Economic Potential of DACCS and Global CCS Progress

REST 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

View entire presentation