CCUS Market Update - CCUS demand spiking in 2023 - Energy Transition Report (condensed version)

The carbon capture, utilization and storage (CCUS) market had a great 2022, with close to 100% growth in project announcements. North America took the spotlight thanks to its favorable policies, while APAC countries started catching up. This year, eyes are on the mature markets in Europe and North America as a flurry of projects is set to progress to the next phase. However, we expect one-third of the projects in the pipeline to experience delays, although project announcements are set to maintain the same pace in 2023. In this month’s report, we also unpack how the future CO2 transportation and storage networks are taking shape, as available CO2 infrastructure is lacking at present. Onshore pipelines continue to become the ultimate transport mode of CO2 with some ambitious large-scale developments in the US Midwest. Dozens of terminals and CO2 carriers will be needed in the emerging CO2 shipping market, that presently will be centered around the North Sea with Norway, Denmark and the Netherlands positioned as attractive CO2 importing countries for storage. EOR is set to lose its dominance as a method of CO2 storage in most parts of the world, though gaining traction in Asia amid improved economics and corporate decarbonization ambitions. Storage in saline aquifers and volcanics see uptick due to large storage capacity and potentially cheaper and more effective CO2 storage.