Expanding the implementation of carbon capture in the MENA region.

Carbon capture, use and storage (CCUS) is hailed as the most effective way to prevent further damage to the atmosphere caused by carbon dioxide. Essentially, the technology “stores carbon dioxide permanently underground, or turning it into solid minerals or useful products.” Considering the Middle East’s status as a hub for the hydrocarbon industry, the need for the region to become low-carbon is urgent. This is important for the maintenance of the energy industry’s competitive position, especially since the Gulf Cooperation Council (GCC) accounts for over 10% of world gas production and nearly 25% of world oil production. Despite not being a large emitter in absolute terms, per capita carbon dioxide is significantly high in the region.

However, the Middle East is blessed with optimal conditions to augment CCUS technology. The region has a concentration of heavily-emitting industry in close connection to huge, easily accessible subsurface reservoirs, mainly off shallow waters offshore or sparsely-populated deserts. Moreover, the public’s familiarity and acceptance of the oil industry means that there is an abundance of skills and assets available for the development of CCUS technology.

To allow CCUS to have a substantial effect on climate change, they must ramp up production. Projects with the capacity to capture around one million tonnes per year are a crucial starting point. However, there is a need to start building combined projects with capacities of 10 to 50 million tonnes. In the Middle East, the three main CCUS projects located in Saudi Arabia, Qatar, and the United Arab Emirates account for only 10% of the 40 million tonnes of CO2 captured worldwide. By 2030, Qatar and the UAE aim to capture five and seven million tonnes per year, respectively, while Saudi Arabia plans to capture 44 million tonnes by 2035. By maintaining the same pace, the number of emissions captured by the Middle East will hover around 10% by 2030.

To give it more impetus, there needs to be the establishment of CCUS hubs that will see numerous industries feeding into common carbon dioxide transport and storage systems. These hubs must also welcome smaller emitters, such as factories that cannot execute a viable project on their own. The shared infrastructure would cater to both carbon dioxide and hydrogen, a combination that can form useful chemicals while taking advantage of shared facilities. Finally, incentives must be formulated to help make carbon capture economically viable. Europe currently has a carbon price tag, while the US offers a tax credit of $85 per tonne for CCUS. An emitter in the Mena region could leverage captured carbon dioxide for production purposes or to achieve a “green” premium for its products. Without suitable incentives, Mena countries may struggle to realize their ambitious net-zero goals.