Carbon Capture, Utilization and Storage (CCUS) Technologies

Presented by the Kingdom of Saudi Arabia

This panel considered the feasibility of carbon capture, utilization and storage (CCUS) technologies in the oil and gas industry, as well as the ways in which the panelists’ organizations have applied them as carbon emission reduction strategies. In the industry, CCUS involves the capturing of carbon emissions at source to sequester it underground, or to transform and utilize it as alternative marketable products. Hussein Hoteit, KAUST, moderated the panel. Tidjani Niass, Saudi Aramco, presented on Saudi Aramco’s efforts to promote CCUS technologies. Highlighting that CCUS is a critical technology for achieving climate targets, he said, “without CCS, long-term global climate goals may be unobtainable.” He then outlined the value of CCUS for the low-carbon economy, saying that CCUS does more than reduce emissions, for example: through meeting energy demand growth sustainably; decarbonizing energy intensity; balancing intermittent renewable energies; creating and maintaining jobs; and improving energy security. Niass noted that 18 large-scale facilities are already in operation. He said that momentum for commercializing CCUS is picking up, but stressed the need to accelerate its deployment. Highlighting various ongoing CCUS initiatives such as the Oil and Gas Climate Initiative, he concluded by emphasizing that:

• CCUS is not an option, rather it is critical for achieving global climate objectives;

• CCUS technology is ready for use;

Zaour Israfilof, SABIC Hussein Hoteit, KAUST Tidjani Niass, Saudi Aramco Jim Hebertson, IPIECA

Source - http://enb.iisd.org/climate/cop24/gcc/11dec.html

• effective and stable market mechanisms are urgently needed; and

• collaboration between all stakeholders is key to promoting CCUS.

In his presentation titled “Making CCS Fly,” Jim Herbertson, IPIECA, reported back on his organization’s initiatives of attempting to scale and develop carbon capture and sequestration initiatives. He mentioned that energy is at the center of every challenge faced by the global community and argued that the transition to a low-carbon economy will likely play out over the coming century, including oil and gas in the global energy mix. He linked the ways in which the oil and gas industry can map onto the Sustainable Development Goals (SDGs), including: access to energy (SDG 7); responsible consumption and production (SDG 12); and climate action (SDG 13). He outlined that IPIECA believes that CCUS offers opportunities across sectors, and has engaged with the subject since 2003, the last workshop of which engaged on the collaborative deployment of CCUS across the industry and the diversification of business models to deal with the specific infrastructure required for CCUS management. Herbertson concluded by claiming that CCUS is a necessary development, given that the Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5ºC (SR15) suggests that removing it from an energy transition portfolio would significantly increase mitigation costs if global emissions mitigation strategies detailed in nationally determined contributions (NDCs) are not immediately deployed. Zaour Israfilof, Saudi Basic Industries Corporation (SABIC), presented on the SABIC approach to corporate carbon management, saying that SABIC has been a leader in promoting sustainability and climate change management in the GCC region. Highlighting that the company’s approach to climate change is the basis of the SABIC 2025 Strategy, he underscored the importance of addressing the risks of not reacting to climate change impacts on the business sector, noting the company’s goal and target to reduce greenhouse gas and energy intensity by 25%, respectively, by 2025 based on 2010 levels. Israfilof highlighted SABIC’s work, including: CO2 utilization plants, which supply CO2 for converting into valuable materials such as urea and methanol, and for the beverage industry; two Clean Development Mechanism projects on energy efficiency through improving boiler optimization; building a cleaner supply chain, including through the introduction of the world’s first low-emission Liquid Natural Gas carriers; investing in renewable feedstocks; and a “Home of Innovation” initiative which promotes Leadership in Energy and Environmental Design Platinum rated homes in the Middle East, aiming to achieve a net-zero energy balance using renewable energy. In the ensuing discussion, participants discussed whether the necessity of CCUS is compatible with broader social realities, raising the issue that the IPCC SR15 does present pathways that avoid CCUS deployment. One participant questioned the feasibility of deploying CCUS at a large scale given present demonstrability, as well as the long-term effects of carbon utilization, considering that methanol or plastics eventually return carbon into the atmosphere. Panelists replied by arguing that it would be unfeasible to remove oil and gas from the global energy mix without incurring significant costs in infrastructure and behavioral changes.