Why CCUS Is Critical for Heavy Industries to Decarbonize

Carbon capture, utilization and storage (CCUS) is a set of technologies designed to reduce carbon dioxide (CO2) emissions from industries that produce much of it, like steel, cement and chemicals. CCUS is important because it helps heavy industries lower their greenhouse gas emissions, making them more sustainable while still meeting the global demand for essential products.

Many challenges to carbon capture in industrial processes exist. From meeting environmental goals to responding to consumer demands for sustainability, implementing CCUS technologies is a key step toward a greener future for various heavy industries. Learn more about why CCUS is critical for heavy industries to decarbonize.

How Carbon Capture Works in Heavy Industries

Carbon capture plays a major role in the energy transition for heavy industries, even though it’s only the first step in the CCUS process. The CO2 originates from various industrial sources:

• Fossil fuel combustion
• Cement production
• Steel manufacturing
• Chemical production
• Oil and gas processing
• Waste management and landfills
• Biomass energy production

Here’s how CCUS works, broken down into three main steps.

1. Capture

Three primary carbon capture methods are used in heavy industries. These include:

1. Post-combustion: This process captures CO2 from the exhaust gases after fuel is burned. Using various technologies, it separates CO2 from other gases, allowing for high capture efficiencies.
2. Pre-combustion: This method converts fuel into a mix of hydrogen and CO2 before combustion. The CO2 is removed and compressed for storage, while the hydrogen can be burned without producing additional emissions.
3. Oxy-fuel combustion: This technique burns fossil fuels in pure oxygen instead of air, producing a flue gas that is mostly CO2 and water vapor, making CO2 capture easier and more efficient.

2. Utilization

Once captured, CO2 can be converted into valuable products such as chemicals, fuels and building materials. This process reduces waste while creating a market for captured CO2. 

3. Storage

Any CO2 that remains unused is injected into deep geological formations — onshore or offshore — for permanent storage. Suitable sites include:

• Depleted oil and gas reservoirs.
• Saline aquifers.
• Unminable coal beds.

Concerns about CO2 leakage can be mitigated through proper site selection and management.

Challenges of Decarbonization in Heavy Industries 

Decarbonization presents several significant challenges in heavy industries, including the following:

• Technical challenges: Many industrial processes inherently produce CO2 emissions that are challenging to avoid. For example, when limestone is heated, cement production releases CO2 during the calcination process. Steelmaking generates emissions from both fuel combustion and chemical reactions. Heavy industries also require very high temperatures for their processes, which are typically achieved by burning fossil fuels. The reliance on fossil fuels complicates efforts to decarbonize.
• Economic barriers: Implementing CCUS technologies can be expensive. Many heavy industries operate on thin margins, making securing the necessary capital for large-scale CCUS projects challenging. Additionally, heavy industries often operate with long-lived capital assets, which means retiring or retrofitting these assets to adopt new technologies can incur major costs.
• Regulatory and policy hurdles: The lack of harmonized regulations across countries can hinder the deployment of CCUS technologies. Companies face uncertainty regarding compliance and potential penalties, which may impact investment decisions. Carbon pricing policies also affect the viability of CCUS. If carbon prices are too low, companies may have insufficient financial incentives to invest in carbon capture technologies.
• High demand for products: Despite the need to decarbonize, global demand for steel, cement and chemicals complicates efforts to reduce emissions while maintaining production levels. In some regions, heavy industries face challenges related to high water consumption and energy-intensive processes often powered by fossil fuels.

Benefits of Implementing CCUS 

Implementing CCUS offers numerous advantages for the broader economy. Here are some benefits of carbon capture for heavy industry organizations:

• Significant emissions reduction: CCUS can potentially reduce industrial emissions for traditionally hard-to-decarbonize industries. This reduction is vital for meeting climate targets and mitigating the impacts of climate change.
• Economic opportunities: Adopting CCUS can spur the creation of new markets and job opportunities in carbon management and related technology sectors. It includes direct job creation in the CCUS field and protecting existing jobs in industries reliant on carbon capture technologies.
• Enhanced sustainability credentials: Companies implementing CCUS can enhance their sustainability ratings, appealing to environmentally conscious investors and consumers. Improved sustainability credentials lead to increased market competitiveness and customer loyalty.
• Long-term viability: CCUS serves as a bridge technology that enables heavy industries to transition toward net-zero emissions goals while maintaining their market competitiveness. When companies integrate CCUS into their operations, they can continue to produce essential materials while significantly lowering their carbon footprint.
• Partnership opportunities: The CCUS ecosystem presents numerous opportunities for collaboration among technology providers, research institutions and government entities. Networking within this ecosystem facilitates shared knowledge, best practices and innovations, helping to accelerate the deployment of CCUS technologies.

Challenges and Solutions for Implementing CCUS

Let’s take a look at some of the key challenges and various viable solutions to address these hurdles.

Technological Innovation

Many CCUS technologies are still in the early stages of development or require further refinement to become commercially viable. These solutions include improving capture efficiency and reducing costs. 

CCUS is most effective when integrated into existing industrial systems, allowing industries to capture emissions from their processes while continuing to operate. This integration enables heavy industries to tackle emissions that are difficult to eliminate through electrification or renewables alone. However, retrofitting existing industrial facilities with CCUS technology can be complex and costly, as it often requires significant modification to current processes.

Solutions to these challenges may include:

• Increase investment in research and development (R&D) from both public and private sectors to accelerate the development of more efficient and cost-effective CCUS technologies.
• Establish pilot projects to test new technologies in real-world conditions to provide valuable data and insights that can be scaled up for broader implementation.
• Encourage collaboration between different industries to share best practices and technological advancements.

Collaborative Efforts

CCUS requires a skilled workforce with expertise in new technologies, engineering and environmental science. However, the CCUS landscape can be fragmented, with various stakeholders working independently, which can lead to inefficiencies and missed opportunities.

These challenges can be addressed with the following solutions:

• Form coalitions of stakeholders to facilitate knowledge sharing, resource pooling and coordinated efforts toward CCUS implementations.
• Governments should work closely with industries to develop clear regulations and standards for CCUS technologies, which would create a more predictable investment environment.
• Partner with global expert engineering, procurement and construction (EPCM) service providers with experience in different scopes of work to help facilitate CCUS projects.

Reduce Your Carbon Emissions With Gulf Companies

Gulf Companies has a long history of energy innovation and service for energy transmission. We are proud to support our clients by helping them implement new approaches to reduce their carbon emissions. Our carbon management service supports you in achieving your sustainability targets and net-zero goals by implementing effective CCUS strategies. This alignment enhances your corporate reputation while optimizing your carbon reduction efforts.

Contact us today, and let us help you achieve sustainability goals for your next project.