Latest news with #CarbonCapture
Yahoo
3 days ago
- Business
- Yahoo
From Leader to Laggard? U.S. Faces Carbon Capture Slowdown as EU Surges Ahead
Carbon capture and storage (CCS) has long been recognized as a critical technology for achieving net-zero emissions, particularly in hard-to-abate sectors like steel, cement, and chemicals. Historically, the United States has been at the forefront of CCS development, propelled by generous subsidies and tax incentives, notably the 45Q tax credit enhanced by the Inflation Reduction Act (IRA). However, recent policy developments in Europe signal a strategic shift that could redefine global leadership in CCS. The U.S. approach: A market-led model facing political uncertainty For years, the United States has been the global frontrunner in CCS deployment, thanks to a market-based approach centered around financial incentives. The 45Q tax credit, bolstered by the IRA, offered up to $85 per tonne of CO2 captured and stored in geological formations, and up to $180 per tonne for direct air capture (DAC) projects. These incentives sparked a surge of interest and investment, with over $320 billion in clean energy projects announced in the wake of the IRA—many incorporating CCS as a key decarbonization tool. The enthusiasm for CCS in the U.S. market remains strong. Companies and investors are still eager to pursue large-scale projects, and the technological expertise in CCS is considerable. However, the political landscape has introduced significant uncertainty. Proposed legislation to repeal or weaken key provisions of the IRA has created a cloud of doubt over the future of CCS incentives. Already, this policy instability has led to the cancellation or delay of major projects, with estimates suggesting that over $14 billion in clean energy investments have been shelved due to fears that the regulatory framework may political uncertainty undermines investor confidence and makes it harder for companies to commit to the long lead times and high capital costs required for CCS projects. As a result, while the interest and market potential for CCS in the U.S. remain strong, the momentum is at risk of stalling. Europe's regulatory mandate: A new model for CCS deployment In contrast, Europe is taking a more direct and regulatory-driven approach. Under the recently adopted Net-Zero Industry Act, the EU has introduced a groundbreaking requirement: oil and gas companies must collectively develop and reserve at least 50 million tonnes of annual CO2 storage capacity by 2030. This mandate is proportionally assigned, with each company's obligation based on its historical production levels, ensuring that those most responsible for emissions contribute the most to the solution. This shift marks a fundamental departure from the U.S. model. Rather than relying on voluntary market signals and financial incentives, Europe is creating a binding legal obligation—turning CCS from a niche technology into a critical pillar of its industrial decarbonization strategy. By designating these storage projects as Net-Zero Strategic Projects, the EU also accelerates permitting processes and unlocks access to funding mechanisms like the Innovation Fund, supported by revenues from the EU ETS. This regulatory certainty offers investors a stable environment in which to commit capital, reducing risk and providing a clear roadmap for the long-term development of CCS infrastructure. A shift in global momentum The contrasting approaches between the U.S. and Europe highlight a shifting dynamic in global CCS leadership. The U.S. market, once the undisputed leader in CCS due to its financial incentives, now faces a potential slowdown as policy uncertainty erodes confidence. While interest and market conditions for CCS in the U.S. remain strong, the lack of stability in the regulatory environment makes it difficult for projects to reach final investment decisions. Europe, by contrast, is creating a stable and predictable policy framework that reduces uncertainty and drives investment. By mandating the development of storage capacity, Europe ensures that the infrastructure will be in place to support decarbonization efforts across multiple sectors—from steel and cement to hydrogen and negative emissions technologies. This approach positions Europe as a growing center of gravity for CCS innovation, offering a blueprint that other regions may seek to emulate. Oil and gas companies as part of the solution In previous publications, I have discussed how oil and gas companies can contribute to the energy transition—not just as suppliers of fossil fuels, but as builders of critical infrastructure for a net-zero future. Europe's CO2 storage mandate is a clear example of this vision in action. By leveraging their expertise in subsurface operations, oil and gas companies can develop the storage capacity that will serve as the backbone of Europe's industrial decarbonization strategy. This is a tangible way for these companies to contribute positively to the transition, using their resources and knowledge to solve one of the most pressing challenges of the clean energy shift: where to safely and permanently store CO2. Conclusion The European Union's CO2 storage mandate is more than just a regulatory milestone—it is a turning point for the global CCS industry. By creating a legally binding requirement for storage development, Europe is providing the certainty that markets and investors need to scale up CCS projects. In contrast, the U.S., despite its early lead and the market's ongoing interest, risks losing momentum due to political instability and the potential rollback of critical incentives. This transatlantic divergence has far-reaching implications. As Europe accelerates its CCS deployment, it positions itself as a leader in the global race to decarbonize heavy industry. The U.S., meanwhile, faces the risk of ceding its leadership role unless it can provide stable and predictable policy support. The challenge now is clear: Europe must act swiftly to implement its ambitious plans, and the U.S. must ensure that political uncertainty does not undermine its CCS potential. The world is watching, and the choices made today will shape the industrial landscape of tomorrow. By Leon Stille for More Top Reads From this article on
Borneo Post
6 days ago
- Business
- Borneo Post
Sarawak unveils ambitious Sustainability Blueprint 2030 to lead Southeast Asia's green transition
Abang Johari (centre) shows the Sustainability Blueprint 2030 booklet while others look on. KUCHING (May 29): Sarawak has positioned itself as a regional leader in climate action with the launch of its Sustainability Blueprint 2030, a comprehensive roadmap aimed at accelerating the state's transition to a low-carbon, green economy. Unveiled by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg during the Asia Carbon Conference 2025 at the Borneo Convention Centre Kuching (BCCK) today, the blueprint outlines 10 strategic thrusts, 48 strategies, and 111 actionable plans to guide the state's environmental and economic transformation. It was developed by the State Ministry of Energy and Environmental Sustainability. 'Sarawak is determined to lead Malaysia and the region in climate action and sustainable development,' Abang Johari said in his keynote address. He highlighted Sarawak's significant progress in renewable energy development, noting that hydropower now accounts for 70 per cent of the state's energy mix. This shift has enabled Sarawak to cut its grid carbon emissions by 72 per cent since 2010 – well ahead of its 2030 targets. He also pointed to the state's growing hydrogen economy and the deployment of solar and mini-hydro solutions for rural electrification, along with rising adoption of electric vehicles. He cited the Sarawak Methanol Complex, launched in 2024 and already exporting, as a key driver of green industrial growth. On carbon management, Sarawak is developing four carbon capture and storage (CCS) sites by 2030, with Petros spearheading the state's Carbon Capture, Utilisation and Storage (CCUS) strategy. The recently enacted Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023, effective since March, mandates GHG reporting and lays the foundation for carbon levies and emissions trading. Additionally, Sarawak is working with the World Bank to establish a Carbon Levy framework and finalising a comprehensive Carbon Plan to support a regulated, investor-friendly carbon market. Sarawak's commitment to biodiversity was also emphasised. The state has launched a Biodiversity Masterplan, integrated conservation into development planning, and enabled biofuel production using palm oil waste. Seven forestry carbon study permits have been issued, with one nature-based carbon project licensed and six more under review. Sarawak also aims to publish a full greenhouse gas inventory by 2027 to benchmark emissions against a carbon budget. 'This is not just Sarawak's carbon journey as this is our contribution to the planet and future generations,' said Abang Johari. With Malaysia chairing Asean this year 2025, Sarawak is positioning itself as a regional model for green development. Abang Johari called on local and international partners to collaborate on sustainable projects, reaffirming Sarawak's openness to investment and cooperation. 'Sarawak is open for business, and more importantly, Sarawak is open for collaboration. 'This is not just Sarawak's carbon journey as this is our contribution to the planet and future generations,' he said. The Asia Carbon Conference (ACC), which runs from May 29-30 at the BCCK, provides a critical platform for discussions on carbon pricing, CCS, nature-based solutions, policy frameworks, and green investment opportunities. abang johari Sustainability Blueprint 2030
Edinburgh Reporter
23-05-2025
- Business
- Edinburgh Reporter
First Minister to tell Prime Minister to reinstate winter fuel payment for all
The First Minister, John Swinney, is in London today at the UK Government's Council of Nations and Regions. Mr Swinney will tell the Prime Minister that the Winter Fuel Payment must be restored. Mr Swinney said ahead of the meeting that the UK needs a national mission to raise living standards and provide people with hope that things will get easier, starting with the restoration of a Winter Fuel Payment to all pensioner households. He said he will press for action to help people struggling with the ongoing cost of living crisis, amid increasing inflation and international economic instability, and that the first action of the UK Government must be to accept the cut to the Winter Fuel Payment was wrong, and announce a restoration so all pensioners get a payment. The First Minister said people need to believe things can get easier and that he plans to raise specific concerns relating to Scotland's economy with the Prime Minister which could help accelerate economic growth. This includes the impact on Scotland of the recently announced UK-US trade deal, the agreement reached with the European Union, Carbon Capture and the case for a bespoke migration policy for Scotland. Mr Swinney will be in London for a programme of meetings, including a bilateral with the Prime Minister, a multilateral with the First Minister of Wales, First Minister and deputy First Minister of Northern Ireland, and a plenary session of the Council of Nations and Regions. Mr Swinney said: 'People across the UK are living through a period of huge uncertainty and for some, that is undermining the trust they have in government. 'Cutting the winter fuel payment saw the UK Government breaking promises and removing vital financial support for some of the most vulnerable in our society. Having effectively conceded the argument by announcing a partial U-turn, the Prime Minister should accept the cut was wrong and restore a universal winter fuel payment. 'In Scotland, we are introducing universal winter heating payments through our Cost of Living Guarantee. This will see payment made to all pensioner households, with the poorest receiving the most support which is fair amid ongoing pressures. 'If the UK government want to provide people with hope that things will get easier, the Prime Minister should restore the winter fuel payment as part of a new national mission to raise living standards. 'I will raise this issue with him alongside other critical issues, including our proposal for a Scottish Graduate Visa, Carbon Capture and what impacts recent trade deals will have on Scottish producers and businesses. 'We are willing to work with him and the UK Government, but the question is whether he is willing to work with Scotland and give people hope that a better future is possible.' Like this: Like Related
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Malaysia vows strong safeguards in Japan CO₂ storage deal
The natural resources and environmental sustainability ministry says any cross-border CO₂ storage arrangement would be strictly governed by bilateral or multilateral agreements. (Wikimedia Commons pic) KUALA LUMPUR : The government has pledged to enforce strict environmental and legal safeguards, amid reports of an agreement with Japan for liquefied carbon dioxide (CO₂) to be stored in offshore sites beginning as early as 2030. In a statement to FMT, the natural resources and environmental sustainability ministry said the government was committed to upholding the 'highest environmental and safety standards'. It stressed that all carbon capture and storage (CCS) projects would be subjected to rigorous environmental impact assessments (EIA), real-time monitoring and robust regulatory oversight. 'Long-term monitoring protocols will include seismic surveys, well integrity checks and the use of advanced technologies to detect any potential leaks,' the ministry said, adding that a dedicated legal framework was being developed to ensure environmental protection and accountability. The ministry's statement follows a report that Japan plans to export CO₂ for underground storage in Malaysia through a partnership involving Mitsui & Co., Kansai Electric Power, and state oil company Petronas. Nikkei Asia reported that the stored carbon from Japanese power plants and factories would be injected into depleted gas fields in Malaysian waters, with the Malaysian government expected to sign a memorandum of understanding with Japan by this year. The Japanese daily also reported that Japan was aiming to store up to 10 million tonnes of CO₂ annually in Malaysia as part of its goal to achieve net-zero emissions by 2050. Addressing concerns that Malaysia could become a dumping ground for foreign emissions, the ministry said any cross-border CO₂ storage arrangement would be governed strictly under bilateral or multilateral agreements. These will align with international standards and clearly define legal responsibilities, risk-sharing mechanisms and safeguards to prevent misuse, said the ministry. 'Malaysia's priority is to safeguard its national interest, environmental integrity and sovereignty,' the ministry stated. 'Malaysia will only accept carbon storage projects that are environmentally sound, economically beneficial and aligned with our national climate goals.' The ministry also said that storing CO₂ for another country would not affect Malaysia's own carbon budget or Nationally Determined Contributions (NDC) target under the Paris Agreement. 'Technically, receiving CO₂ from other countries, including Japan, does not affect Malaysia's NDC target,' the ministry said. 'However, if the storage site leaks in the future, then Malaysia will be responsible for it.'
Barnama
21-05-2025
- Business
- Barnama
Does CCUS Have A Future In Malaysia?
A s nations race toward net-zero targets amid a narrowing window to address climate change, Carbon Capture, Utilisation and Storage (CCUS) is emerging both as a promising technological solution and a focal point of environmental debate. CCUS is a technology designed to capture carbon dioxide (CO2) from point sources such as factories or directly from the atmosphere. The captured CO₂ is then either stored permanently underground or utilised as a feedstock in various industrial processes. By physically reducing emissions, CCUS enables the creation of value-added products and services that are increasingly accepted in global markets—potentially offsetting the costs of adopting the technology. According to the International Energy Agency (IEA), CCUS is considered a critical tool in achieving global energy and climate goals, particularly for emissions that are technically challenging or prohibitively expensive to eliminate. In Malaysia, the recent passage of the CCUS Bill in March marks a significant policy shift, paving the way for the large-scale deployment of carbon capture initiatives across key industrial sectors. While many local experts acknowledge that the bill leaves important questions unanswered—especially regarding CCUS's long-term role in meeting Malaysia's climate commitments—it is nevertheless seen as a step forward. It represents a flagship catalyst project and a vital component of the National Energy Transition Roadmap (NETR), aimed at serving countries that seek to use CCUS to lower their carbon emissions. As the bill awaits further development of implementation guidelines, the debate is intensifying—between supporters who view CCUS as essential for addressing hard-to-abate emissions, and critics who highlight its substantial financial and environmental costs. CRITICAL FOR NET ZERO Global CCS Institute Strategic Adviser for Emerging CCS (Carbon Capture and Storage) Markets, Alex Zapantis, said while CCUS is not a one-size-fits-all solution, it remains a vital component in the global push toward net-zero emissions—particularly in Southeast Asia. He stressed that CCUS should not be viewed as a substitute for renewable energy, nuclear power, or energy efficiency improvements. However, it is a crucial technology for industrial sectors where alternative solutions are currently not yet viable. 'Most international reports and analyses show that we need to use every tool at our disposal to reach net zero. If we remove any of them from the equation, it becomes more difficult, more expensive, and possibly even impossible,' he told Bernama in an exclusive interview recently. While hydrogen has been touted as a cleaner alternative for processes like steel production via direct reduced iron (DRI), Zapantis pointed out that clean hydrogen production at commercial scale still often relies on CCS. 'To produce low-emission hydrogen, CCS remains the most cost-effective and scalable method available today,' he said. On the energy front, Zapantis also addressed a common misconception: that CCS competes with renewable energy. He argued that in Southeast Asia's context, the two should be seen as complementary. 'We need as much renewable energy as we can deploy, but there are limits to what the grid can handle due to the intermittent nature of these sources. CCS complements renewables — it's not in competition with them,' he added. NATURE-BASED SOLUTIONS When asked whether nature-based solutions (NbS)—such as forests and green carbon sinks—could replace CCUS in absorbing carbon dioxide, Zapantis said these approaches, while important, have inherent limitations. 'NbS play a vital role in addressing climate change, but they cannot replace CCUS. They are limited by land availability and offer far less security compared to underground carbon storage through CCS,' he explained. Citing findings from the United States National Academies of Sciences, Engineering, and Medicine, Zapantis noted that the upper limit of effective carbon dioxide abatement through NbS globally is estimated at just five to seven gigatonnes per year. 'Beyond that threshold, NbS begin to compete with essential needs such as food production, fibre, water, and biodiversity. When you consider that global emissions stand at around 40 gigatonnes annually, NbS can only provide a fraction of what's required,' he said. Zapantis said that another key challenge with NbS is permanence — the durability of carbon storage over time. 'CCS offers a more secure form of storage. Thanks to over a century of oil and gas operations and decades of geological research, we know that carbon dioxide, when stored in a properly selected underground reservoir, remains there. "Even if leakage occurs, it can be detected and remedied with existing oil and gas technologies,' he said. In contrast, carbon stored in trees or soil is vulnerable to natural and human-induced risks such as wildfires, pests, droughts, and land-use changes. 'If those trees are lost—whether due to fire, disease, or logging—the carbon is released back into the atmosphere. The risk of reversal is significantly higher compared to CCS,' he added. Zapantis argued that the most effective strategy is to prevent emissions from entering the atmosphere in the first place. 'CCUS achieves this by capturing carbon dioxide directly at the source—be it a power plant or industrial facility—and storing it securely. That's far more effective than emitting carbon and trying to remove or offset it later,' he said. When asked whether CCUS could be misused as a licence to prolong fossil fuel use, Zapantis was firm in his response. 'CCUS should be seen as one element of a broader climate strategy that includes renewables, energy efficiency, and nature-based solutions. It's not about extending the life of fossil fuels. It's about managing emissions from hard-to-abate sectors. 'In Southeast Asia, where energy demand continues to rise and fossil fuels still dominate the energy mix, CCUS is essential to achieving emissions targets,' he said. SAFETY MATTERS While CCUS is being promoted as a key technology to help Malaysia and Southeast Asia achieve their net-zero targets, concerns persist—particularly around the safety and reliability of offshore carbon storage. Climate policy expert Dr Gary Theseira warned that current monitoring technologies are not yet mature enough to guarantee the secure containment of carbon dioxide injected beneath the seabed. This raises serious questions about the risk of undetected leaks and the long-term liabilities associated with such storage. 'At present, there is no existing technology capable of effectively monitoring the seabed once CO₂ is injected offshore. 'If a leak occurs, the gas dissolves into seawater almost immediately, making it virtually untraceable,' he told Bernama. Theseira, who also serves as Chair of the Climate Governance Malaysia Council, noted that NbS are already playing an active role in carbon sequestration. 'We already have forests and natural carbon sinks doing the job. Perhaps we should be channelling more investment and attention into enhancing these systems,' he said. He cited biomass waste—such as pruned branches and deadwood—as a valuable resource that could be transformed into biochar, a more stable and potentially safer method of carbon sequestration. 'For me, the most promising alternative is biochar. It's a form of CCUS, just with a different, more grounded approach—and potentially less risky,' he said. (Biochar is a charcoal-like substance produced by burning organic material from agricultural or forestry waste (biomass) in a controlled process known as pyrolysis. Although it resembles common charcoal, biochar is made using a method designed to minimise contamination and securely store carbon over the long term). NEEDS A COHERENT POLICY FRAMEWORK Theseira said the government should consider passing the long-delayed National Climate Change Bill (RUUPIN) before advancing the CCUS Bill or implementing a carbon tax. He warned that without a coherent legal and policy framework, efforts to combat climate change—through mechanisms like CCUS and carbon pricing—risk becoming fragmented or even counterproductive. 'All of these mechanisms—CCUS, carbon tax, and broader emissions regulations—must align toward the same outcome,' he said. 'Otherwise, we risk different sectors lobbying for conflicting interests, as we've already seen in the automotive sector,' he said. On Feb 5, Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said the government is in the process of drafting RUUPIN as part of its broader strategy to achieve net-zero emissions by 2050. He noted that meeting this target would require radical transformations across government, industry, and society. Frustration intensified when Minister of Economy Datuk Seri Rafizi Ramli announced that the government aimed to enforce CCUS legislation by March 31 to attract long-term investment opportunities. The accelerated timeline sparked concern that the push for CCUS is being driven more by economic incentives than environmental integrity. This has led to criticism from environmental NGOs, who argue that Malaysia may be prioritising foreign investment over safety and sustainability. Concerns have also been raised about the country's readiness to manage potential risks—such as leaks—especially if Malaysia begins importing carbon waste for storage. RISK OF LEAKAGE Sahabat Alam Malaysia president Meenakshi Raman has urged the government to address the risk of water contamination from potential leakage at CCUS sites into adjacent geological formations. She argued that the current CCUS Bill lacks adequate safeguards to protect the environment and public health, and called for urgent improvements before Malaysia proceeds with any CCUS project bids. 'CCUS projects have been associated with high rates of failure and cancellation. They are also susceptible to significant cost overruns and may result in stranded assets,' she said. Meenakshi referred to a report by a United Nations Special Rapporteur on the toxic impacts of proposed climate change solutions, which highlighted the chemical intensity of the carbon capture process. According to the report, this process can release substantial quantities of hazardous substances—including highly toxic ammonia—into surrounding communities. 'At high concentrations, carbon dioxide itself is a toxic gas and an asphyxiant. It can cause circulatory insufficiency, coma, and even death,' she warned. She also raised concerns about the lack of inclusive representation in the decision-making process for CCUS implementation. 'To date, civil society and community-based groups have not been included in CCUS agency meetings. All appointments are made at the ministry's discretion, which limits transparency, accountability, and the diversity of perspectives—especially those that may challenge government or industry priorities,' she added.
