The market for Carbon Capture, Utilization, and Storage (CCUS) in Asia and the Pacific could reach a value of $255 billion (£187.8 billion) by 2035 under an accelerated scenario. This forecast is based on a new assessment by energy consultancy Xodus.
High Potential of CCUS in Asia and the Pacific
The study shows that this region accounts for more than half of global carbon dioxide emissions and has significant potential for developing carbon capture, CO₂ transport, and geological storage. However, Xodus has pointed out legal, commercial, and technical barriers and emphasized the need to overcome these obstacles for project advancement.
CO₂ Transport Networks and Storage Capacity
The geographical mismatch between major emission sources and existing storage capacities is expected to stimulate the development of cross-border CO₂ transport networks. Countries like Japan, South Korea, and Taiwan will initially focus on validating domestic storage while simultaneously developing CO₂ capture and export capabilities.
Malaysia and Indonesia may also emerge as major storage locations for domestic and imported CO₂. Australia and New Zealand also have significant potential for geological storage, although longer transport distances may impact the economics of CO₂ imports from Northeast Asia.
According to Xodus's ambitious development scenario, seven countries could export nearly 83 million tons of CO₂ per year by 2030. This figure may rise to 145 million tons and nine exporting countries by 2035.
Andrew Taylor, Head of APAC Consulting at Xodus, stated, "Asia and the Pacific do not lack ambition and potential for CCUS, but the challenge is turning this potential into investable projects." He emphasized the need for more work in identifying storage, regulations, project development, and specialized engineering.
Regulatory development in the region is significantly variable. Countries like Japan, South Korea, Malaysia, and Australia have specific CCUS laws or relatively advanced permitting frameworks, while other markets are in the early stages of developing requirements related to monitoring, liability, and long-term stewardship.
Xodus also noted that subsurface assessment, saline aquifer screening, monitoring and verification, early-stage engineering, and CO₂ transport infrastructure will be among the capabilities needed to develop the regional industry. This assessment was commissioned by the UK Department for Business, Innovation, Science and Trade and also examined how developed experiences from the CCUS sector in the UK could support developmental projects in Asia and the Pacific.
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