Xodus Study Finds UK CCUS Expertise Key to Asia Pacific Deployment

UK expertise in carbon capture, utilisation and storage can accelerate the development of projects across Asia Pacific, according to new analysis from energy consultancy Xodus. The Asia Pacific region is responsible for more than half of global carbon dioxide emissions and is expected to become a significant global centre for CCUS deployment. The study identifies strong alignment between the region's CCUS challenges and areas where the UK has developed specialist capability through its own industry.

 

The Central Finding

 

A new study identifies UK expertise as key. It concerns carbon capture and storage. This can accelerate Asia Pacific projects. The analysis comes from Xodus. It was commissioned by a UK government department.

The finding rests on clear alignment. It identifies a strong alignment. This is between regional challenges and UK capability. The UK developed this capability itself. This came through its own CCUS industry.

 

The Region's Importance

 

The region is central to global emissions. It is responsible for over half of emissions. This concerns carbon dioxide specifically. It is expected to become a CCUS centre. This makes it strategically important.

The region has significant potential. It has countries with large emissions. It also has substantial storage resources. Governments are developing frameworks. These would connect emissions to storage.

 

The UK Capabilities

 

The study identifies specific UK strengths. These include subsurface appraisal. Saline aquifer screening is also included. Regulatory and monitoring frameworks feature. These reflect UK experience.

Further capabilities complete the list. These include feasibility and design work. Specialist capture technologies feature too. Monitoring and verification are included. Transport and shipping engineering also feature.

 

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The Regional Market

 

The study highlights an interconnected market. Northeast Asian countries will validate storage. They will capture and export CO2. Malaysia and Indonesia could become storage locations. These serve domestic and imported emissions.

A geographic mismatch shapes the market. Emissions sources and storage differ. This means cross-border transport matters. Common frameworks become important. This connects sources to storage.

 

The Challenges

 

The study identifies several challenges. Regulatory readiness varies widely. Some countries have mature frameworks. Others remain at earlier stages. This affects deployment readiness.

Commercial frameworks pose further challenges. Carbon pricing varies between markets. Incentives also differ significantly. Greater regulatory certainty is needed. Stronger commercial incentives are also important.

 

The Opportunity and Outlook

 

The study points to a clear opportunity. There is a window to shape the industry. The UK can work with regional partners. This is during the formative stages. It helps establish technical and regulatory structures.

The market outlook is substantial. Deployment scenarios show significant growth. Exports could reach 145 million tonnes by 2035. The overall market could reach £187.8 billion. This is under an accelerated scenario.