By Edmund Maduakor,
Geologist/Projects Assistant, Levene Energy Holdings
The threat of climate
change has roused an urgent need to reduce emissions and stabilize global
temperatures. This is a fundamental call to work towards mitigating the
possible impacts that could affect our ecosystem, communities, and biodiversity
at a regional and on a global scale.
Before we delve into the
subject, let’s talk a bit about climate change. Climate change refers to the
long-term drift of weather in a specific region. This change is as a result of
interactions between the sun, the earth and human activities. The energy from
the sun warms the earth and the earth subsequently releases heat into the
atmosphere. Some gases in the atmosphere envelopes this heat and thereafter,
these gases act like the decanter in a greenhouse which led to it being
referred to as greenhouse gases. Heat is absorbed by the greenhouse gases, some
of which are radiated into the earth leading to a rise in surface temperature.
This process is known as the ‘greenhouse effect’. Although the greenhouse
effect is known to be a natural phenomenon, it is however intensified by daily
human activities, thereby increasing the greenhouse gas levels in the
atmosphere, which is directly proportional to the increasing heat trap
resulting in the overall warming of the earth.
Over the years,
industrial processes and the combustion of fossil fuels have been identified as
the major contributors to the increase in carbon-dioxide, which has led to
rapid climate change in our present time. This has resulted in concerted
efforts in working towards reducing greenhouse gas emissions from various human
activities to keep the earth habitable. According to the United Nation
Environment Programme (UNEP) Emission Gap Report (EGR) 2022: ‘The Closing
Window – Climate Crisis Calls for Rapid Transformation of Societies’ finds that
the international community is falling far short of the Paris goals, with no
credible pathway to the 1.5ᵒc target in place. The report states
that only urgent, system-wide transformations can deliver the significant
savings needed to limit greenhouse gas emissions by 2030, with urgent actions
deployed in the power, industrial, transportation, real estate, food and
financial sectors.
One of the more
efficient ways to stabilize global temperature is to adopt zero – carbon
emission through Carbon Capturing Underground Storage (CCUS) and it is becoming
increasingly important in today’s world of energy transition for the following
reasons:
- Climate Change Mitigation: One of the primary reasons for
the use of CCUS is to mitigate the effects of climate change by reducing
the concentration of carbon-dioxide (CO2) in the atmosphere. With the
ongoing shift towards renewable energy sources, CCUS can help to reduce
the amount for a significant portion of global carbon emissions.
- Transitioning to Low – Carbon
Economy: CCUS also play a major role in enabling the transition to
low-carbon economy by allowing the continued use of fossil fuels while
reducing emissions. This can provide a bridge to a time when renewable
energy sources can fully replace fossil fuels.
- Energy Security: Furthermore, CCUS can provide
energy security by helping to maintain a diverse energy mix that includes
fossil fuels. As renewable energy sources such as wind and solar power are
intermittent, CCUS can provide a reliable baseload power capacity that can
help to ensure a stable and secure energy supply.
- Job Creation and Economic Growth: CCUS has the potential to
create jobs and stimulate economic growth by supporting the development of
new technologies and industries. This can particularly benefit regions
that are economically dependent on fossil fuel industries.
The term CCUS refers to
the process of using technology in capturing and storing carbon-dioxide (CO2)
from the atmosphere and/or several other sources such as fossil fuels, power
plants, factories, transportation, and industrial processes. The captured CO2
is then stored in long-term reservoirs such as geological formations and
oceans.
Methods CCUS can be
applied to include:
- Post combustion capture
- Pre combustion capture
- Oxy – fuel combustion capture
- Post-combustion Capture: This technology involves
capturing CO2 emissions from the exhaust gases of power plants and
industrial facilities after the combustion of fossil fuels. The captured
CO2 is the transported to a storage site and stored underground.
- Pre-combustion Capture: Using this technology, fossil
fuels are converted into gas before combustion, after which it is then
processed to separate the CO2 from the other gases. The separated CO2 is
then transported and stored.
- Oxy-fuel Combustion: This involves burning fossil
fuels in an oxygen-rich environment, which produces a fire gas that is
mostly composed of CO2. The CO2 is then captured and transported to a
storage site.
In the oil and gas
sector, CCUS technologies can be used in a number of ways to reduce greenhouse
gas emissions by capturing CO2 emission from facilities on sites. Other CCUS
techniques include:
- EOR Technology: this involves injecting
captured CO2 into oil reservoirs to help extract additional oil. The CO2
is then stored underground in the reservoirs, effectively sequestrating
the carbon. This process not only helps reduce greenhouse gas emissions
from oil production but also increases the amount of oil that can be
extracted from a reservoir, making the process more efficient and cost
effective.
- Membrane Technology: This technology involves using
a membrane to separate CO2 from other gases in the gas stream. The
captured CO2 can then be transported to a storage site and stored
underground.
- Absorption Technology: This technology involves using
a chemical solvent to absorb CO2 from the gas stream. The CO2 rich solvent
is then regenerated, and the CO2 is then captured and transported to a
storage site.
- Cryogenic Technology: This technology involves
cooling the gas stream to very low temperatures, which causes CO2 to
condense into a liquid. The liquid CO2 can then be captured and
transported to a storage site.
Revenues In Carbon
Capture Underground Storage:
CCUS technologies have
the potential to generate significant business revenues in a variety of ways.
Here are some of the main revenue streams associated with CCUS:
- Carbon Credits and Pricing: This is known to be one of the
main revenue streams for CCUS. It entails the sale of carbon credits or
the inclusion of CCUS projects in carbon pricing schemes. These systems
provide a financial incentive for companies to reduce their carbon
emissions, and CCUS projects can generate carbon credits that can be
marketed or used to offset emissions elsewhere.
- Enhanced Oil Recovery (EOR): Again, this process efficiently
yields increase in oil production from the reservoir at an effective cost.
- Government Incentives and Grants: Governments around the world
provide various incentives and grants for companies to develop and
implement CCUS technologies. These incentives can take the form of tax
credits, grants or subsidies that can help cover the costs associated with
CCUS projects.
- Investment Opportunities: There are also opportunities
for investors to finance CCUS projects and earn returns on their
investments. For example, investors can fund the development of CCUS
technologies or invest in companies that are developing or implementing
these technologies.
Returning to the
question asked at the beginning of this article, it is very possible to have a
zero-carbon emission society. and this article has attempted at shedding light
on the various uses of CCUS technologies. Generally, CCUS is an important component
of energy transition towards a low-carbon future and is critical for reducing
greenhouse gas emissions. Moreso, CCUS technologies has the potential to
generate significant business revenues through carbon credits, EOR, grants and
investment opportunities. As the demand for carbon reduction and
decarbonization continues to grow, the business opportunities associated with
CCUS are likely to increase commensurately.
