We need to accelerate the introduction of carbon capture, usage and storage (CCUS) to fight climate change. It is currently way behind expectations, but interest has been accelerating rapidly and while there are only 40 commercial facilities in operation, another 500 are in various stages of development.

Nevertheless, with an estimated 7,500 large-scale facilities needed by 2050, we remain a long way behind what is required to meet our net zero aspirations. The answer may come in the form of new technologies, which are being rapidly developed around the world. This raises the question of who will insure such new and unproven systems discharging into third-party complex hub and pipeline networks.

The combination of largely untried technology and multiple companies operating different but connected capture, transport and storage equipment means that insurance companies will have to be convinced that these systems represent a reasonable risk. There is a very real danger that some companies may be unable to insure their carbon capture operations.

Those that are successful will have to convince insurers that they have substantially limited the risk. One way to do this is through digitalisation of the process so that it can be automatically monitored to identify any problems at an early stage. The standardisation of products and procurement specifications and the introduction of smart electric actuators, with connected on-board data loggers, can be part of the solution. Equipment providing reliable predictive maintenance can support these new technologies, improve credibility by limiting unplanned shutdowns.

New technologies come with risks

While the most widely adopted capture technologies are chemical absorption and physical separation, other technologies in development include membranes and looping cycles (such as chemical looping and calcium looping). In addition, NET Power’s 50MW clean energy plant in Texas is a first of its kind natural gas-fired power plant employing Allam cycle technology, which uses CO2 as a working fluid and could significantly reduce capture costs.

These new processes could both increase the amount of carbon captured and bring down costs, but they are also an unknown quantity that will increase risks. Intelligent flow control to manage the flow of liquids and gases is well worth the investment because with carbon capture likely to become a regulatory requirement, such systems can satisfy insurance companies’ need for information and accountability through recorded data, while also improving efficiency.

Most of the CCUS facilities currently operating are in industries where the cost of carbon capture is lower, such as natural gas processing. The widespread adoption of decarbonisation targets, however, is stimulating diversification.

CCUS is starting to be used for a wide range of applications where the cost of abatement is higher. In the UK, Net Zero Teesside Power is expected to come online in 2028 and could become one of the first commercial scale gas-fired power stations with carbon capture. A large-scale demonstration project retrofitting CCUS to iron and steel production has been commissioned in Belgium, bringing the number of such projects for iron and steel to two (a smaller one exists in France). Two capture projects have been retrofitted to chemical plants in the UK and China and a project has been commissioned in China to capture CO2 emissions from fertiliser production.

As the number of such projects increases the insurance industry will be mulling over the potential risks. The need for increased predictability as well as productivity will require standardisation. The challenges faced by the industry and the requirement for expert staff to operate these complex processes means that the rise of carbon capture-as-a-service companies may be just around the corner. Such companies, offering standardised, modular and digital plug-and-play solutions that could be moved from one facility to another as needed may well be the future of carbon capture.

Electric valve actuators would be an ideal solution for such services because they are designed for a wide range of applications and to meet many needs. Since different CO2 emitters will need different volumes of the gas captured the requirement to modify systems for each one could be an obstacle. But electric actuators eliminate the need to re-size air compressors, tanks, dryers, tubing, control panels or lubricators between different project sites.

While electric valve actuation helps enable standardisation with efficiency, it also supports modular carbon capture units’ need for agility, flexibility and reduced complexity, while also being quickly customisable to specific customers unique variation requirements. This all supports rapid deployment of carbon capture units.

Governments are incentivising CCUS

The industry is gaining momentum in part because governments are beginning to incentivise CCUS projects. In 2021, the US passed the Infrastructure Investment and Jobs Act (IIJA) which provides around $12bn across the CCUS value chain. In 2022, the Department of Energy announced new funding under the IIJA including $45m for CCUS power and industrial applications; $820m for large-scale carbon capture pilot projects; and $1.7bn for carbon capture demonstration projects.

In addition, the UK has announced £20bn in funding for CCUS projects, while the European Commission has introduced the Net Zero Industry Act, which identifies CCUS as a strategic net zero technology for which the scaling up of manufacturing capacity is critical. Indonesia has finalised its legal and regulatory framework for CCUS and Japan has issued a CCUS roadmap, which sets an annual CO2 storage target of 6-12Mt per year by 2030 and 120-140MT by 2050.

And CCUS is expanding out of its early geographical areas. In Asia Pacific, so far, around 10 projects have been announced and in the Middle East another 10 projects are on the cards in addition to the three already in operation. In 2022, Bahrain launched a study into the implementation of CCUS for aluminium smelting. And in Qatar, construction continues on the North Field East liquefied natural gas project, which will expand the country’s carbon capture capacity.

Managing flows throughout the value chain

Based on the current project pipeline, by 2030 annual capture capacity from both new construction and retrofits could amount to around 90Mt from hydrogen production, 80Mt from power generation, and 35Mt from industrial facilities such as cement and steel plants.

Bioenergy with carbon capture and storage and direct air capture (DAC) are also key carbon dioxide removal technologies. Around 25 biomass and combined heat and power plants could be capturing around 30Mt of CO2 by 2030 and the first large-scale DAC plant (0.5Mt CO2/year) is scheduled to begin operation in the US next year.

All these plants and any that come after them will need insurance and will be scrutinised even more if the CO2 is being discharged into a third-party pipeline and distribution network. Digitalisation and automation cannot be put off by companies wishing to capitalise on the new market for CCUS as the industry gains momentum. There is an urgent need to demonstrate risk reduction and reduce costs.

And it’s not just the risk of carbon capture that needs to be managed. Planned capacity for CO2 transport and storage infrastructure has surged. Based on the existing project pipeline, dedicated storage capacity could meet the expected requirements of carbon capture facilities by 2030. New uses for captured carbon dioxide are also looking promising, such as synthetic fuels, chemicals and building aggregates. At every stage of the value chain CO2 will require careful management and intelligent flow control as a circular economy emerges.

While new CCUS technologies can provide a real advantage for hard-to-abate industries like cement production, which accounts for 7% of global CO2 emissions, digitalisation can provide real-time insight into these new processes and lead to rapid improvements. Rotork actuators can support efficiency by, for example, providing essential interpreted data that leads to certainty of operational expenditure.

Reassuring insures, reducing costs

Because digitalisation enables process cycles to be remotely monitored it can reassure insurance companies and reduce costs. But electric valve actuators can also optimise space by eliminating the need for compressed air actuation. This is important because many carbon capture plants will be installed on brownfield sites with modularised and compact plant technologies that are now emerging to meet space constraints.

Simple and fast installation of flow control equipment is also key because the private equity investors who will enable the market to grow rapidly require certainty that projects will be delivered on time. Many electric valve actuators are ‘sealed for life’ meaning that commissioning and maintenance are non-intrusive, a feature that improves reliability and integrity. Electric actuators with on-board connected data loggers enable sites to review the health of valves and actuators without unnecessary intervention and maintenance.

In addition to the other requirements being made of CCUS technologies they must also have a low carbon footprint to comply with an increasing number of regulations around the world. Electric actuators use much less energy than their more traditional pneumatic cousins because they don’t require an energy hungry air compressor and, in some instances, they can be powered by solar energy!

Ultimately, we need carbon capture technology if we are to reach net zero by 2050 and we need it to be both insurable and cost-effective. This can only be achieved by using smart and efficient technology that reduces waste and optimises processes while reducing risk to a minimum. Modular and repeatable carbon capture facilities and smart electric actuation hold a big key to this and can bring the world a step closer to decisively tackling climate change.

Source: https://www.iea.org/energy-system/carbon-capture-utilisation-and-storage