top of page

CCS investment to top $80bn in next five years, forecasts DNV report

  • Writer: Tseles John
    Tseles John
  • Jun 13
  • 2 min read
CCS investment to top $80bn in next five years, forecasts DNV report
source: Northern Lights

Cumulative investment in carbon capture and storage [CCS] is expected to reach $80bn over the next five years and falling costs will spur more growth post-2030, according to DNV’s first Energy Transition Outlook: CCS to 2050 report.


The report forecasts CCS capacity quadrupling in the next five years, despite ongoing cost, technology implementation and regulatory hurdles which are hindering development.

“Up to now, growth has been limited and largely associated with pilot projects but a sharp increase in capacity in the project pipeline indicates that CCS is at a turning point,” it states.

“The immediate rise in capacity is being driven by short-term scale up in North America and Europe, with natural gas processing still the main application for the technology.”


Hard-to-abate industries are forecast to be the main driver of growth from 2030 onwards, accounting for 41% of annual CO2 captured by mid-century.

Maritime onboard capture, now showing some signs of progress, is expected to scale from the 2040s. As technologies scale, it forecasts average costs will drop by an average of 40% by 2050.


Ditlev Engel, CEO, Energy Systems at DNV, said CCS technologies are a necessity for ensuring that CO2 emitted by fossil-fuel combustion is stopped from reaching the atmosphere and keeping the Paris Agreement alive.


Even though a turning point may be approaching, he said the trajectory of CCS deployment remains “a long way off” to deliver Net Zero by 2050.

“Economic headwinds in recent years have put pressure on this capital-intensive technology and corrective action will need to be taken by government and industry if we are to close the gap between ambition and reality,” he said.


CCS will grow from 41 MtCO2/yr captured and stored today to 1,300 MtCO2/yr in 2050, representing 6% of global emissions, but it needs to scale six times this level to reach the amount outlined in DNV’s Pathway to Net Zero Emissions.


Europe’s strong price incentives will lead it to overtake North America in CCS deployment, it forecasts.


Carbon dioxide removal (CDR) will capture 330 MtCO2 in 2050, around a quarter of total captured emissions. Bioenergy with CCS (BECCS), generally the CDR option, will be used primarily in renewable biomass for power and manufacturing.


Direct air capture costs will remain high though, at around $350/tCO2 through to 2050, but voluntary and compliance carbon markets still ensure the capture of 32 MtCO2 in 2040 and 84 MtCO2 in 2050.



source: gasworld






CO2 STORAGE IN GEO FORMATIONS

Comments


bottom of page