DAILY NEWS ANALYSIS

The report from Climate Analytics highlights growing concerns about Asia's reliance on Carbon Capture, Usage, and Storage (CCUS) technologies, particularly in countries like China, Japan, South Korea, and Indonesia.

What is Carbon Capture, Usage, and Storage (CCUS)?

CCUS refers to a suite of technologies designed to capture carbon dioxide (CO?) emissions from major industrial sources like power plants, refineries, and factories or to remove CO? directly from the atmosphere. The process involves three main stages:

1. Capture:

   • Post-combustion: CO? is separated from flue gas using solvents after fuel combustion.

   • Pre-combustion: Fuel is converted into a hydrogen-CO? mix before burning, then CO? is separated.

   • Oxy-fuel combustion: Fuel is burned in pure oxygen, producing CO? and steam for easier capture.

2. Transport: Captured CO? is compressed and transported via pipelines, ships, rail, or road.

3. Storage or Use: CO? is injected into geological formations (like depleted oil fields or saline aquifers) for long-term storage or used in commercial applications like concrete production.

Role of CCUS in Tackling Climate Change

CCUS plays a key role in decarbonization by:

• Reducing emissions in hard-to-abate sectors like steel, cement, and chemicals (which contribute about 7% of global emissions).

• Producing low-carbon electricity and hydrogen for various industries and transport.

• Removing CO? from the atmosphere through technologies like Bioenergy with CCS (BECCS) and Direct Air Capture (DACCS).

• Enhancing energy security by diversifying low-carbon energy sources through installations on coal, gas, or biomass plants.

Why Does Asia's Increasing Dependence on CCUS Raise Climate Concerns?

While CCUS has its benefits, the way it is being applied in Asia raises serious concerns:

1. Massive Excess Emissions:

   • Depending on how CCUS is implemented, Asia could potentially emit an additional 24.9 gigatonnes of CO?-equivalent by 2050. This is more than the combined fossil fuel emissions of South Korea and Australia.

   • Such an overshoot would significantly hinder efforts to meet global climate targets.

2. Economic Lock-In:

   • A high-dependence on CCUS could lock countries into expensive, outdated fossil fuel infrastructure, creating stranded assets (i.e., investments that cannot be recovered) and diverting resources away from cleaner alternatives like renewable energy.

3. Exacerbation of Regional Vulnerabilities:

   • Asia is already facing severe climate threats, including sea-level rise, monsoonal instability, and heatwaves. Relying heavily on CCUS could exacerbate these vulnerabilities while also contributing to air pollution from uncaptured emissions like NOx and SOx.

4. Growing Energy Demand:

   • Some Asian governments use CCUS as a strategy to exploit domestic fossil fuels (coal, gas) under the pretext of improving energy security. However, this may be more about continuing the use of fossil fuels rather than transitioning to cleaner, sustainable energy sources.

India’s Current Status in CCUS

India’s approach to CCUS is still in its early stages:

1. Limited Deployment:

   • India currently has very few operational CCS infrastructure projects and no major storage facilities. This leaves India somewhat isolated from regional CCUS networks, although progress is being made.

2. CCU Testbeds for Cement Sector:

   • India has launched five CCU testbeds for the cement sector under a Public-Private Partnership (PPP) model. These testbeds focus on:

     • Oxygen-enhanced calcination: Converting CO? into concrete blocks and olefins (e.g., ethylene, propylene).

     • Carbon-negative mineralization: Permanently locking CO? into rock formations.

     • Vacuum swing adsorption: Separating CO? from cement kiln gases and integrating it back into construction materials.

3. National Centres for Excellence (CoE) in Carbon Capture:

   • India has established two National Centres of Excellence for Carbon Capture and Utilization (CCU), at:

     • IIT Bombay, Mumbai.

     • JNCASR, Bengaluru.

   • These centers focus on advancing research in CCUS technologies and applications.

4. Renewable Energy Advantage:

   • India’s strengths in solar, wind, electric mobility, and green hydrogen provide significant pathways for decarbonization without relying heavily on CCUS. India is also receiving government support for CCS, but there is debate over whether these funds should be directed towards renewable energy and green innovation instead.

Key Concerns with CCUS

1. Low Capture Efficiency:

   • Most CCS projects currently capture only about 50% of CO? emissions, far below the 95% required for substantial climate impact. This limits the effectiveness of CCUS as a climate solution.

2. Fossil Fuel Dependence:

   • Around 80% of existing CCS projects use captured CO? for Enhanced Oil Recovery (EOR), which extends fossil fuel extraction rather than curbing it, undermining the goal of reducing emissions.

3. High Economic Costs:

   • CCS-based power generation can make electricity up to twice as expensive as renewables with storage. Additionally, CCUS facilities are both capital- and energy-intensive, raising concerns about the economic viability of large-scale implementation, particularly in Asia.

4. Sectoral Misalignment:

   • Many CCS projects are focused on fossil fuel sectors (e.g., gas, LNG, hydrogen), which already have zero-emission alternatives. On the other hand, hard-to-abate sectors like steel and cement receive far less investment in CCS, despite these industries contributing heavily to global emissions.

5. Emergence of Cheaper Alternatives:

   • Renewables, electrification, and energy efficiency are already more cost-effective than fossil fuels with CCS. A high-CCS pathway could increase global costs by up to USD 30 trillion by 2050 compared to a low-CCS pathway.

6. Environmental Risks:

   • There is also the risk of CO? leakage from underground storage sites, which could reverse emission reductions and damage surrounding ecosystems.

Strategy India Should Adopt for CCUS in Its Green Transition Pathway

India’s strategy should prioritize renewables and carefully consider CCUS as a supplemental solution:

1. Prioritize Renewables:

   • Focus on solar, wind, green hydrogen, and electric mobility as primary decarbonization strategies. Use CCUS only for hard-to-abate sectors like steel, cement, and chemicals.

2. Pilot and Scale Selectively:

   • Implement small-scale, high-efficiency CCUS projects to test their cost-effectiveness and environmental safety. Avoid widespread deployment that might encourage continued fossil fuel reliance.

3. Develop Storage Atlas:

   • Work with organizations like ONGC and the Geological Survey of India (GSI) to map depleted oil and gas fields and deep saline aquifers for safe CO? storage. This would reduce investment risks and improve the reliability of CCS projects.

4. Technology Transfer & Finance:

   • Collaborate with developed countries for technology transfer and financial support for CCS, especially for Direct Air Capture (DAC) and BECCS, positioning these technologies as crucial for industrializing the Global South.

What is Carbon Capture and Storage (CCS)?

Carbon Capture and Storage (CCS) is a process aimed at mitigating CO? emissions from industrial activities, particularly from the burning of fossil fuels in power plants, factories, and other heavy industries. The purpose of CCS is to trap carbon dioxide (CO?) before it enters the atmosphere and contributes to global warming and climate change. By storing CO? underground or using it for other purposes, CCS helps reduce the environmental impact of industrial operations.

Key Approaches to CCS

CCS involves two primary methods of capturing and dealing with CO? emissions:

1. Point-Source CCS (Capturing Emissions at the Source):

   • This method focuses on capturing CO? directly at the point of its production, such as the smokestacks of power plants or industrial facilities. It isolates the CO? from other gases generated during combustion or industrial processes.

2. Direct Air Capture (DAC):

   • DAC works by removing CO? that is already present in the atmosphere. This method involves using large-scale machines or systems that extract CO? from the air, rather than from a specific emission source.

   • This approach is especially important for addressing historical emissions and hard-to-abate sectors.

Mechanisms of Point-Source CCS

The point-source CCS process typically involves several key steps:

1. Capture:

   • CO? is separated from other gases that are generated during the burning of fossil fuels or industrial processes. This is usually done using chemical solvents, membranes, or absorption methods.

2. Compression and Transportation:

   • After capture, the CO? is compressed to a high pressure, which reduces its volume, making it easier to transport. The captured CO? is typically moved through pipelines to storage sites, although it can also be transported by ship or rail.

3. Injection:

   • Once transported, the compressed CO? is injected into underground rock formations. These formations could be depleted oil and gas fields, deep saline aquifers, or coal seams. These storage sites are often located at depths of one kilometer or more below the Earth's surface. The CO? can remain stored for decades or even centuries, preventing it from entering the atmosphere.

Applications of Captured CO?

Captured CO? can be put to various useful applications:

1. Mineralization:

   • CO? can be reacted with certain minerals to form stable carbonates (a process known as mineral carbonation). This offers a secure method of long-term carbon storage. The carbonates can be stored underground or even used in construction materials like concrete.

2. Synthetic Fuels:

   • Captured CO? can be combined with hydrogen (often produced using renewable energy) to create synthetic fuels, such as:

     • Synthetic natural gas

     • Synthetic diesel

     • Synthetic jet fuel

   • These synthetic fuels can serve as drop-in replacements for conventional fossil fuels, helping reduce the carbon intensity of transportation and industrial sectors.

3. Greenhouses and Indoor Agriculture:

   • CO? is essential for photosynthesis, so captured CO? can be used in greenhouses and indoor farming environments to enhance plant growth, leading to higher yields and more efficient food production.

4. Dry Ice Production:

   • Captured CO? can be converted into dry ice, which is used in various industries for:

     • Shipping perishable goods

     • Medical and scientific purposes

     • Special effects in entertainment (e.g., fog machines).

India’s Initiatives in Carbon Capture and Utilization

India is making strides in the field of Carbon Capture and Utilization (CCU) with the establishment of National Centres of Excellence (CoE) in CCU research:

1. National Centre of Excellence in Carbon Capture and Utilization (NCoE-CCU):

   • Location: Indian Institute of Technology (IIT) Bombay, Mumbai.

   • This center is dedicated to advancing the research and development of CCS and CCU technologies, focusing on practical, scalable solutions for India’s industrial sectors.

2. National Centre in Carbon Capture and Utilization (NCCCU):

   • Location: Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru.

   • The center works on innovative methods to capture and utilize CO?, advancing India's efforts to reduce emissions while also exploring sustainable solutions in various sectors.

Conclusion

Asia’s increasing dependence on CCUS as a primary strategy for reducing emissions risks exacerbating carbon lock-in and delaying the transition to cleaner energy. For countries like India, prioritizing proven and more cost-effective alternatives like renewables and green hydrogen is a far more viable and sustainable path to achieving global climate goals and decarbonizing the economy. CCUS should be reserved for sectors where emissions are difficult to abate, not as a blanket solution that prolongs fossil fuel dependence.