CCUS: Industrial Decarbonization's Critical Tool

Carbon Capture, Utilization, and Storage (CCUS) has transitioned from pilot programs to commercial deployment. For cement, steel, and chemicals—sectors where electrification faces fundamental constraints—CCUS represents the only viable pathway to net zero.

Technology Readiness

Post-combustion capture now achieves 90%+ capture rates at costs below $60/ton CO₂ in optimal configurations. Key developments:

Capture Technologies

• Amine-based Systems – Mature, proven, but energy-intensive
• Direct Air Capture (DAC) – Early stage but rapidly scaling; costs fell 40% in 2024
• Calcium Looping – Emerging technology for cement kilns with integrated heat recovery

Storage & Utilization

• Geological Storage – Depleted oil/gas fields and saline formations offer multi-gigaton capacity
• Enhanced Oil Recovery (EOR) – Economic incentive but faces ESG scrutiny
• Concrete Curing – Permanent mineralization in building materials

Economic Drivers

The 45Q tax credit in the US now provides $85/ton for geological storage and $60/ton for EOR, fundamentally changing project economics. Combined with carbon border adjustments in Europe, capture is becoming cost-competitive.

Case Study: Midwest Cement Plant

A 500k ton/year cement plant integrated calcium looping:

• CAPEX: $120M (30% grant-funded)
• Operating Cost: $45/ton CO₂
• Revenue: 45Q credits + green premium on low-carbon cement
• IRR: 14% equity return

Infrastructure Build-Out

The challenge shifts from technology to logistics:

• Pipeline Networks – Shared CO₂ trunk lines reduce per-project costs
• Hub Models – Industrial clusters sharing capture and storage infrastructure
• Offshore Storage – North Sea and Gulf of Mexico emerging as international storage hubs

Board-Level Priorities

1. Regulatory Certainty – Secure long-term credit visibility; advocate for durable policy
2. Pore Space Rights – Lock down subsurface storage rights early; competition intensifying
3. Liability Frameworks – Understand long-term monitoring and liability transfer mechanisms
4. Partnership Strategy – Join consortia to de-risk pilot-scale deployment

CCUS is not a silver bullet, but for heavy industry, it is the only bullet. Organizations that build CCUS competency now will lead their sectors' decarbonization narratives.