Mckinsey.com , November 16,2022
By Krista Biniek, Phil De Luna, Luciano Di Fiori, Alastair Hamilton, Brandon Stackhouse
Over the past 30 years, many industry experts have predicted that carbon capture, utilization, and storage (CCUS) technologies would be required to decarbonize industries such as energy, chemicals, cement, and steel production, yet the CCUS industry has struggled to find its footing. Today, however, the nationally determined contributions (NDC) 1 of governments and corresponding industry commitments, technological innovations, and demand for green consumer products have made scaling CCUS not only possible but necessary.
To meet their emissions reduction commitments, governments have begun enacting policies to support the development of CCUS. For example, the recent Inflation Reduction Act (IRA) in the United States includes an enhanced tax credit for the permanent sequestration of CO₂, which could rapidly boost adoption and help scale CCUS facilities.
According to McKinsey analysis, CCUS uptake needs to grow 120 times by 2050 for countries to achieve their net-zero commitments , reaching at least 4.2 gigatons per annum (GTPA) of CO₂ captured, with some estimates ranging from 6.0 to 10.0 GTPA. This could lead to CCUS decarbonizing 45 percent of remaining emissions in the industry sector. Even in conservative scenarios, CCUS demand would reach approximately two GTPA by 2050—a 60-fold increase over today’s pipeline of projects.