Increasing Carbon Capture and Utilization (CCUS) endeavors could potentially mark the next phase in China's advancement of eco-friendly technology.
China, the world's leading nation in patents related to Carbon Capture, Utilization, and Storage (CCUS), has made significant strides in this field. With over 10,191 patents as of 2023, the country covers a broad spectrum of CCUS technologies, including advanced CO2 isolation techniques and the conversion of CO2 into hydrocarbons.
One of the most notable developments came in January 2024, when researchers at Huazhong University of Science and Technology unveiled a groundbreaking electrolysis system. This system is capable of converting carbon dioxide into formic acid, a potential step towards carbon utilization.
However, the high cost of capturing, transporting, and storing CO2 has fostered a reliance on government incentives. This hinders the widespread adoption of CCUS, a challenge shared by many countries.
To spur CCUS development, the Chinese government has issued approximately 80 national policies. The National Development and Reform Commission (NDRC) has been at the forefront of this effort, leading the formulation and implementation of multiple strategic plans and policies for CCUS as part of China's broader climate and industrial strategies.
China initiated its first megaton-scale CCUS project in 2021, a significant milestone in its CCUS journey. Yet, the absence of a mandatory legal framework to support CCUS contributes to a lack of urgency in its deployment.
CCUS deployment in China must be accompanied by a steep decline in fossil fuel use and complemented with other mitigation efforts like carbon removal and renewable energy projects to meet the country's climate targets.
The high costs of CCUS are often offset through applications in enhanced oil recovery (EOR) projects, which are concentrated in certain regions, limiting the expansion of CCUS-EOR. The lack of a successful business model continues to dampen China's prospects for scaling up implementation of CCUS nationwide.
A 2020 report by the Global CCS Institute states that global geological storage reserves for CO2 are more than sufficient to meet global requirements for net zero emissions. This underscores the potential of CCUS as a significant tool in the fight against climate change.
Moreover, China's status as the world's largest producer of solar panels and wind power equipment could potentially be leveraged to drive CCUS to the forefront of China's climate strategy with a similar injection of public funding.
In a notable move, China pioneered the world's first full-process emissions capture tank for use aboard cargo ships. This innovation demonstrates China's commitment to reducing emissions across various sectors.
However, rock formations containing poor quality water instead of hydrocarbons are more widely spread in China, but less financially viable for CCUS projects. This geological reality presents a unique challenge for China's CCUS development.
Despite these challenges, upscaling CCUS ties into China's status as a global green tech leader. With the right policies and investments, China has the potential to lead the world in CCUS technology and contribute significantly to the global fight against climate change.
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