Energy research firm Wood Mackenzie is following 15 carbon capture projects it expects to reach a final investment decision in 2022 after a record year of project pipeline growth.
The carbon capture projects Wood Mackenzie believes could reach FID in 2022 would eventually add about 35 million tonnes per annum carbon capture and storage capacity.
Wood Mackenzie’s projects to watch for an FID in 2022 are:
- Project Tundra, with plans to capture 4 million tpa in North Dakota.
- Lake Charles Methanol, with plans to capture 90% of carbon dioxide emissions from its Louisiana methanol production facility.
- Kairos@C, with plans to capture 14.2 million tonnes of CO2 over its first 10 years in operation from an industrial cluster at the Port of Antwerp.
- Yamal, Russia’s first CCS project, which aims to reduce emissions from liquefied natural gas operations on the Yamal Peninsula in West Siberia.
- Ghasha, which will integrate carbon capture into the Ghasha Concession fields in Abu Dhabi.
- Kasawari, where Petronas has plans to capture an average of 3.7 million tpa of CO2 offshore the coast of Sarawak.
- HyNet North West, a UK decarbonisation project that plans to reduce emissions by 10 million tpa.
- East Coast Cluster in the UK, with plans to capture up to 27 million tpa of emissions.
- Porthos, with plans to capture about 2.5 million tpa of CO2 for 15 years in Rotterdam.
- Polaris/Barents Blue, which will initially store 2 million tonnes of CO2 per year in Finnmark, Norway, from the Barents Blue ammonia production plant.
- Bayu Undan, which has the potential capacity to store 10 million tpa of emissions in a nearly depleted gas field off the coast of Timor-Leste.
- DAC to Fuels, a direct air capture project that aims produce low-carbon fuels from CO2 captured from the atmosphere in British Columbia, Canada.
- DAC-1, a direct air capture project in the US Permian basin that would eventually capture 1 million tpa of CO2 emissions.
- Flagship One, which will convert CO2 waste into a liquid fuel called e-methanol in Sweden.
- H2Perth, a blue hydrogen and ammonia production facility that will include carbon capture.
The report highlights a European cluster of projects — HyNet North West, East Coast Cluster, and Porthos — which will share CO2 transportation and offshore storage infrastructure.
The Bayu-Undan project could develop a Timor-Leste storage hub, but a large amount of regulatory work is still needed to be done, so an FID this year is less certain.
Projects in the US could also be affected by the pending Build Back Better plan, which could lead to an increase in the 45Q tax credits for carbon capture from US$50 per tonne to US$85 per tonne, which would be positive for CCS projects.
Despite declining support for the bill, policy in support of carbon capture – and further, low-carbon carbon hydrogen – could still be salvaged from the legislation, but delays would affect carbon capture projects in the pipeline.
Other regions will increase and launch carbon taxes that could support carbon capture, including Canada, which plans to increase to C$50 (US$39.37) per tonne, and Indonesia will launch its first carbon tax, targeting coal-fired power plants, at US$2 per tonne.
While 2021 saw growth in the pipeline of proposed CCS projects, Wood Mackenzie does not expect similar growth to occur this year.
Instead the UK consultancy expects already announced projects to work toward securing funding. About three-quarters of carbon capture, utilisation, and storage projects are still in early development.
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- Tallgrass Energy wins grant for Wyoming CCS project