What's Happening?
BHP, along with a consortium of leading steelmakers and industry players, is conducting a prefeasibility study to assess the development of Carbon Capture, Utilisation and Storage (CCUS) hubs across Asia. This initiative, involving companies like ArcelorMittal Nippon Steel India, JSW Steel, and Hyundai Steel Company, aims to explore technical and commercial pathways for implementing CCUS in hard-to-abate industries. The study will focus on large-scale projects to repurpose or store captured carbon dioxide (CO2), leveraging shared infrastructure to optimize costs and enhance feasibility. The consortium, which includes Chevron and Mitsui & Co., Ltd., has appointed Hatch as the Project Management Officer, collaborating with the Global CCS Institute, McDaniel, and Pace CCS. The study is expected to conclude by the end of 2026, with findings to be shared publicly to support policy and regulatory framework development.
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Why It's Important?
The development of CCUS hubs is crucial for decarbonizing industries that are challenging to transition to low-carbon processes, such as steelmaking. By focusing on regional hubs, the consortium aims to aggregate captured carbon, optimizing the unit cost of capture, transportation, and storage through economies of scale. This initiative could unlock novel solutions for multiple industries, accelerating regional decarbonization efforts. The study's outcomes could influence policy and regulatory frameworks, encouraging broader adoption of CCUS technologies. This is particularly significant in Asia, where steel production is high, and regulatory hurdles may impede progress. The consortium's efforts could lead to significant advancements in reducing industrial carbon emissions, contributing to global climate goals.
What's Next?
The consortium plans to deliver conceptual development strategies for each hub, including cost and schedule estimates and potential commercialization pathways. The study will also address non-technical enablers, such as regulatory assessments and cross-border transport considerations. As the study progresses, additional members may join the consortium, contributing to the research and development of CCUS hubs. The findings, expected by the end of 2026, will be shared publicly to promote industry learning and support the creation of enabling policies. This could lead to increased investment in CCUS technologies and infrastructure, fostering collaboration among industry stakeholders to achieve decarbonization goals.
Beyond the Headlines
The initiative highlights the potential for CCUS technologies to play a significant role in global decarbonization efforts. By focusing on scalable solutions, the consortium aims to address the challenge of integrating carbon capture into existing industrial processes. This could lead to long-term shifts in how industries approach carbon management, encouraging innovation and collaboration across sectors. The study's success could set a precedent for similar initiatives worldwide, demonstrating the viability of CCUS as a tool for achieving climate targets.
