Retrofitting CCUS technologies to existing industrial infrastructure is crucial to achieving net-zero by 2050

As companies across the world are looking for solutions to reduce their carbon footprint, new business models such as carbon capture as a service will gain prominence as they can be retrofitted into existing industrial plants.

In a world where climate change is increasingly influenced by industrial emissions, decarbonizing the industrial sector becomes the immediate priority to phase out CO2 emissions from the use of fossil fuels. Against this backdrop, retrofitting carbon capture, utilization and storage (CCUS) technologies to existing industrial infrastructure will become crucial to reaching net-zero by 2050, according to Globaldata.

According to industry experts, technologies are set to play an important role in supporting clean energy transitions within the petrochemical industry. Carbon capture technologies provide solutions for heavy industry that are cost-competitive, readily scalable and secure, and they can help the region to meet its growing power needs while limiting emissions.

Industry insiders predict the hub approach can enable CO2 capture from multiple industrial and power facilities and promote

greater efficiencies in the planning and construction of capital-intensive transport and storage infrastructure. Separating capture from the transport and storage elements of the CCUS supply chain can also facilitate dedicated business models for transport and storage, recognising that the specific skills and expertise needed for large-scale carbon management may not be available in most emissionsintensive sectors.

A growing number of popular companies across major CO2 emitting industries, such as energy & utilities, steel, and transportation, have announced their decarbonisation commitments, Globaldata’s Disruptor Intelligence Centre has observed.

“Big companies are rushing to acknowledge the importance of decarbonizing their operations to create long-term value in an emerging low-carbon economy,” says Kiran Raj, Principal Disruptive Tech Analyst at Globaldata.

“However, several Fortune 500 companies are yet to announce their net-zero goals. Several companies, primarily start-ups, are offering decarbonisation solutions revolving around CCUS, renewable power generation, electrification, energy efficiency, and hydrogen production and storage to accelerate net zero efforts.”

Echoing similar sentiments, Vaibhav Gundre, Senior Disruptive Tech Analyst at Globaldata says, “While oil supermajors such as Shell and steel tycoons like Arcelormittal are targeting to achieve net-zero by 2050, automotive giants such as Toyota are aiming to be carbon neutral by the same timeline.”

“Interestingly, tech titans such as Google, which have been carbon neutral since 2007, set their eyes on an even more ambitious target of running 24/7 on carbon-free energy.”

According to Globdata, Shell plans to achieve net-zero emissions in its energy business by 2050 in line with the Paris Agreement on climate change. It aims to build the Polaris CCS project in Canada with a capacity to store 300 million tonnes of carbon over its lifetime, and capture emissions from Shell’s Scotford refinery and chemical plant.

Similarly, Arcelormittal, the world’s largest steelmaker, also plans to become net-zero by 2050 by capitalizing on climate-friendly policies in Europe. In December 2021, the company’s Xcarb Innovation Fund made its fourth investment worth $30 million in CCUS specialist Lanzatech to leverage its technology for the company’s Carbalyst Plant in Belgium.

“Industrial decarbonisation will gain momentum as companies respond to growing pressure from regulators, investors, and stakeholders to decarbonize their operations,” says Gundre while adding,

“New business models such as carbon capture as a service will gain prominence as they can be retrofitted into existing industrial plants and thereby save infrastructure replacement costs. Such efficient technologies supported by smart policies and robust investments can aid to achieve net-zero by 2050.”

Technologies are set to play an important role in supporting clean energy transitions.