSRUD WASTE TO ENERGY PLANT Norway In Construction 2025 Waste Incineration 0.4 N/A NORTH FIELD EAST PROJECT (NFE) CCS Qatar In Construction 2025 Natural Gas Processing 1 Under Evaluation [54] GLOBAL CCS INSTITUTE#55OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY Mtpa CO2 FACILITY STORAGE CODE LOUISIANA CLEAN ENERGY COMPLEX USA In Construction 2026 Various 5 Dedicated Geological Storage Advanced WABASH CO₂ SEQUESTRATION USA 2022 Fertiliser Production 1.75 Development Dedicated Geological Storage Advanced BRIDGEPORT ENERGY MOONIE CCUS PROJECT Australia 2023 Various Development Advanced HUANENG LONGDONG ENERGY BASE CARBON CAPTURE AND STORAGE China 2023 Power Generation 1.5 25 0.2 Enhanced Oil Recovery Development Dedicated Geological Storage Advanced NORTHERN DELAWARE BASIN CCS USA 2023 Natural Gas Processing 0.03 Development Dedicated Geological Storage Advanced ABERDEEN BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.14 Development Dedicated Geological Storage Advanced AIR LIQUIDE REFINERY ROTTERDAM CCS Netherlands 2024 Hydrogen Production 0.8 Development Dedicated Geological Storage Advanced AIR PRODUCTS NET-ZERO HYDROGEN ENERGY COMPLEX AIR PRODUCTS REFINERY ROTTERDAM CCS ATKINSON BIOREFINERY CARBON CAPTURE AND STORAGE CASSELTON BIOREFINERY CARBON CAPTURE AND STORAGE Canada 2024 Hydrogen Production 3 N/A Development Advanced Netherlands 2024 Hydrogen Production Development Dedicated Geological Storage Advanced USA 2024 Ethanol Production 0.16 Development Dedicated Geological Storage Advanced USA 2024 Ethanol Production 0.5 Development Dedicated Geological Storage Advanced Dedicated Geological CENTRAL CITY BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.33 Development Storage Advanced EXXONMOBIL BENELUX REFINERY CCS Netherlands 2024 Hydrogen Production Dedicated Geological Development Storage Advanced Dedicated Geological FAIRMONT BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.34 Development Storage Advanced FEDERATED CO-OPERATIVES LIMITED (ETHANOL) Canada 2024 Ethanol Production 3 Development Advanced Enhanced Oil Recovery Dedicated Geological GALVA BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.11 Development Storage Advanced Dedicated Geological GOLDFIELD BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.22 Development Storage Advanced GRAND JUNCTION BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.34 Development Dedicated Geological Storage Advanced GRANITE FALLS BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.18 Development Dedicated Geological Storage Advanced HERON LAKE BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.19 Development Dedicated Geological Storage HURON BIOREFINERY CARBON CAPTURE AND STORAGE USA Advanced Development Dedicated Geological 2024 Ethanol Production 0.09 Storage [55] GLOBAL CCS INSTITUTE#56CAPTURE OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY CAPACITY FACILITY STORAGE CODE DATE Mtpa CO2 Advanced LAMBERTON BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.16 Development Dedicated Geological Storage Advanced Dedicated Geological LAWLER BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.57 Development Storage Advanced MARCUS BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.46 Dedicated Geological Development Storage Advanced Dedicated Geological MASON CITY BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.34 Development Storage Advanced MERRILL BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.16 Development Dedicated Geological Storage Advanced MINA BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.4 Development Dedicated Geological Storage Advanced NEVADA BIOREFINERY CARBON CAPTURE AND STORAGE NORFOLK BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.26 Development Dedicated Geological Storage Advanced Dedicated Geological USA 2024 Ethanol Production 0.15 Development Storage Advanced ONIDA BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.23 Development Dedicated Geological Storage Advanced Dedicated Geological OTTER TAIL BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.17 Development Storage Advanced PLAINVIEW BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.32 Dedicated Geological Development Storage Advanced POLARIS CARBON STORAGE Norway 2024 Hydrogen Production Dedicated Geological Development Storage Advanced PORTHOS - COMPRESSOR STATION Netherlands 2024 Various N/A Development Advanced PORTHOS - OFFSHORE PIPELINE Netherlands 2024 Various N/A Development Advanced PORTHOS ONSHORE PIPELINE Netherlands 2024 Various N/A Development Advanced PORTHOS STORAGE Netherlands 2024 Various Development Dedicated Geological Storage Advanced Dedicated Geological REDFIELD BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.17 Development Storage Advanced SAN JUAN GENERATING STATION CARBON CAPTURE USA 2024 Power Generation 6 Development Dedicated Geological Storage Advanced SHELL REFINERY ROTTERDAM CCS Netherlands 2024 Hydrogen Production 1.4 Development Dedicated Geological Storage SHENANDOAH BIOREFINERY CARBON CAPTURE AND STORAGE USA Advanced Development 2024 Ethanol Production 0.24 Dedicated Geological Storage SIOUX CENTER BIOREFINERY CARBON CAPTURE AND STORAGE USA Advanced Development Dedicated Geological 2024 Ethanol Production 0.19 Storage [56] GLOBAL CCS INSTITUTE#57CAPTURE OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY CAPACITY FACILITY STORAGE CODE DATE Mtpa CO2 STEAMBOAT ROCK BIOREFINERY CARBON CAPTURE AND STORAGE USA Advanced Development 2024 Ethanol Production 0.23 Dedicated Geological Storage Advanced Dedicated Geological SUMMIT PIPELINE USA 2024 Bioenergy Development Storage Advanced SUPERIOR BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.17 Dedicated Geological Development Storage Advanced Dedicated Geological WATERTOWN BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.37 Development Storage Advanced Dedicated Geological WENTWORTH BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.26 Development Storage Advanced Dedicated Geological WOOD RIVER BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.35 Development Storage Advanced YORK BIOREFINERY CARBON CAPTURE AND STORAGE USA 2024 Ethanol Production 0.14 Dedicated Geological Development Storage Advanced PROJECT GREENSAND ABU DHABI CCS PHASE 2: NATURAL GAS PROCESSING PLANT Denmark 2025 Various Development Dedicated Geological Storage United Arab Emirates Advanced 2025 Natural Gas Processing 2.3 Enhanced Oil Recovery Development Advanced Dedicated Geological COPENHILL (AMAGER BAKKE) WASTE TO ENERGY CCS Denmark 2025 Waste Incineration 0.5 Development Storage Advanced COYOTE CLEAN POWER PROJECT EAST COAST CLUSTER GHASHA CONCESSION FIELDS USA 2025 Power Generation 0.86 Under Evaluation Development Advanced Dedicated Geological UK 2025 Various 27 Development Storage United Arab Advanced 2025 Natural Gas Processing Emirates Development Under Evaluation Dedicated Geological Storage Advanced HAFSLUND OSLO CELSIO- TRUCK ROUTE Norway 2025 Waste Incineration N/A Development Advanced LAKE CHARLES METHANOL USA 2025 Chemical Production 4 Under Evaluation Development Advanced Dedicated Geological ONE EARTH ENERGY FACILITY CARBON CAPTURE USA 2025 Ethanol Production 0.5 Development Advanced STOCKHOLM EXERGI BECCS Sweden 2025 Bioenergy 0.8 Development Storage Dedicated Geological Storage Advanced STOCKHOLM EXERGI BECCS - SHIPPING ROUTE Sweden 2025 Bioenergy N/A Development Advanced CODA SHIPPING Iceland 2026 Various N/A Development Advanced CODA TERMINAL ONSHORE INFRASTRUCTURE Iceland 2026 Various N/A Development CODA TERMINAL PIPELINE Iceland Advanced Development 2026 Various N/A [57] GLOBAL CCS INSTITUTE#58OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY CAPTURE CAPACITY FACILITY STORAGE CODE DATE Mtpa CO2 Advanced CODA TERMINAL STORAGE FEDERATED CO-OPERATIVES LIMITED (REFINERY) Iceland 2026 Various Development Dedicated Geological Storage Advanced Canada 2026 Oil Refining Dedicated Geological 1 Development Storage Advanced PTTEP ARTHIT CCS* Thailand 2026 Natural Gas Processing Dedicated Geological 1 Development Storage Advanced BAYU-UNDAN CCS Timor-Leste 2027 Natural Gas Processing Dedicated Geological 10 Development Storage Advanced HUMBER ZERO - VPI IMMINGHAM POWER PLANT CCS UK 2027 Power Generation Development Advanced HUMBER ZERO - PHILLIPS 66 HUMBER REFINERY CCS UK 2028 Development Hydrogen Production Under Evaluation Under Evaluation Dedicated Geological Storage Dedicated Geological Storage Advanced ANTWERP@C - BASF ANTWERP CCS Belgium 2030 Chemical Production 1.42 Development Dedicated Geological Storage JAMES M. BARRY ELECTRIC GENERATING PLANT CCS PROJECT USA Advanced Development 2030 Power Generation Under Evaluation PROJECT TUNDRA USA Advanced Development 2025 2026 Power Generation 3.6 Advanced CAL CAPTURE USA Mid 2020s Power Generation 1.4 Under Evaluation Dedicated Geological Storage Enhanced Oil Recovery Development Advanced GERALD GENTLEMAN STATION CARBON CAPTURE USA Mid 2020s Power Generation 4.3 Under Evaluation Development Advanced PLANT DANIEL CARBON CAPTURE USA Mid 2020s Power Generation 1.8 Under Evaluation Development PRAIRIE STATE GENERATING STATION CARBON CAPTURE USA Advanced Development Mid 2020s Power Generation 6 Dedicated Geological Storage Advanced DEER PARK ENERGY CENTRE CCS PROJECT USA N/A Power Generation 5 Development Dedicated Geological Storage FARLEY DAC PROJECT USA Advanced Development Under Direct Air Capture Evaluation Under Evaluation Under Evaluation MUSTANG STATION OF GOLDEN SPREAD ELECTRIC COOPERATIVE CARBON CAPTURE USA Advanced Development Advanced SOUTHEAST SASKATCHEWAN CCUS HUB - STORAGE Canada Development Under Evaluation Under Evaluation Power Generation 1.5 Under Evaluation Various Dedicated Geological Storage PETRONAS KASAWARI GAS FIELD DEVELOPMENT PROJECT Malaysia Early Development 2023 Natural Gas Processing Under Evaluation Under Evaluation MIDWEST AGENERGY BLUE FLINT ETHANOL CCS USA Early Development 2022 Ethanol Production 0.18 Dedicated Geological Storage PROJECT INTERSEQT - HEREFORD ETHANOL PLANT USA Early Development 2023 Ethanol Production 0.35 Enhanced Oil Recovery PROJECT INTERSEQT - PLAINVIEW ETHANOL PLANT USA Early Development 2023 Ethanol Production 0.35 Enhanced Oil Recovery [58] GLOBAL CCS INSTITUTE#59FACILITY OPERATIONAL COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY FACILITY STORAGE CODE Mtpa CO2 Ethanol Production and Dedicated Geological AEMETIS CALEDONIA CLEAN ENERGY USA Early Development 2024 2 Fertiliser Production Storage Dedicated Geological UK Early Development 2024 Power Generation 3 Storage HYDROGEN 2 MAGNUM (H2M) Netherlands Early Development 2024 Power Generation 2 Dedicated Geological Storage NORTHERN LIGHTS - PIPELINE Norway Early Development 2024 Various N/A PROJECT POUAKAI HYDROGEN PRODUCTION WITH CCS New Zealand Early Development 2024 Various 1 Under Evaluation YARA SLUISKIL Netherlands Early Development 2025 Fertiliser Production 0.8 Dedicated Geological Storage ACORN HYDROGEN UK Early Development 2025 Hydrogen Production Under Evaluation Dedicated Geological Storage BAYOU BEND CCS USA Early Development 2025 Various Under Evaluation CARBON TERRAVAULT I PROJECT USA Early Development 2025 Under Evaluation 1 Dedicated Geological Storage CLEAN ENERGY SYSTEMS CARBON NEGATIVE ENERGY PLANT - CENTRAL VALLEY USA Early Development 2025 Power Generation and Hydrogen Production 0.32 Dedicated Geological Storage DRY FORK INTEGRATED COMMERCIAL CARBON CAPTURE AND STORAGE (CCS) Dedicated Geological USA Early Development 2025 Power Generation 3 Storage FORTUM OSLO VARME - SHIPPING ROUTE Norway Early Development 2025 Waste Incineration N/A ILLINOIS ALLAM-FETVEDT CYCLE POWER PLANT USA Early Development 2025 Power Generation 1 N/A MENDOTA BECCS NET ZERO TEESSIDE - CCGT FACILITY NEXTDECADE RIO GRANDE LNG CCS PREEM REFINERY CCS USA Early Development 2025 Bioenergy 0.3 Dedicated Geological Storage Under UK Early Development 2025 Power Generation Evaluation Dedicated Geological Storage USA Early Development 2025 Natural Gas Processing 5.5 Under Evaluation Sweden Early Development 2025 Hydrogen Production Dedicated Geological 0.5 Storage SOUTH EAST AUSTRALIA CARBON CAPTURE HUB Australia Early Development 2025 Natural Gas Processing 2 Dedicated Geological Storage STANLOW REFINERY LOW CARBON HYDROGEN PLANT UK Early Development 2025 Oil Refining 0.6 N/A THE ILLINOIS CLEAN FUELS PROJECT USA Early Development 2025 Chemical Production 8.13 Dedicated Geological Storage Dedicated Geological VELOCYS' BAYOU FUELS NEGATIVE EMISSION PROJECT USA Early Development 2025 Chemical Production 0.5 Storage [59] GLOBAL CCS INSTITUTE#60OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY Mtpa CO2 FACILITY STORAGE CODE ACORN DIRECT AIR CAPTURE FACILITY UK Early Development 2026 Direct Air Capture 1 Dedicated Geological Storage ADRIATIC BLUE - ENI HYDROGEN CCS Italy Early Development 2026 Hydrogen Production Under Evaluation Dedicated Geological Storage ADRIATIC BLUE - ENI POWER CCS Italy Early Development 2026 Power Generation Under Evaluation Dedicated Geological Storage CINFRACAP - PIPELINE Sweden Early Development 2026 Various N/A CINFRACAP - SHIPPING ROUTE DELTA CORRIDOR PIPELINE NETWORK HYNET NORTH WEST - HANSON CEMENT CCS Sweden Early Development 2026 Various N/A Netherlands Early Development 2026 Various N/A UK Early Development 2026 Cement Production 0.8 Dedicated Geological Storage NORTHERN GAS NETWORK H21 NORTH OF ENGLAND UK Early Development 2026 Hydrogen Production Dedicated Geological Storage REPSOL SAKAKEMANG CARBON CAPTURE AND INJECTION Indonesia Early Development 2026 Natural Gas Processing 2 Dedicated Geological Storage INPEX CCS PROJECT DARWIN Australia Early Development 2026 Natural Gas Processing Dedicated Geological 7 Storage DRAX BECCS PROJECT G2 NET-ZERO LNG H2NORTHEAST KILLINGHOLME POWER STATION NET ZERO TEESSIDE - BP H2TEESSIDE UK Early Development 2027 Power Generation 8 Dedicated Geological Storage USA Early Development 2027 Natural Gas Processing 4 Under Evaluation UK Early Development 2027 Hydrogen Production UK Early Development 2027 UK Early Development 2027 Hydrogen Production Hydrogen Production Under Evaluation Under Evaluation N/A Dedicated Geological Storage NET ZERO TEESSIDE - SUEZ WASTE TO ENERGY CCS UK Early Development 2027 Waste Incineration ZERO CARBON HUMBER - KEADY 3 CCS POWER STATION UK Early Development 2027 Power Generation Under Evaluation Under Evaluation Under Dedicated Geological Storage Dedicated Geological Storage DIAMOND VAULT CCS USA Early Development 2028 Power Generation Evaluation Dedicated Geological Storage ERVIA CORK CCS Ireland Early Development 2028 Power Generation and Refining Dedicated Geological Storage K6 France Early Development 2028 Cement Production 0.8 Under Evaluation SUKOWATI CCUS Indonesia Early Development 2028 Oil Refining 1.4 Enhanced Oil Recovery [60] GLOBAL CCS INSTITUTE#61OPERATIONAL FACILITY COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPTURE CAPACITY Mtpa CO2 FACILITY STORAGE CODE ANTWERP@C - BOREALIS ANTWERP CCS Belgium Early Development 2030 Chemical Production ANTWERP@C - EXXONMOBIL ANTWERP REFINERY CCS Belgium Early Development 2030 Chemical Production ANTWERP@C - INEOS ANTWERP CCS Belgium Early Development 2030 Chemical Production DAVE JOHNSTON PLANT CARBON CAPTURE USA Early Development 2020s Power Generation Under Evaluation Under Evaluation Under Evaluation Under Evaluation Dedicated Geological Storage Dedicated Geological Storage Dedicated Geological Storage Enhanced Oil Recovery SINOPEC SHENGLI POWER PLANT CCS China Early Development 2020s Power Generation 1 Enhanced Oil Recovery Dedicated Geological KOREA-CCS 1 & 2 HYDROGEN TO HUMBER SALTEND ACORN South Korea UK UK Early Development Early Development Early Development 2020's Power Generation 1 Storage 2026-2027 Hydrogen Production Under Evaluation Dedicated Geological Storage Dedicated Geological Mid 2020s Various 5 Storage BARENTS BLUE Norway Early Development Mid 2020s Fertiliser Production 2 Dedicated Geological Storage Dedicated Geological CAROLINE CARBON CAPTURE POWER COMPLEX Canada Early Development Mid 2020s Power Generation 3 Storage HYNET NORTH WEST UK LAFARGEHOLCIM CEMENT CARBON CAPTURE USA NAUTICOL ENERGY BLUE METHANOL Canada NET ZERO TEESSIDE - NET POWER PLANT UK Early Development Early Development Early Development Early Development Mid 2020s Hydrogen Production Dedicated Geological Storage Mid 2020s Cement Production 2 Under Evaluation Mid 2020s Methanol Production 1 Enhanced Oil Recovery Mid 2020s Power Generation Under Evaluation Under Evaluation PAU CENTRAL SULAWESI CLEAN FUEL AMMONIA PRODUCTION WITH CCUS Indonesia Early Development Mid 2020s Fertiliser Production 2 Under Evaluation POLARIS CCS PROJECT SASKATCHEWAN NET POWER PLANT SHARC PROJECT Canada Early Development Mid 2020s Hydrogen Production Dedicated Geological 0.75 Storage Canada Finland Early Development Early Development Mid 2020s Power Generation 0.95 Under Evaluation Mid 2020s Hydrogen Production 0.4 N/A BORG CO2 BURRUP CCS HUB CYCLUS POWER GENERATION Norway Early Development Australia USA Early Development Early Development Under Evaluation Under Evaluation Under Evaluation Various 0.63 N/A Under Evaluation 5 Under Evaluation Bioenergy 2 Under Evaluation [61] GLOBAL CCS INSTITUTE#62CAPTURE FACILITY OPERATIONAL COUNTRY FACILITY STATUS FACILITY INDUSTRY DATE CAPACITY FACILITY STORAGE CODE Mtpa CO2 MEDWAY HUB PIPELINE UK Early Development MEDWAY POWER STATIONS UK Early Development HYNET HYDROGEN PRODUCTION PROJECT (HPP) UK डै Early Development ISLE OF GRAIN LNG TERMINAL UK Early Development MEDWAY HUB ESMOND AND FORBES CARBON STORAGE UK Early Development MEDWAY HUB SHIPPING UK Early Development SEMPRA ENERGY HACKBERRY CCS PROJECT USA Early Development WHITETAIL CLEAN ENERGY UK Early Development Under Evaluation Under Evaluation Under Evaluation Under Evaluation Under Evaluation Under Evaluation Under Evaluation Under Evaluation Power Generation and Hydrogen Production N/A Power Generation 7.6 Dedicated Geological Storage Hydrogen Production Power Generation Power Generation Dedicated Geological Storage Power Generation Natural Gas Processing Power Generation Under Evaluation Under Evaluation Under Evaluation LOST CABIN GAS PLANT USA Operation Suspended 2013 Natural Gas Processing 0.9 Enhanced Oil Recovery PETRA NOVA CARBON CAPTURE USA Operation Suspended 2017 Power Generation 1.4 Enhanced Oil Recovery * The Arthit project (Thailand) was added to the database after project number and capacities were finalised for this report and consequently this project is not included in relevant totals. ** The capacity of the Petrobras Santos Basin CCS project was updated after publication. Therefore, cumulative figures throughout the report reflect 7 Mtpa for Petrobras rather than 8.7 Mtpa. [62] GLOBAL CCS INSTITUTE#63REFERENCES 3. GLOBAL STATUS OF CCS 3.2 POLICY, LEGAL, AND REGULATORY UPDATE 1. Al Amer, N. (2022) CCS in the latest IPCC report "Mitigation of Climate Change". 2. Havercroft, I. and Consoli, C. (2022) Developments and Opportunities - A Review of National Responses to CCS Under the London Protocol. 4. REGIONAL OVERVIEW 4.1 REGIONAL OVERVIEW: AMERICAS 1. 2. 4. Speer R. Oll Infrastructure to Support CC. 2021 [cited 2022 Aug 12]; Available from: https://www.saskatchewan.ca/government/news-and-media/2021/november/04/oil-infrastructure-program-expanded-to- support-carbon-capture Government of Alberta. Industrial Energy Efficiency, Carbon Capture Utilization and Storage [Internet]. [cited 2022 Aug 4]. Available from: https://www.alberta.ca/industrial-energy-efficiency-carbon-capture- utilization-and-storage.aspx 3. Government of Canada. 2030 Emissions Reduction Plan. 2022 [cited 2022 Aug 12]; Available from: https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/erp/Canada-2030-Emissions- Reduction-Plan-eng.pdf International CCS Knowledge Centre. 2022 Federal Budget Signals Strong Support for Carbon Capture Technology in Canada. 2022 [cited 2022 Aug 12]; Available from: https://www.globenewswire.com/en/ news-release/2022/04/07/2418981/0/en/2022-Federal-Budget-Signals-Strong-Support-for-Carbon-Capture-Technology-in-Canada.html Mark Segal. Canada Moves Towards Mandatory Climate Disclosure. 2021 [cited 2022 Aug 12]; Available from: 8. https://www.esgtoday.com/canada-moves-towards-mandatory-climate-disclosures/ Government of Canada. 2022 Budget: A plan to grow our economy and make our life more affordable. 2022. 599 8. 9. Government of Canada. Discussion Paper: Geologic Carbon Storage in Ontario. 2022 [cited 2022 Aug 12]; Available from: https://prod-environmental-registry.s3.amazonaws.com/2022-01/Geologic%20 Carbon%20Storage%20Discussion%20Paper%20-%20FinalENG%20-%202022-01-04_0.pdf Williams N. Alberta picks six proposal to develop Canada's first carbon storage hubs. 2022 [cited 2022 Aug 12]; Available from: https://www.reuters.com/business/environment/enbridge-shell-among-projects- picked-explore-developing-canadas-first-carbon-2022-03-31/ Cherniak-Kennedy A. The Government of Alberta and the federal government advance the potential development of carbon storage hubs. 2022 [cited 2022 Aug 12]; Available from: https://www.dentons.com/en/ insights/articles/2022/april/11/the-government-of-alberta-and-the-federal-government-advance-the-potential 10. Reuters. Factbox: Proposed capital projects relying on Alberta carbon capture and storage build-out. 2022 [cited 2022 Aug 13]; Available from: https://www.reuters.com/business/sustainable-business/ proposed-capital-projects-relying-alberta-carbon-capture-storage-build-out-2022-04-05/ 11. Entropy Inc. Entropy Announces Commissioning of the First Phase of CCS Project. 2022 [cited 2022 Aug 13]; Available from: https://carboncapturemagazine.com/articles/263/entropy-announces-commissioning- of-the-first-phase-of-ccs-project#:~:text=ADVERTISEMENT-, Entropy%20Inc., %2C%20effective%20June%2027%2C%202022. 12. Clean Air Task Force. Carbon Management Provision in the Infrastructure Investment and Jobs Act. 2021 [Internet]. [cited 2022 Aug 13]; Available from: https://www.catf.us/resource/carbon-management- provisions-in-the-infrastructure-investments-and-jobs-act/ 13. US Congress. Creating Helpful Incentives to Produce Semiconductors for America fund, or the CHIPS Act, of 2022. [Internet]. 2022 [cited 2022 Aug 13]. Available from: https://science.house.gov/imo/media/doc/ the_chips_and_science_act.pdf?mc_cid=d904691b73&mc_eid=10a5ff616d 14. Riddle J. Schumer and Manchin's Inflation Reduction Act Includes Significant Tax Incentives to Combat Climate Change [Internet]. 2022 [cited 2022 Aug 13]. Available from: https://www.kirkland.com/publications/ kirkland-alert/2022/08/schumer-manchin-inflation-reduction-act-climate-investment 15. US Senate. Inflation Reduction Act [Internet]. 2022 [cited 2022 Aug 12]. Available from: https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf 16. Council on Environmental Quality. Carbon Capture, Utilization, and Sequestration Guidance. 2022 [cited 2022 Aug 13]; Available from: https://www.federalregister.gov/documents/2022/02/16/2022-03205/ carbon-capture-utilization-and-sequestration-guidance 17. Office of Fossil Energy and Carbon Management. FECM's Strategic Vision: Achieving Net-Zero Greenhouse Gas Emissions. 2022; 18. U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA). PHMSA Announces New Safety Measures to Protect Americans From Carbon Dioxide Pipelines Failures After Satartia, MS Leak. 2022 [cited 2022 Aug 13]; Available from: 21. https://www.phmsa.dot.gov/news/phmsa-announces-new-safety-measures-protect-americans-carbon-dioxide-pipeline-failures 19. U.S. Department of the Interior - Bureau of Land Management. National Policy for the Right-of-way Authorizations Necessary for Site Characterization, Capture, Transportation, Injection, and Permanent Geologic [63] GLOBAL CCS INSTITUTE#64Sequestration of Carbon Dioxide in Connection with Carbon Sequestration Projects. 2022 [cited 2022 Aug 13]; Available from: 22. https://www.blm.gov/policy/im-2022-041 20. Securities and Exchange Commission. SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors. 2022 [cited 2022 Aug 13]; Available from: https://www.sec.gov/news/press- release/2022-46 21. King & Spaulding. West Virginia v. EPA: The Forecast is Cloudy for Environmental and Agency Regulation. 2022 [cited 2022 Aug 13]; Available from: https://www.kslaw.com/news-and-insights/west-virginia-v-epa- the-forecast-is-cloudy-for-environmental-and-agency-regulation 22. California Air Resources Board. DRAFT 2022 SCOPING PLAN UPDATE MAY 10, 2022. 2022 [cited 2022 Aug 12]; Available from: 22. https://ww2.arb.ca.gov/sites/default/files/2022-05/2022-draft-sp.pdf 23. Talos. TALOS, CARBONVERT AND CHEVRON ANNOUNCE CLOSING OF PREVIOUSLY ANNOUNCED JOINT VENTURE EXPANSION OF THE BAYOU BEND CCS PROJECT OFFSHORE JEFFERSON COUNTY, TEXAS. 2022 [cited 2022 Aug 12]; Available from: https://www.talosenergy.com/investor-relations/news/news-details/2022/TALOS-CARBONVERT-AND-CHEVRON-ANNOUNCE-CLOSING-OF-PREVIOUSLY- ANNOUNCED-JOINT-VENTURE-EXPANSION-OF-THE-BAYOU-BEND-CCS-PROJECT-OFFSHORE-JEFFERSON-COUNTY-TEXAS/#:~:text=TALOS%2C%20CARBONVERT%20AND%20CHEVRON%20 ANNOUNCE%20CLOSING%20OF%20PREVIOUSLY%20ANNOUNCED%20JOINT%20VENTURE%20EXPANSION%20OF%20THE%20BAYOU%20BEND%20CCS%20PROJECT%20OFFSHORE%20 JEFFERSON%20COUNTY%2C%20TEXAS 24. NextDecade. NEXT Carbon Solutions and California Resources Corporation Agree to FEED Study. 2022 [cited 2022 Aug 12]; Available from: https://investors.next-decade.com/news-releases/news-release- details/next-carbon-solutions-and-california-resources-corporation-agree 25. Sweet C, Kramer D. Carbon America to Construct, Own and Operate the First Two Commercial Carbon Capture and Sequestration Projects in Colorado. 2022 [cited 2022 Aug 12]; Available from: https://www. businesswire.com/news/home/20220512005336/en/Carbon-America-to-Construct-Own-and-Operate-the-First-Two-Commercial-Carbon-Capture-and-Sequestration-Projects-in-Colorado 26. Reuters. Tallgrass Energy Plans to Convert Natgas Pipeline into CO2 Transport System. 2022 [cited 2022 Aug 12]; Available from: 29. https://pgjonline.com/news/2022/may/tallgrass-energy-plans-to-convert- natgas-pipeline-into-CO2-transport-system 27. Red Trail Energy LLC. Red Trail Energy begins carbon capture and storage. 2022 [cited 2022 Aug 12]; Available from: https://ethanol producer.com/articles/19447/red-trail-energy-begins-carbon-capture-and- storage 28. Klinge N. Proposed Houston CCS hub gains supermajor support. 2022 [cited 2022 Aug 12]; Available from: https://www.upstreamonline.com/energy-transition/proposed-houston-ccs-hub-gains-supermajor- support/2-1-1149392 29. 1PointFive. 1PointFive and Carbon Engineering Announce Direct Air Capture Deployment Approach to Enable Global Build-Out of Plants. 2022; Available from: https://www.1pointfive.com/1pointfive-and- carbonengineering-announce-directaircapture-deployment-approach 30. Government of Brazil. FEDERATIVE REPUBLIC OF BRAZIL Paris Agreement NATIONALLY DETERMINED CONTRIBUTION (NDC). 2022 [cited 2022 Aug 12]; Available from: https://unfccc.int/sites/default/files/ NDC/2022-06/Updated%20-%20First%20NDC%20-%20%20FINAL%20-%20PDF.pdf 31. Brazilian Senate. Bill No. 1425, of 2022. 2022 [cited 2022 Aug 12]; Available from: https://www25.senado.leg.br/web/atividade/materias/-/materia/153342 4.2 REGIONAL OVERVIEW: ASIA-PACIFIC 1. 2. 3. 4. 5. 6. 7. 8. PwC. Code Red - Asia Pacific's Time to Go Green [Internet]. 2021 Nov [cited 2022 Jul 20]. Available from: https://www.pwc.com/gx/en/asia-pacific/net-zero/asia-pacific-code-red-to-go-green.pdf Global CCS Institute. The Emergence of CCS in Malaysia and Indonesia [Internet]. Global CCS Institute. 2022 [cited 2022 Jul 1]. Available from: https://www.globalccsinstitute.com/resources/multimedia-library/ the-emergence-of-ccs-in-malaysia-and-indonesia/ Battersby A. Malaysia revs up carbon, capture and storage developments [Internet]. Upstream Online. 2022 [cited 2022 Jul 1]. Available from: https://www.upstreamonline.com/field-development/malaysia-revs- up-carbon-capture-and-storage-developments/2-1-1159919 PTTEP. PTTEP confirms its largest-ever gas discovery with Lang Lebah-2 appraisal well offshore Malaysia [Internet]. PTTEP Website. 2021 [cited 2022 Jul 20]. Available from: https://www.pttep.com/en/ Newsandnmedia/Mediacorner/Pressreleases/ Jacobs T. What You Should Know About Offshore and Sour Gas CCS: High Cost, Leak Mitigation, and Transportation [Internet]. Journal of Petroleum Technology. 2022 [cited 2022 Jul 4]. Available from: What You Should Know About Offshore and Sour Gas CCS: High Cost, Leak Mitigation, and Transportation Yab Dato' Sri Ismail Sabri Yaakob. Speech by the Prime Minister in the Dewan Rakyat: Twelfth Malaysia Plan 2021-2025. 2021. PETRONAS. PETRONAS Declares Aspiration: To achieve net zero carbon emissions by 2050 [Internet]. 2020 [cited 2022 Jul 4]. Available from: https://www.petronas.com/media/press-release/petronas-sets-net- zero-carbon-emissions-target-2050 BP. SKK Migas approved Plan of Development for Ubadari Field and Vorwata CCUS [Internet]. 2021 [cited 2022 Jul 4]. Available from: https://www.bp.com/en_id/indonesia/home/news/press-releases/skk-migas- approved-plan-of-development-for-ubadari-field-and-vorwata-ccus.html 9. Erwinda Maulia. BP unveils up to $3bn CCUS project in Indonesia, country's first [Internet]. Nikkei Asia. 2021 [cited 2022 Jul 4]. Available from: https://asia.nikkei.com/Spotlight/Environment/BP-unveils-up-to- 3bn-CCUS-project-in-Indonesia-country-s-first 10. Pertamina. Pertamina - Air Liquide Agree to Collaborate in Developing CCU Technology at the Balikpapan Refinery [Internet]. 2022 [cited 2022 Sep 8]. Available from: https://www.pertamina.com/en/news-room/ news-release/pertamina-air-liquide-agree-to-collaborate-in-developing-ccu-technology-at-the-balikpapan-refinery [64] GLOBAL CCS INSTITUTE#6511. Santos. Santos Announces FID on Moomba Carbon Capture and Storage Project [Internet]. 2021 [cited 2022 Jul 4]. Available from: https://www.santos.com/news/santos-announces-fid-on-moomba-carbon- capture-and-storage-project/ 12. Santos. Globally Significant Carbon Capture and Storage Project a Step Closer [Internet]. 2022 [cited 2022 Jul 4]. Available from: https://www.santos.com/news/globally-significant-carbon-capture-and-storage- project-a-step-closer/ 13. ExxonMobil. The South East Australia Carbon Capture Hub [Internet]. 2022 [cited 2022 Jul 20]. Available from: https://www.exxonmobil.com.au/Energy-and-environment/Energy-resources/Upstream-operations/ The-South-East-Australia-Carbon-Capture-Hub 14. Oil and Gas Today. Woodside, BP and MIMI to explore CCS project in WA [Internet]. 2021 [cited 2022 Sep 8]. Available from: https://www.oilandgastoday.com.au/woodside-bp-and-mimi-to-explore-ccs-project-in- wa/ 15. MEPAU. MEPAU's Mid West Modern Energy Hub [Internet]. [cited 2022 Sep 8]. Available from: MEPAU's Mid West Modern Energy Hub 16. Taylor A. New ERF method and 2022 priorities announced [Internet]. 2021 [cited 2022 Jul 4]. Available from: https://www.minister.industry.gov.au/ministers/taylor/media-releases/new-erf-method-and-2022- priorities-announced 17. Johnston B, Whitby R. Draft Bill to help WA's resources industry reduce emissions [Internet]. Media Statement from the Government of Western Australia. 2022 [cited 2022 Jul 20]. Available from: https://www. mediastatements.wa.gov.au/Pages/McGowan/2022/03/Draft-Bill-to-help-WAS-resources-industry-reduce-emissions.aspx 18. Japan CCS Co. Ltd. A groundbreaking ceremony was held for the CO2 Ship Transportation Project Tomakomai Liquefied CO2 Receiving Facility on May 23 [Internet]. Japan CCS Co. Ltd. Website. 2022 [cited 2022 Jul 20]. Available from: https://www.japanccs.com/en/news/20220524/ 19. Mitsui OSK Lines. MOL and PETRONAS Sign MoU on Liquefied CO2 Transportation for CCUS [Internet]. 2022 [cited 2022 Jul 4]. Available from: https://www.mol.co.jp/en/pr/2022/22019.html 20. NYK Knutsen Group. NYK and Knutsen Group Establish New Company for Liquefied CO2 Transportation and Storage Business [Internet]. 2022 [cited 2022 Jul 4]. Available from: https://www.nyk.com/english/ news/2022/20220118_02. 21. Mitsubishi Heavy Industries. Mitsubishi Shipbuilding Concludes Agreement on Construction of World's First Demonstration Test Ship for Liquefied CO2 Transportation - Ship Will Integrate Company's Liquefied Gas Handling Technologies, for Tomorrow's Long-distance, High-volume LCO2 Transport Needs [Internet]. 2022 [cited 2022 Jul 20]. Available from: https://www.mhi.com/news/220202.html 22. HESC. The Suiso Frontier Departs Australia for Japan [Internet]. 2022 [cited 2022 Jul 4]. Available from: https://www.hydrogenenergysupplychain.com/the-suiso-frontier-departs-australia-for-japan/ 23. J-POWER and ENEOS. J-POWER and ENEOS collaborate on carbon neutralization of energy supply [Internet]. 2022 [cited 2022 Jul 4]. Available from: https://www.jpower.co.jp/english/news_release/pdf/ news220510e.pdf 24. Cai B, Li Q, Zhang X. China CCUS Annual Report 2021 - China CCUS Roadmap. 2021. 25. The People's Bank of China. The People's Bank of China Launches the Carbon Emission Reduction Facility [Internet]. 2021 [cited 2022 Jul 20]. Available from: http://www.pbc.gov.cn/ en/3688006/3995557/4385345/index.html?&&&&&&&&&&header=false&footer=false&releated Insights=false&shareInsights=true&xyz=1543190452255 26. PTTEP. PTTEP initiates Thailand's first CCS project, pushing towards Net Zero Greenhouse Gas Emissions [Internet]. 2022 [cited 2022 Jul 20]. Available from: https://www.pttep.com/en/Newsandnmedia/ Mediacorner/Pressreleases/Pttep-Initiates-Thailand-First-Ccs-Project-Pushing-Towards-Net-Zero-Green-House-Gas-Emissions.aspx 27. PTTEP. PTTEP, INPEX and JGC Partner to Explore Carbon Capture and Storage Project [Internet]. 2022 [cited 2022 Jul 20]. Available from: https://www.pttep.com/en/Newsandnmedia/Mediacorner/Pressreleases/ Pttep-Inpex-And-Jgcpartner-To-Explore-Carbon-Capture-And-Storage-Project.aspx 28. Tan F. Exxon Mobil keen to build carbon storage hubs in SE Asia, similar to Houston project [Internet]. Reuters. 2021 [cited 2022 Jul 20]. Available from: https://www.reuters.com/article/singapore-energy-exxon- mobil-idAFL4N2RI2QM 29. Santos. Santos and SK E&S Sign MoU to Develop CCS Projects in Australia [Internet]. 2022 [cited 2022 Jul 20]. Available from: https://www.santos.com/news/santos-and-sk-es-sign-mou-to-develop-ccs-projects- in-australia/ 4.3 REGIONAL OVERVIEW: EUROPE AND THE UK 1. European Commission. Innovation Fund (InnovFund) Call for proposals Innovation Fund. 2022. 2. Ministry of Economic Affairs and Climate Policy. SDE++ 2022 Stimulation of Sustainable Energy Production and Climate Transition. 2022. Department of Business E and IS. Government Response to Carbon Capture Usage and Storage: Market Engagement on Cluster Sequencing. 2021. 3. 4. European Commission. Communication From the Commission to the European Parliament and the Council: Sustainable Carbon Cycles. 2021. 123456700 5. European Commission. Innovation Fund: Key Statistics from the First Call for Large-Scale Projects. Brussels: European Commission; 2022. 6. European Commission. Innovation Fund Second Call for Large Scale Projects: List of Proposals Pre-selected for a Grant. 2022. 7. European Commission. Innovation Fund: EU invests €1.8 Billion in Clean Tech Projects. 2022. 8. European Commission. Questions and Answers on the EU Taxonomy Complementary Climate Delegated Act Covering Certain Nuclear and Gas Activities. 2022. [65] GLOBAL CCS INSTITUTE#669. Department for Business E and IS. Track-1 Clusters Confirmed. 2021. 10. Department for Business E and IS. The Carbon Capture and Storage Infrastructure Fund: An Update on its Design. 2021. 11. UK Government. CCUS Innovation 2.0 Call 2 Guidance. Department of Business Industry Energy & Industry Strategy. 2022. 12. UK Government. CCUS Investor Roadmap: Capturing Carbon and a Global Opportunity. 2022. 13. Scottish Government. Scottish Cluster Support. https://www.gov.scot/news/scottish-cluster-support/. 2022. 14. Netherlands Enterprise Agency. SDE++ 2022: Stimulation of Sustainable Energy Production and Climate Transition [Internet]. 2022 [cited 2022 Aug 14]. Available from: https://english.rvo.nl/sites/default/ files/2022/07/20220712-English-brochure-opening-round-2022_1.pdf 15. Porthos CO2 Transport and Storage. Dutch Government Supports Porthos Customers with SDE++ Subsidy Reservation. 2021. 16. Danish Energy Agency. Invitation to Second Market Dialogue - CCUS Fund. 2022; Available from: https://ens.dk/sites/ens.dk/files/CCS/note_regarding_second_round_of_market_dialogue_-_07.03.2022.pdf 17. Energy Technology Development and Demonstration Program. About the EUDP. 18. The Danish Ministry of Climate E and U. Denmark, Flanders and Belgium sign groundbreaking arrangement on cross-border transportation of CO2 for geological storage. https://en.kefm.dk/news/news- archive/2022/sep/denmark-flanders-and-belgium-sign-groundbreaking-arrangement-on-cross-border-transportation-of-CO2-for-geological-storage-. 2022. 19. European Commission. Commission awards over €1 billion to innovative projects for the EU climate transition. https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2163. 2022. 20. European Commission. Innovation Fund Second Call for Large Scale Projects: List of Proposals Pre-selected for a Grant. 2022. 21. HeidelbergCement Group. Norcem Brevik. https://www.heidelbergmaterials.com/en/pr-15-12-2020 22. Drax. Drax submits plans to build world's largest carbon capture and storage project. https://www.drax.com/press_release/drax-submits-plans-to-build-worlds-largest-carbon-capture-and-storage-project/. 2022. 23. H21 North of England. Revolutionary Thinking. Real World Infrastructure. https://together.northerngasnetworks.co.uk/wp-content/uploads/2019/03/H21-NoE-Exec-Sum-Print-Final.pdf. H21 North of England; 2018. 4.4 REGIONAL OVERVIEW: MIDDLE EAST AND NORTH AFRICA (MENA) REGION Eman Mounir. Electricity has the largest share of emissions. https://climatetracker.org/electricity-has-the-largest-share-of-emissions/. 2022; Staib C, Zhang T, Burrows J, Gillespie A, Havercroft I, Rassool D, et al. Global Status of CCS 2021. 2021. 1. Lienard C. Mitigating climate change in the MENA: shifting to a new paradigm. 2022. 2. 3. 4. 5. 6. 7. 8. 9. Ringrose PS, Mathieson AS, Wright IW, Selama F, Hansen O, Bissell R, et al. The in salah CO2 storage project: Lessons learned and knowledge transfer. In: Energy Procedia. Elsevier Ltd; 2013. p. 6226-36. Zakkour P, Heidug W. A Mechanism for CCS in the Post-Paris Era [Internet]. Riyadh, Saudi Arabia; 2019 Apr. Available from: https://www.kapsarc.org/research/publications/a-mechanism-for-ccs-in-the-post-paris- era/ Hutchinson G, Sriram D. The Middle East: COP26 and the journey to net zero [Internet]. 2021 [cited 2022 Sep 5]. Available from: https://sustainablefutures.linklaters.com/post/102hes8/the-middle-east-cop26- and-the-journey-to-net-zero Hamrakrouha M, Parris R, McCluskey C, Laher I, Nixon K. FOCUS ON HYDROGEN: THE NEW OIL IN THE MIDDLE EAST? 2021. UAE Industrial Strategy. Operation 300bn, the UAE's industrial strategy [Internet]. 2022 [cited 2022 Sep 5]. Available from: https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/federal-governments- strategies-and-plans/the-uae-industrial-strategy Zeynep Beyza Kilic. Qatar to store more than 5M tons of CO2 a year by 2025. https://www.aa.com.tr/en/energy/projects/qatar-to-store-more-than-5m-tons-of-CO2-a-year-by-2025/26924. 2019; 10. Energy Review. Qatar's Giant Gas Project Welcomes a Newcomer [Internet]. Energy Review MENA. 2022 [cited 2022 Sep 6]. Available from: https://www.energyreviewmena.com/index.php/article/financial-news/ item/1297-qatar-s-giant-gas-project-welcomes-a-newcomer 11. Tank News. ADNOC Moving Ahead with Plans to Expand Its CO2 Capture to Boost Oil Recovery [Internet]. 2018 [cited 2022 Sep 6]. Available from: https://tanknewsinternational.com/adnoc-moving-ahead-with- plans-to-expand-its-CO2-capture-to-boost-oil-recovery/ 12. Aaesha Khalfan Al Keebali. Building Momentum for CCUS in the Gulf Region and Around the Globe: adnoc and the united arab emirates. GCCSI Webinar. 2021. 13. AFRY & GaffneyCline. CCUS deployment challenges and opportunities for the GCC A report prepared for the Oil and Gas Climate Initiative. 2022. 14. Hupart R, Adeyemo O, Beck B. DIAGNOSTIC AND SCOPING: INDUSTRIAL CCUS IN NIGERIA INCEPTION WORKSHOP. 2022. 15. ADGM. Abu Dhabi to launch the first regulated carbon credit trading exchange and clearing house in the world [Internet]. 2022 [cited 2022 Sep 6]. Available from: https://www.adgm.com/media/announcements/ abu-dhabi-to-launch-first-regulated-carbon-credit-trading-exchange-and-clearing-house-in-the-world 16. Enterprise. What can we expect from the planned local carbon credit exchange? [Internet]. 2022 [cited 2022 Sep 6]. Available from: https://enterprise.press/stories/2022/05/10/what-can-we-expect-from-the- planned-local-carbon-credit-exchange-70593/ 17. Al-Zayer F. KSA's voluntary carbon market initiative leads the way to a greener economy. 2022; 18. Middle East and North Africa Climate Week 2022. Middle East and North Africa Climate Week 2022 Output Report [Internet]. 2022 [cited 2022 Sep 6]. Available from: https://unfccc.int/MENA-CW2022 19. Pekic S. Shell joins QatarEnergy's North Field East LNG expansion. https://www.offshore-energy.biz/shell-joins-qatarenergys-north-field-east-Ing-expansion/. 2022. [66] GLOBAL CCS INSTITUTE#675. ANALYSIS 5.1 CARBON MARKETS 1. 2. 3. 4. 5. International Carbon Action Partnership. ICAP ETS map [Internet]. [cited 2022 Aug 4]. Available from: https://icapcarbonaction.com/en/ets European Commission. Implementation of the CCS Directive [Internet]. Implementation of the CCS Directive. 2022 [cited 2022 Jun 21]. Available from: https://ec.europa.eu/clima/eu-action/carbon-capture-use- and-storage/implementation-ccs-directive_en California Air Resources Board. Carbon Capture and Sequestration Protocol under the Low Carbon Fuel Standard. 2018. Bureau of Environment, Tokyo Metropolitan Government. Tokyo Cap-and-Trade Program [Internet]. Tokyo Cap-and-Trade Program. 2022 [cited 2022 Jun 15]. Available from: https://www.kankyo.metro.tokyo. Ig.jp/en/climate/cap_and_trade/index.html Gouvernement du Québec, Ministère de l'Environnement et de la Lutte contre les changements climatiques. The Carbon Market - a Green Economy Growth Tool! [Internet]. The Carbon Market - a Green Economy Growth Tool! 2022 [cited 2022 Jun 14]. Available from: https://www.environnement.gouv.qc.ca/changementsclimatiques/marche-carbone_en.asp 6. The Oxford Institute for Energy Studies. The Evolution of Carbon Markets and their Role in Climate Mitigation and Sustainable Development. New Oxford Energy Forum 2022 Jun; 19 7. IETA. CLPC_A6 summary_highres no crops. 2019. 8. CCS+ Initiative [Internet]. [cited 2022 Aug 12]. Available from: https://www.ccsplus.org/ 9. KAPSARC. Carbon Sequestration Units (CSUs): A New Tool to Mitigate Carbon Emissions. 10. OGCI. Study on carbon storage units and obligations under Article 6 of the Paris Agreement [Internet]. Oil and Gas Climate Initiative. [cited 2022 Aug 12]. Available from: Study on carbon storage units and obligations under Article 6 of the Paris Agreement 11. Oxford Martin School. Making fossil fuel extractors clean up after themselves is affordable and low-risk. 5.3 HYDROGEN 1. Hydrogen Council. Hydrogen scaling up: A sustainable pathway for the global energy transition. 2017. 2. 3. 4. HESC. Successful Completion of Pilot Project Report [Internet]. 2022 [cited 2022 Aug 5]. Available from: https://drive.google.com/file/d/127L2epevYr7XNEX2XEY-i105x9IIL-A1/view International Trade Rules for Hydrogen and its Carriers: Information and Issues for Consideration [Internet]. 2022 [cited 2022 Aug 5]. Available from: https://www.iphe.net/_files/ ugd/45185a_29c90ec0ea15463eadf5d585cfd7b20a.pdf International Energy Agency. Global Hydrogen Review 2021 [Internet]. 2021 Nov. Available from: www.iea.org/t&c 5.5 INDUSTRY 1. Ellis LD, Badel AF, Chiang ML, J-Y Park R, Chiang YM. Toward electrochemical synthesis of cement-An electrolyzer-based process for decarbonating CaCO3 while producing useful gas streams. PNAS [Internet]. 2019 [cited 2022 Jul 22];117(23). Available from: www.pnas.org/cgi/doi/10.1073/pnas.1821673116 2. Kearns D, Liu H, Consoli C. TECHNOLOGY READINESS AND COSTS OF CCS. 2021 Mar. 5.6 EVOLUTION OF STORAGE 1. 2. Santos. Globally significant carbon capture and storage project a step closer. https://www.santos.com/news/globally-significant-carbon-capture-and-storage-project-a-step-closer/. 2022. Hoffman N, George Carman, Mohammad Bagheri, Todd Goebel, The Carbon Net Project. Site characterisation for carbon storage in the near shore Gippsland Basin. Melbourne; 2015. [67] GLOBAL CCS INSTITUTE#685.7 INFRASTRUCTURE 1. Proposed Houston CCS hub gains supermajor support | Upstream Online [Internet]. [cited 2022 Jul 22]. Available from: https://www.upstreamonline.com/energy-transition/proposed-houston-ccs-hub-gains- supermajor-support/2-1-1149392 2. East Coast Cluster [Internet]. [cited 2022 Jul 22]. Available from: https://eastcoastcluster.co.uk/ 3. 4. 5. Ole Ketil Helgesen. Equinor and Fluxys unveil plans for CO2 pipeline from Belgium to Norwegian offshore CCS | Upstream Online [Internet]. Upstream Online. 2022 [cited 2022 Jul 22]. Available from: https:// www.upstreamonline.com/energy-transition/equinor-and-fluxys-unveil-plans-for-CO2-pipeline-from-belgium-to-norwegian-offshore-ccs/2-1-1247604 Northern Lights. What it takes to ship CO2 [Internet]. [cited 2022 Jul 22]. Available from: https://norlights.com/news/what-it-takes-to-ship-CO2/ Carbfix. Carbfix signs agreement with Danish shipping company for the transfer of CO2 [Internet]. [cited 2022 Jul 22]. Available from: https://www.carbfix.com/carbfix-signs-agreement-with--danish-shipping- company-for-the-transfer-of-CO2 6. APPENDICES 6.1 CO2 GEOLOGICAL STORAGE 1. 2. 3. 4. IPCC. IPCC Special Report on Carbon Dioxide Capture and Storage [Internet]. Cambridge; 2005 [cited 2022 Aug 31]. Available from: https://www.ipcc.ch/site/assets/uploads/2018/03/srccs_wholereport-1.pdf CarbFix. CarbFix: How it works [Internet]. 2022 [cited 2022 Jul 14]. Available from: https://www.carbfix.com/how-it-works OGCI, Global CCS Institute, Storegga. CO2 Storage Resource Catalogue Cycle 3 Report [Internet]. 2022 Mar [cited 2022 Aug 29]. Available from: https://www.ogci.com/wp-content/uploads/2022/03/CSRC_ Cycle_3_Main_Report_Final.pdf Santos. Positioned for Success: Annual Report 2021 [Internet]. 2021 [cited 2022 Aug 8]. Available from: https://www.santos.com/wp-content/uploads/2022/02/2021-Annual-Report.pdf [68] GLOBAL CCS INSTITUTE#69GLOBAL CCS INSTITUTE To find out more about the Global CCS Institute including Membership and our Consultancy services, visit globalccsinstitute.com or contact us. AMERICAS Washington DC, United States [email protected] AUSTRALIA Melbourne, Australia [email protected] EUROPE Brussels, Belgium [email protected] MIDDLE EAST AND NORTH AFRICA Abu Dhabi, United Arab Emirates [email protected] CHINA Beijing, China [email protected] UNITED KINGDOM London, United Kingdom [email protected] JAPAN Tokyo, Japan [email protected] Copyright 2022 Global CCS Institute The Global CCS Institute believes that this document represents a fair representation of the current state of law in the key areas and jurisdictions considered, however its content should not be construed as, or substituted for, professional legal advice. The Global CCS Institute has tried to make information in this publication as accurate as possible. However, it does not guarantee that the information in this publication is totally reliable, accurate or complete. Therefore, the information in this publication should not be relied upon when making investment or commercial decisions or provided to any third party without the written permission of the Global CCS Institute. Statements in this report about the interpretation or application of legislation and regulations for CO2 injection and storage are the representations of the Global CCS Institute. They should not be regarded as officially sanctioned statements of the Government of Canada nor of the government departments responsible for their administration. The Global CCS Institute has no responsibility for the persistence or accuracy of URLs to any external or third-party internet websites referred to in this publication and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. To the maximum extent permitted, the Global CCS Institute, its employees and advisers accept no liability (including for negligence) for any use or reliance on the information in this publication, including any commercial or investment decisions made on the basis of information provided in this publication.