Why unlicenced storage threatens APAC CCS growth
Effective licencing is a critical enabler for carbon storage projects in the Asia Pacific region
1 minute read
Fauzi Said
Senior Research Analyst, Subsurface/Carbon Management – APAC
Fauzi Said
Senior Research Analyst, Subsurface/Carbon Management – APAC
Fauzi focuses on integrated research and analysis for CCUS and subsurface offerings in Asia Pacific.
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View Fauzi Said's full profileCarbon capture and storage (CCS) has huge potential to enable decarbonisation in carbon-intensive sectors. With fossil fuels looking set to be part of the picture for years to come, interest in CCS in the Asia Pacific reason is strong, but can enough projects be brought to fruition to deliver on its promise?
FID challenges for CCS projects will continue through to 2030
Wood Mackenzie tracks more than 300 CCS projects globally through our Lens Carbon platform, giving unrivalled insight into how 1,100 million metric tonnes per annum (mmtpa) of carbon storage is shaping up in different regions. In Asia Pacific alone, carbon storage licences are a critical enabler of 226 mmtpa by 2030. Projects with carbon storage licences are considered "storage-ready", boosting their likelihood of meeting FID targets and being categorised as bankable projects. By establishing clear regulations and frameworks, licenses reduce project risks, provide execution certainty and support site characterisation, well planning and financing for projects.
Storage licensing maturity determines Asia Pacific CCS project viability. In this report, we analyse projects by regulatory framework strength using a three-tier framework—projects with storage licences, countries with regulations but no licences, and markets lacking frameworks. We find only 18% of capacity are storage ready.
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