1CCUSSupplyChainCooperation:UnlockingthefullpotentialofCCUSfortheUKandChinaJanuary2024CarbonCapture,Usage&Storage(CCUS)SupplyChainCooperation:UnlockingthefullpotentialofCCUSfortheUKandChina2ReportfundedbyUKGovernmentandpreparedbyTableofcontentsForeword1ExecutiveSummary3Chapter1.Introduction4Chapter2.CCUSProgress62.1CarbonCapture92.2CarbonTransport112.3CarbonUsage132.4CarbonStorage142.5DeploymentofCCUSClustersinChina152.6CCUSGovernmentPoliciesinChina172.7CCUSStandardsinChina182.8ChinaCCUSMarketOutlook182.9CostofCCUSinChina20Chapter3.UKCCUSStrategyandCapability223.1CurrentCCUSDeploymentPlansintheUK233.2UK’sCapabilityintheCCUSSector23Chapter4.ChinaCCUSSupplyChainAssessment264.1CarbonCaptureSupplyChain284.2CO2TransportSupplyChain284.3CO2UsageSupplyChain304.4CO2StorageSupplyChain324.5CommercialOpportunitiesforUKCCUSCompanies324.6ForeignCompanyEntry33Chapter5.UKCCUSCompaniesinChinaandStrengtheningUK-ChinaCollaboration345.1UKCCUSCompanies’PresenceinChinaCollaboration355.2SuggestionsforEnhancingUK-ChinaCollaborationonCCUS365.3MarketRisksandMitigationStrategies373CCUSSupplyChainCooperation:UnlockingthefullpotentialofCCUSfortheUKandChina4IamdelightedtobewritingtheforewordtothisexcellentreportintotheopportunitiesinChinaforUKbusinessesinCarbonCapture,Usage&Storage(CCUS).BoththeUKandChinahaveambitioustargetsforreducingcarbonemissions-netzeroemissionsby2050fortheUKandcarbonneutralityby2060forChina.CCUSisanimportantpartofachievingthisandoffersapathwaytoreducegreenhousegasemissionsandsecureasustainablefuture.TheUK’sindependentClimateChangeCommittee(CCC)hasdescribedCCUSasa‘necessity,notanoption.’ThiscomprehensivereportexaminesthecriticalaspectsofCCUStechnology,itscurrentstate,andtheimmensepotentialitholdsforboththeUKandChina.ItoutlinestheopportunitiesforcollaborationacrosstheCCUSsupplychainhighlightingareaswheretheUKandChinashouldworktogethertoacceleratetheadvancementandexpeditethedeploymentofCCUSsolutionsandhowtomaximisetheirimpact.China’simpressiveportfolioofnearlyonehundredCCUSprojectsacrossvarioussectors,alongwithitsambitiousgoalsforcarboncapturecapacityexpansion,presentsasignificantopportunityforcollaboration.UKindustryholdsthepotentialtocontributeitscommercialexpertiseinengineeringconsultancy,projectdevelopment,financing,andthesupplyofkeycomponents.Throughstrengthenedcooperation,wecanenhanceourcapabilitiesanddriveforwardinnovationinCCUStechnology.Inparticular,thisreportidentifiesseveralsectorswithintheCCUSdomainwhereUKcompaniescanmakesignificantcommercialcontributions,includinghigh-efficiencyaminesolutions,biomasscarboncapturesolutions,offshorecarbonstoragesolutions,andkeyCCUSequipment,amongothers.ThisreportalsohighlightschallengesthatUKcompaniesmayencounterwhenenteringtheChinesemarket,whileexplainingthatChinaactivelyencouragesforeigninvestmentandparticipationintheCCUSindustry,asevidencedbythepoliciesandinitiatives.IhopethatthisreportservesasacatalystforincreasedparticipationbyUKcompaniesinCCUSprojectsinChina.Thereismuchpotentialforcommercialsuccess,aswellasaddressingtheglobalchallengeofclimatechangethattranscendsborders.Byworkingtogether,wecanunlockthefullpotentialofCCUSandcontributetoasustainablefutureforall.IwouldliketoexpressmygratitudetotheUKcompaniesthathavecontributedtothisreportthroughtheirvaluableinsightsandexpertise.Ialsoextendmysincerethankstothededicatedteamsande...
