Carbon capture and storage technologies: designing the right climate policies

Summary:

• CCS is not material for net zero.  CCS represents less than 5% of the net zero by 2050 decarbonization solution, according to the IEA's latest World Energy Outlook. Thus, it has a minor role to play.
• The CCS disposal chain is fraught with risks and underperformance. The CCS disposal chain, from capture, compression, transportation, and disposal, has numerous leakage and underperformance risks that can undermine its efficacy as a climate solution
  • CO₂ removal technology has, in practice, only been able to capture about 50% of the net emissions of the industrial processes to which it is applied
  • CO₂ transportation is inherently leaky and poses significant public safety risks should there be a pipeline rupture; pipelines should be located far away from populated areas
  • CO₂ geologic disposal has proven uncertain in its ability to securely and permanently store CO₂
• CO₂ disposal is inherently unreliable. There has yet to be a CO₂ geologic storage project that has performed as intended:
  • Sleipner in Norway is seeing a continued migration of CO₂ to locations never intended
  • Snohvit in Norway saw geological rejection of CO₂ pumped into a strata that scientists thought to be ideal for storage
  • The In Sallah project in Algeria experienced fracturing of the cap rock intended to contain CO₂
  • Gorgon in Australia, the world's largest operating CCS project, has never even met 50% of its intended capture capacity due to geological challenges
  • Archer Daniels Midland's Decatur CO₂ storage project in Illinois, US experienced loss of containment after only 6 years of operations due to corroded well casings.
• Governments need to deliberately regulate to manage risk and achieve intended performance. Given the risks, unknowns, and underperformance of CCS projects, governments must proactively regulate CCS and carefully consider budget allocations to this technology.