CCUS Mainly Supports Fossil Fuel Production – IEEFA

Although carbon capture utilisation and storage (CCUS) has been earmarked as a climate solution, it is being predominantly used in the oil and gas sector to boost production, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA). Around 28 million tonnes out of 39 million tonnes of CO2 being captured annually has been used for enhanced oil recovery (EOR) projects, with the CO2 being injected into oil and gas wells. Twenty-seven percent has been stored underground and a small fraction has been used to make soft drinks, cement and plasterboard blocks, IEEFA added. The report further noted that failed or underperforming CCUS projects considerably outnumbered successful experiences, although it acknowledged that some applications of carbon capture and storage (CCS) in hard-to-abate sectors (like cement) could be studied as an interim partial solution with careful consideration. Bruce Robertson, Energy Finance Analyst at IEEFA, wrote: “Carbon capture’s role has been rejigged as a climate solution in recent years with its diverse applications being proposed to decarbonise fossil fuel plants and hard-to-abate sectors. This push has given a platform to polarising views on CCUS and CCS: is it a greenwash to extend the life of fossil fuel assets or a panacea to avert catastrophic climate change consequences?” 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2023 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top