UK expertise in carbon capture, utilisation and storage (CCUS) could help accelerate project development across Asia Pacific, according to a new assessment by global energy consultancy Xodus.

The APAC region accounts for more than half of global carbon dioxide emissions and is expected to become a major centre for CCUS deployment.

Commissioned by the UK Department for Business, Innovation, Science and Trade, Xodus’ APAC CCUS Regional Assessment identifies areas where UK experience could support regional development, including subsurface appraisal, saline aquifer screening, regulatory and monitoring frameworks, project feasibility and FEED, capture technologies, Monitoring, Reporting and Verification (MRV), and CO₂ transport and shipping infrastructure.

Andrew Taylor, Head of Advisory, APAC, Xodus, said: “Asia Pacific does not lack ambition or potential for CCUS but its challenge is turning that potential into investable projects.

“Across the region there are countries with significant emissions and very substantial storage resources, plus governments developing the frameworks needed to connect the two. But there needs to be further work on storage characterisation, regulation, project development and specialist engineering if deployment is going to accelerate.

“The UK has already developed solutions to many of these challenges in pursuing its own CCUS industry. Applying that experience in partnership with governments, project developers and local supply chains across Asia Pacific can help projects progress more quickly and avoid having to solve the same problems again.”

The study highlights the growing interdependence of APAC’s CCUS market.

Japan, South Korea and Taiwan are expected initially to focus on validating domestic storage, capturing CO₂ and exporting it, while Malaysia and Indonesia could become major storage hubs for domestic and imported emissions.

Australia and New Zealand also have substantial geological storage potential, although longer transport distances could affect the economics of importing CO₂ from Northeast Asia.

The geographic gap between emissions sources and storage locations makes cross-border CO₂ transport and harmonised regulatory and technical frameworks increasingly important.

Under Xodus’ more ambitious scenario, seven countries could export around 83 million tonnes of CO₂ annually by 2030, rising to nine exporting countries and 145 million tonnes per year by 2035.

Regulatory readiness varies across the region. Japan, South Korea, Malaysia and Australia have dedicated CCUS legislation or relatively mature permitting systems, while other markets are still developing rules covering monitoring, liability and long-term stewardship.

Differences in carbon pricing and other commercial incentives also remain a challenge.

Andrew added: “There is a window now to help shape how this industry develops. The greatest value the UK can bring is not simply supplying equipment into future projects but working alongside regional partners during the formative stages of the industry - helping to establish the technical evidence, regulatory structures and commercially viable project concepts that allow investment to happen.

“If that expertise is deployed early and collaboratively, it can help accelerate the development of a safe, investable and scalable CCUS industry across the region.”

Xodus estimates that the APAC CCUS market could reach up to £187.8 billion ($251 billion) by 2035 under an accelerated deployment scenario, as projects move from development into execution. -OGN/TradeArabia News Service