As net zero targets become mainstream, government officials at national, regional and local level need solutions for decarbonizing existing heavy industry, as well as infrastructure for new clean industries to thrive.
CCUS hubs can play an important role helping industrial regions to keep existing jobs and attract new ones. With momentum picking up in countries around the North Sea, in North America and Asia, what was once seen as an expensive, unproven technology is becoming a cost-effective decarbonization option for industries that have few alternatives currently available to them.
All the technologies required in the CCUS hub value chain are functional and already in use. Developing the market and the business models are the main challenges in these early hub developments.
For now, that requires government support to tackle four main challenges:
In the absence of sufficiently high carbon prices or mandates, governments are using a range of tools in different combinations to support CCUS hubs. These include feasibility study grants, capital grants, tax incentives, contracts for difference, regulated assets base, low carbon standards and public procurement requirements.
Identify a potential CCUS hub in your region