![]() ![]() Future articles will discuss other scaling requirements, such as lowering the costs of implementing CCUS and developing hubs and clusters. Specifically, we map how the industry can generate revenues and move beyond a subsidy-only business model, and we discuss what governments, investors, and industry players can do to help scale the technology. This article explains what the CCUS industry can do to overcome historical challenges and reach the scale required for net-zero emissions. Even in conservative scenarios, CCUS demand would reach approximately two GTPA by 2050-a 60-fold increase over today’s pipeline of projects.ĬCUS uptake needs to grow 120 times over by 2050 for countries to achieve their net-zero commitments.ĬCUS is recognized as a necessary and relatively low-risk piece of the decarbonization puzzle, but the technology is not moving fast enough to achieve a 1.5° or even 2.0° pathway. This could lead to CCUS decarbonizing 45 percent of remaining emissions in the industry sector. per annum (GTPA) of CO₂ captured, with some estimates ranging from 6.0 to 10.0 GTPA. (2022).Īccording to McKinsey analysis, CCUS uptake needs to grow 120 times by 2050 for countries to achieve their net-zero commitments 3 A total of 139 countries (covering 91 percent of global emissions) have committed to net-zero emissions., reaching at least 4.2 gigatons 4 Metric tons: 1 metric ton = 2,205 pounds. 2 For more, see Inflation Reduction Act of 2022, H.R. For example, the recent Inflation Reduction Act (IRA) in the United States includes an enhanced tax credit for the permanent sequestration of CO₂, which could rapidly boost adoption and help scale CCUS facilities. To meet their emissions reduction commitments, governments have begun enacting policies to support the development of CCUS. This article is a collaborative effort by Krysta Biniek, Phil De Luna, Luciano Di Fiori, Alastair Hamilton, and Brandon Stackhouse, representing views from McKinsey’s Oil & Gas Practice. ![]()
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