Creating CCUS hubs can accelerate developmentĪ CCUS hub is a cluster of emission facilities that share the same CO 2 transportation and storage or utilization infrastructure. This article explores potential CCUS hubs, five emerging hub archetypes, and three key steps to accelerate the development of CCUS hubs. Developing cross-industry hubs that share CCUS infrastructure and resources across multiple companies could reduce the risks associated with the upfront investment capital that individual emitters may be unable to burden alone. For CCUS to reach levels needed to achieve net-zero commitments, lowering costs may be vital. 2 “ Scaling the CCUS industry to achieve net-zero emissions,” McKinsey, October 28, 2022. However, many, if not most, CCUS projects are economically challenged today, with high costs of capture for dilute point sources and a limited number of revenue streams available. Utilization has the added benefit over CCS of generating revenue to offset the cost of capture and transport. Future emission sources may exist near facilities that use captured CO 2 to create products such as fuels, chemicals, and building materials, and near oil and gas wells where they can be used for enhanced oil and gas recovery (EOR/EGR). Thousands of CO 2 point source facilities exist that could be suited to carbon capture and storage (CCS), with varying concentrations of CO 2 in the flue gas and differing proximity to storage sites, which can affect the viability for CCS for these facilities. The potential for CCUS is highly dependent on factors including the emissions source, industry, capture technology, transportation, as well as location and type of storage. There are two routes for captured CO 2: permanent storage (CCS) or utilization by converting into products (CCU). This article is a collaborative effort by Phil De Luna, Luciano Di Fiori, Yinsheng Li, Alastair Nojek, and Brandon Stackhouse representing views from McKinsey’s Oil & Gas Practice.
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