CCS: Towards Market Transformation in China

23 July 2010

Carbon Capture and Storage (CCS) is proving to be one of the most cost effective and efficient long-term strategies in reducing carbon dioxide emissions (CO2). According to the International Energy Agency (IEA), implementing CCS at a significant scale will lead to an important reduction in the overall cost of emissions abatement.

CCS is a process that involves storing CO2 underground instead of being released into the atmosphere. The CO2 is captured from power stations and liquefied, channeled through pipelines into saline aquifers, coal beds or depleted gas and oil fields for indefinite isolation from the atmosphere.

In this briefing paper, we discuss the growth of the CCS industry in China, the demand for the technology and the need for effective regulation, private sector and international and regional government support. We also examine how key challenges to widespread implementation of CCS include the short-term cost and the need for further development of integrated CCS technologies.

With the announcement in May that China’s biggest coal producer, the Shenhua Group is planning to launch the first carbon capture and storage (CCS) project in Inner Mongolia by the end of this year, CCS is a technology that many leaders in China now recognize is economically viable.

  • View the briefing paper to the Chinese report, funded by the British Embassy in Beijing
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