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North America and China lead the way on CCS technology

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North America and China is leading the development of CCS technology according to a report that was released in Brussels today.

The Global Status of CCS: February 2014 report reviews the current status of large-scale carbon capture and storage (CCS) projects worldwide, including the policy and regulatory developments affecting international decarbonization efforts.

The first large-scale CCS projects in the power sector, SaskPower’s Boundary Dam project in Canada and Southern Company’s Kemper County project in the U.S., are nearing operation. These are of global significance, as they will show CCS operating at commercial scale in the power sector. Meanwhile, the Middle East has the world’s first large-scale CCS project in the iron and steel sector moving into construction, while China has doubled the number of large-scale CCS projects in the pipeline to 12 since 2011.

The report found 21 CCS projects in construction or operation worldwide, a 50% increase since 2011.

The report shows steady progress for CCS worldwide, but there has been a significant slowdown in Europe, where four CCS projects have been cancelled or put on hold. At this early commercial stage, it is critical to align policy incentives and market conditions to sustain a business case for CCS projects. A driving force in the U.S. and Canada has been the utilization of CO2 for enhanced oil recovery (EOR), and a majority of the integrated projects in the region supported under industry-government partnerships include CO2-EOR. CO2-EOR is an important enabler for CCS as the two applications share commonalities of technology, co-location of storage sites and delivery infrastructure.

While the U.S. and Canada have shown strong progress on CCS technology and policy developments, further policy action and funding support is needed to continue the forward momentum.

The report found that:

• To date there are 21 large-scale projects in operation or construction, capturing up to 40 million tonnes of CO2 per annum, equivalent to 8 million cars being taken off the road.

• Six projects in advanced stages of development planning may take a final investment decision during 2014. These have a combined capture capacity around 10 million tonnes of CO2 per annum.

• The majority of the 21 projects in operation or under construction thus far are in the U.S. and Canada, and are associated with CO2-EOR. The pipeline for new projects needs to be replenished.

• China has doubled the number of CCS projects since 2011, with 12 large-scale CCS projects.

• The world’s first two power sector projects with CCS will begin operation in North America in 2014.

Read the full report here.



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