The Carbon Capture Conundrum: An Imperative for a Greener Future

Welcome to the latest edition of Climate Buzz! This month, we dive into the potential of carbon capture, use, and storage (#CCUS) - an emerging field that holds significant promise for our planet's future. In order to meet #climate goals, the world needs to capture, use, and store gigatons of #CO2. But how do we get there, and what are the opportunities and challenges that lie ahead? Let's explore.

The Gigaton Challenge: Understanding CCUS

Carbon capture, use, and storage is a technology designed to decrease the amount of carbon dioxide released into the atmosphere from fossil fuel power plants and industrial processes. The goal is to capture and store these #emissions in geologic formations deep underground or utilize them in other applications like manufacturing carbon-based products.

As of today, around 30 commercial CCUS facilities worldwide capture approximately 40 million tons of CO2 per year. However, to reach the 1.5-degree Celsius target set by the Paris Agreement, the International Energy Agency estimates that we need to capture and store a staggering 5.6 gigatons of CO2 annually by 2050. That's a hundredfold increase from where we are today - a true 'gigaton challenge.'

The Potential and the Pitfalls

With the urgent need to scale up CCUS, the question arises: How feasible is it? The answer is complex, as the potential of CCUS is vast, but the hurdles are substantial.

On the one hand, the technology itself is not new, and its effectiveness is proven. Some regions, particularly those with established oil and gas operations, have geological formations suitable for CO2 storage. Moreover, there's increasing corporate and government interest, with several nations developing supportive policy frameworks and businesses investing heavily.

On the flip side, the economic viability of CCUS is still a concern. High upfront costs, regulatory uncertainties, and public opposition to CO2 storage in certain regions are significant barriers.

Making the Case for CCUS: Economic and Climate Implications

Despite these challenges, both the economic and climate case for CCUS is compelling. McKinsey's research suggests that without CCUS, the cost of achieving net-zero emissions could rise by 70% globally. This technology not only contributes to decarbonization efforts but also promotes #energysecurity and creates jobs, fostering a just transition to a low-carbon economy.

With increasing #carbonpricing across the globe, CCUS presents an opportunity for industries to manage their carbon liabilities effectively. As such, CCUS is not just a climate solution, but a smart economic choice as well.

So, what does our CCUS future hold?

The path to achieving gigatons of CO2 capture and storage may be challenging, but it's crucial. As we continue to innovate and invest in CCUS technologies, we're not only working towards a greener future but also opening up new economic opportunities. Stay tuned for more insights on this exciting journey.

Climate Deals of the Month

Finland-based Norsepower ’s rotor sail technology raises $30 million

The Series C funding will go toward continued development of the company’s #wind powered mechanical sailing solution for marine #transportation. The unique rotating sail uses #windenergy to reduce overall fuel consumption.?

The round was lead by Mirova through their Environment Acceleration Capital Fund. Congrats to CEO Tuomas Riski and his team on this great accomplishment!

EnergyX raises $50 million in their Series B?

The new funding will be used to unlock North America’s #lithium supply using the startup's novel extraction technology, maximizing efficiency and #sustainability. This will allow investor GM to really scale up with #EV production in the coming years.?

Shout out to EnergyX CEO Teague Egan ? and GM Ventures lead Stefon Crawford on this exciting new partnership!

Fervo Energy raises $10 million for geothermal project development

Fervo has partnered with #oilandgas company Devon, giving them the tools necessary to take on large capital projects. They bring advances in drilling technologies, as well as subsurface analytics, allowing them to more accurately target and access prime geothermal resources.?Congrats to CEO Tim Latimer and the entire team!

Ohmium raises $250 million for electrolyzer production

The #startup is hoping to further expand its manufacturing capability for zero carbon #hydrogen with the new funding, which was led by TPG Inc’s Rise Climate fund.?

It’s exciting to see the hydrogen space getting long-deserved attention. Hydrogen can really fill in the gaps when it comes to the #decarbonization of heavy duty applications.?

For all of the latest climate news and deals, stay tuned for next month’s issue of Climate Buzz!