1. To achieve carbon neutrality, CCUS decarbonization technology will be necessary for hard-to-abate sectors such as cement, steel etc. For instance, in the cement sector, the replacement of green electricity and green fuels could only cut 40% of emissions. The rest 60% cut might only be reduced through CCUS, carbon conversion technology etc.
2. Considering the high cost needed during the capture process, except for driving down high capture costs, usage of captured CO2 can be of vital importance to increase the overall revenue.
3. In the short term, EOR will continue to be one of the most economical feasible carbon utilization methods. Under a high oil price situation, such as now, oil revenue from CCUS-EOR (~USD 270/ton) is able to offset CCUS operation cost which is estimated to be around USD 130/ton.
4. Although currently dominated by big SOEs, private and foreign companies play key roles in China’s CCUS project development. Dunhua and Shell are two examples.
5. EOR can be a transitional method in the short term, but the development of other storage resources shall also be put on the agenda, otherwise, it raises the risk of slowing down CCUS deployment due to a lack of data and experience on storage resources.