Higher carbon prices give boost to industrial CCS

Improved financial incentives are spurring investment in CCS in industry, although challenges remain in sectors such as steel and cement

The CCS project landscape remains dominated by natural gas processing applications, but greater policy support and rising carbon prices mean there is a pipeline of projects in the ‘hard to abate’ sectors, such as cement and steel, according to Gulf Energy Information. “Most CCS projects and the overwhelming majority of the capture capacity associated with those projects is related to natural gas processing—projects such as Melkoya in Norway and Gorgon CCS in Australia, for example,” GEI analyst Seth Haskell said at Carbon Economist’s CCS Strategy Europe event in June.   The CO₂ captured by natural gas processing projects is most often used for enhanced oil recovery (EOR), rather than being s