{"id":2083,"date":"2022-04-08T15:31:42","date_gmt":"2022-04-08T15:31:42","guid":{"rendered":"https:\/\/climatetransform.com\/?p=2083"},"modified":"2022-06-16T07:11:50","modified_gmt":"2022-06-16T07:11:50","slug":"why-has-ccus-failed-to-attract-investors","status":"publish","type":"post","link":"https:\/\/climatetransform.com\/why-has-ccus-failed-to-attract-investors\/","title":{"rendered":"Why has CCUS failed to attract investors?"},"content":{"rendered":"

Proponents of carbon capture, utilisation and storage (CCUS) argue that the technology is needed to reach net-zero emissions targets<\/a>. Some, like the UK Carbon Capture and Storage Research Centre, go even further. They state that \u201cCCUS is proven; CCUS projects are already in operation in several countries, including the UK\u201d.<\/span>1<\/sup><\/a><\/span><\/span> If this is true, why does CCUS fail to attract investors?<\/span><\/p>\n

What is CCUS?<\/h2>\n

CCUS encompasses technologies that capture CO2 from emission sources. They also make the greenhouse gas ready for transportation. Then, it is either used for other purposes or stored deep underground in geological formations.<\/span>2<\/sup><\/a><\/span><\/span>\u00a0<\/span><\/p>\n

If the captured CO2 is kept underground, this prevents it from entering the Earth\u2019s atmosphere. As a result, it cannot trap heat from escaping into space. This is the main cause of global warming.<\/span>3<\/sup><\/a><\/span><\/span>\u00a0\u00a0<\/span><\/p>\n

However, reusing the gas, for instance, for enhanced oil recovery, actually contributes to global warming.<\/span>4<\/sup><\/a><\/span><\/span> 80 per cent of CO2 captured by CCUS projects is used for enhanced oil recovery.<\/span>5<\/sup><\/a><\/span><\/span> This leads to more emissions since it produces oil, another fossil fuel that releases large quantities of carbon through combustion.\u00a0<\/span><\/p>\n

Is CCUS a \u2018proven\u2019 technology?<\/h2>\n

The first CCUS technology was applied to a natural gas facility in the early 1970s.<\/span>6<\/sup><\/a><\/span><\/span> There has subsequently been interest in the technology for decades.\u00a0<\/span>Yet today, there are just 19 large-scale industrial and two large-scale CCS power plants in operation worldwide.<\/span>\u00a0A mere 20 additional projects are currently under construction.<\/span>7<\/sup><\/a><\/span><\/span><\/p>\n

\"Why<\/p>\n

This is because there are concerns around the economic viability, technical feasibility and long-term sustainability of CCUS.<\/span> Therefore, m<\/span>any public and private investors are sceptical about funding future projects.<\/span>8<\/sup><\/a><\/span><\/span> A look at both the current capacity and the bungled history of the technology explains their reluctance to invest.\u00a0<\/span><\/p>\n

The history of CCUS projects<\/h2>\n

In the UK, a GBP \u00a31 billion grant for developing new CCUS technology was cancelled in 2015.<\/span>9<\/sup><\/a><\/span><\/span> The decision led to energy companies involved in two CCUS facilities pulling their funding.<\/span>10<\/sup><\/a><\/span><\/span> By 2017, the UK government had spent GBP \u00a3168 million on carbon capture.<\/span>11<\/sup><\/a><\/span><\/span> Yet the UK still does not have any operating large-scale CCUS facilities.<\/span>12<\/sup><\/a><\/span><\/span><\/p>\n

The cost of failed CCUS projects is far greater on the other side of the Atlantic. For example, the US Department of Energy (DOE) pulled funding on one project, not once but twice<\/a>. FutureGen was intended to be the first commercial-scale power plant with CCUS facilities in the US.<\/span>13<\/sup><\/a><\/span><\/span> However, after missing construction deadlines, the DOE withdrew funding for FutureGen. Total costs for the project were about USD $1.65 billion.<\/span>14<\/sup><\/a><\/span><\/span><\/p>\n

Investment problems for CCUS projects<\/h2>\n

CCUS projects are extremely expensive. They require large amounts of investment from the public and private sector. However, they have a history of failing to complete on time. This has led to government funding being withdrawn for CCUS projects. Therefore, private investors are wary of losing money on similar costly failures.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Proponents of carbon capture, utilisation and storage (CCUS) argue that the technology is needed to reach net-zero emissions targets. Some, like the UK Carbon Capture and Storage Research Centre, go even further. They state that \u201cCCUS is proven; CCUS projects are already in operation in several countries, including the UK\u201d. If this is true, why […]<\/p>\n","protected":false},"author":17,"featured_media":2086,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,210],"tags":[],"yoast_head":"\nWhy has CCUS failed to attract investors? - Climate Transform<\/title>\n<meta name=\"description\" content=\"CCUS projects have promised to capture and store millions of tonnes of carbon dioxide. 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