Monday, October 21, 2013

Why is CCS not taking off?

Four large-scale carbon capture projects were launched this year, but regulatory and cost barriers for the technology threaten the world's ability to prevent temperatures from rising to dangerous levels, a new report warns. The annualreport of the Australia-based Global CCS Institute cited a few signs of progress in 2013 -- the four new projects, along with eight existing ones in operation, are preventing 25 million metric tons of greenhouse gases from reaching the atmosphere annually. Yet all of the world's existing and new projects are on natural gas processing plants or other facilities that separate CO2 as part of a normal industrial procedure.
There still are no carbon capture projects operating in the power sector, and there is little movement toward implementing the technology on big industrial emitters like cement manufacturers. Since last year's report, 12 projects were either canceled or put on hold, largely because of the high cost of the technology.
The report noted, for example, that the current CO2 pipeline network will need to be expanded 100 times to carry enough captured greenhouse gas to hold global temperatures to 2 degrees Celsius above preindustrial levels by the end of the century. Countries that are not members of the Organisation for Economic Co-operation and Development (OECD) will account for most of the growth in primary energy demand through 2035, according to the IEA, but there are few projects far along in the planning stage in many of those countries.

Meanwhile, funding support for CCS globally has fallen by more than $7 billion from 2009, "reflecting either changing government priorities or a reliance on carbon price support that has subsequently collapsed," the institute said. In Europe, there have not been new operational projects since 2008.

Cost is not the only challenge. Siting new pipelines to carry CO2 is a "phenomenally difficult" task in many countries, including India. India emits roughly 6 percent of the world's carbon dioxide, according to U.S. EPA.


To boost the number of projects, the report recommends additional financial support for both construction and research, to reduce the cost of CO2 capture. It says there is no one-size-fits-all option -- capital grants, subsidies and ratepayer cost recovery agreements all have been used effectively to boost the technology.

Detractors of CCS say the technology is far too energy intensive to be feasible. The jury is still out on that!

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