Reduce carbon dioxide emissions with industrial carbon management

The urgency of addressing climate change has placed focus on industrial carbon dioxide emissions around the world. While essential for life on Earth, the overabundance of this greenhouse gas in the atmosphere largely due to human activity is contributing to global warming.

As a result, industry is increasingly investigating mitigation possibilities, driven by evolving regulations, heightened stakeholder scrutiny and the growing understanding that environmental responsibility is an ethical component of doing business.

The push for carbon emissions management is fueled by humanity’s collective mission to slow climate change. As a result, governments are implementing increasingly stringent regulations on high-impact processes. The landmark Paris Agreement, ratified by 196 parties in 2015, set a global target to limit warming to 1.5°C (34.7°F) above pre-industrial levels. Keeping temperatures within this range will require an expected 45% greenhouse gas emissions reduction by 2030 and many net-zero operations by 2050.

To support this global ambition, regional legislation that places a price on carbon is emerging, such as the US Clean Air and Inflation Reduction Acts, alongside the EU's European Climate Law and Emissions Trading System. These measures mandate or incentivize industries to reduce their carbon footprint by compelling companies to factor the cost of emissions into their business decisions.

Beyond regulations, a host of other drivers are placing a spotlight on carbon management technologies in industry, including:

• Corporate net-zero emissions goals: many companies are aiming to align with global targets and stakeholder expectations by setting ambitious internal net-zero goals. Achieving these milestones requires accurately measuring, tracking and reporting emissions data.
• Supply chain compliance: leading companies committed to sustainability are setting similar expectations upon their supply chains, requiring suppliers to demonstrate their own carbon reduction efforts. Necessary measures include defining and reporting on targets to alleviate the risk of losing valuable business partnerships.
• The carbon market: the voluntary carbon market provides a financial incentive for carbon reduction, allowing companies to offset their emissions by purchasing carbon credits that fund other carbon capture projects.
• ESG: investors are becoming more aware of the financial risks associated with climate change and some are demanding transparency and action from the companies they invest in. ESG factors have become more mainstream over the past decade and corporate sustainability performance is often viewed as a key indicator of long-term company value and resilience. Organizations with robust carbon management strategies are better positioned to attract investment capital, manage reputational risk and gain a competitive edge in a world where environmental stewardship is increasingly valued.

Unlike traditional mitigation strategies, which focus on reducing emissions outright, carbon capture, utilization and storage (CCUS) efforts take a different approach. They aim to capture carbon dioxide gas from large point sources, then utilize it to create valuable products, or store it safely to prevent environmental harm from its release. Each of these three components is quickly maturing, with efficiency-boosting methodologies emerging regularly.

The process of carbon capture involves the removal of CO₂ from a process stream’s offgas to prevent release into the atmosphere. There are various methods for execution, each with different advantages and challenges, and at varying stages of technological maturity.

Post-combustion capture is the most mature and widely available method, focusing on capturing carbon dioxide from flue gas produced by power plants and industrial facilities downstream of fossil fuel combustion. Amines are commonly used as solvents to absorb carbon dioxide from the gas stream.

While this method effectively captures a large portion of carbon dioxide, it is energy-intensive as it requires a significant amount of heat for amine solvent regeneration. This negatively impacts overall plant and process efficiency. If the power is generated from burning fossil fuels, the issue is exacerbated.

Pre-combustion capture, on the other hand, intercepts carbon dioxide upstream in the process. Based on the concentration of CO₂, amine-based capture or other technologies could be used.

The utilization component of CCUS provides the opportunity to recharacterize captured carbon dioxide from a waste product destined for containment into a marketable one.

Enhanced oil recovery (EOR) is an example. Captured carbon dioxide is injected into depleted oil and gas reservoirs to increase oil production while simultaneously storing CO₂ underground. However, this method necessitates careful monitoring to mitigate potential environmental risks associated with carbon dioxide leakage or induced increases in seismicity.

CO₂ can also be utilized as a feedstock for producing a wide array of valuable materials, including concrete, plastics and fuels. This approach offers a sustainable alternative to traditional fossil fuel-based manufacturing. However, its success depends on market demand, reduced costs and the product's overall environmental impact.

Captured carbon can also help decarbonize the chemical industry by creating valuable products like polyurethanes. This circular economy approach is promising, but competing with traditional fossil fuel-based production remains difficult due to cost.

When carbon dioxide can't be reused due to technological or cost limitations, it must be stored permanently underground to prevent atmospheric release. Geological storage is the most mature and widely used method for sequestering carbon dioxide. It requires injecting the gas deep underground into carefully selected geological formations. Depleted oil and gas reservoirs, deep saline aquifers and salt domes are common choices for long-term carbon storage. These geological formations offer vast and secure storage due to impermeable caprock layers that prevent CO₂ from escaping into the atmosphere.

Safe and permanent carbon storage requires thorough site evaluation, advanced monitoring systems and strong regulations. These measures help address potential risks like carbon dioxide leaks, seismicity increase and groundwater contamination. While geological storage remains the most viable option for the foreseeable future, researchers continue to explore alternative storage methods.

Mineral carbonation, for example, mimics natural geological processes by reacting CO₂ with elements in the earth to form stable carbonate minerals, effectively locking away carbon for long periods of time. Although long-term storage holds great potential, this process demands substantial energy input and faces challenges in terms of cost, scalability and resource availability.

While CCUS is increasing in viability, its widespread adoption is still hindered by several factors. Above all, CCUS technologies require significant capital investment. Scaling up CCUS to meaningfully impact global emissions requires global cooperation along with substantial investments in new infrastructure, including pipelines, storage and transport networks.

Capturing and compressing CO₂ requires considerable energy, potentially offsetting some of the emissions reduction benefits. Improving the energy efficiency of CCUS technologies is therefore critical for enhancing overall environmental benefit.

Additionally, there are public perception concerns regarding CCUS that must be addressed, particularly regarding the potential for carbon dioxide leakage from geological storage. Developing robust infrastructure and implementing strict regulations are crucial for managing risks associated with industrial emissions for gaining public confidence.

Managing CO₂ emissions presents its own set of challenges, but inaction could lead to even more obstacles to overcome. As a greenhouse gas released in the atmosphere, carbon dioxide contributes to climate concern. CCUS technologies offer a way to eliminate or mitigate its impact. Despite its potential, there is plenty of work to be done to implement efficient capture methods and effective utilization strategies.

Developing use cases requires ongoing collaboration between government and industry, but as carbon management technologies mature and economies of scale are realized, costs are expected to decrease significantly. This will enhance the economic viability of a circular carbon economy.

Exploring innovative technologies like CCUS, optimizing existing processes for energy efficiency and investing in renewable energy resources are essential steps for every industrial organization to reduce carbon emissions. As demand for low-carbon solutions grows, companies that effectively manage carbon dioxide can gain a competitive edge. This includes attracting investors and building a strong reputation for sustainability.