Market Assessment For CCUS in MENA Region

Market Assessment
for CCUS in
MENA Region
A study for
March 2024
Table of Contents
1. List of abbreviations ................................................................................................................ 3
2. Executive summary .................................................................................................................. 5
2.1 Key findings .......................................................................................................................... 5
2.2 Recommendations ................................................................................................................ 6
3. Introduction............................................................................................................................... 7
3.1 Objectives of the report ......................................................................................................... 7
3.2 Overview of climate ambitions globally and in the MENA region .......................................... 7
4. Introduction to CCUS ............................................................................................................... 9
4.1 Role of CCUS in mitigating climate change .......................................................................... 9
4.2 CCUS technology types and processes ............................................................................. 10
4.3 CCUS cost assessment ...................................................................................................... 13
5. Potential of CCUS to contribute to emission reduction in the MENA region ................... 17
5.1 Methodology and assumptions ........................................................................................... 17
5.2 CCUS contribution to emission reduction in MENA region ................................................. 18
6. Market assessment of CCUS globally ................................................................................ 201
6.1 Overview of current CCUS projects .................................................................................. 201
6.2 Overview of future CCUS projects .................................................................................... 223
6.3 Global CCUS stakeholder landscape ............................................................................... 245
7. Market assessment of CCUS in the MENA region............................................................... 30
7.1 Overview of current CCUS projects .................................................................................... 30
7.2 Overview of future CCUS projects and plans ..................................................................... 32
7.3 MENA CCUS stakeholder landscape ................................................................................. 34
8. CCUS challenges and opportunities .................................................................................. 356
8.1 Challenges for the effective implementation of CCUS ...................................................... 356
8.2 Opportunities for the implementation of CCUS ................................................................. 378
9. CCERC Role and collaboration opportunities of CCERC in CCUS ................................... 40
9.1 Technical knowledge building ............................................................................................. 40
9.2 Human capability building ................................................................................................... 40
9.3 Policy making .................................................................................................................... 401
9.4 Investment opportunities ..................................................................................................... 41
10. Conclusion .......................................................................................................................... 423
11. References .......................................................................................................................... 445
Appendix A.............................................................................................................................. 456
Appendix B.............................................................................................................................. 467
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Preface
This report was released by the International Energy Forum in collaboration with Roland Berger
and the King Fahd University of Petroleum and Minerals as lead knowledge partners in the
framework of the Circular Carbon Economy Regional Collaboration and the Middle East Green
Initiative.
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1. List of abbreviations
Abbreviation Description
°C Degree Celsius
ACTL Alberta Carbon Trunk Line
APAC Asia-Pacific
BECCS Bioenergy with Carbon Capture and Storage
bn Billion
c. Circa
CAGR Compound Annual Growth Rate
Capex Capital Expenditures
CCE Circular Carbon Economy
CCERC Circular Carbon Economy Regional Collaboration
CCS Carbon Capture and Storage
CCUS Carbon Capture, Utilization and Storage
CIF Carbon Capture and Storage Infrastructure Fund
CO₂ Carbon Dioxide
CO₂e Carbon Dioxide Equivalents
DACS Direct Air Capture and Storage
Dev. Developed
DOGF Depleted Oil and Gas Fields
e.g. Exempli Gratia (For example)
EOR Enhanced Oil Recovery
ETS Emissions Trading System
EU European Union
f Forecasted
GCC Gulf Cooperation Council
GDP Gross Domestic Product
GHG Greenhouse Gases
Gt Gigaton(s)
GVA Gross Value Added
H2O Water
HBKA Hamad Bin Khalifa University
IEA International Energy Agency
IPCC Intergovernmental Panel on Climate Change
JV Joint Venture
KAPSARC King Abdullah Petroleum Studies and Research Center
KFUPM King Fahd University of Petroleum and Minerals
Km Kilometer(s)
LNG Liquefied Natural Gas
MENA Middle East and North Africa
Mt Million Tons
Mtpa Million Tons per Annum
N2 Nitrogen
NDC Nationally Determined Contribution
NGO Nongovernmental Organization
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NL No Legacies
NPO Nonprofit Organization
O&G Oil & Gas
O2 Oxygen
PPP Public Private Partnership
PSA Pressure Swing Adsorption
QCCSRC Qatar Carbonates and Carbon Storage Research Centre
QEERI Qatar Environment and Energy Research Institute
SA Saline Aquifers
STEM Science Technology Engineering and Mathematics
t Ton(s)
TAM Total Addressable Market
Transfo. Transformation
UK United Kingdom
UNFCCC United Nations Framework Convention on Climate Change
USD U.S. Dollar
Y Year
WEA Weighted Average
WL With Legacies
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2. Executive summary
2.1 Key findings
• Governments around the world are setting ambitious climate targets, and many are
taking concrete steps to achieve them, with Carbon Capture, Utilization and Storage
(CCUS) technologies being an important part. CCUS is gaining momentum worldwide and
is now considered a key tool for mitigating climate change particularly in regions that are
rich in oil and gas such as the Middle East and North Africa (MENA).
• Several MENA countries have started investing in CCUS technology due to its
effectiveness in removing heavy emissions from hard-to-abate sectors. Ongoing and
planned projects in Saudi Arabia, Qatar, the United Arab Emirates, and Kuwait are setting
the basis for the development of a CCUS market in the MENA region.
• The Americas lead the global CCUS market with a market share of 71% in 2022. The
Americas are projected to maintain their lead by 2025 with a market share of 66%.
Meanwhile, Europe is expected to experience a significant increase in market share from
10% in 2022 to 18% in 2025. By contrast, the MENA region’s market share is projected to
decline from 8% in 2022 to 6% in 2025, mainly due to the high number of CCUS projects
planned in Europe.
• However, the MENA region has experienced accelerated growth in CCUS capacity
with an expected CAGR of c.19% between 2015 and 2030, in contrast to the 2% expected
growth in emission levels during the same period. Despite this growth, it is estimated that
only 1.5% of the potential market will be captured in 2030 with the current operational and
planned CCUS capacity, indicating the potential for significant additional investments in
CCUS projects in the region.
• Technology readiness challenges remain across all stages of the CCUS value chain.
Infrastructure readiness is a multi-faceted challenge that requires a comprehensive
approach to overcome. The implementation of CCUS requires infrastructure in place for
each step of the value chain, including capture, transport, and storage. Another challenge
associated with CCUS is the economic feasibility of the technology.
• CCUS deployment costs are still too high for some industries or regions to deploy.
The total costs across all the steps of the value chain could reach up to USD c.370 per ton
of CO₂. These high costs are due to multiple factors, such as technology complexity, high
energy requirements, and the cost of building the necessary infrastructure.
• However, the future expected cost of CCUS technologies is projected to decline
significantly due to technological advancements, economies of scale and standardization.
In addition, the success of CCUS deployment depends on regulatory support and policies
that incentivize the implementation of the technology.
• Moreover, deployment of CCUS technologies has several benefits, including
opportunities for economic development based on enhanced carbon competitiveness and
new market development. The deployment of CCUS can create new job opportunities in a
range of sectors, helping to boost local economies and create new economic activities.
The development of new markets for CCUS is a key opportunity for driving the deployment
of carbon capture, transport, and storage technologies.
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• Despite these challenges, CCUS must play a critical role in mitigating climate
change in the MENA region and around the world. The MENA region can amplify
opportunities in the field of CCUS if the potential is tapped through collaborative
partnerships within the region. The importance of regional collaboration to bring CCUS
projects to fruition at the required scale for cost reductions cannot be overstated.
• The Circular Carbon Economy Regional Collaboration (CCERC) helps to achieve that
goal by making technical knowledge more accessible to countries, assists in developing
the necessary human capital, supports the formulation of policy frameworks and facilitate
investment opportunities in CCE technologies and projects.
2.2 Recommendations
Investments and plans, policies and regulations, research and development, as well as
international collaboration are required to advance CCUS deployment. The following
recommendations aim to create a conducive environment for the deployment of CCUS
technologies, scale up their adoption, and reduce their overall cost which will be critical to achieve
global carbon emission reduction targets and sustainable development goals.
Accelerate Investments and Plans: Governments and private industry should prioritize
investments in CCUS technologies and projects. This includes funding for research and
development, demonstration projects, and the deployment of commercial-scale CCUS facilities.
Accelerated investment and deployment plans will help to scale up CCUS technologies and drive
down costs, making it more economically viable for the industry to adopt these technologies.
Implement Policy and Regulatory Frameworks: Governments should create policies and
regulations that encourage the deployment of CCUS technologies. This includes policies to
incentivize investments in CCUS, regulatory frameworks to enable the deployment of CCUS, and
standardization of frameworks across regions to facilitate international collaboration. The
harmonization of policies and regulations will help to create a common playing field. Concretely,
this might be done by reducing regulatory barriers, standardizing requirements, and creating a
more efficient marketplace for CCUS.
Promote Research and Development: Research and development should focus on the further
maturation of CCUS technologies. This includes innovations in carbon capture, storage, and
utilization technologies, as well as the development of new business models that enable the
deployment of CCUS technologies at scale. The private sector should work closely with academia
and research institutions to identify new areas of innovation and to facilitate the commercialization
of emerging technologies.
Aim for International Collaboration: Governments and industry should collaborate
internationally to share best practices and knowledge in the deployment of CCUS technologies.
This includes the sharing of information on research and development, the deployment of CCUS
technologies, and the development of policies and regulations that encourage investment in CCUS
technologies. International collaboration will help to accelerate the deployment of CCUS
technologies globally and reduce the overall cost of deployment. For that reason, the Kingdom of
Saudi Arabia launched the Circular Carbon Economy Regional Collaboration (CCERC) that aims
to foster regional collaboration for the implementation of Circular Carbon Economy (CCE)
technologies across four cooperation pillars: Technical knowledge building, human capability
building, policymaking and joint investments. Section 9 provides a detailed outlook on the role of
the CCERC in further deploying CCUS in the region across its cooperation pillars.
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3. Introduction
3.1 Objectives of the report
The objective of this report is to provide a comprehensive overview and analysis of Carbon
Capture, Utilization and Storage (CCUS) technology globally and in the MENA region, and its role
in mitigating climate change. This will be achieved through (i) a global outlook on climate ambitions,
(ii) an introduction to CCUS technologies and processes (iii) a valuation of potential contributions
of CCUS to MENA ambitions, (iv) a global and MENA region CCUS market assessment, (v) a
valuation of potential contribution of CCUS to MENA ambitions, (vi) an assessment of opportunities
and challenges related to CCUS, and (vii) a definition of the role of the Circular Carbon Economy
Regional Collaboration (CCERC) to create CCUS collaboration opportunities.
The report begins by assessing the global and regional climate ambitions and efforts in mitigating
climate change. It continues with an overview of climate ambitions specifically related to CCUS
globally and in the MENA region. Then, it provides a synopsis on the different capture technologies,
transport, usage, and storage methods. In addition, the report provides an economic assessment
of CCUS and discusses the cost and benefits associated with the technology. The report assesses
the potential contribution of CCUS in reducing emissions and reaching MENA climate targets. This
is achieved through analyzing the current and projected state of emissions in the MENA region
and assessing the potential role of CCUS in reducing the projected emissions, with a focus on
hard-to-abate sectors. Moreover, the report develops a global and regional market assessment of
CCUS. The market assessment includes an overview of current and planned projects in CCUS
with specific case studies of successful projects and best practices. It also includes an
approximated estimation of the current and projected market size of the leading technologies in
addition to a stakeholder landscape analysis across the CCUS value chain.
The objective of the report is to outline the different opportunities and challenges related to CCUS
in addition to the role of the CCERC in creating collaboration opportunities.
Overall, the report aims to provide a comprehensive understanding of CCUS technology and its
potential to support global and regional climate ambitions. By exploring the opportunities and
challenges associated with CCUS deployment, it aims to serve as a valuable resource for
policymakers, investors, and industry stakeholders interested in promoting sustainable
development.
3.2 Overview of climate ambitions globally and in the MENA region

Climate change is one of the biggest challenges the world faces and governments around the
globe are working to address this issue by setting ambitious climate targets. The Paris Agreement,
signed in 2015, was a significant step in this direction, as it saw 195 countries pledging to limit
global warming to well below 2 degrees Celsius above pre-industrial levels, and to pursue efforts
to limit the temperature increase to 1.5 degrees Celsius. (United Nations Framework Convention
on Climate Change, n.d.)
Since then, many countries have taken further steps to strengthen their climate ambitions. In the
European Union for example, the European Green Deal is a comprehensive plan to make the
region climate neutral by 2050. The plan includes measures such as increasing the share of
renewable energy, improving energy efficiency, and promoting sustainable transport. The United
States set a target of reducing greenhouse gas emissions by 50-52% below 2005 levels by 2030
and has also rejoined the Paris Agreement. (National Climate Task Force, n.d.) In Asia, China has
pledged to achieve carbon neutrality by 2060. (International Energy Agency, 2021)
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In the Middle East and North Africa (MENA) region, many countries are also taking steps to
address climate change. Saudi Arabia, the largest economy in the region, has launched the Saudi
Green Initiative with the aim to reduce carbon emissions and to protect the environment. The
initiative includes plans to plant 10 billion trees and reduce carbon emissions by 278 Mtpa of CO₂e
by 2030. (MGI, 2021)
Also, the United Arab Emirates has set a target of generating 50% of its energy from clean energy
sources by 2050 and has launched the world's largest single-site solar energy project. (UAE
Energy Strategy, 2050, 2022; Masdar, n.d.) Outside of the GCC, Egypt has set sectorial targets,
aiming for increased efficiency and reduced emissions in the electricity, oil and gas and transport
sectors. These targets correspond to 33% emission reduction from electricity generation, 7% from
transport and 65% from oil and gas by 2030 compared to the business-as-usual scenario (2015).
(United Nations Development Program, 2022)
Many countries in the region have set ambitious targets for reducing their emissions, particularly
in the energy sector. Some countries have also set targets for increasing the share of renewable
energy in their energy mix, with the aim of reducing their dependence on fossil fuels. As of 2021,
22 countries in the MENA region have submitted NDCs (National Determined Contributions) to the
United Nations Framework Convention on Climate Change (UNFCCC) [1]. The targets vary
significantly between countries, with some aiming to reduce emissions by a specific percentage
(e.g., 15% reduction from business-as-usual levels), while others have set specific goals in terms
of renewable energy deployment, energy efficiency improvements, or emissions intensity
reductions.
In conclusion, there is a growing recognition of the need to address climate change in closer
relation to energy security, energy access, and affordability. The MENA region and the holistic
approach that Circular Carbon Economy solutions such as CCUS provide, play an ever more
central role in the ambitious goals that governments around the world are setting to reach net-zero
targets. The Circular Carbon Economy Regional Collaboration will continue to ensure that the
MENA region realizes the potential of CCUS technologies and services within and between
countries in the MENA region and beyond.
[1] Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman,
Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, UAE, and Yemen.
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4. Introduction to CCUS
4.1 Role of CCUS in mitigating climate change
CCUS is gathering momentum across the world and is considered as a key solution for climate
change mitigation. A growing number of countries mentioned CCUS (or related technology
applications) in their Nationally Determined Contributions. In addition, the European Union
developed an overarching NDC which covers the implementation of CCUS across all its member
countries. Therefore, the commitment of several large economies such as the European Union,
the United States, Japan, China, India, the United Kingdom, and Saudi Arabia to CCUS can be
noticed. The interest in this technology can be explained by the fact that it is one of the optimal
solutions to reduce the emissions in hard-to-abate industries such as cement, iron, aviation, and
steel, as well as the oil and gas sector. Therefore, large emitters and players in such industries are
increasingly driven to develop this technology to achieve their climate targets.
The role of CCUS is particularly important in regions such as the Middle East and North Africa
(MENA) where oil and gas industries’ technological prowess is a significant enabler in the
deployment of clean tech solutions, such as CCUS to reduce GHG emissions. Several countries
in the MENA region have already begun to invest in CCUS technology due to its effectiveness in
removing emissions from the oil and gas industry and related production processes.
All GHG emission reduction scenarios highlight the role of CCUS. In this context, the International
Energy Forum has estimated in its Comparative Analysis of Energy Outlooks, that to achieve
carbon neutrality by 2050, around 3.6 to 8.4 GtCO₂/y must be abated by 2050 according to IPCC
IMP-1.5 and IRENA I.5-S projections (International Energy Forum, 2023).
CCUS contributes to the mitigation of climate change through six levers:
• Remove emissions from existing energy generation processes
• Remove emissions from hard-to-abate sectors such as cement and steel production
• Remove and capture carbon directly from the atmosphere
• Facilitate the development of low-carbon production processes
• Facilitate the production of clean hydrogen, sustainable aviation fuels, other synthetic e-fuels
and materials through carbon dioxide utilization
• Accelerate low carbon material production processes and accelerate transitions by increasing
carbon utilization applications.
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4.2 CCUS technology types and processes
Engineered CCUS technology solutions consist of the capture, transport, use and storage of CO₂
from industrial processes or energy generation. Each stage of the process has its own technical
features that are illustrated in Figure 1.
Figure 1: Technology overview of carbon capture, utilization, and storage
Carbone capture, utilization and storage
Transport Use
Moving compressed Using captured CO 2
CO2 by ship or pipeline as an input or
from the point of feedstock to create
capture to the point of products or services
use or storage
Capture
Capturing CO2 from fossil
or biomass-fueled power
stations or industrial
facilities
Storage
Permanently storing CO2 in
underground geological
formations, onshore or offshore
Source: Medium (2021), Global CCS Institute (2021), IEA (2021), Roland Berger
This section describes the most used capture technologies available in the market, and gives an
overview of the different transport, usage, and storage methods.
The first step of the process is to capture carbon emissions. This can be done directly from the
atmosphere through direct air capture technologies and nature-based solutions (e.g., trees and
mangroves) or from point source emitters. In this report, the focus is on point-source capturing
technologies. CCUS can be implemented on multiple emissions point sources such as power
stations (fossil or biomass-fuel), industrial sites, or other large emitters facilities. After the carbon
emissions are captured, the next step is typically a separation step that utilizes multiple types of
technologies to separate CO₂ from other gases. These separation technologies can include
absorption, membrane separation, cryogenic distillation, and others. The choice of separation
technology will depend on factors such as the concentration of CO₂ in the feed gas, the purity
requirements of the captured CO₂, as well as the cost and energy requirements of the separation
process.
In this report, the focus is on the three primary carbon capture processes used in industrial
processes: Post-combustion, pre-combustion, and oxy-combustion. The reason for focusing on
these three primary capture technologies is that they are currently the most widely used and
commercially available methods for capturing CO₂ from industrial sources.
Additionally, these technologies have been extensively researched and tested, and are currently
in use in several large-scale CCUS projects around the world. However, it is important to note that
other carbon capture and separation technologies are also being developed and may play a role
in future CCUS projects. Such technologies include Bioenergy with Carbon Capture and Storage
(BECCS), and Chemical Looping Combustion.
• Pre-combustion capture: Consists of capturing CO₂ before it is produced in combustion
processes. This technology is commonly used in the production of coal and biomass. In this
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process, the fossil fuel, is converted into a gas (such as syngas). The CO₂ is then separated
from the gas before it is combusted, allowing its capture and subsequent storage or utilization.
• Post-combustion capture: Consists of capturing CO₂ after it has been produced during
combustion processes. The most common method of post-combustion capture is to use
solvents, such as amines, to absorb CO₂ from flue gas. Once the CO₂ has been absorbed, it
is separated from the solvent and compressed for transport and storage.
• Oxy-combustion capture: Consists of burning fossil fuels in an oxygen-rich environment,
which produces a flue gas that is mostly CO₂ and water vapor. The water vapor is removed
using condensation, leaving behind a stream of almost pure CO₂, which can be compressed
for transport and storage.
Figure 2: Explanation of pre-, post- and oxy-combustion
Source: Global CCS Institute (2021), Roland Berger
As of today, post-combustion capture is the most mature CCUS technology and is the common
method used in existing power plants. As the CO₂ is separated from the exhaust of a combustion
process, post-combustion capture can be built into existing large-emitters facilities, known as
retrofitting, without significant modifications to the original plant. Pre-combustion capture
technologies are also developed at a commercial level and used by industrial facilities but are
much more difficult to implement for power plants. In fact, the process of gasifying the fuel and
separating the CO₂ can only be built into new facilities. Retro-fitting an existing facility to implement
this technology would be prohibitively costly. Finally, oxy-combustion capture is a promising
technology that would allow capturing up to 100% of the CO₂ from the point source. However, the
capital cost, energy consumption, and operational challenges to achieve oxygen separation are
still too significant to consider oxy-combustion as a viable technology at a large-scale level.
The second step of the process is CO₂ transportation. After being captured, compressed CO₂ is
transported through pipelines, ships, trucks, or by rail from the point of capture to the point of use
or storage. The choice of transportation method depends on multiple factors such as the distance
between the capture site and the storage site, the amount of CO₂ to be transported, and the cost
and efficiency of each method. Most commonly, transportation of CO₂ is done through pipelines
or ships. Most importantly, transportation must be done safely and efficiently to avoid any leaks or
accidents that could result in the release of CO₂ into the atmosphere. To ensure safe
transportation, the modes of transport typically used are designed to meet strict safety standards
and are monitored for leaks or other issues.
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The third and final step of the process is one of two options. The CO₂ is either utilized in different
industrial applications or is stored underground.
According to the IEA, the majority of CO₂ captured is stored and not utilized, suggesting that by
2030, 95% of captured CO₂ will be stored in geological formations. However, where CO₂ is to be
utilized, it can be directly used without chemical alterations or converted through multiple biological
or chemical process as summarized below:
• Direct use: CO₂ is not chemically altered. This is currently the most common usage of CO₂,
particularly for Enhanced Oil Recovery (EOR) purposes. C.80% of the captured CO₂ today
goes to EOR. (Global CCS Institute, 2022) This use is particularly interesting for countries
dependent on the oil and gas sector. Among other direct applications, CO₂ can be used in
other industrial processes such as food & beverages production or agricultural applications.
• Conversion: CO₂ is altered through multiple chemical and biological processes. This usage
is relevant to produce synthetic fuels (e-fuels), obtained by combining CO₂ with low-carbon
energy. Other fields of application are the conversion of the captured CO₂ to produce
chemicals (e.g., polymers, methanol), and building materials (e.g., aggregates, cement,
concrete).
Moreover, CO₂ can be stored in underground rock formations in a process called geological
storage. This method involves injecting CO₂ into specific types of rock formations, where it can be
stored permanently. There are two main types of geological storage, onshore and offshore.
Onshore storage can be done by injecting CO₂ into deep saline aquifers, which are rock formations
containing water with high salt content. On the other hand, it can also be injected into depleted oil
and gas reservoirs, which are underground rock formations that have already been exploited and
are no longer producing hydrocarbons. Offshore storage is like onshore storage, but it involves
injecting CO₂ beneath the ocean floor. This can be done using sub-seabed storage, where CO₂ is
injected into formations beneath the ocean floor. The pressure of the water in such depths prevents
the CO₂ from resurfacing. The choice of storage method depends on factors such as the location,
storage capacity, and specific requirements of the application. Permitting and other constraints in
densely populated areas mean that offshore storage often provides more viable options as is the
case in Northwest Europe.
Figure 3 summarizes the technology advancement of each type of implementation as well as its
contribution to reducing CO₂ emissions. As highlighted, direct uses are the most mature
technologies while storage is the most efficient due to permanent capture.
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Figure 3: Overview of CCUS technology advancements
Technology Contribution to CO2 savings by
Examples maturity permanent storage of CO2
CO2-EOR • Enhanced oil recovery (EOR) Partly considered as permanent , as some

CO 2 comes out
Food & beverage • Food & beverage production Considered not permanent, as emitted with
consumption
Direct use
Fertilizers/urea • Fertilizers/urea (ammonia -based) Considered not permanent, as emitted over
time
• Water treatment Depending on end-application
Other
• Greenhouses
Utilization • Methane • Gasoline/diesel/ DME/ Considered not permanent, as emitted when
Fuels aviation fuel
• Methanol used
• Chemical intermediates (methane, methanol) Depending on end-application
Conversion Chemicals
• Polymers (plastic)
• Cement • Aggregates (filling material) Considered permanent
Construction materials
• Concrete
Biological • Seaweed farming Depending on end-application

• Microalgae cultivation
Other • Organic chemicals (Formaldehyde, acetaldehyde, Depending on end-application
acrylic acid, methyl formate, and 1,4 butanediol)
CO2
• Depleted oil and gas field, with legacies Considered as permanent, except for capture
and transport losses
• Depleted oil and gas field, without legacies Considered as permanent, except for capture
Onshore and transport losses
• Sub-seabed storage Considered as permanent, except for capture
Storage
• Depleted oil and gas field, with legacies Considered as permanent, except for capture
• Depleted oil and gas field, without legacies Considered as permanent, except for capture
Offshore and transport losses
• Saline Aquifers Considered as permanent, except for capture
Over c.80% of captured CO 2 goes to EOR today High Low
Source: Global CCS Institute (2021), Roland Berger
4.3 CCUS cost assessment

This section aims to assess the economic feasibility of CCUS technology. In recent years, there
has been increasing attention and investment in CCUS technology as a potential solution to
combat climate change. However, the economic viability of CCUS remains a critical factor in its
widespread adoption. By examining the costs associated with each step of the CCUS process,
(including carbon capture, transport, and storage), and by identifying the main cost drivers, this
section provides insights into the economic feasibility of CCUS. Utilization on the other hand, is
considered as a revenue generator for CCUS projects. Additionally, the section highlights the
importance of placing a value on greenhouse gas emissions, or carbon price discovery
mechanisms and their role in making CCUS economically viable.
Figure 4: Overview of costs of CCUS
Cost range for CCUS across the value chain, (USD/t CO 2, 2020)
400 22 – 370
350
10 – 300
300 A revenue
generator with
250 sales prices
varying from
200 USD 15 – 150
per tCO2
150 depending on
industry usage
– Range
100 considers food,
1 – 50 chemicals and
50 EOR
1 – 20
0
1)
Carbon Capture Transport Utilization Storage2) Total
1) CO2 emissions that are captured and used, are considered emitted in EU (ETS) and NL CO 2 taxation policies, and CO 2 levies will apply regardless of usage; 2)
Generally, includes costs related to MMV (Measurement & monitoring) during the storage lifetime and close down of the reservoir when the storage if full)
Source: IEAGHG, Global CCS Institute, expert interviews, Roland Berger
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Carbon capture
The cost of carbon capture is a crucial factor in determining the economic feasibility of CCUS
technology as it accounts for c.75% of the total cost. The range varies significantly from USD 10
to 300 per ton of CO₂, depending on many cost drivers.
One important cost driver is the technical maturity of the technology. Newer technologies may have
higher capital costs due to the need for additional research and development but may also have
lower operating costs due to increased efficiency. Currently, the post-combustion capture and pre-
combustion capture are considered as mature technologies compared to oxy-combustion. Another
cost driver is the scale of the capture project, as larger projects may benefit from economies of
scale which results in lower costs per ton of CO₂ captured. The type of industrial process being
targeted for capture is also a cost driver. The capture cost can drastically decrease for applications
with high concentrations of CO₂ (95-100%) and can increase for applications that contain other
impurities or contaminants as an output of their industrial processes. This is mainly since
applications with higher CO₂ concentrations are more amenable to capture than others.
Additionally, the energy source used to power the capture technology can have a significant impact
on costs. For example, using renewable energy sources to power capture technologies can result
in lower operating costs, while using fossil fuels can result in higher costs due to fuel consumption
and emissions. A carbon capture cost assessment has been conducted considering different point
sources as presented in Figure 5.
Figure 5: Levelized carbon costs
Levelized carbon capture cost ranges(USD/t CO2)
Cement 60-125 • No exact price points disclosed in the public

domain, as this requires a plant level
Iron & steel 35-100
assessment, considering local characteristics
Power
generation
50-100 and requirements
Aluminum 75-97
• Price ranges indicate the required costs to
BECCS 78-85 capture CO2, being often widespread.Noting
Pulp & paper 58-68
that the costs per t of CO2 capture will go down
the more CO2 is captured – Economies of scale
Hydrogen 50-80 also apply here, particular for the capex part
Methanol 50-56
• For our focus sectors, particular power,
Bioethanol 25-34
cement and iron & steel (account for c.80% of
Ammonia 25-34 the emissions), the market addresses costs of
Natural gas 35 – 125 USD per t CO2
16-25
processing
Coal to
16-25
chemicals
0 10 20 30 40 50 60 70 80 90 100 110 120 130
Low CO 2-concentration High CO 2-concentration
Source: IEA, CCS Institute, Roland Berger
Transport
The cost of CO₂ transport is another important factor in determining the economic feasibility of
CCUS technology. The costs associated with CO₂ transport can vary from USD c.1 to 50 per ton
of CO₂, depending on many cost drivers. One significant cost driver is the distance between the
capture site and the storage site, as longer distances may require additional infrastructure and
result in higher costs. The effect of the cost has been assessed for large-scale and small-scale
projects in Figure 6. The capacity and utilization of the transport infrastructure are also important
cost drivers. For example, underutilized pipelines or ships may result in higher costs per ton of
CO₂ transported. The type of transport technology used is also a cost driver, with pipelines
generally considered as the most cost-effective method for transporting large volumes of CO₂ and
on shorter distances, while ships become competitive at longer distances. Finally, the regulatory
environment can also be a cost driver, as regulations governing CO₂ transport may result in
additional costs for compliance depending on the region.
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14
Figure 6: Costs estimation for CO₂ transport
Source: Zero emissions platform (2011), BEIS (2020), Global CCS Institute
Storage
The cost of CO₂ storage is another critical factor in determining the economic feasibility of CCUS
technology. The costs associated with CO₂ storage can vary from USD c.1 to 20 per ton of CO₂,
depending on many cost drivers. One significant cost driver is the type of storage site used as
assessed in Figure 7. Geologic storage, in saline formations or depleted oil and gas fields, is
generally considered the most viable option for long-term CO₂ storage. The costs vary based on
factors such as site characteristics and infrastructure availability. Another cost driver is the injection
rate of CO₂. Higher injection rates result in higher capital and operational costs. The duration of
storage and the extent of monitoring and verification required are also cost drivers, as longer
storage durations and more extensive monitoring programs may result in additional costs. The
depth and quality of the storage site are also important factors, as deeper and higher quality sites
may require more extensive site characterization and result in higher costs. Finally, regulatory
requirements can be a significant cost driver, with regulations governing CO₂ storage potentially
resulting in additional costs for compliance.
Figure 7: Storage costs of CCUS
Geological storage cost comparison1) (USD/t CO2, 2019)
• Onshore storage is
DOGF WL
cheaper than offshore for
both saline aquifers and
DOGF NL depleted fields
SA NL • Storage in depleted oil and

gas fields are cheaper
than saline aquifers
DOGF WL
• The cheapest option for
DOGF NL storage is onshore
depleted oil and gas fields
SA NL
0 5 10 15 20
DOGF = Depleted Oil and Gas Fields WL = With Legacies 2) SA = Saline Aquifers NL = No Legacy Offshore Onshore
1) Does not include any fee (such as tax) for storage from host government; 2) "With Legacies" means existing wells that are re-usable for the storage process
Source: Zero emissions platform (2019), Global CCS Institute
Overall, the current cost of CCUS technologies is relatively high, making it difficult for industries to
justify the investment required to implement these technologies. The total cost across all steps of
the value chain could reach up to USD c.370 per ton of CO₂. The high cost is driven by multiple
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15
factors such as the complexity of the technology, the high energy requirements, and the cost of
building the necessary infrastructure. However, the future expected cost of CCUS technologies is
projected to decline significantly due to several factors, including technological advancements,
economies of scale, and increased competition. For instance, the IEA estimates that by 2030 the
cost of CCUS technologies could fall to 20-50 USD per ton of CO₂, and to USD 10-35 per ton of
CO₂ by 2050. These projections assume that there will be significant investment in CCUS
technologies, including research and development, demonstration projects, and government
incentives.
Another factor that might influence the future expected cost of CCUS technologies is the
deployment of carbon price discovery mechanisms, which could potentially drive down the overall
cost of the technology. However, the effectiveness of placing a price on carbon through emission
trading systems, fiscal and or trade policies depends on their design and implementation modes.
Their application remains the exception rather than the rule in most developed OECD economies
and non-OECD emerging economies.
Carbon price discovery mechanisms and fiscal policies may include carbon taxes and emissions
trading schemes, which aim to put a price on greenhouse gas emissions to incentivize industries
to reduce their emissions. The revenue generated from carbon pricing policies could also be used
to finance CCUS technologies and research and development in the sector. Figure 8 gives an
overview of carbon emission price discovery in selected OECD economies and carbon price trends
assumptions used by the IEA and IPCC in scenarios for OECD and non-OECD economies.
Figure 8: Overview of carbon emission price discovery in selected OECD economies and
IEA IPCC scenario assumptions
Source: High-Level Commission (2017), IEA World Energy Outlook (2022), IPCC SR15 (2022), World Bank (2023), Roland
Berger
Carbon price discovery mechanisms, fiscal, and trade policies, when applied in accordance with
well-established market rules and principles and with due consideration for their social economic
impact, can help to make CCUS and related technologies more economically feasible. Enhanced
dialogue on evolving carbon markets in producer and consumer countries can help create a more
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16
broadly shared level playing field for industries that are implementing carbon abatement
technologies to improve their carbon competitiveness on domestic and/or global markets.
5. Potential of CCUS to contribute to emission reduction in the

MENA region
5.1 Methodology and assumptions
To assess the potential contribution of CCUS technologies in reducing greenhouse gas emissions
in the MENA region, a comprehensive methodology was employed. The methodology includes the
estimation of two main parameters: (i) emission levels of energy generation and hard-to-abate
sectors and (ii) capacity of operational and planned CCUS projects in the region.
Emission levels of energy generation and hard-to-abate sectors
The first step included a historical and projected emission estimation of energy generation and
hard-to-abate sectors covering the years 2015 till 2030. Hard-to-abate sectors comprise industries
that are challenging to decarbonize, such as cement, steel, and chemicals which account for a
significant share of global and MENA emissions. In addition, the energy generation sector is
considered as being such an industry for the analysis, since it is one of the largest contributors to
emissions worldwide and in the MENA region. This enables a more comprehensive understanding
of the potential of CCUS technologies to reduce emissions in the region. Additionally, many
ongoing and planned CCUS projects are specifically aimed at energy generation in the region,
highlighting the importance of including this sector in the analysis.
To estimate and project the emission levels of these sectors, historical data and projected growth
in population and GDP were considered. Notably, the analysis was conducted under the
assumption that the emission reduction targets announced by some MENA countries may not
materialize. This approach allows us to determine the potential market for CCUS technologies in
the region in terms of million tons per annum (Mtpa). The countries considered as part of this
assessment are Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon,
Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Somalia, Sudan, South Sudan, Syria, Tunisia,
and the UAE. Due to limited public data availability for Palestine and Yemen, especially in regard
to the countries’ emission level, the two countries are not included in the calculation. Moreover, it
is worth noting that the potential capture market represents an opportunity for the implementation
of other technologies and is not just limited to engineered CCUS solutions. International sources
and databases such as Euromonitor and the International Energy Agency have been utilized to
interpolate the results and verify emission projections.
Capacity of operational and planned CCUS projects
The subsequent phase involved the identification of operational and planned CCUS projects in
MENA countries to assess total capture capacity. This data is an aggregated result of international
CCUS sources and databases such as the Global CCUS Institute, International Energy Forum,
and the International Energy Agency. In addition, experts in the field of CCUS deployment and
development in the MENA region were interviewed to verify the generated results. By calculating
the total capture capacity of CCUS projects, an estimation of the present and projected capture
market for CCUS technology in the region has been determined.
Finally, by comparing the estimated emission levels with the expected capture capacity, the impact
of CCUS to reduce emissions in hard-to-abate sectors across the MENA region can be determined.
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17
The gap between these two figures reveals the potential for further CCUS implementation. The
results of this analysis are presented in section 6.2.
It is essential to note that there are some limitations to this methodology. First, it assumes that
there are no technological or economic barriers for the deployment of CCUS projects in the region,
which may not be the case. Second, it projects the emission levels of hard-to-abate sectors, which
may vary depending on upcoming targets, policies, and climate actions. Third, it does not consider
the potential for demand-side measures, such as energy efficiency and renewable energy to
reduce emissions in the defined sectors. Despite these limitations, the methodology provides a
useful starting point for understanding the potential contribution of CCUS to emission reduction in
the MENA region. It highlights the need for significant investment in CCUS projects to capture the
maximum potential market and reduce emissions from hard-to-abate sectors.
5.2 CCUS contribution to emission reduction in the MENA region

Based on the potential market and the capture market projections, the expected contribution of
CCUS to emission reduction of hard-to-abate sectors in the MENA region is identified. The results
of our analysis demonstrate that there is a significant gap between the two parameters. The gap
represents the potential for further CCUS deployment in the region, as represented in light blue in
Figure 9. The results show that 1.5% of the potential market will be captured by 2030 with the
operational and planned capacity, indicating the potential for significant investment in CCUS
projects in the region.
Figure 9: Analysis of CCUS potential
Source: EDGAR, PRIMAP, Euromonitor, IMF, World Economic Outlook, IEA CCUS database, desk research, Roland Berger,
expert interviews
Despite the accelerated growth of CCUS capacity by c.19% CAGR as compared to c.2% for
emission levels between 2015 – 2030, the expected capture capacity of 21 Mtpa from CCUS is
not enough to cover the whole potential by far. The MENA region has vast potential for CCUS
deployment, given its abundant sources of CO₂ emissions from the oil and gas sector, and the
need to decarbonize hard-to-abate sectors. By investing in CCUS, MENA countries can not only
reduce their emissions but also create new opportunities for economic growth and job creation
based on the enhanced carbon competitiveness of the hydrocarbon industries and hard to abate
sectors.
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18
Moreover, the disparity has profound implications for the attainment of global climate ambitions. If
the region fails to achieve its potential in CCUS deployment, this could significantly slow down
progress towards global climate targets, as the hard-to-abate sectors would continue to generate
emissions. Additionally, failure to invest adequately in CCUS technologies may hinder our ability
to achieve neutrality, potentially exacerbate existing climate risks and challenges, such as the
impact of climate change on public health, agriculture, and water security. As such, accelerating
investments in CCUS is crucial to reduce emissions, mitigate climate risks and contribute to the
attainment of global climate objectives, particularly in the MENA region.
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19
6. Market assessment of CCUS globally
In this market assessment, the analysis is based on the IEA CCUS database published in March
2023. The database is a compilation of publicly announced projects only and might be subject to
constraints. This is due to a lack of announced information such as project capture capacity.
However, the database is a fair representation and close approximation to the market dynamics of
CCUS globally given the currently available information. It is important to note that some
assumptions have been considered as indicated in footnotes (see Figure 10).
6.1 Overview of current CCUS projects

In this section, a summary of current global CCUS projects will be presented, followed by an
examination of leading countries in this field. Afterwards, the report will delve into the details of
individual CCUS projects. An overview of CCUS facilities and projects in operation is given in
Figure 10.
Figure 10: Overview of global operational CCUS projects

Operational CCUS facilities Status 2022 – Period covered until 2022
Key indicators
Share of CCUS projects by region1)
58% 18% 12% 12%
Americas APAC Europe MENA
Share of CCUS projects by capacity2)
46% 24% 29% 2%
<0.5 Mtpa 0.5-1 Mtpa 1-5 Mtpa >5 Mtpa

Share of CCUS projects by point source2)
71% 26% 2%
Energy generation 3) Industry 4) DAC

Operational CCUS facilities in 2022 Circle size represents project capacity
1) Projects include individual facilities with CCUS operations and transport & storage hubs with shared infrastructure;
2) Projects include individual facilities solely dedicated to CCUS operations (excluding transport & storage hubs), aiming to capture the operational capabilities of CCUS technology and target specific emission sources;
3) Energy generation includes carbon capture from oil and gas, natural gas, biofuels, power and heat, hydrogen and ammonia, and other fuel transformation facilities including refineries, coal-to-gas, coal-to-liquids, and gas-to-
liquids processes;
4) Industry includes carbon capture from cement, steel and iron, chemicals, and other industrial facilities including aluminum smelters, pulp and paper mills
Source: IEA CCUS database, Roland Berger
Currently, there are c.40 CCUS projects in operation globally (including MENA region) with a total
capture capacity of c.50 Mtpa. This includes individual facilities with CCUS operations and
transport & storage hubs with shared infrastructure. The analysis indicates that the Americas are
leading in the field of CCUS with the highest share of projects, followed by the APAC region, with
Europe and the MENA region following. The leading position of Americas is mainly due to projects
in the United States and Canada. The key enabler is the combined joint efforts of their governments
and industries. The Americas and APAC region have more favorable policies and regulations and
a greater willingness to invest in carbon management technologies than other regions. These
factors have helped to drive investments in CCUS projects there.
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20
In terms of capacity, smaller-scale projects (<0.5 Mtpa) account for almost half of the projects.
Furthermore, there is a balanced distribution among mid-sized projects (0.5-1 Mtpa) and large-
scale projects (1-5 Mtpa). This is primarily because pilot projects are the most common means of
testing and refining CCUS technology before its full-scale deployment. The number of very large-
scale (>5 Mtpa) projects is relatively low, as these projects primarily concentrate on developing
infrastructure, which are not accounted for in the capacity divide as this report aims to capture the
operational capability of CCUS technology.
When considering point sources of the operational CCUS projects, energy generation projects
dominate, while the presence of industry is comparatively limited. The natural gas processing, oil
and gas as well as power and heat industry are major contributors to emissions, companies in
these industries are investing in innovative solutions, such as CCUS to reduce their emissions.
Direct air capture (DAC) technology is in a very early stage which is reflected by the share of CCUS
projects. Figure 11 displays the market share per region and the 5 leading countries, both in terms
of the number of projects and the total project capacity installed.
Figure 11: CCUS market share and top 5 countries in CCUS deployment
Source: IEA, Technavio, desk research, Roland Berger
In terms of market share, Americas is the leading region. This is mainly driven by the United States
and Canada. In 2022, 45% of global CCUS investments was deployed in the United States, which
is equivalent to about USD 2.8 bn. APAC investments surged to USD 1.2 bn in 2022. (Ghilotti,
2023) However, a notable increase is observed in market share for Europe between 2020 and
2022.
Looking at the top 5 countries, the United States has 15 projects in operation with a total capacity
of 20.5 Mtpa. China is the main driving force for the APAC region with six projects in operation
accounting for a total capacity of 2.2 Mtpa.
Canada has five operational projects with a combined capacity of 4.2 Mtpa. In Europe, Norway is
leading in terms of CCUS projects with two projects accounting for a total capacity of 1.7 Mtpa.
Brazil stands out with a highly impactful EOR project which has a capacity of 8.7 Mtpa.
Moreover, a ranking of top 10 CCUS projects has been developed based on capture capacity,
which is presented in Figure 12.
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21
Figure 12: Top 10 largest operational CCUS projects by capacity (2022)
# Project name1) Country Operational year Carbon point source Use type Capacity [Mtpa]
Petrobras Santos Basin pre-salt Energy generation – Natural
1 oilfield CCS 2013
gas processing
EOR 8.7
Energy generation – Natural

2 Century plant - (TX) 2010 EOR 4.3
gas processing
3 Gorgon CCS 2019 Dedicated storage 4.0
gas processing
Labarge Shute Creek Gas Processing Energy generation – Natural
4 Plant 2010 expansion (WY) 2010
gas processing
EOR 3.5
Labarge Shute Creek Gas Processing Energy generation – Natural

5 Plant original (WY) 1986 EOR 3.5
gas processing
Great Plains Synfuel Plant (ND) Energy generation – Other
6 Weyburn -Midale (SK) 2000
fuel transformation
EOR 3.0

7 Qatar LNG 2019 Dedicated storage 2.1
gas processing
NWR CO2 Recovery Unit (Sturgeon Energy generation – Other
8 Refinery) (ACTL) (ALB)
2020 EOR 1.3
fuel transformation
Energy generation – Other
9 Quest (ALB) 2015
fuel transformation
Dedicated storage 1.2
Energy generation – Power

10 Boundary Dam CCS (SASK) 2014
and heat
EOR 1.0
A case study is provided in Appendix A

1) Projects include individual facilities solely dedicated to CCUS operations (excluding transport & storage hubs), aiming capture
to the operational capabilities of CCUS technology and target specific emission sources
Source: IEA, desk research, Roland Berger
As expected, due to the large market share, 80% of the top 10 largest CCUS projects are situated
in the Americas region, with four of them located in the United States. All the top 10 projects have
a capacity in the range of 1-5 Mtpa and are therefore labeled as large-scale projects. In terms of
utilization, 70% of the projects are focused on Enhanced Oil Recovery (EOR). Notably, the Qatar
LNG (Ras Laffan) CCS project is present among the top 10. This marks an achievement for the
region, given the early development stage of CCUS compared to other regions globally.
6.2 Overview of future CCUS projects

Due to the significant potential of CCUS, there are numerous projects in the planning or
construction phase. In this section, the focus lies on the development of CCUS projects in 2023
and onwards. Figure 13 features a non-exhaustive map that displays the locations of planned
projects. Additionally, it provides further information on the division by region, capacity, and point
of source of these projects at individual project level.
Figure 13: Overview of global planned CCUS projects

Planned CCUS facilities Status 2022 – Period covered 2023 onwards
Non-exhaustive Key indicators
Share of CCUS projects by region1)
43% 40% 14% 3%
Americas Europe APAC MENA

40% 17% 40% 3%

75% 17% 8%
Planned CCUS facilities for 2023 onwards Circle size represents project capacity Energy generation 3) Industry 4) DAC
1) Projects include individual facilities with CCUS operations and transport & storage hubs with shared infrastructure;
liquids processes;
According to the planned CCUS projects, the Americas region will continue to have a strong
presence in the market at a share of 43%. A significant increase in projects located in Europe is
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22
observed, this goes back to the strong governmental support and regulatory incentives such as
provided by government support mechanisms, the EU Emissions Trading System, and carbon
taxation that Sweden and Norway apply to incentivize CCUS adoption among others.
In terms of capacity, there will be a shift towards larger projects, with a decrease in the proportion
of small-scale (<0.5 Mtpa) projects and a significant increase in both large-scale (1–5 Mtpa) and
very large-scale (>5 Mtpa) projects. The reason for this shift in project capacity is maturation of
technologies, larger investment size and supportive regulation.
The point source share of planned CCUS projects is about equal to the projects currently in
operation. However, an increase in Direct Air Capture and Storage (DACS) projects is observed.
This expected uptake can be attributed to government regulations and advancements in
technology. Governments implement regulations and incentives to encourage the use of Bioenergy
with CCS, while advancements in Bioenergy with CCS (BECCS) technology will make it easier
and more cost-effective to produce them on a larger scale.
An assessment of the top 5 countries based on planned CCUS projects is presented in Figure 14.
Figure 14: CCUS market share and top 5 countries in planned CCUS deployment
Status 2022 – Period covered 2023 onwards
Market share by region1) (2023 – 2025)
Region Country CCUS target Projects [#] Total capacity [Mtpa]
MENA 7% 6% 6%
Americas United States Not announced
153.8
APAC 11% 10% 10%
102 37
Europe 13% 15% 18%

✗
Europe United Kingdom Plans to deliver 10
Mtpa of industrial 35 17 53.2
✓
CCUS by
2030
Americas Canada Plans to develop –

Targets not 18 10 31.2
✓
Americas specified
70% 68% 66%
Europe Norway Plans to develop –

✓
specified
2023 2024 2025 APAC Australia Plans to develop –

specified
✓
Americas APAC Europe MENA ✓ CCUS mentioned NDC ✗CCUS not mentioned in NDC Unannounced capacity
1) Market share is based on Technavio analysis – It is calculated based on estimated value and volume of carbon capture and storage activities across the whole value chain, an in-depth overview of the approach is provided
in the Global Carbon Capture and Storage Market 2021-2025 report
The market share outlook for the period 2023 – 2025 shows a notable increase in market size for
Europe, largely due to initiatives taken by Norway, the United Kingdom, and the Netherlands driven
amongst others by the CCS Infrastructure Fund (CIF) and the Sustainable Energy Production and
Climate Transition Incentive Scheme (SDE++). The CIF entails an investment of approximately
USD 1.2 bn in CCUS in the UK. The SDE++ subsidizes market stakeholders including non-profit
organizations that generate renewable energy or reduce CO₂ emissions on a large scale in the
Netherlands. The SDE++ grant budget (around 9 billion in 2023 down from 13 billion in 2022) and
greater investor confidence in the reliable functioning of the EU ETS played a major role in enabling
the Port of Rotterdam CO₂ Transport Hub and Offshore Storage project (Porthos) project to move
forward towards implementation. Porthos that is earmarked as a Project of Common European
Interest (PCEI) will store around 37 Mton CO₂, approximately 2.5 Mton CO₂ per year for 15 years
after public and private partners have taken a final investment decision. The APAC’s and MENA’s
market share in CCUS is expected to remain about equal over this period, resulting in a declining
market share for the Americas region.
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23
Looking at planned CCUS projects, the United States maintains its leading position in both number
of projects and overall capacity with 139 projects planned with a total capacity of 153.8 Mtpa. Out
of these projects, the capacity for 37 of them has not yet been announced. Second in line is the
United Kingdom with a total capacity of 53.2 Mtpa divided over 35 projects. The capacity of 17
additional projects has not been announced yet. Canada has 28 projects planned of which 18 have
an announced capacity totaling 31.2 Mtpa.
Norway is the second European country present in the top 5 with 17 projects and a total announced
capacity of 9.2 Mtpa. Finally, Australia appears in the top 5 which helps to keep the market share
of the APAC region steady for the period between 2023 and 2025.
Moreover, a ranking of the top 10 planned CCUS projects has been developed based on their
capture capacity capabilities, which is presented in Figure 15.
Figure 15: Top 10 largest planned CCUS projects by capacity (until 2032)
# Project name1) Country Operational year Carbon point source Use type Capacity [Mtpa]
Ascension Clean Energy (ACE) Energy generation –
1 complex (LA) 2027
Hydrogen/ammonia
Oil Sands CCUS Pathways to Net Zero Energy generation – Other

2 (ALB) (14 facilities) 2030 Not specified 12.0
fuel transformation
Integrated clean ammonia production, Energy generation –
3 Port of Corpus Christi (TX) phase 2 t.b.d.
Hydrogen/ammonia
Not specified 10.0
4 Illinois Clean Fuels Project (IL) 2026 Energy generation – Biofuels Dedicated storage 9.7
5 Hynet Northwest phase 2 Energy generation – Dedicated storage 8.1

2030
Hydrogen/ammonia
Prairie State Generating Station Energy generation – Power
6 Carbon Capture (IL) 2025
and heat
ExxonMobil Baytown petrochemical Energy generation – Other

7 site (TX) 2028
fuel transformation

8 RWE Eemshaven power plant 2030 Dedicated storage 7.0
and heat
9 RWE Amer power plant 2032
and heat
Not specified 5.5

10 NextDecade Rio Grande LNG (TX) 2025
gas processing
Not specified 5.0
1) Projects include individual facilities solely dedicated to CCUS operations (excluding transport & storage hubs), aiming capture
to the operational capabilities of CCUS technology and target specific emission sources
70% of the largest projects in the top 10 are located in the Americas with only 1 being in Canada
and the remaining 6 in the United States. Three of the top 10 largest projects are located in Europe.
This confirms Europe’s growth in market share for the near future. Notable is the fact that all
planned projects or projects under construction have energy generation as carbon point source.
6.3 Global CCUS stakeholder landscape

This section provides an overview of global stakeholders in CCUS, followed by a description of
four different business models for integrated CCUS projects. To begin with, an assessment of five
overarching stakeholder types has been developed as presented in Figure 16.
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24
Figure 16: Categories of global stakeholders – Including examples
Government & Energy Financial Technology Enablers

Categories regulatory bodies companies institutions providers
Definition Entities with authoritative Industry players that play a Institutions providing Developing and Organizations with
direction or control over major role in carbon funding for the commercializing new and resources and
environmental, energy emissions and can construction and innovative CCUS capabilities to support
and foreign affairs related significantly impact the operation of CCUS technologies deployment of CCUS
topics reduction
Sub- • Ministries • National oil companies • Banks • Equipment manufacturers • Policy and pledge drivers
categories • Public authorities • Gas companies • Private investors • Chemical producers • NGOs & NPOs
• Clean energy producers • Venture capital fonds • Start-ups • Research institutes
Examples
(Selection)
Source: Desk research, Roland Berger
Government & regulatory bodies

National governments play a critical role in supporting the development and deployment of CCUS
technologies. They provide funding, regulatory frameworks, and policy incentives to encourage the
uptake of CCUS. As overarching body, national governments also work together on international
initiatives to promote the development of CCUS as a solution for climate change.
Industry players
Industry players, especially those in the hydrocarbon and hard to abate sectors, have a significant
stake in the development of CCUS. They account for a large portion of global carbon emissions
and share an interest in finding ways to reduce their carbon footprint with consumers and other
stakeholders. Industry players can be active over the whole CCUS value chain, starting from
implementing carbon capturing technologies for those that operate power plants or industrial
facilities that produce large amounts of CO₂ emissions. Oil and gas companies with experience in
pipeline construction and operation are well-suited to transport captured CO₂ through their existing
pipeline networks. Industry players can gain competitive edge in globally evolving transitions by
leveraging their expertise in drilling, well operations, and reservoir management as well as refining
and petrochemical processes to develop and operate carbon storage projects. Examples of key
players are Shell, KEPCO, Pemex, Vattenfall, Chevron, EQUINOR, and ExxonMobil.
Financial institutions
Investments from financial institutions are essential for the development and deployment of CCUS
projects. These institutions can provide funding for the construction and operation of carbon
capture, utilization, and storage infrastructure, as well as for research and development initiatives
aimed at improving the efficiency and cost-effectiveness of CCUS technology. There are multiple
financing options and each stage in the value chain has its own financing characteristics. The
technology providers behind carbon capture technologies and equipment commonly acquire
funding through venture capital and private investors. This especially applies to start-ups.
Transportation infrastructure and project finance commonly acquire funding from larger financial
institutions or national investment funds. Examples of key players are 1PointFive, 8Rivers and
Samsung Venture Investment.
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25
Technology providers
Development and commercialization of new and innovative CCUS innovations is ensured by
technology providers. These companies play an important role in driving innovation and reducing
the costs of CCUS. Technology providers are active in the technology behind the capturing of
carbon, the transportation and storage and utilization of captured CO₂. This group consists of
technology companies active in equipment manufacturing, chemical manufacturing, or pipeline
manufacturing. Their innovations and expertise are critical for driving progress in the CCUS
industry. According to a report by Research and Markets, as of 2021, the main markets for CCUS
technology are the United States and Europe, where several companies offer capture technology
solutions. Unexpectedly, there is no clear market leader, but the market share is divided among
several companies. Other countries, such as China, Japan, and South Korea, are also investing
heavily in CCUS technology and have multiple companies offering capture technology solutions.
Examples of key players are Climeworks, Mitsubishi Heavy Industries, Svante, CO₂ solutions by
SAIPEM, Carbon Engineering, Siemens, Alstom, and Sasol.
Enablers
Enablers are organizations or institutions that advance policies and funding in support of carbon
management solutions such as CCUS. Intergovernmental organizations play a critical role in
reducing both market and non-market hurdles to de-risk trade and investment in the deployment
of these technologies.
Enablers can also provide training and education programs to help with the development of
necessary skills and knowledge to implement and operate CCUS technology effectively.
Knowledge is gained from research institutes which play an important role in the further
development and deployment of CCUS. Key players are the International Energy Forum, Clean
Energy Ministerial CCUS initiative, the Global CCS Institute, and the United Nations Framework
Convention on Climate Change (UNFCCC).
An assessment of each stakeholder type has been developed to understand their positioning
across the CCUS value chain. A summary of the results is provided in Figure 17.
Figure 27: Global key players
Carbon capture Transport Utilization and storage

Description • Provide carbon capture solutions and • Facilitate transportation of captured CO2 • Utilize captured carbon as feedstock for
services for industrial processes and from capture site to storage or utility site chemical and industrial processes or use it
power generation • Different types of transport possible, by for Enhanced Oil Recovery (EOR)
• Different types of players active such as pipeline, ship, truck or train • Store captured carbon in depleted O&G
equipment manufacturers, chemical reservoirs of O&G companies or in
producers and start-ups purchased CO2 storage (purchased by
governments to reach climate goals)
Role • Largest share of Total Addressable Market • Smaller share of TAM • Lowest share of TAM
(TAM) • Requires intensive capital investments if • Storage is the most adopted method
• Requires partners in transport, utilization infrastructure not readily available • IEA estimates 95% of captured CO2 will be
or storage to implement CCUS projects stored and only 5% utilized
Key
stakeholders
Active across the whole value chain
Source: Expert interviews, desk research, Roland Berger
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26
Partnership models
There are two types of partnership models for CCUS project implementation. The first consists of
an integrated model in which one entity is responsible and operates across the entire value chain.
The second is a segmented model in which contractual agreements are developed across different
players in the value chain.
Integrated model
An integrated model could be one of two types, a single entity owner or public-private partnership.
• Single entity owner
The single entity owner represents one entity that is responsible for developing and
implementing carbon capture, transport, utilization, and storage from end-to-end. One
advantage of this model is the existence of one single point of control, which streamlines the
process significantly. However, due to the demanding technical and economic requirements,
only a limited number of entities are capable of independently developing CCUS. The primary
players in this field are O&G and utility companies.
• Public private partnerships
The public-private partnership option involves the government and private companies working
together to develop the project. The government usually provides funding or incentives and
regulatory support to enable the project implementation. Private companies provide technical
expertise in CO₂ capture, transport, utilization, and storage. The costs and risks of the project
are shared, as well as any revenues generated from the sale of CO₂ or products created from
CO₂ utilization.
Segmented model
The segmented model also includes two options, transport and storage service providers or
utilization and storage.
• Transport and storage model
The transport and storage service providers option involves companies providing CO₂
transport and storage services to industrial facilities or power plants that need to reduce their
carbon emissions. These companies can charge customers for the transport and storage of
CO₂, either through a fee-per-ton or a fixed-price contract. The project may be financed by
investors through equity or debt financing.
• Utilization and storage model
The utilization and storage option involves companies capturing CO₂ emissions and using
them as feedstock to produce chemicals or building materials. Any excess CO₂ that is not used
can be stored underground, and the products created from CO₂ utilization can be sold to
customers, providing a new revenue stream. This project can also be financed by investors
through equity or debt financing.
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27
Figure 18: Business models for integrated and segmented projects
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28
7. Market assessment of CCUS in the MENA region
The MENA market assessment is subjected to similar constraints of the IEA CCUS database
mentioned in Section 6 (Market assessment of CCUS globally). However, additional research and
expert interviews have been conducted to provide a holistic overview of MENA projects and
capture additional efforts.
7.1 Overview of current CCUS projects

An assessment of projects divided by capacity and point source for the MENA region has been
developed, as presented in Figure 19.
Figure 19: Overview operational CCUS projects in MENA

Operational CCUS facilities1) Status 2022 – Periods until 2022 covered
Key indicators
33% 50% 17% 0%
50% 50% 0%
• Majority of project capacities in the MENA region range between 0.5

– 1 Mtpa
• A clear split in industry use is also identified with projects being
implemented for energy generation and industry – Direct Air
Capture is still not deployed to this date in the region
Operational CCUS facilities in 2022 Circle size represents project capacity
1) Projects include additional data from research and expert interviews used to expand on the IEA database;
liquids processes;
The capacity of CCUS projects in MENA region are mainly small-size (<0.5 Mtpa) and mid-scale
(0.5-1 Mtpa) projects due to the early stages of CCUS technologies. As the MENA region has a
strong presence in the oil and gas sector, a substantial portion of CCUS initiatives is observed in
the energy generation and industrial sector.
Figure 20 shows the five leading countries in terms of both the number of projects and total project
capacity.
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29
Figure 20: CCUS market share and top countries in CCUS deployment in MENA
Market share by region1) (2020 – 2022) Status 2022 – Period covered until 2022
MENA Qatar 5 Mtpa by 2025

& 11 Mtpa by 2 2.3
✓
2035
MENA Saudi Arabia 44 Mtpa by 2035

7.8% 2 1.3
MENA 9.1%
8.4%
✓
MENA UAE Plans to develop
– Targets not 1 0.8
specified
✓
MENA Iraq Plans to develop
– Targets not 1 0.3
Rest of
91.6% 92.2% specified ✓
the world 90.9%
2020 2021 2022

MENA ✓ CCUS mentioned NDC ✗ CCUS not mentioned in NDC
in the Global Carbon Capture and Storage Market 2021-2025 report
The six CCUS projects that are currently operational in the MENA region are located in Qatar,
Saudi Arabia, the United Arab Emirates and Iraq. In the MENA region, the Middle East is leader in
terms of CCUS projects, this has mainly to do with investment in CCUS by governments and major
emitters in this region. Qatar has two CCUS projects in operations with a total capacity of 2.3 Mtpa,
followed by Saudi Arabia with a total capacity of 1.3 Mtpa divided over two projects. The United
Arab Emirates and Iraq both have one project with a capacity of 0.8 Mtpa and 0.3 Mtpa,
respectively. The market share analysis shows a slight decrease over the period 2020-2022 for
the MENA region which is caused by increasing activities of Europe in the field.
Figure 21 presents the individual projects situated in the MENA region. It provides a ranking based
on the capacity of the CCUS projects. A case study featuring the three projects with the largest
capacity can be found in Appendix B.
Figure 21: Top six largest operational CCUS projects by capacity in MENA
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30
7.2 Overview of future CCUS projects and plans
Figure 22 shows the geographical distribution of planned CCUS projects in the region. It also
shows the division by capacity and point source for planned CCUS projects in the MENA region.
Figure 22: Overview of planned CCUS projects in MENA

Planned CCUS facilities1) Status 2022 – Period covered 2023 onwards
Key indicators
14% 14% 71% 0%
< 0.5 mt/y 0.5-1 mt/y 1-5 mt/y >5 Mtpa
71% 21% 7%
• Larger project capacities are expected to materialize in

the next decade
• A higher share of planned projects is expected to be
implemented for energy generation – Direct Air Capture
is also expected to advance in the next decade
Planned CCUS facilities for 2023 onwards Circle size represents project capacity
1) Projects include additional data from research and expert interviews used to expand on the IEA database;
liquids processes;
The analysis comprises 15 planned CCUS projects in the MENA region. A significant shift in
capacity of CCUS projects compared between projects currently in operation and planned projects
can be observed. This is due to the maturation of CCUS technologies and results in an increase
of large-scale projects. 71% of the planned CCUS projects in the MENA region are large-scale (1–
5 Mtpa) projects, compared to c.17% of the projects in operation. Moreover, the point source
remains stable because of the dominance of the oil and gas sector in the MENA region. These
sectors are major emitters, and they are expected to address their emissions by adopting CCUS
solutions.
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31
Figure 23: CCUS market share and top 5 countries in planned CCUS deployment in MENA
Market share by region1) (2023 – 2025) Status 2022 – Period covered 2023 onwards
MENA UAE Plans to develop –

Targets not 3 3 6.2
✓
specified
MENA Oman Not announced

5.7% 2 1 0.0
MENA 7.1%
6.4%
✗
MENA Bahrain Plans to develop –
Targets not 1 1 0.5
specified
✓
MENA Saudi Arabia2) 44 Mtpa by 2035
1 9.0
✓
94.3%
93.6%
Rest of
the world 92.9%
2020 2021 2022 MENA Qatar 5 Mtpa by 2025 &

11 Mtpa by 1 5.0
✓
2035
MENA ✓ CCUS mentioned NDC ✗ CCUS not mentioned in NDC Unannounced capacity
in the Global Carbon Capture and Storage Market 2021-2025 report; 2) This is a hub which includes multiple projects
On country level, Figure 23 shows an increase of six planned CCUS projects for the United Arab
Emirates, of which three projects have a total capacity of 6.2 Mtpa, and the remaining three
projects have an unannounced capacity. Additionally, Oman plans three projects of which two are
small scale and one project has an unannounced capacity. Bahrain has two projects planned of
which one has a capacity of 0.5 Mtpa. Saudi Arabia plans one project, the Jubail CCS hub. This is
a hub with a total capacity of 9.0 Mtpa and can be found in Figure 24.
Figure 24: Top 7 largest planned CCUS projects by capacity in MENA
# Project name Country Comissioning Carbon point source Use type Capacity [Mtpa]
1 Jubail CCS Hub 1) 2027 Not specified Not specified 9.0

2 Ras Laffan Qatar CCS Project Phase 2 2025 gas processing
EOR 5.0
3 Al-Zour CCS Project 2025 Energy generation – Oil EOR 2.5
4 Shah Adnoc CCUS Project 2025 Energy generation – Gas EOR 2.3
5 Al Reyadah CO2-EOR Project Phase 2 2025 Industry – Iron and steel EOR 2.0
6 Habshan & Bab Adnoc CCUS Project 2025 Energy generation – Gas EOR 1.9
7 Bahrain CCUS Pilot Project 2025 Energy generation – Oil EOR 0.5
A case study is provided in Appendix B

1) The hub will include multiple projects
By 2027, the Jubail CCS hub will be operational in Saudi Arabia which is able to extract and store
9.0 Mtpa. Moreover, case studies for the Project Phase 2 of Ras Laffan Qatar CCS, Kuwait CCs
project and Shah Adnoc CCUS are available in Appendix B.
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32
7.3 MENA CCUS stakeholder landscape
This section provides an overview of MENA stakeholders for CCUS, followed by an overview of
the commonly adopted business models of CCUS. The stakeholder landscape in MENA region
has similarities with the global stakeholder landscape. Though, there are some differences which
are highlighted below. As a beginning, an assessment of five overarching stakeholder types has
been developed as presented in Figure 25.
Figure 25: Categories of MENA stakeholders
Source: Desk research, Roland Berger
Government & regulatory bodies

National governments in this region increasingly recognize the importance of CCUS for reducing
carbon emissions and mitigating climate change. Several countries in this region, such as Saudi
Arabia, the United Arab Emirates, and Qatar, have announced plans to develop CCUS
infrastructure and are investing heavily in this area. Ministries and authorities play a crucial role as
regulatory bodies in the development and deployment of CCUS. Examples of regulatory bodies
that put great effort in CCUS are the Abu Dhabi Department of Energy, Qatar General Electricity
and Water Corporation, and the Saudi Arabian Ministry of Energy.
Industry players
The hydrocarbon and other hard to abate sectors in the MENA region account for a large portion
of regional carbon emissions and share an interest in finding ways to reduce their carbon footprint
with consumers, including off takers and other stakeholders on international markets. National
companies play a major role in reducing carbon emissions within this region and have a significant
stake in the development and deployment of CCUS technologies. Many of these companies are
investing in CCUS to reduce their carbon footprint and meet emission reduction targets. Examples
of key players are Saudi Aramco, ADNOC and QatarEnergy.
Financial institutions
Financial institutions play an important role in the development and deployment of CCUS projects
in the MENA region. Most of the investments are expected to come from national investment funds
like the Public Investment Fund, Abu Dhabi Investment Authority, Kuwait Investment Authority, or
Qatar Investment Authority. Besides national investment funds, national oil companies such as
Saudi Aramco, ADNOC, and Qatargas invest in CCUS development and deployment.
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33
Technology providers
The MENA region has expertise in development and commercialization of new and innovative
CCUS technologies but also leverages partnerships with industry partners and technology
providers. Therefore, MENA region sources technology mainly from global entities like GE,
Mitsubishi Heavy Industries, Siemens, Alstom, and Sasol. There are also a few start-ups in the
region. An example is Green Groves, a start-up in Bahrain which produces artificial trees that
capture and filter CO₂ or UAE-based Oxygenate that pursues bamboo based nature-based CCUS
and renewable energy solutions.
Enablers
Finally, enablers in the MENA region are research and development institutions or national
initiatives that promote efforts for the deployment of CCUS technologies. Their role is to advocate
for measures that facilitate the implementation of CCUS and ensure that these technologies are
widely adopted. Enablers are of great essence since they provide expertise by doing research and
help to develop CCUS technologies. Examples of key players in this category are the Middle East
Green Initiative, Masdar Institute, King Fahd University of Petroleum and Minerals, King Abdullah
Petroleum Studies and Research Center, as well as Qatar Carbonates and Carbon Storage
Research Centre and King Abdullah University of Science and Technology.
An assessment of each stakeholder type in the region has been developed to understand their
positioning across the CCUS value chain. A summary of the results is provided in Figure 26.
Figure 36: MENA key players
Carbon capture Transport Utilization and storage

Description • Limited availability of technology providers • Well-established pipeline infrastructure • Rooted presence of O&G industry provides
due to early stages of technology due to O&G prevalence which puts MENA large potential for Enhanced Oil Recovery
development in CCUS in MENA region region at a competitive advantage compared (EOR) applications in MENA region
• However, many influential players such as to other regions • Therefore, it is expected that the prevalent
Aramco are focused on localizing the value • Though, the likelihood of an increase in usage of EOR in CCUS projects will
pool and are investing in start-ups transportation by truck and rail in the region continue to grow the coming years
is low
Role • On-boarded through integrated partnership • Able to extract value from multiple capture • Abundant sources of geological storage
models players give the region a competitive edge
• Most commonly alongside government
entities in MENA region through PPP or JVs
1) 1)
Key 1) 2)
stakeholders
1) 1) 1)
1)
1)
1) Leading technology providers in the region with at least 1 project under development or operational; 2) Start
-up in Direct Air Capture technology
Partnership model
Due to the early stage in technological CCUS development within the MENA region, a preference
for different partnership models is observed to develop and deploy CCUS on large scale.
Therefore, the majority of CCUS business models in the MENA region are performed through
segmented partnership models or through Public Private Partnerships (PPP)s as indicated in
section 6.3.
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34
The main advantage of these models is minimizing risk due to the involvement of multiple partners
and experts across the value chain. One key disadvantage is the coordination effort between the
stakeholders and the risk of one partner stepping out.
8. CCUS challenges and opportunities

8.1 Challenges for the effective implementation of CCUS
There are several challenges associated with CCUS that must be addressed to ensure its
effectiveness and viability as a tool for mitigating carbon emissions. In this section, the report will
discuss the challenges related to CCUS including economic viability, infrastructure readiness, and
the regulatory landscape.
• Economic feasibility
One of the significant challenges associated with CCUS is the economic feasibility of the
technology. The cost of CCUS deployment can be high, making it challenging for some
industries or regions to employ it as a mitigation strategy for fighting climate change.
One of the primary cost drivers of CCUS is the capture technology. The development and
deployment of carbon capture technology can be costly, particularly for retrofitting existing
industrial processes or power plants. The cost of carbon capture technology depends on the
type of technology used, the scale of the project, and the specific requirements of the capture
process.
Transportation and storage of CO₂ are additional drivers for the cost of CCUS projects.
Transporting CO₂ over long distances requires pipelines or other forms of transportation, which
can be expensive to construct and maintain. The cost of storage depends on the geological
characteristics of the storage site and the monitoring requirements to ensure the safe and
secure storage of CO₂.
Overcoming the economic challenges associated with CCUS requires a range of solutions.
Financing mechanisms, research and development, policies and regulatory support, as well
as knowledge sharing are key aspects for overcoming this challenge. Policies such as carbon
pricing or emissions trading schemes can provide a clear economic signal for the deployment
of CCUS projects.
• Infrastructure readiness
The infrastructure readiness challenge associated with CCUS is multi-faceted and requires an
integrative approach to overcome. To implement CCUS effectively, it is necessary to have
infrastructure in place for each step of the value chain including capture, transport, and storage.
Developing and deploying the necessary infrastructure for CCUS can be challenging,
particularly in developing countries where infrastructure may still be limited. In these regions,
investment in infrastructure development is crucial for the adoption of CCUS. This includes
building of new pipelines, transportation systems, constructing storage facilities in suitable
geological formations, retrofitting power plants as well as industrial processes with carbon
capture equipment.
Another critical aspect of infrastructure readiness is the availability of suitable storage sites.
Identifying and developing suitable storage sites is a critical challenge associated with CCUS.
Suitable storage sites must be able to safely store CO₂ over long periods, without leakage or
environmental impacts. This requires detailed geological assessments to determine the
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35
suitability of storage sites and monitoring reporting and verification to ensure the safe and
secure storage of CO₂.
• Regulatory landscape
The success of CCUS depends on regulatory support and policies that incentivize the
implementation of the technology. The lack of supportive policies and regulations can be a
barrier to the adoption of CCUS. Policies that promote investment in research and
development, provide financial incentives for the implementation of CCUS, and set emissions
reduction targets will encourage the implementation of CCUS.
The main challenge related to the creation of a clear regulatory framework is the establishment
of cohesive and complementary industry standards to allow CCUS to scale faster. Other ideas
would be effective implementation of emission reduction targets through market incentives
such as carbon price discovery mechanisms and government support measures such as
contracts for difference or tax allowances.
The implementation of CCUS policies requires global cooperation and coordination to ensure
that the technology is implemented effectively and efficiently. This requires international
agreements and dialogue and cooperation between governments, industries, and other
stakeholders.
In addition to the lack of a clear consistent and compatible regulatory frameworks, there are
also challenges associated with the permitting process for CCUS projects. The current
permitting process can be lengthy and complex, requiring approvals from multiple agencies
and stakeholders. This can lead to delays and increased costs for CCUS projects.
Legal and regulatory challenges are a significant barrier to the deployment of CCUS and
require a range of solutions to be overcome. Establishing clear and consistent regulatory
frameworks, developing international standards, collaboration among stakeholders, education
and outreach efforts are all critical steps to overcome the challenges associated with CCUS.
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36
8.2 Opportunities for the implementation of CCUS
CCUS presents a range of opportunities to achieve climate and sustainable development goals
including, the creation of jobs, enhancing international competitiveness and other economic
benefits. These opportunities can be seen across a range of sectors, including energy generation,
industrial processes, technology advancement and transportation. In this section, the opportunities
related to CCUS will be discussed. This includes environmental, economic, and new market
development opportunities.
• Environmental opportunities
CCUS has promising applications in the decarbonization of hard-to-abate sectors. Specifically,
energy generation and industrial processes are two of the major sectors in which CCUS
presents an opportunity for emission reduction.
Energy generation: CCUS can be applied to energy generation processes, helping to reduce
emissions from the electricity sector. This can play a significant role in reducing the carbon
footprint of electricity generation, which is a major contributor to global greenhouse gas
emissions. CCUS can help to abate GHG emissions from existing energy production and
infrastructure to ensure energy security and market stability in support of reliable energy
system transformations. By retrofitting existing power plants with CCUS technologies, they can
continue to operate while reducing their emissions.
Industrial processes: CCUS can be applied to a range of industrial processes, such as
cement and steel production which are responsible for a significant proportion of global
greenhouse gas emissions. By capturing and storing carbon dioxide emissions from these
sectors, CCUS can help to decarbonize the industries and can contribute to the global efforts
to address climate change. Decarbonization of industrial processes can also help industries to
achieve carbon-neutral status, as the captured carbon dioxide can be utilized for enhanced oil
recovery (EOR), materials, e-fuels or for other purposes.
• Economic development
The deployment of CCUS requires a wide range of skills and expertise, from engineering and
construction to monitoring and maintenance. This can create new job opportunities in a range
of sectors, helping to boost local economies and create new economic activities. The
development and deployment of CCUS technologies can also create new revenue streams for
companies involved, helping to drive innovation and investment in this area.
Specifically in the MENA region, CCUS has a promising future. Being already a leading energy
exporting region, CCUS could allow MENA to boost its exports with decarbonized energy,
delivering a double benefit of supporting the economy while supporting climate targets. Current
projections estimate that new market opportunities in hydrogen export and CO₂ storage
services could add USD c.15.5 bn to 44 bn in gross value added (GVA) to the GCC in 2050.
Job opportunities would also be significant with estimated c.87,000 to 245,000 direct and
indirect new jobs by 2050 (AFRY & GaffneyCline, 2022).
• New markets development
The development of new markets for CCUS technologies is a key opportunity for driving the
deployment of carbon capture, transport, utilization, and storage technologies. As countries
and companies strive to reduce their greenhouse gas emissions and meet their climate targets,
there is an increasing demand for CCUS technologies that can help to achieve these goals.
One of the key markets for CCUS technologies is in the oil and gas industry. CCUS can be
utilized for enhanced oil recovery (EOR). This is a process that involves injecting carbon
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37
dioxide into oil reservoirs to increase the amount of oil that can be extracted. Carbon dioxide
can also be utilized for other purposes, such as producing chemicals or fuels. These markets
can provide a new source of revenue for CCUS projects and help to drive investment in the
development and deployment of CCUS technologies.
Another potential market for CCUS technologies is in the production of clean hydrogen.
Hydrogen is a versatile energy carrier that can be used in a range of applications, including
transportation, heating, and electricity generation. However, the production of hydrogen can
be carbon-intensive, as it is often produced from fossil fuels. CCUS can be used to capture the
carbon dioxide emissions from hydrogen production, creating clean or carbon-neutral
hydrogen that can be used to support the transition.
There is also a growing market for carbon offsets which can be used by companies to
compensate for their greenhouse gas emissions. CCUS projects can generate carbon offsets
by capturing and storing carbon dioxide emissions while enhancing economic viability by
providing a new source of revenue for these projects at the same time. As more companies
seek to reduce their carbon footprint, the demand for carbon offsets will increase, creating a
new market for CCUS technologies including nature based CCUS solutions.
The development of new markets for CCUS technologies presents significant opportunities for
driving the deployment of these technologies and supporting the transition to a low-carbon
economy and achieve climate and sustainable development targets.
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9. Role and collaboration opportunities of CCERC in CCUS
9.1 Technical knowledge building
Academia, research centers and big oil & gas companies play a significant role in the creation of
technical knowledge for CCUS in the Middle East. Academia and research centers provide
necessary expertise and resources to develop new CCUS technologies and test them in real-world
conditions. They work on developing new materials, technologies, and processes that can improve
the efficiency and effectiveness of CCUS. Academic and research centers with advanced CCUS
technological knowledge offer technical support and training to those that are in earlier stages of
development. With CCERC this is done both regionally within the countries but also internationally
within the MENA region.
Big oil & gas companies in the Middle East have significant experience and resources in
developing and implementing CCUS technologies, and they share this knowledge with other
countries that are in earlier stages of CCUS development. This can take many forms, such as
sharing technical expertise, technical support, or collaborating on joint projects. CCERC makes
this technical knowledge more accessible to countries that are in earlier stages of CCUS adoption.
9.2 Human capability building

The development of CCUS technology requires a skilled workforce with expertise in areas such as
engineering, geology, and environmental and data sciences (STEM). This is where human
capability building comes in, which is essential for ensuring the successful deployment of CCUS
technology in the MENA region.
There are several institutions in the MENA region that are actively involved in CCUS research and
development. Qatar is home to the Qatar Environment and Energy Research Institute (QEERI),
which is part of Hamad Bin Khalifa University (HBKU). QEERI focuses on the industrial utilization
of CO₂ for value-added materials and commodities. QEERI’s Energy Center mandate is to support
the competitiveness and sustainability of Qatar’s energy sector through the development and
deployment of technological solutions. This includes developing and improving carbon capture
technologies and innovation in the uses of CO₂ through new technologies to make it more attractive
in the long term. QEERI’s CCUS project is developing processes and technologies to be able to
convert CO₂ into value-added products aimed at reducing the carbon footprint.
Moreover, Qatar Carbonates and Carbon Storage Research Centre (QCCSRC) at Imperial
College London, offers a range of research programs and training courses related to CCUS.
Examples of the courses offered by QCCSRC are Fundamentals of CO₂ Capture and Storage,
Modelling and Simulation of CO₂ storage, Advanced Methods for CO₂ Storage and Monitoring and
Industrial Applications of CO₂ Capture and Utilization. These courses help to build human capital
for the energy, the environmental, and engineering sectors. Additionally, they offer insights for
students and researchers interested in CCUS technology.
Saudi Arabia's King Abdullah Petroleum Studies and Research Center (KAPSARC), King Fahd
University of Petroleum and Minerals (KFUPM), King Abdullah University of Science (KAUST), as
well as other institutions such as the Masdar Institute of Science and Technology in Abu Dhabi
offer research and training programs related to CCUS.
By investing in education and training programs, the MENA region can develop a workforce that is
skilled in the latest technologies and practices, which can help to attract foreign investment and
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39
spur economic growth. Furthermore, a well-trained workforce can help to build capacity for the
future, ensuring that the region remains competitive and innovative in the global CCUS landscape.
In addition to the institutions mentioned above, there are other opportunities for collaboration in
the field of human capability building for CCUS technology in the MENA region. For example,
partnerships between academia and industry can help to bridge the gap between theory and
practice and can provide valuable hands-on experience to students. Furthermore, international
partnerships can help to bring in expertise and resources from other parts of the world, which can
accelerate the development and deployment of CCUS technology in the MENA region. For
example, in 2022, the Global Carbon Capture and Storage Institute has opened its first Middle
East headquarters in Masdar City, Abu Dhabi. International cooperation initiatives can help to
share knowledge and best practices, coordinate research and development efforts, and provide
financial support to accelerate the deployment of this critical technology. By working together,
countries can innovate and scale CCUS technologies faster and achieve better results than if they
were working alone.
Human capability building is essential for the successful development and deployment of CCUS
technology in the MENA region. By investing in education and training programs, the region can
develop a skilled workforce that has sufficient, shared knowledge which is accessible because of
CCERC, to develop and deploy CCUS technologies. Through CCERC, the MENA region has the
potential to emerge as a prominent global player in the field of CCUS. This could pave the way for
long-term innovation and sustainable development in the region.
9.3 Policy making

CCUS technology has the potential to significantly reduce carbon emissions, but its economic
viability must be improved to accelerate global deployment at scale. To make CCUS more
attractive governmental support mechanisms (including contracts for difference, tax incentives and
a transparent and stable regulatory environment that may include carbon price discovery
mechanisms such as the EU ETS provides or voluntary carbon markets) should be pursued in
different settings. This will create an economic incentive to develop emission reduction methods
such as CCUS and make carbon abatement more economically advantageous.
The carbon market provides a greenhouse gas emission price discovery mechanism that is already
functioning in the European Union, the United Kingdom, and Australia though scope and
operational aspects differ. Some initiatives have already emerged in the MENA region, such as
Saudi Arabia's Regional Voluntary Carbon Market Company which will facilitate carbon credit
auctions, and the United Arab Emirates' regulated carbon credit trading exchange and clearing
house.
Moreover, Saudi Arabia’s GHG Crediting and Offsetting Mechanism (GCOM) is designed to
incentivize and promote GHG reduction and removal efforts. Usually, such Mechanisms allow
organizations or entities to earn credits from their emission reduction and/ or removal activities,
and these credits can be sold or traded to other entities to offset their own emissions.
Through establishing a competitive carbon market or incentivizing market players through an
offsetting and crediting Mechanism, CCUS technology can become a more economically viable
solution to reducing carbon emissions in the MENA region. This would not only create a more
sustainable future but also drive innovation and economic growth in the region.
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40
Part of CCERC is sharing knowledge of frameworks and regulations related to CCUS among
countries. To achieve this objective, a report has been created that outlines guiding principles for
carbon policies. The main objective of the report is to offer a summary overview of the regulatory
environment of CCUS, and its ability to contribute towards global and regional climate goals. By
analyzing the prospects and obstacles connected with CCUS regulations, the report intends to be
a valuable source of information for policymakers, investors, and industry stakeholders interested
in promoting sustainable development.
Moreover, another report on this topic has been published under the title “CCUS Regulatory and
Policy Landscape – A Global and MENA perspective”. It can be found on the IEF and CCE
Knowledge Hub websites.
9.4 Investment opportunities

CCUS is a capital-intensive technology, which means that it requires significant investment to be
viable. To make CCUS projects financially viable, it is essential to choose the most profitable
investment opportunities.
One of the most critical factors in selecting efficient investment opportunities for CCUS projects is
the proximity of hubs to industrial clusters. Hubs that are located near industrial clusters can reduce
transportation costs which makes projects financially more viable also for smaller market
participants. These hubs can capture larger CO₂ volumes by aggregating streams from various
emitters, which can also help to reduce costs.
Several potential hubs are being considered in the GCC region, taking into account their proximity
to industrial clusters and transportation costs. On the eastern and western coasts of Saudi Arabia,
the regions near Jubail and Yanbu have already been earmarked. CO₂ captured in these hubs can
be transported to Rub’al-Khali or Red Sea Basin aquifers for storage.
On the United Arab Emirates coast, the regions near Dubai and Abu Dhabi are the most likely to
develop hubs. CO₂ captured in these hubs could be transported to Rub’al-Khali or Oman Ophiolite
for storage. In northern Qatar, the region near Ras Laffan is the most suitable to develop a hub.
CO₂ captured in this hub could be transported to the Jubail hub or Rub’al-Khali for storage. The
southern and eastern regions of Qatar also have important industrial clusters that are suitable to
have a second hub.
In Northern Oman, it is also suitable to develop a hub. CO₂ captured in this hub can be transported
to the Oman Ophiolite, which has a storage capacity of 8.2 CO₂ Gt. (AFRY & GaffneyCline, 2022)
However, the storage efficiency of the Oman Ophiolite needs to be further assessed.
In Kuwait, the region near Shuaiba is the most suitable to develop a hub. The captured CO₂ can
also be transported to Qatar. Finally, in northeastern Bahrain, the regions near Hidd, Sitra, and
Askar are the most suitable to develop a hub. CO₂ captured in this hub can be transported to
Jubail.
The GCC region has several potential hubs that can be developed with careful planning and
investment, which will help to stimulate CCUS development and deployment within the MENA
region. CCERC helps with the development of these hubs by allowing stakeholders to capitalize
on the comparative advantages and accelerate CCUS deployment through the regional markets
and resources they share.
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41
10. Conclusion
Carbon capture, utilization, and storage (CCUS) is a critical technology to combat climate change,
especially in regions where hydrocarbon power demand is a significant contributor to greenhouse
gas emissions. Countries like the United States, China, India, the United Kingdom, and Saudi
Arabia have already set ambitions for the use of CCUS in their Nationally Determined
Contributions. CCUS technology is effective in removing heavy emissions from hard-to-abate
industries such as cement and steel production.
The economic feasibility of CCUS remains a critical factor in its widespread adoption. The high
cost of CCUS technologies can be attributed to various factors, including the complexity of the
technology, the high energy requirements, and the cost of building the necessary infrastructure.
The total costs across all the steps of the value chain could reach up to USD c.370 per ton of CO₂.
Nonetheless, the future expected cost of CCUS technologies is projected to decline significantly
due to several reasons, including technological advancements, economies of scale, and increased
competition. Achieving these cost reductions requires a significant focus on research and
development, demonstration projects, and government incentives. Moreover, carbon price
discovery mechanisms can encourage the use of CCUS technologies since it incentivizes market
players to reduce their emissions. Emissions trading schemes aim to incentivize industries to
reduce their emissions by allocating a price on greenhouse emissions. The revenue they generate
could also be used to finance CCUS technologies, especially research and development in the
sector.
Currently, there are 53 CCUS projects in operation with a total capture capacity of c.103 Mtpa. The
Americas are leading in the field of CCUS with the highest number of projects, followed by the
APAC region, Europe and MENA region. The CCUS industry is expected to experience significant
growth by 2030. The Americas region will continue to have a strong presence in the market, and
Europe is projected to see a notable increase in market share from 10% in 2022 to 38% in 2030.
The MENA region, Qatar, Saudi Arabia, the United Arab Emirates, and Iraq have current
operational CCUS projects. Those are the leading countries in terms of CCUS in the Middle East
due to investment by governments and major emitters. The MENA region is projected to have a
total of 13 operational CCUS projects by 2030, with most of them being planned in the oil and gas,
chemicals, and power generation sector. In addition, there is an expected shift in capacity towards
large-scale projects due to the maturation of CCUS technologies over the years. Furthermore, the
MENA region has a significant potential for CCUS deployment to reduce emissions from hard-to-
abate sectors.
The results of our analysis demonstrate that there is a significant gap between the potential market
and actual capture market projections. The gap represents the potential for further CCUS
deployment in the MENA region and beyond. The results showed that only 1.5% of the potential
market will be captured by 2030 with the operational and planned capacity, indicating the possibility
for significant investment in CCUS projects in the region. Therefore, to ensure CCUS projects will
be deployed, the region must collaborate. This highlights the role of the CCE Regional
Collaboration.
____________________________________________________________________________
42
The CCERC ensures technical knowledge building within the MENA region and makes information
more accessible to countries in earlier stages of CCUS adoption. Furthermore, human capital
building is an important part of CCERC. The platform bridges the gap between theory and practice
by fostering partnerships between academia and industry through providing training about CCUS.
It also provides individuals with valuable hands-on experience. Moreover, as part of CCERC a
policy report was set up which aims to be a useful resource for decision-makers, investors, and
industry stakeholders. The main objective of the report was to offer a complete overview of the
regulatory environment of CCUS. The policy report outlined guiding principles for carbon policies
which can support countries to set up their own policy. Finally, it is important that the most efficient
investment opportunities are chosen. CCERC brings all stakeholders together which makes it
easier to collaborate and develop efficient CCUS hubs in the MENA region.
In conclusion, accelerating investments in CCUS is crucial for reducing emissions, mitigating

climate risks, and contributing to the attainment of global climate objectives and sustainable
development goals in the MENA region and globally. While there are current economic and
technological challenges to the widespread adoption of CCUS, continued advancement in the
sector is expected to further increase its adoption in the future.
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43
11. References
AFRY & GaffneyCline. (2022, January), CCUS deployment challenges and opportunities for the
GCC. https://www.ogci.com/wp-content/uploads/2022/03/Gulf-CCUS-challenges-and-
opportunities-Mar-2022-vf_compresed.pdf
Ghilotti, D. (2023, February 15). US leads the way as global carbon capture funding tops $6
billion. Upstream Online. https://www.upstreamonline.com/energy-transition/us-leads-the-
way-as-global-carbon-capture-funding-tops-6-billion/2-1-1404632
International Energy Agency. (2021, May). Net Zero by 2050: A Roadmap for the Global Energy
Sector. https://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-
10b13d840027/NetZeroby2050-ARoadmapfortheGlobalEnergySector_CORR.pdf
International Energy Agency. (2021, September). An energy sector roadmap to carbon neutrality
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china
Lienard, C. (2022, April 28). Mitigating Climate Change in the MENA: Shifting to a New
Paradigm. Brussels International Center. https://www.bic-rhr.com/research/mitigating-
climate-change-mena-shifting-new-paradigm
Masdar. (n.d.). Al Dhafra Solar PV. https://masdar.ae/Masdar-Clean-Energy/Projects/Al-Dhafra-
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PV#:~:text=Once%20operational%2C%20the%20Al%20Dhafra,tonnes%20of%20carbon
%20dioxide%20annually
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%20emissions,clean%20energy%20to%20disadvantaged%20communities
Nihal, M. (2021, << 5). Saudi Green Initiative: all you need to know about kingdom's net-zero
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initiative-everything-you-need-to-know-about-plan-to-plant-50-billion-trees-1.1194931
UAE Energy Strategy 2050. (2022, November 24). UAE Ministry of Energy. https://u.ae/en/about-
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0was%20achieved
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Appendix A
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45
Appendix B
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46
____________________________________________________________________________
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Market Assessment For CCUS in MENA Region

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3.2 Overview of climate ambitions globally and in the MENA region

Figure 1: Technology overview of carbon capture, utilization, and storage

Carbone capture, utilization and storage

Source: Global CCS Institute (2021), Roland Berger

CO2-EOR • Enhanced oil recovery (EOR) Partly considered as permanent , as some

Biological • Seaweed farming Depending on end-application

Source: Global CCS Institute (2021), Roland Berger

4.3 CCUS cost assessment

Figure 4: Overview of costs of CCUS

Source: IEAGHG, Global CCS Institute, expert interviews, Roland Berger

Figure 5: Levelized carbon costs

Levelized carbon capture cost ranges(USD/t CO2)

Cement 60-125 • No exact price points disclosed in the public

Source: IEA, CCS Institute, Roland Berger

Figure 7: Storage costs of CCUS

Geological storage cost comparison1) (USD/t CO2, 2019)

SA NL • Storage in depleted oil and

Source: Zero emissions platform (2019), Global CCS Institute

5. Potential of CCUS to contribute to emission reduction in the

5.2 CCUS contribution to emission reduction in the MENA region

Figure 9: Analysis of CCUS potential

6.1 Overview of current CCUS projects

Figure 10: Overview of global operational CCUS projects

Share of CCUS projects by region1)

58% 18% 12% 12%

Americas APAC Europe MENA

Share of CCUS projects by capacity2)

46% 24% 29% 2%

<0.5 Mtpa 0.5-1 Mtpa 1-5 Mtpa >5 Mtpa

Energy generation 3) Industry 4) DAC

Source: IEA CCUS database, Roland Berger

Source: IEA, Technavio, desk research, Roland Berger

Energy generation – Natural

Labarge Shute Creek Gas Processing Energy generation – Natural

Energy generation – Natural

Energy generation – Power

A case study is provided in Appendix A

Source: IEA, desk research, Roland Berger

6.2 Overview of future CCUS projects

Figure 13: Overview of global planned CCUS projects

Non-exhaustive Key indicators

Share of CCUS projects by region1)

43% 40% 14% 3%

Americas Europe APAC MENA

40% 17% 40% 3%

<0.5 Mtpa 0.5-1 Mtpa 1-5 Mtpa >5 Mtpa

Source: IEA CCUS database, Roland Berger

Europe 13% 15% 18%

Americas Canada Plans to develop –

Europe Norway Plans to develop –

2023 2024 2025 APAC Australia Plans to develop –

Source: IEA, Technavio, desk research, Roland Berger

Oil Sands CCUS Pathways to Net Zero Energy generation – Other

5 Hynet Northwest phase 2 Energy generation – Dedicated storage 8.1

ExxonMobil Baytown petrochemical Energy generation – Other

Energy generation – Power

Energy generation – Natural

Source: IEA, desk research, Roland Berger