The global industry is increasingly valuing carbon capture and storage(CCS)projects,and related technologies are considered key to reducing high pollution emissions without reducing production.Many countries are currently increasing the deployment of related projects,striving to guide investment and industrial development transformation.
Canada signed its first agreement to support future carbon prices last week,which will help bring price certainty to businesses seeking investment in carbon capture and storage projects.The Canadian government established the Growth Fund(CGF)last year to attract private investment in clean technology by reducing financing risks.The fund stated in a statement that it will invest CAD 200 million in Entropy,a carbon capture and storage developer.
The UK government has recently released a policy outline called”Carbon Capture,Utilization,and Storage(CCUS)Vision”,encouraging UK companies to compete to build carbon capture and storage facilities and sell their services to the world.According to a communique released by the UK government,the policy aims to sequester 200000 to 30 million tons of carbon dioxide annually by 2030 and provide 50000 job opportunities by 2030,driving up to£20 billion in investment.
The United States is using the Internal Revenue Act to increase tax credits for carbon dioxide storage.The Inflation Reduction Act announced in 2022 further strengthens tax credits,provides high subsidies for direct air capture(DAC)projects,extends project application deadlines,lowers project entry barriers,and accelerates the deployment of carbon capture,utilization,and storage projects in the United States.
The Energy Transition Outlook released by Wood McKenzie points out that 2023 is a milestone year for CCUS.Government policies of various countries play an important role in the economic viability of CCUS projects.The report states that there will be a series of mergers and acquisitions in the CCUS field in 2023,and industry leaders will continue to seek a first mover advantage.