CCSA Blog: Leading for Tomorrow: The Cultural Shift Needed for CCUS Success, by Eddie McCullough, Managing Director at FidesOak®

As the CCUS industry works at the forefront of sustainable energy transformation, the cultural and leadership approach adopted in these projects will be as critical to success as the technologies used. From managing high-stakes projects to navigating evolving regulations, CCUS leaders face unique challenges that demand a rethinking of traditional leadership and culture models. Based on FidesOak®’s experience in transforming organisational cultures across high-hazard industries, there are some key insights for CCUS leaders looking to embed a sustainable, resilient culture within their operations.

1. Embracing a Culture of Learning and Adaptation
CCUS teams work in uncharted territory, where technical and regulatory landscapes are in constant flux. Leadership in this space requires a culture that emphasises continuous learning, encouraging employees to see setbacks as opportunities to evolve and refine processes. By promoting open dialogue around challenges and insights, CCUS organisations can cultivate a workforce that is both adaptable and empowered to innovate.

2. Prioritising Psychological Safety
A common trait among successful teams in high-hazard environments is the presence of psychological safety—a state where individuals feel free to voice concerns, propose ideas, and acknowledge uncertainties without fear of blame. This is especially vital in the CCUS industry, where safety and precision are paramount. Leaders who foster psychological safety encourage team members to flag potential issues early, ultimately safeguarding the integrity of projects and minimising risk.

3. Building Interdisciplinary Team Cohesion
CCUS projects require collaboration across engineering, environmental science, policy, and finance, among other fields. Each discipline brings unique perspectives and expertise, but also diverse ways of working and thinking. Leadership that promotes mutual respect, clear communication, and shared objectives across these groups helps break down silos and aligns efforts towards a common vision.

4. Supporting Change through Transparent Communication
The rapid evolution of CCUS technology and policy can lead to uncertainty and even resistance within teams. Transparent communication from leadership is essential to navigate these shifts effectively. By regularly updating teams on the purpose, progress, and impacts of their work, leaders can foster a sense of ownership and clarity, making individuals feel more connected to the larger vision of the organisation.

5. Embedding Reliability at Every Level
Complex CCUS projects hinge on operational reliability, which requires a strong, reliable foundation across people, processes, and systems. CCUS leaders can build this by investing in training, setting clear standards, and establishing robust systems for quality control. Cultivating a culture where reliability is not just expected but deeply ingrained in daily operations leads to stronger performance and trust within teams.

6. Shifting Safety from Compliance to Core Value
For the CCUS sector, the traditional compliance-driven approach to safety must evolve into something deeper. Leaders should frame safety as an intrinsic value that influences every action taken on a project. This shift from “safety work” to the “safety of work” allows teams to view safe operations not merely as an obligation but as a core component of their professional identity.

7. Leading by Example in Sustainability and Integrity
As the CCUS industry aligns closely with sustainability goals, leaders in this sector have the opportunity – and responsibility – to model a commitment to these values. By demonstrating integrity and setting standards for environmental responsibility in everyday actions, CCUS leaders inspire their teams to align with the broader mission of reducing carbon impact, building trust, and pride in the work they do.

Creating a Legacy of Leadership and Culture
The development of the CCUS industry is one of innovation, resilience, and bold vision. By addressing these cultural and leadership factors, leaders can build a foundation that not only supports the immediate demands of the industry but also establishes a legacy of sustainable practices and high-performing teams that can withstand future challenges. CCUS leaders are not just guiding projects; they are paving the way for a new era of responsible and resilient energy solutions.

The CCSA, Phillips 66 Limited, VPI, CATCH and Harbour Energy came together to discuss one of the major opportunities in the UK for carbon capture and storage (CCS). The Humber alone accounts for the highest industrial emissions in the UK, making it a prime target for industrial decarbonisation.  

The panel session welcomed businesses from across the industry to the Phillips 66 London offices to hear about how this region plans to decarbonise while delivering reliable energy for this thriving industrial area. On the panel was Simon Holt, Emerging Energy Europe Manager, Phillips 66 Limited; Martin Edwards, Senior Commercial Advisor, Harbour Energy; James Beresford-Lambert, Project Engineering Manager, VPI; and Katie Hedges, Director of Membership and Low Carbon Strategy, CATCH.  

Collaboration is key, if we are going to make this possible. 

It will take everyone to come together to support the UK government’s 2050 net zero ambitions and deliver reliable energy. The organisations represented on the panel have a vital role in contributing from providing the essential materials to make everyday products to delivering flexible power for industry and homes, building CO2 pipeline infrastructure and storage, and growing the skills needed to make all these decarbonisation projects possible.  

“It’s a domino effect,” said Simon.  

“At the Humber Refinery, we need decarbonised power alongside carbon capture technology to deliver lower carbon products. Some of the products we are making today such as sustainable aviation fuel and battery coke are already helping to decarbonise the transport sector. The next step is to lower our operational greenhouse gas (GHG) emissions.  

Phillips 66 Limited, alongside VPI and Harbour Energy, are looking at delivering the first carbon capture and storage projects in the Humber region. Between Phillips 66 Limited and VPI, under the Humber Zero brand, they aim to capture up to 3.8 million tonnes of CO2 per annum from around 2028.” 

It takes major investment to make these projects possible, this is why policies such as the Carbon Border Adjustment Mechanism (CBAM) will play an important role in not only supporting UK businesses but also in developing the right regulatory environment to allow businesses to contribute to energy security.  

“If we are investing in the UK, we want to support UK manufacturing and not offshore GHG emissions through imports. We need to make sure we are having a positive impact on the environment, supporting UK supply chain businesses, and protecting and growing quality jobs for our economy to thrive.” Added Simon.  

Critical UK manufacturing facilities such as the Humber Refinery, produce products that are used to create everyday goods, from pharmaceuticals to household items. Without a UK industrial base, we wouldn’t have access to locally created products we have today.  

We have a lot of world-leading industry at our fingertips that we need to maintain. The Humber Refinery is a great example of this as it is Europe’s only producer of speciality graphite coke used in the production of electric vehicle batteries and is the UK’s only commercial scale producer of sustainable aviation fuel.  

Flexible, on demand, lower carbon power  

Another key component of the Humber industrial cluster is access to reliable power and steam. VPI’s combined heat and power plant is the largest of its kind in Europe. It provides power and steam to the Phillips 66 Limited Humber Refinery and steam to the Prax Lindsey Oil Refinery, two of the UK’s six oil refineries. It also provides flexible power and grid stability services to meet the electricity needs for one million homes. The next step for the plant is to decarbonise. Given its proximity to the transport and storage network being built by Harbour Energy, it makes sense to use carbon capture and storage to decarbonise. This will not only allow VPI to deliver low carbon reliable power and steam but will also help kick start the decarbonisation of surrounding industry, by enabling the required infrastructure.  

James Beresford-Lambert, said:  

“Two key elements distinguish VPI as an emitter project. First its materiality together with Phillips 66 Limited we could contribute nearly 20% of government 2030 targets for carbon capture. Secondly, our readiness. We have completed our front-end engineering designs and have recently appointed our EPC contractor. We look forward to hearing the government’s decision on anchor emitters for Viking CCS so we can move forward.” 

Without a pipeline, none of these plans would be possible.  

Harbour Energy is leading the way for the Humber region with the planned Viking CCS CO2 pipeline. Viking CCS is a flagship project uniquely placed to help the UK decarbonise and grow, providing a gateway for investment and the development of a regional lower-carbon hub. The project plans to store 10 million tonnes of CO2 a year by 2030 and 15 million tonnes of CO2 a year by 2035, which would meet up to one third of the UK’s CCS target. 

The Humber could be the UK’s first net zero region, combining industrial-scale green energy generation and new carbon capture and storage infrastructure to enable an industrial renaissance and new energy ecosystem. Viking CCS can deliver a material acceleration to this transition. 

Technical skills will be vital! 

If we are to meet the needs of all the decarbonisation projects in the region, technical skills will have a huge role to play. It is projected that if we don’t act now there will be a 40% skills shortage in essential trades such as welding and pipefitting, that equates to around 54,000 jobs. CATCH is on a journey to help fill this gap with the aim to increase its training capacity from 100 to 1,000 by 2029. This ambitious plan aims to inspire young people, re-skill individuals who would like to change careers, and get people back into work. Through this UK leading strategy, it will catalyse the change needed in the skills and education sector, whilst building a world leading Net Zero training centre.  

Katie Hedges, said: 

“With the support of our member partners, we are challenging the skills landscape on behalf of our future craftspeople. Action is needed now, and we are delighted to be at the forefront of that action. Numerous industrial reports tell us that skills are the key to unlocking the decarbonisation challenge and we will solve that collaboratively as a region by increasing the number of new entrants to industry. I was delighted to support the CCSA panel discussion and look forward to working together in the near future.”  

Introduction 

As the world grapples with the urgent need to combat climate change, while being continuously reminded of our rapid approach to 2030 climate commitments, innovative business models and progressive policy incentives are emerging to reduce greenhouse gas emissions. Among these, bioenergy with carbon capture and storage (BECCS): using biomass for energy production while capturing and storing the resulting CO2. Otherwise known as permanent carbon removal, industrial carbon removal value chains are key to achieving carbon neutrality objectives enshrined in several national climate laws, however, incentives and policy provisions need to recognize the potential of facilities generating negative emissions and ensure a transparent and coherent framework to facilitate these projects. 

These were some of the challenges the recent “Making CCS Happen Now” event hosted last month in London by Aker Carbon Capture, as part of the Carbon Capture and Storage Association Member Discussion Forum, sought to discuss with an excellent panel featuring industry stakeholders and experts. 

Background 

So far, 2024 has been an unprecedented year with several strong policy developments, especially in the EU with its Industrial Carbon Management strategy, proposed 2040 climate reduction targets of 90% compared to 1990 levels, with a strong emphasis on carbon capture, and a provisional agreement on the Net Zero Industry Act which is widely known for its 50 MTPA CO2 injection capacity target by 2030. 

In the UK, the first Track-1 projects are expected to take their Financial Investment Decisions (FID) this year pending final negotiations between relevant projects and authorities. This will ultimately cater for CCS through a cluster sequencing approach to develop 4 industrial clusters by 2030 (Track 1: HyNET and the East Coast Cluster; Track 2: Acorn and Viking). These negotiations build on continuous funding business model developments over the last few years within Dispatchable Power (DPA); industrial Carbon Capture, including specific subsection for EfW (ICC); bioenergy with CCS (BECCS) and Greenhouse Gas Removals (GGR) which are all different in nature and technicalities. The outcome of the negotiations will result in many important ‘lessons learned’ for the next wave of projects and therefore we are at a particularly pivotal stage in the CCS development timeline with a precedent being set as we speak. 

How to accelerate CCS and CDR timelines 

Parts of the industry find themselves in a precarious position today with a highly intertwined value chain consisting of private actors and public authorities. Since many emerging projects are subject to and dependent on government funding, while also serving the greater purpose of inherently contributing to the nation’s climate obligations, developers and authorities are often presented with uncertainty and risk as they are embarking on these first-of-a-kind projects.  

The Energy from Waste (EfW) sector is in a unique position as the incineration of municipal and industrial waste produces both fossil and biogenic CO2 emissions. The fraction of fossil vs biogenic CO2 in the flue gas stream from an EfW plant depends on the feedstock being incinerated, but in most municipal waste incineration facilities, it is typically around 50/50. If this CO2 is captured and stored, the fossil CO2 released from the incineration of waste can be abated, while capture of the biogenic CO2 emissions results in carbon dioxide removal, meaning that CO2 is removed from the atmosphere and the natural carbon cycle. The real challenge is how to account for the biogenic vs fossil contents of the captured CO2 – this will naturally be a significant part of credit creation, but also a determining factor if the fossil contents are tied into a carbon tax or emissions trading scheme. 

A multitude of large private corporations have the same, if not more aggressive internal climate mitigation ambitions and are therefore finding ways of contributing to the financing of BECCS projects through off-taker agreements for high-integrity carbon removal credits. It is crucial to allow these investments to contribute in harmony with relevant government support schemes that are also helping finance the first projects to be economically viable. This was a significant enabler in the major Ørsted Kalundborg Hub BECCS project that Aker Carbon Capture was awarded in May 2023, which for the customer will deliver over 430,000 tonnes of high-integrity carbon removal credits. A significant amount of these credits will be purchased by Microsoft over more than ten years to contribute to its commitments of being carbon negative in 2030 and removing its historical emissions by 2050. 

Conclusion

The first initial projects will provide a blueprint to guide the industry as it grows and transitions away from government financing. The current active policy provisions and continuous development is what needs to instil enough confidence and predictability in emitters that are looking for solutions to reduce their carbon dioxide emissions. What really matters now is that the first wave of projects cross the finish-line and are implemented successfully, such as those in the UK Track-1 process, and that the industry, policymakers, and other stakeholders extract valuable lessons learned for what enabled these projects to move ahead to accommodate future opportunities, for instance with the build-out of scalable transport and storage infrastructure that future emitters can tie into. In the grand scheme of things, knowledge-sharing and transparent cooperation between countries should be encouraged as the challenges we all face are not limited to borders and we need to work together to find common solutions.

Take a look at the event highlights on YouTube here.

CCSA Member Discussion Forum, “Making CCS Happen Now”, hosted by Aker Carbon Capture on the 1st of February 2024

GE Vernova was proud to host the Carbon Capture and Storage Association’s (CCSA) third Member’s Discussion Forum at the Library of the Institution of Mechanical Engineers in London on 28 September, bringing together industry representatives to discuss the US InflationReductionAct (IRA) and what it means for the UK’s CCUS industry.

The panel, chaired by Ruth Herbert , Chief Executive at Carbon Capture and Storage Association , examined how tax incentives have mobilised carbon capture projects in the US, and the response from the EU and the UK. I was joined on the panel by Heather Bell, Director of the U.S. Department of Energy (DOE) office at the U.S. Embassy in London and James Hughes, Commercial Director at Technip Energies .

The US IRA, signed into law in August 2022, marks the most significant action taken by the US Government on clean energy in the nation’s history, dedicating USD ~370 billion to US decarbonization efforts. It encourages action on climate change and energy security through a combination of grants, incentives and other investments. With the UK’s ambitious plans to capture and store 20-30 megatonnes of CO₂ annually by 2030, there are three key areas that are worth considering.

The first point is the US IRA has provided confidence. Early adopters need government support to de-risk CCUS projects. The supply chain needs visibility on future volumes, not only for improved planning to ensure in-time execution but also to drive cost down.  Furthermore, the UK has over 70 billion tonnes of CO₂ storage capacity but does not have the infrastructure required to transport CO₂ in a profitable way. Incentives similar to the IRA could be used to attract the investment needed and accelerate the permitting required to build CO₂ pipelines. The industry needs unwavering support, well-funded investment channels, and expedited decision-making.

Secondly, it is interesting to observe how the US IRA also looks at Direct Air Capture (DAC), a technology that will become more and more important, in particular for hard-to-abate sectors. DAC allows us to “unwind the clock” CO₂ emitted since the industrial revolution by removing CO₂ from the atmosphere.

The third point is to recognize that incentives alone won’t ensure the UK reaches its CCUS target. Although the US IRA is likely to drive increased volumes of projects in a short space of time, public acceptance of CCUS is vital. The UK needs to engage the public and increase education around the topic of CCUS, which in turn will help with permits to build the infrastructure required.

While there are many elements of the IRA that are interesting to consider for other countries, like the UK, it is important to note that there are different ways to accelerate the deployment of CCUS. GE Vernova welcomes the significant progress the UK Government has made over the last months and years. The development of the different business models provides a solid basis for the negotiation of the projects that have been selected as part of Track-1, and the commitment for GBP 20 billion for the CCUS industry is a first step to inspire the confidence the industry needs to kick-start. A roadmap with clear timescales and CO₂ volumes will help reduce risk, attract investment and establish the supply chain, infrastructure and talent needed.

GE Vernova’s recent white paper on reaching net zero carbon in Great Britain provides a deeper analysis on the need for accelerated investments, market reforms and energy policy to deploy low carbon technologies, including CCUS.

On Friday, December 8th, in the Marriott Resort Palm Jumeirah, Dubai, the CCSA, Oxford Net Zero and Carbon Balance Initiative hosted a pivotal cross-sector roundtable. The roundtable was the kick-off for a 2024 research project on the role of Markets and Mandates for scaling and supporting carbon capture and storage (CCS) activities which we need if we are to reach net zero by 2050. It convened industry leaders, CEOs, and NGOs – including many CCSA members – to discuss a crucial question: What policy mix is best placed to drive pace in future CCS deployment?

This led to an engaging and lively discussion, the results of which will feed into the project’s policy thinking on Markets and Mandates, and will directly inform an economic analysis of policy options for enduring CCS deployment and future UK Government policy bundles. The session was jointly moderated by Olivia Powis, UK Director at the CCSA, and Mirte Boot, Co-Director of Carbon Balance.

The urgency of the climate crisis

The workshop was kicked off by Professor Myles Allen OBE and his stark reminder of the urgency of the climate crisis. Noting that we are above 1.2°C global warming today, Allen stated that we will need to reach net zero carbon dioxide (CO₂) emissions by 2050 to meet the 1.5°C target as agreed upon in the Paris Agreement. IPCC scenarios aligned with this objective show a large, rapid, reduction in fossil fuel consumption and production, as well as the deployment of CO₂ disposal technologies, such as CCS and CDR, at multi-billion-tonne scales by 2050. Professor Allen strongly emphasised that we are currently capturing less than 50 million tonnes of CO₂ each year, leaving the world with a vast scale-up challenge to deliver a sufficiently large CO₂ storage industry in the coming decades. Reaching even a billion tonnes per year of CCS by 2030, as is the aim of the Carbon Management Challenge announced by the US at COP28, would require building one CCS facility per week, every week. Delivering this and moving beyond into a multi-billion-tonne storage market by 2050 raises important questions on the policy mechanisms, financing and regulatory support needed for this important aspect of the net zero transition.

Assessing current policy instruments

The first workshop discussion focused on current mechanisms in place for scaling CCS, and pooling the expertise of the room to drill into the question: what are the risks of current CCS policies for achieving our net zero targets?

The discussion was kicked off by Dr Stuart Jenkins, a Research Fellow at the University of Oxford and an expert on fossil fuel sector decarbonisation pathways. Stuart provided a high-level exploration of the current policy landscape for CCS, with the taxonomy of policy instruments divided into three pivotal axes: government procurement (such as the US’s 45Q mechanism, or public sector advanced market commitments for low carbon products), demand-side policies (like the Emissions Trading Scheme, or sector and product carbon taxes), and supply-side policies (including regulations like California’s low carbon fuel standard, low carbon product standards, and the Carbon Takeback Obligation).

In the ensuing interactive discussion, participants were encouraged to actively engage on the status of, and gaps in, current policy frameworks. Examples of key concerns with current frameworks for CCS included: the inexhaustibility of current government-subsidy-led revenue streams, concerns around the timing for CCS growth, and the risks of relying on industrial emissions trading schemes to deliver a consistent signal for CCS investment.

Firstly, participants highlighted that both voluntary carbon market demand and government subsidies for CCS are not inexhaustible, suggesting a transition towards private financing of CCS activities is needed to secure the long-term delivery of the CCS industry. Further, attendees noted the clear risk of overreliance on reversible mechanisms to achieve the scale and pace of growth required, with enduring mechanisms needed for investor confidence.

Secondly, participants highlighted the risk of treating CCS projects as a concern to be dealt with only after necessary emission cuts. Attendees were clear that CCS projects require long-term investment and planning; policy mechanisms must provide that stability for investors and act with urgency to scale the CCS market alongside crucial emissions cuts.

Finally, participants discussed the risks of an overreliance on demand-side tools, such as the ETS, alone in an enduring CCS market. Key risks highlighted included the ability of regional carbon markets to influence industrial decarbonisation without causing offshoring, and the ETS as a “flimsy” and “clumsy” tool for making billion-dollar capital investments.

Exploring mandates as an additional policy tool

The second half of the workshop focused on an introduction to carbon storage mandates as an alternative policy mechanism for driving CCS growth. This began with two mini-presentations from Stuart and Joop Hazenberg, EU Director at the CCSA. Stuart introduced the Carbon Takeback Obligation (CTBO), highlighting its approach, synergies with existing policies, and potential outcomes. Joop complemented with an overview of the EU’s Net Zero Industry Act (NZIA) Article 18, which can be seen as the first iteration of a ‘storage mandate’ policy.

This led to our second plenary discussion which gave participants the chance to articulate their perspectives on the opportunities and risks of storage mandates for driving CCS growth. Participants saw the potential in storage mandates for ensuring that all remaining fossil fuel use is fully abated, driving global momentum, signalling investor certainty, and identifying funding sources. Others highlighted the opportunities for mandates to drive down oil and gas consumption by “putting a price on pollution” and “baking the cost of capturing and storing CO₂ into the price of fuels at the pump”; although questions were raised as to the extent to which these costs would fall on consumers, oil and gas companies, and/or other actors in the value chain.

Concurrently, participants highlighted the risks of mandates that merit careful consideration. In particular, participants highlighted that any storage mandate should not have adverse consequences of sustaining business-as-usual fossil fuel production levels, or offshoring production (where oil and gas companies might relocate to regions without the CTBO or Article 18). Participants also questioned whether a mandate, if implemented at a national or regional level, would be stunted or inefficient, and whether another parallel market for storage credits is needed alongside current instruments. Stuart agreed the international implementation challenge is key to the acceptance of mandates, although he underlined that this is not a unique challenge for mandate mechanisms as every climate policy has to navigate this challenge of effectiveness at sub-global scales. It was also stressed that additional policies are often needed to ensure integrity (e.g. the CBAM with the UK/EU ETS). The discussion emphasised the need for a level playing field across different technologies and suggested that regulated use of CCS/CDR in hard-to-abate sectors could help maintain the environmental integrity of any policy suite. The discussion prompted further questions that should be assessed in future research work.

Conclusion

The roundtable marked a significant moment in the development of the future of CCS policies, with nuanced, diverse and expert-informed input from all participants. Attendees were keen for the discussion to continue, signalling the need for ongoing consultation in this area. This workshop sets the stage for our next dialogue on how to best drive CCS deployment in the UK – the CCSA, Oxford Net Zero and Carbon Balance Initiative will thus invite stakeholders to give further input on this work in the New Year. And hopefully, as these discussions evolve, the roadmap toward achieving net zero emissions by 2050 becomes clearer.

Stay tuned for updates!

Picture it – the United Nations Framework Convention on Climate Change (UNFCCC) Conference (COP3). The Kyoto Protocol had just been agreed upon, and it became very clear to me that there would, sooner or later, be an enormous potential for UK business in the energy and climate change sector. This realisation sparked discussions with the Department of Trade and Industry and UK Trade and Investment, culminating in my appointment as Trade Promoter for UKTI in 2000.

My mission was clear: focus on UK business opportunities in Emissions Trading (ET) and Cleaner Coal Technologies, later known as Carbon Capture and Storage (CCS). Backed by six forward-thinking companies, I spearheaded two business working groups, aiming to identify market opportunities, foster collaboration, promote the UK brand, and dismantle barriers to trade. As the landscape evolved, the need for an industry group independent of government support became evident. In 2006, we laid the foundation for the Trade Association London Climate Change Services, the UK service sector’s offering. However, the journey with CCS was laden with challenges, particularly its reception in the UNFCCC negotiation process.

CCS encountered resistance from environmental NGOs during UNFCCC negotiations, demanding strategic intervention. It was clear that unless CCS was recognised as a valid mitigation technology in the UNFCCC, it would not be able to develop as needed to mitigate global emissions. There were several attempts to write a methodology that would be accepted by the UNFCCC all to no avail. Then Tim Dixon was drafted in to become lead negotiator in this area for the UK and EU who played a crucial role during COP17 in Durban (2011) in getting the proposal passed. This was a major step forward for the recognition of CCS and laid the ground for CCS to assume its rightful place in the Paris Agreement.

I established the CCSA in 2006, out of the CCS Working Group at UKTI, thus delivering on my mission of launching a self-sustaining UK business group in the CCS sector. I was delighted that Lord Oxburgh, the most prominent Peer in this field, agreed to be our Honorary President. Gardiner Hill, who had already established his prominence in this sector, was appointed Chairman of the Board. The membership grew significantly, from an initial 11 who took up places on the CCSA Board, to a peak of 85 in 2014, at which point I retired.

I have followed the development of the Association with great interest, and I have been very proud to see the CCSA ride through the many bumpy policy challenges, as well as de-stabilising external factors such as the pandemic. The management of the CCSA has been exemplary in driving home the essential role of CCS in global mitigation, supporting a cluster-based development programme in the UK, influencing European developments and recruiting members to a new record level.

Observing recent developments in the CCS sector in the UK, EU and globally, I am very pleased indeed to see that the policy on CCS is changing for the better with, at last, a realisation that climate objectives cannot be achieved without CCS. The inclusion of CCUS in the final COP28 decision on December 13, 2023, signifies a significant milestone. For the first time, global efforts explicitly recognise the role of CCUS in achieving deep, rapid, and sustained reductions in greenhouse gas emissions, aligning with the ambitious 1.5-degree Celsius pathways.

The global conversation on carbon capture is gaining momentum, and the urgent need for the continued development and success of the CCS sector is unmistakable. As the world acknowledges the necessity of transitioning away from fossil fuels, achieving net zero emissions by 2050, and embracing low-carbon technologies, the role of CCUS has never been more crucial.

Dr. Jeff Chapman established the Carbon Capture and Storage Association in March 2006 following a long period of supporting UK businesses to establish a position in greenhouse gas emissions trading and carbon capture & storage.

Jeff has over thirty years of management experience in industry, consultancy and more latterly in government circles. He has specialised in the energy sector with a focus on the business opportunities that arise from climate change mitigation. Jeff has been a significant contributor to the establishment of London as the World centre of emissions trading.

Attending my third Conference of the Parties since joining the Carbon Capture and Storage Association, I felt that familiar pang of excitement tinged with dread.  Would this COP deliver real progress, what would be announced on carbon management, would the debate on fossil fuels be all-consuming, what would be the outcome of the global stocktake and would it lead to further action, and what does 70,000 people even look like?

Compared to previous years it felt bigger than ever, but when you consider the scale of what we need to achieve to decarbonise the lives of over 8 billion people living on this planet, delegates are a fairly small contingent (less than one thousandth of a percent of the world’s population) and the clear message from the outset is that collaboration is essential if we are to achieve the Paris goal of limiting warming to 1.5 degrees (or “North Star” in COP-speak).  Although there had been a lot of debate about the role of business at COPs, I was buoyed by the messaging from Christiana Figueres in her recent podcast that the time for negotiating is drawing to a close and it is time to move into implementation.  Implementation is definitely what business is interested in.

Moving into delivery

The past year has seen Carbon Capture, Utilisation and Storage (CCUS) move into the delivery phase around the world.  Many who follow this topic will be aware that in Europe, Norway has almost finished building its flagship Northern Lights facility, which will be ready to store CO₂ from next year. With the capture on a cement plant in Brevik, Norway, close to completion and the Final Investment Decision on the Porthos Cluster in Rotterdam taken just over a month ago, Europe’s first-mover full-scale CCS projects are underway, providing confidence to rest of the industry.  In the US, hundreds of projects are moving forward on the back of the tax credits available under the Inflation Reduction Act.  What was striking at COP, however, was how much CCUS China is building and how many developing countries are putting together deployment plans, having included CCUS in their NDCs.  This was evident from pavilion agendas, many of which featured CCUS side events, as well as the traffic to our booth, where many officials from the global south discussed their plans for CCUS, driven by their desire to continue to industrialise whilst they also decarbonise.

Carbon Management Challenge

It was no surprise then that the Presidency Roundtable on the Carbon Management Challenge, chaired by James Mwangi, included five new joiners to the initiative – Iceland, Kenya, Mozambique, Netherlands and Senegal  – who joined existing members Australia, Brazil, Canada, Denmark, Egypt, European Commission, Indonesia, Japan, Saudi Arabia, Norway, Romania, Sweden, UAE, UK and US.  Fatih Birol set the scene by saying that fossils fuels would need to be phased out and the purpose of the Challenge was to urgently deal with the emissions sources we have today.  This was an important moment and a narrative echoed by several countries in their national statements, that CCUS should be prioritised on hard-to-abate sectors.  This chimed with the prior announcement on the same day of a demand-side policy from the governments of Canada, Germany, UK and US, who pledged to procure low emissions steel, cement and concrete – a policy move that, if followed by others, could really start to drive the business case for industrial CCS. US Climate Envoy John Kerry and Chinese Climate Envoy Xie both referred to the Sunnylands agreement on 14 November between President Biden and President Xi Jinping, where both countries had committed to advance at least five large-scale CCUS projects each by 2030.

“Gigatonne scale per annum”

However, the big news announced at the CMC Roundtable was the call to action – a new commitment by member countries to collectively aim to capture and store carbon dioxide at gigatonne scale per annum by 2030.  That’s a billion tonnes a year. To put this in context, the Brevik plant aims to capture around 800,000 tonnes per annum, so 0.08% of the target.  Netherlands stated that they were already well on the way to contributing 2.5Mtpa, a quarter of a percent of the target. The UK’s four CCUS clusters, which the government hopes will deliver up to 30 million tonnes a year by 2030, would contribute just 3% of the goal.  We heard about many plans from member countries, but it was clear that current commitments would fall short of 1 GT and developing countries would want support on costs to deliver projects.

No time to waste…

So my take away was that the Challenge is going to need more members or to step up existing national plans significantly.  The good news is that China and Bahrain both made supportive statements during the roundtable and Netherlands suggested that other EU countries were likely to join going forward.  For an initiative like this to launch in week 1, amidst all the tension of the debate on fossil fuels, looked like an impressive achievement for the Presidency and the secretariat of the Clean Energy Ministerial.  As an observer in the room representing CCUS businesses, it was clear to me that were we all going to be very busy indeed with projects, whilst at the same time needing to support the putting in place of regulatory, planning and incentive frameworks in countries that are starting out on this journey. A key pillar of the CMC, alongside putting in place national targets and policies, is participating in multilateral initiatives with other countries to share knowledge so we can all move quicker. It’s clear there’s no time to waste – we now need to implement.