KNOWLEDGE

Carbon capture technologies: the role of CCUS, DAC and BECCS in decarbonization scenarios

CLARISSA LINS | BRUNA MASCOTTE | PEDRO GUEDES
October 2023

CLARISSA LINS | BRUNA MASCOTTE | PEDRO GUEDES
October 2023

Knowledge production

In the context of climate change, carbon capture technologies are deemed critical. According to the International Energy Agency (IEA), these technologies could lead to 10-18% of cumulative energy-related CO2 emissions reduction by 2050 [1] [2]. Their contribution is considered imperative for the world to achieve net-zero emissions by 2050 and limit the average temperature increase to 1.5°C, as proposed in the 2015 Paris Agreement.

Currently, global carbon capture capacity stands at a modest 46 MtCO2 annually, approximately 25 times less than what is required by 2030 in a net-zero scenario [3]. This underscores the urgency of a globally coordinated approach to upscale the deployment of this technology.

In this regard, public policies play a central role, exemplified by the Inflation Reduction Act (IRA) in the USA. The IRA would lead to an about 80% reduction in technology costs for CCUS (Carbon Capture, Use, and Storage) (from US$ 105/tCO2 today to US$ 20/tCO2) and a substantial 30% decrease for DAC (Direct Air Capture) (from US$ 600/tCO2 today to US$ 420/tCO2) [4].

However, it is essential to acknowledge that CCUS comes with additional costs and energy requirements and should not be seen as a standalone solution. Carbon capture should be applied in situations where technological substitutions are not feasible for specific processes (e.g., cement production), as well as for neutralizing residual emissions through removal solutions.

You can download Catavento’s latest paper on carbon capture technologies here.

 

References:

[1] IEA. Energy Technology Perspectives 2023. 2023

[2] Energy Transitions Commission. Carbon Capture, Utilisation and Storage in the Energy Transition: Vital but Limited. 2022

[3] IEA. Tracking Carbon Capture and Storage. 2023

[4] BCG. Impact of IRA, IIJA, CHIPS, and Energy Act of 2020 on Clean Technologies. 2023

 

Photo: Alex Simpson via Unsplash

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