Economic Potential of DACCS and Global CCS Progress
In 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.
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GLOBAL CCS
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