Carbon Capture: A Crucial Step after agreement between Chevron and JX Nippon

The recent news (March 19, 2024) of Chevron Australia and JX Nippon Oil Exploration (U.S.A.) Limited teaming up to explore #CO2 capture and storage (CCS) in #Australia underscores the critical role this technology can play in tackling climate change.

In fact, the landscape of #carbon capture is rapidly evolving, with several large-scale projects either operational or in various stages of development, which is a real change within last 5 years.

For instance, if we look at the some of the main current projects,?Gorgon Carbon Capture and Storage (Australia) is a?Chevron-operated project, operational since 2019. It has already captured more than 6 million tonnes of CO2 from an LNG facility on Barrow Island. The captured CO2 is injected deep underground for permanent storage.

Petra Nova Project (Texas, USA) was?Launched in 2017 by nrg Supply & Trading S.A. . This project can capture 1.4 million tonnes of CO2 emissions annually from a coal-fired power plant and transports it via pipeline for enhanced oil recovery (EOR) in nearby oil fields. In 2022, the Japanese O&G company ENEOS acquired the company to gain expertise in carbon capture, utilization, and storage (CCUS).

Northern Lights Project (Norway) is a?pioneering project and it aims to capture up to 5 million tonnes of CO2 per year from various industrial sources and permanently store it in a dedicated geological formation beneath the seabed. The project should be commissioned shortly.

These are just a few examples, and numerous other projects are underway globally, showcasing the growing momentum behind carbon capture technology.

However, carbon capture is not a one-size-fits-all solution and can be the only answer (couple of millions of tonnes to be compared with the billions of tonnes of emission). Its success hinges on several factors, including:

• Point Source Emissions:?Carbon capture is most effective for facilities with concentrated emissions, such as power plants, refineries, and steel or cement mills. These concentrated sources allow for efficient capture and transportation of #CO2.
• Storage Availability:?The existence of suitable geological formations for safe and permanent #CO2 storage is crucial. Depleted oil and gas reservoirs, deep saline aquifers, and basaltic rock formations are all potential storage sites.
• Regulatory Framework:?Supportive government policies, including carbon pricing mechanisms and tax incentives, can significantly influence the economic viability of carbon capture projects.
• Infrastructure Development:?A robust network of pipelines or other transportation methods is essential for transporting captured CO2 to storage locations.

Several technologies are being explored and developed for capturing CO2 emissions. For instance,?#amine scrubbing is a?widely used technology. It utilizes amine-based solvents to absorb CO2 from flue gas streams. The CO2 can then be desorbed from the solvent for further processing and storage.?Membrane separation technology is also promising. It utilizes selectively permeable membranes to separate CO2 from other gases in a flue gas stream.

If we focus on Asia, the International Energy Agency (IEA) estimates that the region could contribute significantly to global decarbonization efforts through CCUS. Their analysis suggests that the region could achieve?200 million tonnes (Mt) of CO2 capture?annually by 2050 in scenarios aligning with the Paris Agreement's temperature goals. This represents a substantial jump from the limited CCUS activity currently observed in the region.

While still in its early stages, several Asian countries are actively exploring and developing CCUS projects. Here's a breakdown of some key initiatives:

• Southeast Asia:?This region boasts several promising projects, with at least seven large-scale ventures in the planning stages. These projects are concentrated in Indonesia, Malaysia, Singapore, and Timor-Leste. Notably, PETRONAS in Malaysia is deploying CCUS technology with initial CO2 injection planned for 2025. This project, targeting?up to 3.5 Mt of CO2 capture annually, could become a significant contributor to regional decarbonization efforts.
• China:?As the world's largest emitter, China recognizes the importance of CCUS. The country has several pilot projects underway, with a focus on capturing emissions from coal-fired power plants. One such project, led by 中国石化 in Inner Mongolia, aims to capture?1 million tonnes of CO2 per year. Additionally, China is exploring geological storage options, with estimates suggesting a national storage capacity exceeding 1,000 Gt of CO2.
• Japan:?With limited domestic storage options, Japan is focusing on developing CCUS technologies for capturing emissions from power plants and industrial facilities. The country is also exploring the possibility of transporting captured CO2 to suitable storage locations overseas. The Hokkaido/Tomakomai CCS Project aims to develop a framework for capturing CO2 from a coal-fired power plant in Japan and transporting it for storage in Norway's geological formations.