1. Accelerating progress for Carbon Capture, Utilisation and Storage (CCUS)
Dr Sara Budinis, Energy Analyst
Brussels, 20th June 2019

2. Annual change in global primary energy demand, 2011-18
2018 – a remarkable year for energy
Annual change in global primary energy demand,
Mtoe
400
Coal
Oil
Gas
Nuclear
Renewables
300
200
100
2011
2012
2013
2014
2015
2016
2017
2018
Global energy demand last year grew by 2.3%, the fastest pace this decade, an exceptional performance driven by a robust global economy, weather conditions and moderate energy prices.

3. Annual change in global energy-related CO2 emissions, 2014-2018
Energy-related CO2 emissions hit a record high…
Annual change in global energy-related CO2 emissions,
MtCO2
600
400
200 -
200
2014
2015
2016
2017
2018
Higher demand for fossil fuels drove up global CO2 emissions for a second year after a brief hiatus.
Increases in efficiency, renewables, coal-to-gas switching and nuclear avoided 640 Mt of CO2 emissions.

4. ..led by coal in power generation in Asia
Global energy-related CO2 emissions,
GtCO2 35 30
Other 25
Other coal use
Coal 20
Coal-fired power
generation 15 10 5
1990
2000
2010
2018
Emissions from coal continue to rise and account for one-third of the 1°C temperature increase above
CCUS is a critical solution and is showing signs of a revival.
Emissions from coal continue to rise, driven by increasing coal use mostly for power generation in Asia. mostly in Asia hits 10 Gt, the largest source of global emissions.

5. Industry is at the heart of the energy transition challenge
Buildings
Industry
10%
23%
Other 5%
Power
Transport
39%
23%
Industry is the second-largest source of CO₂ emissions after the power sector.

6. Role of fossil fuels in global industrial final energy demand
70% of industrial energy needs are met by fossil fuels, with coal the dominant fuel in iron and steel and cement production

7. China leads the industrial growth story
China accounts for more than one-third of global industrial energy consumption, and almost half of industrial CO₂ emissions

8. Emissions reductions for cement, iron and steel and chemicals by mitigation strategy1 2 3 4 5 6 7 8
2017
2020
2025
2030
2035
2040
2045
2050
2055
2060
GtCO₂
Reference Technology Scenario
CCUS (24%)
Other innovative technologies (4%)
Materials efficiency (24%)
Fuel and feedstock switching (11%)
Energy efficiency & BAT deployment (38%)
Clean Technology Scenario
CCUS is central to the industry decarbonisation portfolio, contributing 24% of the cumulative emissions reductions from the RTS to the CTS

9. Global cumulative direct CO2 emissions reductions in the CTS, 2017‑60
CCUS is the third-largest decarbonisation mechanism in the iron and steel subsector under the CTS,
accounting for 15% of emissions reductions, and the most important lever in chemical production.
CCUS is the third-largest decarbonisation mechanism in the iron and steel subsector under the CTS, accounting for 15% of emissions reductions

10. Global CCUS facilities
2018: the beginning of a new era for CCUS?
Global CCUS facilities
Source: GCCSI Global Status of CCS
After a decade of muted progress, the investment pipeline is showing signs of growth

11. Low technology risk (“keep it simple” approach)
Early opportunities: where is CCUS succeeding, and why?
CCUS installed on existing assets which have sustainable business model from other products
Low technology risk (“keep it simple” approach)
Attractive, well understood storage geology
Coalition of public and private stakeholders
Clear source of revenue to cover CCUS costs over asset lifetime
ADM Decatur (Source: US DOE)
Petra Nova (Source: NRG)
Quest - Scotford Upgrader (Source: Shell)
Al Reyadah
(source: CSLF)

12. Funding pledges have not translated to investments
Announced government support and capital spending on large-scale CCUS facilities
Of almost USD 30 billion in funding commitments, only 15% has actually been spent

13. Unlocking CCUS investment: 5 keys
Harvest low-hanging fruit to build CCUS deployment and experience from the ground up.
Tailor policies to shepherd CCUS through the early deployment phase and to address unique integration challenges for these facilities.
Target multiple pathways to reduce costs from technology innovation to progressive financial mechanisms.
Build CO2 networks to better support transport and storage options.
Strengthen partnerships and cooperation between industry and government.

15. Back-up slides

16. Carbon Capture Utilisation and Storage (CCUS)
Separation of CO2 produced during production of power or other products, followed by clean-up and compression of the CO2
TRANSPORT
Movement of CO2 by pipeline, truck, rail, ship, or barge to a storage facility
UTILISATION
Using CO2 as a raw material for products or services with a potential market value, including direct (non-conversion) and indirect (conversion) use
STORAGE
Injection of CO2 into a suitable storage unit, selected to safely contain the injected CO2 for long timescales
or/and
The CCUS chain can be broken down into capture, transport and permanent storage or utilisation;
all steps need to be aligned to make the CCUS chain work

17. CO₂ capture in cement, iron & steel and chemical subsectors, today through 2060
Iron and steel
Chemicals
CO₂ captured (Gt)
0.5
0.5
0.5
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.1
Today
2030
2045
2060
Today
2030
2045
2060
Today
2030
2045
2060
Reference Technology Scenario (RTS)
Clean Technology Scenario CTS)
There is a significant ramp up in CO2 capture in industry to 2060, reaching nearly 1.3 GtCO2 captured across cement, iron & steel, and chemical production in the CTS.

18. Annual CO2 capture from large-scale CCUS facilities
Most CCUS associated with high-concentration CO2 sources
Annual CO2 capture from large-scale CCUS facilities
90% of CO2 captured today is from high-concentration sources, including natural gas processing.