CCUS Policies and Business Models: Building a Commercial Market

CCUS Policies andBusiness Models Building a commercial market INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policies thatwill enhance thereliability, affordabilityand sustainability ofenergy in its31member countries,13associationcountries and beyond. IEA membercountries: IEA associationcountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundaries andto the name of any territory,city or area. The EuropeanCommission alsoparticipates in thework of the IEA Revised version, November2023Information notice found at:www.iea.org/corrections Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract Carbon capture, utilisation and storage (CCUS) is an important technology forachieving global net zero emissions. Momentum on CCUS has increased in recentyears, but the deployment of projects has remained relatively flat. Emergingbusiness models are opening the door to new investment opportunities, and withthat bringing new challenges to be overcome. The scale-up needed to reach net zero emissions by mid-century represents amajor undertaking, and policy support and co-ordination are crucial. Policy makershave a suite of tools at their disposal to create the conditions necessary to drivelong-term investment, enabling industry to take the next step forward and pushCCUS into a viable and sustainable commercial market. This IEA CCUS Handbook provides governments with a policy toolkit to tackle theoverarching challenges to CCUS deployment. It gives an overview of existingpolicies that have helped launch CCUS projects to date and identifies the mainchallengesto future large-scale deployment.The handbook also highlightsinternational best practices, drawing on existing and proposed government effortsto address these challenges. The handbook is supported by ourCCUS Projects Database1and complementsthe IEA CCUS Handbooks onLegal and Regulatory Frameworks for CCUSandonCO2Storage Resources and their Development. Acknowledgements This study was prepared by the Energy Technology Policy (ETP) Division of theDirectorate of Sustainability, Technology and Outlooks (STO) of the InternationalEnergy Agency (IEA). The study was designed and directed byTimur Gül, ChiefEnergy Technology Officer and Head of the Energy Technology Policy Division.The analysis and production was co-ordinated bySara Budinis. The lead authorswere (in alphabetical order)Sara Budinis,Mathilde Fajardy,Carl GreenfieldandFlowra (Yuting) Zhang. Per-Anders Widellprovided essential support throughout the process.LizzieSayeredited and produced the manuscript.Thanks also to the IEACommunications and Digital Office for their help, particularly toJethro Mullen,Poeli Bojorquez, Curtis Brainard, Hortense de Roffignac, Astrid Dumond,Merve Erdil, Grace Gordon, Julia Horowitz,Oliver JoyandAya Abu Shaqra. Valuable comments and feedback were provided by other colleagues within theIEA, in particularSimon Bennett,Luca Lo ReandTiffany Vass. Valuable input to the analysis was provided by a series of consultations with keygovernment officials including (in alphabetical order)Niels Berghout(Ministry ofEconomicAffairs and Climate Policy,The Netherlands),Krzysztof(Chris)Bolesta, (DG Energy, European Commission),Alexandre Dedo(DG Energy,European Commission),Noah Deich(US Department of Energy),AlexanderEngh(Norwegian Ministry of Petroleum and Energy),Ramsey Fahs(USDepartment of Energy),Johanna Fiksdahl(DG Energy, European Commission),JasonGadoury(Natural Resources Canada),Kathryn Gagnon(NaturalResources Canada),Rory Jacobson(US Department of Energy),Will Lochhead(UK Department for Energy Security and Net Zero),Jessica Mackenzie(UKDepartmentfor Energy Security and Net Zero),Saviz Mortazavi(NaturalResources Canada)Henriette Nesheim(Norwegian Ministry of Petroleum andEnergy),Monica Reed(Natural Resources Canada),Norihiko Saeki(JapanMinistry of Economy, Trade and Industry),Tina Schøn(Danish Energy Agency),Henrik Sulsbrück(Danish Energy Agency),Stig Svenningsen(NorwegianMinistry of Petroleum and Energy),Matthew Taylor(UK Department for EnergySecurity and Net Zero),Chris Thackeray(UK Department for Energy Securityand Net Zero) andPil Krogh Tygesen(Danish Energy Agency). Several senior government officials and experts provided essential input andfeedback to improve the quali