Tata Chemicals, European division is planning to build first industrial-scale Carbon Capture & Utilisation Plant in UK. The Plant will involve an investment of £16.7m and will reduce carbon emissions, by capturing carbon through innovative technology, whilst ensuring a secure, sustainable supply of carbon dioxide.
This is one of the examples, of the bigger developments happening in decarbonisation process happening across the globe.According to Climate Watch data, 54 parties representing 65 countries, emitting 55.6% of Global GHG emission have committed to net-zero target. The international group of asset managers, under Net Zero Asset Managers initiative have a portfolio of $43 Trillion AUM, committed to a goal of net zero emissions. Its investors include some of the big names e.g. Affirmative Investment Management, Aktie-Ansvar AB, Amundi Asset Management, Ashmore Group plc, Asteria Investment Managers, Franklin Templeton, HSBC Asset Management, Swisscanto Invest by Zucherkantonal Bank,
According to International Energy Agency’s (IEA’s), in its report, Net Zero by 2050, which provides roadmap for Global energy Sector, has highlighted that the decarbonization needed by 2030 can be achieved with available technologies, however in future, the required emissions reductions will need the technologies that are not yet available in the market.
Carbon capture, utilisation, and storage (CCUS) will be one such technology, which has been a topic of discussion for more than two decades, but it is gaining momentum now. Various estimates projects that fossil fuels may be part of energy mix constituting Global energy economy.
India is emerging as one of the largest energy markets. It is scaling renewable energy capacities however complete transition towards green energy will be challenging. According to the estimates of the The International Energy Agency (IEA), India will be among the top three CO2 emitters of the world by 2030. Department of Science & Technology is part of multilateral ACT focussing on accelerating CCUS technologies. Research Council of Norway (RCN) is coordinating the overall program and thirteen countries are part of it. The initiative is focussed to facilitate the emergence of CO2 Capture, Utilisation and Storage (CCUS) technologies growth and innovation through transnational funding.
CCUS is gaining momentum in India and many large companies have started the process of experimenting with CCUS technology. National Aluminium Company (NALCO), Oil and Natural Gas Corporation (ONGC), and Bharat Heavy Electricals Limited (BHEL) are some of the large industrial enterprises setting up the CCUS facilities. Carbon capture, utilisation, and storage (CCUS) will provide solution to fossil fuel dependent industry for carbon neutral transitioning. It will support low carbon products markets e.g such as low carbon chemicals, clean steel, low carbon cement, industrial applications etc.
Cues can be drawn from the global developments. UK Government has announced funding support, by establishing a Carbon Capture and Storage Infrastructure Fund (CIF) by allocating USD 1 Billion. The fund will be used for establishing business model of the infrastructure revolving around Transport & Storage related to industrial carbon capture. It will encourage private sector participation by enabling them to collect usage charges from the infrastructure they have built.
In Norway Government is supporting the Carbon capture and storage Infrastructure through USD $1.8 Billion investment, intending to create full scale CCS value chain. Equinor, which is Europe’s second largest natural gas supplier is working along with Shell and Total, is working on Northern Lights project to store captured CO2 under the seabed in the North Sea. European Commission is also supporting the innovative through its innovation fund. It is dedicated for supporting the innovation in low-carbon technologies.
Carbon capture technology is at a very nascent stage. However, some large developments are happening in this space. Fossil fuel industry will use the support of CCUS for becoming carbon neutral. In future some of the biggest wealth generating ideas will emerge from the theme of decarbonisation using CCUS.
Bureau Galactik Views