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What is carbon management?
Carbon management is a term used to describe a variety of technologies and practices that reduce carbon dioxide emissions, including:
Why do we need carbon management?
Carbon management is necessary to help reduce current carbon emissions to net-zero by midcentury and ultimately remove legacy carbon dioxide emissions already in the atmosphere. However, carbon management is a complement to, not a replacement of, the urgent need for expanded and parallel efforts to reduce emissions through aggressive deployment of energy efficiency, renewables, nuclear power, clean hydrogen, and other clean energy and industrial technologies and measures.How is DOE advancing carbon management?
The United States will need to capture, transport, and permanently store hundreds of millions of tons of carbon dioxide each year in order to achieve a clean energy and industrial future by midcentury.
The work has already begun to meet this challenge. Over the past two decades, DOE has invested billions of dollars into more than a thousand carbon management projects across the country. These projects advance the research, development, demonstration, and commercial-scale deployment of carbon management technologies and infrastructure. Additionally, these efforts expand the United States'' carbon management capabilities to reduce harmful carbon pollution from industrial and power sectors and address climate change. Where can I learn more about carbon management?
Work by the Intergovernmental Panel on Climate Change and broader scientific consensus is clear about the importance and necessity of carbon management for reaching climate goals.
However, DOE recognizes the need for accessible information grounded in science for the broader public, impacted stakeholders, and local communities to better understand carbon management technologies and represent themselves in project development conversations. DOE has created multiple resources in various formats to provide stakeholders with information to learn about the rapidly evolving field of carbon management. Check out some of these resources below.
Countries and regions making notable progress in CCUS include:
Momentum behind CCUS has been growing since around the start of 2018. Since February 2023 project developers have announced ambitions for 115 Mt CO2 per year of additional capture capacity 2030.1
1. Specific CO2 transport and storage related activities and progress are reported in CO2 Transport and Storage.
Announcements are however just the first step: whether all projects materialise continues to be an open question. As of February 2024, capture capacity that is either already in operation or has reached FID still accounts for just 20% of announced capture capacity for 2030. Two-thirds of FIDs taken in 2023 involved these use cases, versus only 40% in 2022. But greater ambition is needed in some sectors – particularly industry, which currently makes up less than 10% of announced capacity. It would need to reach a quarter of all of CO2 captured by 2030 in the Net Zero Scenario.
The geographic distribution of CO2 capture projects in development is diversifying, with projects now being developed in more than 50 countries. Beyond North America and Europe, good progress has also been made in:
Several technological innovations that have been proposed to reduce CCUS costs for power generation are now being tested:
While the most advanced and widely adopted capture technologies are chemical absorption and physical separation, other separation technologies under development include membranes and looping cycles (such as chemical looping and calcium looping).
In addition to technology improvements, different trends could further improve the techno-economic performance of CO2 capture. Examples include modularisation of capture systems within self-contained, plug-in systems (with the potential to reduce land footprint, costs and lead times of capture retrofits across applications) and hybridisation of different capture technologies within capture systems (to increase capture rates while reducing costs and/or energy penalty).
Higher CO2 capture rates will be essential for CCUS to play its role in the transition to a net zero energy system. CCUS-equipped power and industrial plants operating today are designed to capture around 90% of the CO2 from flue gas. While there are no technical barriers to increasing capture rates beyond 90% for the most mature capture technologies, capture rates of 98% or higher require larger equipment, more process steps and higher energy consumption per tonne of CO2 captured, which increases unit costs. However, initial results based on chemical absorption systems applied to power generation plants are promising, showing that CO2 capture rates as high as 99% can be achieved at comparably low additional marginal cost relative to the cost of deploying 90% capture.
CCUS hubs can spread infrastructure costs between emitters and generate economies of scale to reach emitters that are smaller-scale or further away from identified CO2 storage sites. Governments can have a key role in the development of hubs by:
CCUS projects are large infrastructure endeavours that can take up to ten years to be developed, involving multiple stakeholders and often several regulatory regimes that lengthen the amount of time it takes to start operation. If left unaddressed, long lead times for CCUS can put short-term climate targets at risk, making it more challenging and costly to achieve long-term goals. Governments can accelerate administrative and permitting procedures by:
Well-targeted policies and a portfolio of measures can help ensure government efforts to support CCUS deployment are effective and successful in the long term.
Governments can signal their strategic interest in CCUS through the inclusion of CCUS in national energy and climate strategies – for example, the EU Net Zero Industry Act identifies CCUS as a key strategic net zero technology – or in their Nationally Determined Contributions under the Paris Agreement. The creation of national or regional CCUS targets can help signal strategic interest.
Governments can also create an enabling environment for CCUS projects, such as through the establishment of a carbon pricing system; capital grants to reduce up-front costs; loans and loan guarantees to provide access to debt capital; and tax credits to address capital and operating costs.
Importantly for higher-cost CCUS applications, such as in the power, cement and steel sectors, governments have a range of different policies to spur initial deployment: R&D funding to reduce costs; carbon contracts-for-difference to provide a predictable revenue stream to operators, and public procurement programmes for low-emission products/fuels to spark demand.
New business models and deployment approaches for CO2 management are emerging and can facilitate rapid CCUS scale-up. These include: building multi-user CO2 management infrastructure; developing "as-a-service" business models for CO2 capture, transport and storage wherein each part of the chain is offered as third-party operated services; and exploiting new and existing options for CO2 use to provide a revenue stream to CCUS facilities.
Moving from full-chain to part-chain projects will require much higher levels of cross-industry co-ordination, especially as interest in CCUS hubs grows. In addition to working closely with governments, the private sector can establish industry consortia or coalitions to facilitate co-ordination on ensuring the efficient build-out of hubs.
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