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Energy Transition

Steel remains one of the most carbon-intensive industries

Sustainable technologies are attracting unprecedented attention across sectors, particularly as the global shift toward net zero intensifies.

From the increasing use of low-carbon hydrogen in industries like green steel to the development of alternative fuels and renewable energy solutions, companies are actively seeking viable pathways to decarbonise.

IDTechEx’s Energy & Decarbonisation and Sustainability Research Reports provide in-depth coverage of these trends, exploring cutting-edge technologies and their impact on various markets.

The steel industry’s role in emissions

Steel remains one of the most carbon-intensive industries, and demand continues to rise due to global population growth, accelerating industrialisation, the AI-driven expansion of data centres, and the rollout of renewable energy infrastructure. As a result, efforts to decarbonise steelmaking have become critical.

The traditional blast furnace route, still the dominant method for crude steel production, emits roughly 2.3 tonnes of CO₂ per tonne of steel produced. This poses significant sustainability challenges and is pushing regulators to tighten emissions controls and promote low-carbon alternatives.

Electric arc furnaces (EAFs), often used in steel recycling, offer a cleaner alternative. When powered by renewable electricity, EAFs can enable near-zero-emission steel production. This method is already in use and forms the backbone of green steel projects. When paired with direct reduced iron (DRI) technology, hydrogen can be used as a reducing agent instead of fossil fuels. IDTechEx’s report Green Steel 2025–2035 explores these technologies in detail, outlining their benefits, challenges and commercial potential.

Hydrogen as a low-emissions alternative

Green hydrogen, produced via water electrolysis using renewable energy, is emerging as a viable low-carbon energy carrier. It is particularly suited to sectors where electrification is difficult or inefficient. Companies already using hydrogen in industrial processes, such as chemical manufacturers, fertiliser producers and refineries, are expected to lead the early adoption of green hydrogen, given the relatively minor adjustments required to existing infrastructure.

Heavy industries such as steel and long-haul transportation are likely to be major consumers of green hydrogen up to 2040. Hydrogen fuel cells are gaining traction due to their faster refuelling times and longer range compared to batteries. In these cases, green hydrogen provides a sustainable energy source that aligns with decarbonisation goals.

Beyond 2040, green hydrogen is expected to play a growing role in power generation, aviation, and long-duration energy storage, though cost remains a key barrier. Progress in water electrolyser technologies will be crucial to scaling green hydrogen. Advances in component innovation and reduced dependence on critical raw materials will help drive adoption. IDTechEx’s report Materials for Green Hydrogen Production 2026–2036 covers the key technologies and suppliers supporting this evolution.

Green energy technologies rely heavily on advanced materials. Composite materials like carbon fibre offer the strength and lightweight properties needed for efficiency and durability. However, their own production processes can be energy-intensive and difficult to decarbonise.

Also read: Advanced tracer technology for CCS monitoring

 

ANRPC personnel. (Image source: ANRPC)

Mitsubishi Power has completed a groundbreaking hydrogen fuel conversion project at the Alexandria National Refining and Petrochemicals Company (ANRPC) refinery in Egypt, the first industrial application of hydrogen use as fuel in an industrial boiler in Egypt and the MENA region, according to the company

Mitsubishi Power carried out the design, engineering, supply and installation of the equipment and control systems to rehabilitate and upgrade a 100-ton-per-hour main boiler, converting it from heavy fuel oil and natural gas to a 100% hydrogen fuel. The project also contributed to the utilisation of 14,000 tons per year of hydrogen-rich gases available in the production units, reducing natural gas consumption by around 24,000 tons and contributing to a reduction of carbon emissions by approximately 65,000 tons per year.

This project marks a significant step forward in Egypt's energy transition and decarbonisation goals, as well as its aim to become a leader in the global hydrogen economy, while highlighting the potential of hydrogen as a clean energy source in Egypt’s industrial sector.

Mitsubishi Power's expertise in providing cutting-edge hydrogen technology solutions, combined with ANRPC's operational leadership, contributed to the project's success, in a model that it is hoped can be replicated to drive forward further hydrogen adoption across Egypt and the MENA region.

Sayed Al-Rawi, chairman and managing director of ANRPC, said, "We are proud to be part of Egypt's journey towards a clean energy future and to contribute to achieving Egypt Vision 2030 with this pioneering milestone to using hydrogen as a fuel. This project represents an unprecedented achievement for ANRPC, Egypt, and the entire region. By integrating hydrogen into refining processes, we are contributing to reduce Egypt's carbon footprint and set a new standard for the country's industrial sector.”

Javier Cavada, president and CEO, Europe, Middle East and Africa at Mitsubishi Power, added, "The success of this first-of-a-kind hydrogen conversion project marks a milestone in Egypt's transition to clean energy and reflects Mitsubishi Power's global leadership in developing advanced, low-carbon power generation technologies. This project will lay down the foundation to a commercial path for decarbonizing Egypt's industrial facilities with minimal downtime, in addition to demonstrating the tangible and positive impact of hydrogen in reducing emissions and developing sustainable energy solutions."

Global carbon capture capacity. (Image source: GlobalData)

Oil and gas companies are playing a leading role in the development of carbon capture, utilisation, and storage (CCUS) according to a new report from GlobalData

CCUS is widely gaining credence as an important energy transition strategy, given its potential to decarbonise hard-to-abate sectors such as cement, steel, refining, and thermal power generation.

As of 2024, more than 70% of the operational and planned CCUS facilities were associated with energy assets, according to the GlobalData’s Strategic Intelligence report, “Carbon Capture and Storage", indicating a growing commitment by the energy sector to reduce its emissions intensity through innovation in carbon capture and storage technologies. The global energy sector accounted for more than 50 commercial-scale carbon capture projects as of 2024, representing a cumulative carbon capture capacity of approximately 45 million tonnes per annum (MTPA). If all the proposed projects come to fruition, the global carbon capture capacity in the energy sector could rise to nearly 316 MTPA by 2030.

Leading oil and gas players such as ExxonMobil, Occidental Petroleum, and Equinor have taken early initiatives in CCUS, supported by engineering and service companies like Technip Energies, Mitsubishi Heavy Industries (MHI), and SLB. These firms are leveraging their expertise in industrial-scale project delivery to develop and execute carbon capture strategies across upstream and downstream operations. For example, Shell Catalysts & Technologies has signed an agreement with Technip Energies to deliver a post-combustion amine-based carbon catpure solution using Shell's CANSOLV CO2 capture system, designed to make carbon capture more investable, scalable and accessible for industrial sectors and helping hard-to-abate industries to decarbonise.

According to GlobalData’s report, there are 17 carbon capture projects in advanced stages of development that are expected to begin operations later this year. Additionally, around 460 capture projects are under development globally across diverse industries, which will lead to significant capacity growth through 2030.

Middle East CCUS leadership

The Middle East is emerging as a major region for CCUS development. The UAE’s ADNOC operates Al Reyadah, the world’s first commercial scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tonnes a year. Further projects are planned and underway such as Habshan, which will have a capture and storage capacity of 1.5MTPA and is set for completion in 2026. CO2 will be injected and placed for permanent storage in ADNOC Onshore’s Bab Far North Field, southwest of Abu Dhabi. ADNOC aims to capture and store 10MTPA of CO2 by 2030. Meanwhile while Aramco has a target of 14 MTPA by 2035, and is developing a major 9MTPA carbon capture hub at Jubail with SLB and Linde, set to be one of the largest in the world.

Ravindra Puranik, Oil and Gas analyst at GlobalData, commented, “Unlike consumer-driven clean energy trends, CCUS adoption is largely influenced by regulatory and economic frameworks, with limited visibility to end users. Policies such as the EU Emissions Trading System (ETS), Canada’s carbon pricing mechanism, and the US 45Q tax credit have been instrumental in unlocking commercial opportunities for CCUS. These frameworks have helped offset the high capital and operational costs of CCUS deployment, particularly in energy-intensive industries, and are driving the emergence of large-scale projects globally.”

Puranik noted however that CCUS still faces a range of challenges that threaten to hamper its scale-up, such as high upfront costs, the lack of fully developed CO₂ transport and storage infrastructure, and limited commercial applications for captured CO₂. Retrofitting existing facilities often adds further complexity, making project economics difficult without consistent policy support.

“Additionally, regulatory uncertainty around permitting processes, cross-border CO₂ transport, and long-term liability for stored carbon continues to pose risks for investors. Public scepticism also persists, with some critics viewing CCUS as a strategy to extend the life of fossil fuels rather than as a legitimate tool for emissions reduction. The absence of standardisation and the fragmented nature of the CCUS value chain further limit the ability to implement integrated, scalable solutions.”

The UAE has launched its first initiative to inject CO₂ into deep saline aquifers for permanent geological sequestration.

Sven Kristian Hartvig, chief technology officer, RESMAN Energy Technology explains how the company’s advanced tracer technology is being used for CCS monitoring in Abu Dhabi’s saline aquifers

The UAE has launched its first initiative to inject CO₂ into deep saline aquifers for permanent geological sequestration. This inaugural industrial-scale Carbon Capture and Storage (CCS) project involves storing captured CO₂ emissions in deep saline aquifers, leveraging a geological solution suited to the region’s unique subsurface characteristics. One of the central innovations lies in its leak-detection capabilities, integrating RESMAN’s chemical tracer technology deployed for the first time in the UAE to monitor storage integrity and swiftly pinpoint any leaks.

A comprehensive monitoring framework with Measurement, Monitoring and Verification (MMV) capabilities provides the sensitivity, diagnostic capability, and economic viability required for large-scale CCS deployment. The system is built to last—operational for 30 years post-injection, covering every phase from active storage to long-term verification, delivering real-time insights to verify caprock integrity, quantify leaks, and trace their sources.

The monitoring solution

The monitoring solution centers on RESMAN’s High Integrity Detection System (HIDS), deployed across a network of shallow soil sampling boreholes surrounding the injection site. The system’s defining technical characteristic is its 0.1 parts per trillion (ppt) tracer detection threshold for CO₂ leakage events, enabled by capillary adsorption tubes (CAT) that undergo scheduled retrieval and laboratory analysis.

Tracer monitoring delivers multi-layered verification of storage integrity through three core functions. Continuous surface soil monitoring assesses caprock integrity and simultaneously verifying integrity of legacy wells for leaks to the atmosphere. During post-injection phases, the system maintains active surveillance of stored CO2 utilising the same principles. Advanced diagnostics provide precise leakage quantification and source identification, particularly crucial for multi-injector configurations, where determining CO₂ migration origins is essential.

Shallow boreholes positioned near injection wells monitor any effects the CO₂ injection might have on the geological structure, through surface gas and tracer detection across all operational phases. Radially distributed soil monitoring arrays track potential caprock breaches, with diagnostic algorithms distinguishing between multiple potential leakage sources. The 30-year monitoring protocol spans active injection through post-operational stewardship.

Implementation involves scheduled tracer injection into the CO₂ stream with periodic CAT sample retrieval for laboratory analysis. The system's integrated architecture correlates surface measurements with downhole data, providing leak quantification and source identification capabilities that surpass conventional pressure-based monitoring methods.

The system’s 0.1 ppt tracer detection sensitivity permits early identification of containment breaches at scales previously undetectable. Economic efficiency is achieved through optimized tracer volumes that reduce material requirements without compromising monitoring fidelity. The technology’s eighteen-year track record in continuous monitoring applications demonstrates long-term reliability under field conditions. These attributes collectively ensure compliance with stringent MMV requirements for industrial-scale CCS deployments.

Project implications

This initiative establishes several important technical precedents for regional CCS development. It demonstrates the viability of saline aquifers as secure storage reservoirs while providing a practical template for long-term MMV framework implementation. The cost-efficiency of the monitoring solution addresses a key barrier to CCS scalability in the Middle East. Furthermore, the project’s thirty-year monitoring horizon sets a benchmark for stewardship accountability in geological carbon storage.

This article is based on two recently published scientific papers:
SPE-222348-MS: Chemical Tracer for Soil CCS Monitoring Application: Monitoring CO2 Storage in Saline Aquifers Using Advanced Chemical Tracer and Detection Technology
SPE222367 -MS: Falaha CCS Project - Pioneering Low Carbon Solutions with CO2 Sequestration in Deep Carbonate Saline Aquifers

RESMAN delivers proven tracer-based MMV technology for CCS projects, with over 18 years of continuous carbon storage monitoring experience. For more information, please visit www.resmanenergy.com 

 

CCS capacity is forecast to grow strongly.

Carbon capture and storage capacity is forecast to quadruple by 2030, and the Middle East has ‘significant CCS ambition’, according to a new report from DNV

Cumulative investment in carbon capture and storage (CCS) is expected to reach US$80bn over the next five years, according to DNV’s Energy Transition Outlook: CCS to 2050 report.
Up to now, growth has been limited and largely associated with pilot projects, but a sharp increase in capacity in the project pipeline indicates that CCS is at a turning point. CCS will grow from 41 MtCO2/yr captured and stored today to 1,300 MtCO2/yr in 2050, which will be 6% of global emissions, DNV forecasts.

The immediate rise in capacity is being driven by short-term scale up in North America and Europe, with natural gas processing still the main application for the technology. Europe is moving projects forward amidst tightening emissions regulations and developers are advancing in the US, taking advantage of the established 45Q tax credit. Hard to abate industries such as steel and cement production are forecast to be the main driver of growth from 2030 onwards, accounting for 41% of annual CO2 captured by mid-century. Maritime onboard capture is expected to scale from the 2040s in parts of the global shipping fleet.

As the technologies mature and scale, the average costs will drop by an average of 40% by 2050.

Ditlev Engel, CEO, Energy Systems at DNV said “Carbon capture and storage technologies are a necessity for ensuring that CO2 emitted by fossil-fuel combustion is stopped from reaching the atmosphere and for keeping the goals of the Paris Agreement alive. DNV’s first Energy Transition Outlook: CCS to 2050 report clearly shows that we are at a turning point in the development of this crucial technology.

“The biggest barrier to the very much needed acceleration of CCS deployment is policy uncertainty. Policy shifts, not technology or costs, have been responsible for many CCS project failures. However, policy support for CCS is firming across most world regions.”

Recent turmoil and budgetary pressure in the global economy pose risks to CCS deployment, potentially shifting priorities and removing necessary finance needed.

Jamie Burrows, Global Segment Lead CCUS, Energy Systems at DNV said “CCS is entering a pivotal decade and the scale of ambition and investment must increase dramatically. It remains essential for hard-to-decarbonise sectors like cement, steel, chemicals, and maritime transport. But as DNV’s report shows, delays in reducing carbon dioxide emissions will place an even greater burden on carbon dioxide removal technologies. To stay within climate targets, we must accelerate the deployment of all carbon management solutions -from industrial capture to nature-based removal - starting today."

Middle East developments

DNV notes that the Middle East is home to three operational CCS projects and six under construction. Operating facilities include the Al Reyadah steel plant in the UAE, Qatar's Ras Laffan LNG Facility, and Saudi Arabia's Uthmaniyah gas processing plant.

The world’s largest CO2 utilisation facility, United Jubail Petrochemical, is also in Saudi Arabia. The facility converts 0.5 MtCO2/yr into feedstock for chemical processes.

The main focus of regional CCS development has evolved from EOR to decarbonising energy and the production of low-carbon fuels. The UAE's Long Term Strategy highlights CCS as crucial for industrial sector decarbonisation, targeting 43.5 MtCO2/yr capacity by 2050. ADNOC aims for 10 MtCO2/yr captured by 2030 and net-zero operations by 2045. ADNOC's Habshan and Ghasha Concession projects, each with capacity of 1.5 MtCO2/yr, are currently under construction.

Saudi Arabia aims to capture and store 44 MtCO2/ yr by 2035 and launched a domestic carbon crediting scheme in 2024. A CCS hub is under construction at Jubail, which will store 9 MtCO2/yr by 2027 from natural gas processing and industrial sources in an onshore saline aquifer.

Oman aims to utilise its pipeline infrastructure for hydrogen and CO2 transport in new CCS and EOR projects.

Direct air capture (DAC) projects are emerging in Saudi Arabia, the UAE, and Oman, often combined with CO2 mineralisation or sustainable aviation fuel production.

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