The global climate crisis has entered a critical phase where mitigation strategies have become imperative for sustainable development. This paper examines the pivotal role of Carbon dioxide Capture and Storage (CCS) technology in achieving carbon neutrality by 2050, following the IPCC’s Sixth Assessment Report that conclusively attributes global warming to human activities. CCS technology represents a vital mitigation strategy, especially for hard-to-abate sectors such as steel and cement production where it may be the only viable decarbonization option. The International Energy Agency projects CCS will contribute to 7.6 billion tonnes of CO2 reduction annually by 2050, requiring a 190-fold increase from current implementation levels. Despite utilizing technologies developed in the petroleum industry, CCS differs fundamentally in its purpose and approach to geological formations, valuing reservoirs as secure storage containers rather than extraction targets. Property variations of CO2 under different temperature and pressure conditions within storage reservoirs present unique technical challenges that distinguish CCS operations from conventional petroleum development.
Various implementation models have emerged globally, shaped by different policy approaches. The technology-push approach exemplified by the U.S. 45Q tax credit system has enabled diverse market participants, including smaller local companies, to establish independent CCS operations. Meanwhile, Europe’s market-pull approach, driven by carbon pricing mechanisms, has fostered service-oriented businesses where major oil companies provide integrated CO2 transportation and storage services. Japan’s unique collaborative approach features manufacturing companies, power utilities, oil companies, trading firms, and engineering companies working together under the recently enacted CCS Business Act (2024), which establishes a comprehensive legal framework addressing liability allocation and long-term management structures. The paper concludes that CCS will fundamentally transform the fossil fuel industry’s value proposition, with future energy markets valuing processing efficiency and carbon management capabilities as critical competitive factors rather than traditional calorific values.
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