Wood Mackenzie: strong progress on CCUS expected in 2024

CCUS is set to grow strongly in 2024. (Image source: Adobe Stock)

2024 will be a strong year for carbon capture, utilisation and storage (CCUS), with key project milestones, regulatory developments in major countries and new technology deployment, according to new research from energy consultancy Wood Mackenzie

Companies and governments pushed CCUS up their agendas throughout 2023, and new project announcements gathered pace as the global CCUS pipeline continued to grow and mature, Wood Mackenzie notes. 

CCUS has long been an energy transition hot topic. Over the next decade, Wood Mackenzie expects its storage capacity will increase from 80 Mtpa to more than 500 Mtpa. Globally, 119 projects with 115 Mtpa capture capacity and 240 Mtpa storage capacity are targeted for final investment decision (FID) in 2024, the largest number yet. CO2 storage licensing continues to gain momentum – and storage drilling will pick up.

Licensing activity will continue, in support of increasing project capacity, with new licensing rounds expected in the US and the UK. Meanwhile, regulatory changes are expected to shorten project timelines, and applications for CO2 storage wells and drilling should increase.

2024 will mark a step change for direct air capture (DAC) and new capture technologies, but cost and execution risks are a barrier, Wood Mackenzie says. Expected developments include completion of Phase 1 of 1PointFive’s Stratos in Texas, the world’s first global-scale DAC plant (0.5 Mtpa); Climeworks’ DAC project is expected to begin operation in the second half of 2024; and startups are likely to develop pilots with newer technologies. 

To obtain the full report, go to www.woodmac.com/news/opinion/ccus-2024-outlook/