Volume 33: CCUS Technologies for the Carbon Neutrality: Part I

Challenges, Countermeasures and Development Direction of CCUS Industry Chain Construction under the background of Dual Carbon Strategy Yu Jing, Fang Pingliang, Zhou Bo, Zhao Yang, Zhang Hongyuan, Li Bing, Huang Hongchun, Chen Changchang, Yu Jinchen

Abstract

The CCUS/CCS process is an important means to achieve carbon neutrality goals. From the current scale of the industry, a complete industry chain covering carbon capture, transportation, utilisation, and storage has been established, led by state-owned enterprises. However, the development of the industry chain faces high barriers to cross-industry cooperation among upstream, midstream, and downstream enterprises as well as difficulties in matching cross-regional sources and sinks, making the coordination of the entire industry chain more difficult. In addition, there is a lack of large-scale industrial demonstration of the process in China; at the same time, the business model is not mature. This paper proposes policy-making suggestions to promote the construction of the CCUS industry chain from four aspects: ①providing special incentive policies for high-cost links such as carbon capture and carbon storage; ②creating marketing and benefit-sharing mechanisms among upstream, midstream, and downstream enterprises in the industry chain; ③ formulating special laws, regulations, and standard system for each link of CCUS/CCS project construction and operation; ④setting up programs for leading enterprises to integrate various links of the industry chain. To systematically organize the development characteristics of China’s CCUS industry, this paper recommends three policies to promote the construction of the CCUS industry chain: ①strengthening the construction of basic databases and collaborative sharing platforms, and accelerating the construction of CCUS infrastructure; ②accelerating the construction of industrial clusters by utilizing mechanisms such as division of labor and collaboration between upstream, midstream, and downstream enterprises in the industrial chain, and using business models that create mutual benefit, complementarity, and synergy; ③ issuing special incentive policies for carbon capture and sequestration, formulating marketization and benefit distribution mechanisms for upstream, midstream, and downstream enterprises in the industrial chain, and formulating special laws, regulations, and standards for CCUS/CCS systems.

Keywords CCUS, industrial chain, business status, challenges, countermeasures