This is due to the absence of the right drivers for CCUS adoption.
The widespread adoption of carbon capture, utilization, and storage (CCUS) in Southeast Asia remains unlikely, the Institute for Energy Economics and Financial Analysis (IEEFA) reported.
This is due to the absence of the right drivers in the region, such as a high carbon price environment with a strict emissions regulation, amongst others.
“CCUS can be viable when placed under a certain operational context,” IEEFA Energy Finance Analyst Putra Adhiguna, said.
“But the same technology could be far from ready in more cost-sensitive markets with lax emissions control.”
Adhiguna noted CCUS costs range from US$50 to more than US$100 per tonne of captured carbon dioxide, which will need to be internalized by those in the value chain.
“With the exception of Singapore, a carbon price is largely non-existent in the South East Asian market, yet CCUS essentially represents a ‘tax’ to continue emitting carbon,” Adhiguna said.
Citing the very little carbon emissions valuations, public funding support, and market drivers to support CCUS development, IEEFA said it is unlikely that the region could widely adopt of CCUS technologies.