The C4U Consortium is delighted to share with you our C4U Policy Brief series. Drawing from the interdisciplinary expertise of the C4U Consortium, these briefs highlight how society, business, and policy actors depend on each other for successfully deploying decarbonization technologies such as CCUS in hard-to-abate industrial clusters.
Each of these policy briefs delve into one of three interconnected facets for the deployment of Carbon Capture, Utilisation, and Storage (CCUS) in Europe’s hard-to-abate industrial clusters:
(i) The optimisation of CCUS technologies at the cluster level.
(ii) How to incentivise CCUS in a societally acceptable way in industrial clusters.
(iii) Business models to deploy industrial CCS infrastructure
Through this series, the C4U project aims to support decision-making in navigating the complex, multifaceted landscape of CCUS implementation in Europe.
Policy brief on the optimisation of CCUS technologies at the cluster level
Despite its technological potential, large-scale CCUS deployment faces considerable challenges. To promote interoperability and reduce costs, the design and operation standards for CO2 transport infrastructure should be further developed to account for the large scale of CO2 transport networks, as well as for the uncertainties and possible variations in the amount and compositions of CO2 streams when collected from different industrial sources.
To face these challenges, the EU requires a policy framework to lead the deployment of cost-effective, flexible, and sustainable CCS and CO2 transport infrastructure.
Led by University College London, C4U has undertaken extensive literature reviews and whole-system techno-economic optimisation studies, to identify policy gaps for CO2 transport and develop practical recommendations on large-scale transport infrastructure. This policy brief describes the key findings from this research. The brief identifies important technological factors critical to implementing CO2 transport solutions as part of CCUS in industrial clusters; additionally, it provides some practical recommendations towards national and international policies on large-scale CO2 transport for CCS.
Policy brief on how to incentivise CCUS in a societally acceptable way in industrial clusters
Despite potential benefits (including job creation and investment), public scepticism persists regarding CCS association with fossil fuel extraction as well as its perceived short-term nature. CCS implementation can also result in substantial societal impacts, often distributed unevenly.
Successful CCS adoption depends not only on commercial and technological readiness, but on addressing society’s perceptions and trust in the transition to net-zero. Policymaking grounded on societal engagement can help strengthen societal trust and fast-track the net-zero transition in a just and consensual manner.
Developed by Radboud University and CEPS, this brief demonstrates that the interdependence of business, policy, and industry in the North Sea Port cluster (the principal case study for the C4U project, located between Belgium and the Netherlands) implies a shared responsibility for CCUS implementation in the region. Drawing from this analysis, it then provides guidelines on how to foster intensive societal engagement for a successful and just transition.
Policy brief on business models to deploy industrial CCS infrastructure
The main challenges for CCUS deployment in Europe are commercial, rather than technological. Despite technological advancements and growing policy support, abatement is hindered by the fact that the financial costs of deploying CCUS in energy-intensive industrial plants are higher than simply emitting CO2.
To develop a self-sufficient CCUS market, a strong business case is required in which CCUS deployment offers commercial benefit to industrial plants. Policy supports such as public funding, regulatory support, and mandates for low-carbon product procurement can all help drive the business case by setting in motion self-reinforcing mechanisms and thus support the long-term viability of CCUS.
Based on research led by ERM, this brief outlines how policymakers can play a significant role in establishing a business case and developing a viable business model for CCUS, to facilitate widespread CCUS deployment in energy-intensive industries.