Carbon Capture and Storage (CCS): Green Solution or Successful PR Campaign?

In the context of the world facing the challenges of climate change, carbon capture and storage (CCS) technology has emerged as one of the most anticipated solutions to reduce greenhouse gas emissions. However, after initial expectations, this technology is facing skepticism about its effectiveness and practical feasibility.

The Rise of CCS Technology

During the COVID-19 pandemic, CCS technology received special attention as many governments and private companies committed to supporting the green transition. CCS is expected to play a key role in decarbonizing hard-to-abate industries until the long-term transition to clean energy can be achieved.

CCS technology works by capturing carbon dioxide (CO2) at emission sources, then transporting and storing or burying them in suitable underground locations. In recent years, various CCS technologies have been launched, including traditional CCS systems and direct air capture (DAC) technology that removes CO2 directly from the atmosphere.

Development Drivers

As governments increasingly pressure industries to reduce emissions, companies cannot simply switch to renewable energy options and have invested heavily in CCS operations to reduce emissions. Although many criticize companies for relying on carbon capture rather than reducing emissions at the source, CCS technology is still expected to support companies in their green transition as they evaluate long-term solutions.

Investment and Future Prospects

In 2025, the World Economic Forum forecasts that the CCS industry will quadruple by the end of the decade. This forecast is supported by a massive pipeline of CCS projects as many industries invest heavily in this technology.

Investment from the Oil and Gas Industry

In the oil and gas sector, major corporations like ExxonMobil, Shell, Chevron, TotalEnergies, Equinor, and Occidental have all committed to significant investments in CCS technology. The involvement of these "big players" has cemented CCS's position as an important tool in the green transition strategies of the fossil fuel industry.

Government Support

Many governments are also supporting CCS on a large scale. In May, Germany launched a $5.7 billion Carbon Contracts for Difference program to promote and support CCS and carbon capture, utilization, and storage (CCU) projects. In 2024, the United Kingdom announced funding of up to $29 billion over 25 years to make the country a pioneer in the two globally developing fields of CCUS and hydrogen.

In Denmark, cement manufacturer Aalborg Portland has signed a $2.55 billion CCS contract with the country's energy agency. Aalborg Portland CEO Soren Holm Christensen stated: "We can make the decisive step to realize a project that is not only significant in Denmark but will be one of the largest industrial CO2 capture projects in Europe."

Challenges and Actual Effectiveness

Despite the clear optimism surrounding CCS technology, cracks are beginning to appear as many companies are not seeing the expected results from their CCS operations. An assessment by the Institute for Energy Economics and Financial Analysis (IEEFA) of 13 operational CCS projects worldwide found that most projects have captured less than 90% of their designed carbon capture capacity, while some projects have completely failed, highlighting the ongoing technical challenges of CCS as a solution and the likelihood that costs per ton will continue to rise.

According to the Global CCS Institute, in 2024, only 50 facilities were operational worldwide, capable of capturing about one-thousandth of global emissions.

Debate Surrounding CCS

On the other hand, environmental activists argue that CCS is simply another form of greenwashing, and funding for this technology could be better used to explore alternative clean energy options to reduce emissions from hard-to-abate sectors. Many believe that using CCS technology will allow companies to use transitional fuels like natural gas for longer than necessary.

Additionally, CCS is being used by the oil and gas industry to enable them to claim they are producing "low-carbon oil," even though burning fossil fuels continues to contribute heavily to climate change.

Costs and Feasibility

CCS technology is extremely expensive when integrated into operations, with many projects depending on taxpayer support. For this purpose, key stakeholders in the industry proposed that CCS should only be pursued after other green solutions at a conference in London in 2025.

In the US gas industry, the cost of adding CCS to American plants is estimated at $20-30 per megawatt hour (MWh), potentially doubling electricity production costs. Meanwhile, in Europe, research institutes Agora Industry and Oeko-Institut estimate the cost of carbon capture, transport, and storage at between $170 and $340 per ton.

"According to these calculations, the costs of existing or planned CO2 storage projects are at least 50% higher than previous forecasts," the research institutes stated in a press release.

Conclusion: PR Success or Real Solution?

Many fossil fuel-dependent industries and companies have long promoted CCS technology as the key to reducing operational emissions. This has helped improve CCS's image and allowed major oil companies and heavy industries to receive government support. However, the high cost of using CCS technology, as well as barriers to commercial deployment, suggest that the promotion of CCS may have been a large and relatively successful PR campaign.

While CCS can still be used on a limited scale, governments should encourage companies to invest in long-term emission reduction solutions if they hope to achieve a green transition. The major challenge remains finding the right balance between short-term technological solutions like CCS and a genuine transition to clean, sustainable energy for the long term.

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