The world is facing a daunting challenge in the form of climate change, caused by the increasing amounts of carbon dioxide and other greenhouse gases being emitted into the atmosphere. Carbon capture is one way to address this problem, and more and more businesses are taking notice by investing in carbon capture projects. Understand more about the leading companies investing in carbon capture, their motivations, and strategies. Also, learn more about the potential impact of these investments on the industry.
Carbon capture leading companies and industries
As concerns around climate change increase, more and more companies are recognizing the need to take action to reduce their carbon footprint.
One way they are doing this is by investing in carbon capture technology and infrastructure. Carbon capture, utilization, and storage (CCUS) involves capturing CO2 before it is released into the atmosphere and then either using it for beneficial purposes or storing it underground.
In this context, there are some leading companies and initiatives that are taking the task of making carbon capture a key tool to forge a better future. Let’s learn about them.
– ExxonMobil
ExxonMobil, one of the largest oil and gas companies in the world, has announced plans to invest $3 billion in lower-emissions technology, including carbon capture and storage, over the next few years.
In an interview with Bloomberg, CEO Darren Woods stated that: “The challenge of reducing global carbon emissions is immense and requires significant investment and collaboration across many sectors to achieve success”.
ExxonMobil has made carbon capture a priority because it believes it can help reduce emissions from fossil fuels, which are still the dominant source of energy in the world.
– Siemens Energy
Another leading company focusing on carbon capture is Siemens Energy. The company plans to invest up to $20 million in carbon capture technologies and projects over the next two years.
Siemens Energy is committed to mitigating climate change, and it sees carbon capture as one of the critical solutions to achieve that goal. The company believes that carbon capture can enable the continued use of fossil fuels while reducing emissions.
– Shell
Shell is another company that has recognized the potential of carbon capture. The oil and gas giant has set a target to store more CO2 than it produces by 2050.
To achieve this goal, the company has invested in multiple carbon capture projects, including the Quest carbon capture and storage project in Canada.
The Quest project captures and stores over a million tons of CO2 annually, helping to address one of the biggest climate change challenges.
– Mining industry
In the mining sector, there are companies that are perceiving the importance of carbon capture investments. BHP, for example, is the world’s largest mining company and has also recognized the importance of carbon capture.
In its recently published climate policy, BHP stated that it will invest in carbon capture and storage technologies to reduce emissions from its operations.
BHP has committed to a target of net-zero emissions by 2050 and believes that carbon capture can play a significant role in achieving that goal.
– Cement industry
Another sector that is leaning towards carbon capture investment is the cement industry. Cement giant LafargeHolcim, for example, has committed to reducing its CO2 emissions by 40% by 2030 and is investing in CCUS to help achieve that goal.
The company is piloting a carbon capture project at its plant in British Columbia, which is expected to capture 100,000 tonnes of CO2 per year.
– Aviation industry
The aviation industry is another sector that is exploring carbon capture as a way to reduce emissions. In 2020, United Airlines announced a $40 million investment in carbon capture technology.
The company hopes to use carbon capture to offset some of the emissions from its flights. United Airlines sees this as an essential step in the industry’s efforts to reduce its carbon footprint.
Challenges of carbon capture technology implementation
Of course, the implementation of carbon capture technologies has its challenges. One of such challenges that the carbon capture industry faces is the high cost of implementing and operating CCUS infrastructure.
To address this, companies are exploring new business models and financing options. For example, NRG Energy is partnering with JX Nippon to retrofit an existing coal-fired power plant in Texas with carbon capture technology.
The project is being financed through a combination of public and private funds, including a $190 million grant from the Department of Energy.
Such investments are important to spread carbon capture technology and make the challenge of tackling climate change more feasible.
Investing in overcoming carbon capture technology implementation challenges is essential to guarantee a better future for the planet
Corporate investment in carbon capture is crucial for achieving the necessary reductions in greenhouse gas emissions to address climate change.
By investing in carbon capture technology and infrastructure, leading companies like the ones aforementioned are demonstrating their commitment to sustainability and their role in the transition to a cleaner energy future.
While there are still challenges to be addressed in terms of cost and scalability, the momentum and progress already being made in the carbon capture industry is cause for optimism.
With continued investment and innovation, carbon capture technologies, like CCUS and ERW (Enhanced Rock Weathering) as well, have the potential to make a significant impact in the fight against climate change.
