Industry Gets Better Idea of Where CCS Works

International oil companies (IOCs) on both sides of the Atlantic have backed carbon capture and storage — or utilization — as a horse to watch in the energy transition race. Whether it becomes a thoroughbred in IOC stables or a workhorse remains to be seen. Looking at CCS and CCUS applications IOCs have shown interest in, there is commonality but not uniformity — horses for courses. Projects traverse regional hotspots, across multiple applications. These include LNG production, electricity generation, biorefineries, blue hydrogen and blue ammonia, and large industrial areas or clusters developed via partnerships. Industrial clusters often contain oil refineries, power stations and natural gas processing plants, sitting well in IOCs' wheelhouses. Blue hydrogen production and clustered projects using shared pipelines and storage sites are key reasons why the CCS and CCUS project pipeline has expanded rapidly in 2021 and a major factor in IOC interest. Samantha McCulloch, head of the carbon capture utilization and storage unit at the International Energy Agency (IEA), says that IOCs want to "reduce their own emissions consistent with corporate climate targets, support emissions reductions from the use of oil and gas (including in power and industry), develop new markets including for low-carbon hydrogen; and build new business opportunities linked to carbon management, particularly CO2 storage."