Wood Mackenzie Predicts Promising Future for CCUS in 2024

"Wood Mackenzie Predicts Rapid Growth in Carbon Capture, Utilization, and Storage (CCUS) Capacity by 2024"

Wood Mackenzie, a leading research company, has released its outlook report for the Carbon Capture, Utilization, and Storage (CCUS) industry in 2024. The report predicts significant developments and growth in the CCUS landscape, with storage capacity expected to expand rapidly. CCUS plays a crucial role in the global net zero 2050 scenario, and Wood Mackenzie forecasts that CCUS capacity will increase from 80 metric tons per annum (Mtpa) to over 500 Mtpa.

One of the key predictions in the report is the unprecedented number of CCUS Project Final Investment Decisions (FIDs) expected in 2024. The global CCUS pipeline is set to grow, with 119 projects aiming for FID this year, representing the largest number to date. These projects collectively target 115 Mtpa capture capacity and 240 Mtpa storage capacity. The majority of projects reaching FID status are located in North America and Europe, with over 60% of the increase in capacity estimated to be in North America.

Another trend highlighted in the report is the momentum in CO2 storage licensing. Wood Mackenzie expects new licensing rounds to take place in the US and the UK, with major companies like Chevron, Equinor, and TotalEnergies likely to bid in Texas. Denmark has already opened applications for CCS licenses in five onshore areas, and Australia has released 10 new blocks for the 2023 GHG acreage release. Southeast Asia may also witness the formal opening of CO2 storage license areas in Malaysia and Indonesia. Regulatory changes are anticipated to expedite project timelines and lead to increased applications for CO2 storage wells and drilling.

The report also highlights advancements in Direct Air Capture (DAC) and new capture technologies. In 2024, there will be a focus on achieving at-scale readiness for DAC, with Stratos, the world’s first global-scale DAC plant with a capacity of 0.5 Mtpa, expected to reach or near the end of construction. Climeworks’ Mammoth DAC project is set to start operations in the second half of 2024. The US Department of Energy is expected to announce additional DAC hubs and finalize funding amounts, while startups may develop pilots featuring newer technologies. Despite these advancements, challenges related to cost and execution risks remain, and Wood Mackenzie will continue to report on how new DAC projects can improve operational efficiency and reduce costs.

In addition, 2024 will see the introduction of new capture technologies and industry involvement in CCUS projects. Notable projects, such as Svante’s Veloxotherm Technology, could play a game-changing role. Carbon capture technologies developed by Aker Carbon Capture, LanzaTech, and Honeywell UOP are also set to be commissioned this year in Norway, South Africa, and the US, respectively. The report also explores the evolving regulatory framework and the potential impact of global elections in 2024 on CCUS policies, particularly the US elections.

Wood Mackenzie’s full report provides in-depth insights into these predictions and trends shaping the CCUS landscape. The research firm emphasizes the importance of carbon capture in achieving global net zero goals by 2050, stating that 7 billion tonnes of CO2 capture per year is necessary. With the anticipated surge in FIDs, growing CO2 storage licensing momentum, and advancements in DAC and new capture technologies, 2024 is poised to be a pivotal year in the journey towards global net zero by 2050. The CCUS industry is expected to experience unprecedented growth, innovation, and strategic partnerships, solidifying its role in the energy transition landscape.

Matt Lyons

Matt Lyons

Matt Lyons is the founder of Forestry & Carbon. Matt has over 25 years as a forestry consultant and is invoilved in numerous carbon credit offset projects.

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