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Highlights
- Many businesses are focusing on carbon capture and storage solutions to meet the world’s climate goals.
- The cost of capturing carbon dioxide is exorbitant at present.
- ExxonMobil, which is committed to advancing CCS projects, has commenced work on its planned CCS expansion project. The existing facility represents 20% of all CO2 captured around the globe each year.
- Many believe that the concept of carbon capture and storage is unlikely to contribute to climate goals.
ExxonMobil recently restarted work on a planned carbon capture and storage (CCS) project at its LaBarge, Wyoming facility.
The CCS project, which is expected to have a capacity of 1 million metric tonnes a year, is estimated to entail an investment of around US$400 million. The facility will be an addition to the existing capacity of 6-7Mt of carbon already being captured at LaBarge.
The existing facility represents 20% of all CO2 captured around the globe each year, as per the company.
President of ExxonMobil Low Carbon Solutions, Joe Blommaert, has indicated that technology is essential to meet the goals of lower carbon emissions. He also highlighted the need for right policies that provide a predictable price on carbon emissions, thereby enabling expansion of the existing plants or development of more such projects.
Several other large-scale carbon capture and storage projects are in the pipeline.
Related read: Australia warned to adopt net-zero target- what's at stake?
Is carbon capture the right solution?
Here, the question arises whether carbon capture is the right solution that the world needs in order to meet its climate goals. Are fossil fuel companies leading the world in the correct direction? Or we need to keep our focus on limiting the use of fossil fuels and making technological advancements in the renewable energy sector?
Well, former Australian prime minister Malcolm Turnbull does not believe so. During his participation at the Sustainable Future Forum organised by CNBC in mid-October, Turnbull shared his views on ‘clean coal’ and carbon capture technology.
He stated that clean coal is a failed concept and could not be relied upon. The world will realise the harsh reality after spending billions of dollars on research and development of the concept.
Related read: How will UK’s net-zero transition impact energy costs?
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Another prominent speaker at the event, Richard Lancaster, CEO of power generation company CLP Group, echoed the views of Malcolm Turnbull.
Mr Lancaster said that the road to zero-emission is through the use of proven technologies, including battery storage and wind, solar and other renewable energy sources. He added that these well-experimented and well-understood technologies have delivered excellent results.
Related read: Fortescue (ASX:FMG) to achieve Net Zero Scope 3 Emissions
Bottom Line
The reckless burning of coal and petroleum results in large amounts of carbon dioxide, thus severely damaging our environment. Climate change is real, and now the situation has worsened. Immediate steps are required to curb the situation.
The fossil fuel industry, whether coal or petroleum, considers the CCS technology as an answer to the rising climate change problems. However, the reach of such CCS projects is limited, and the cost of these projects make them unaffordable for many countries.
It is believed that renewable power alone is unlikely to meet the global targets. According to experts, like the solar energy price, the cost of CCS projects will also come down. Businesses need to have viable, large-scale carbon capture solutions soon to help achieve the Paris Agreement targets.
Related read: How achieving net zero carbon emission target is a big challenge for Australia?
