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I. INTRODUCTION AND CONTEXT The scientific evidence for climate change is undeniable, and the consequences of climate change are already being felt through sea level rise and extreme weather events. The most recent estimates by the Intergovern- mental Panel on Climate Change (IPCC, 2018) stated that impacts on health, livelihoods, food security, water supply, human security, and economic growth are pro- jected to increase with global warming of 1.5 degrees C and increase further with 2 C above pre-industrial levels. To avoid these impacts and give adaptation efforts a better chance of success, economies must transition to lower-carbon technologies. One component of the suite of technologies necessary for deep decarbonization is carbon capture, utilization, and storage (CCUS). The IPCC has noted that without CCUS, the costs of addressing climate change will be significantly higher.1 The most economical and immedi- ate path forward for the development of carbon capture is closely tied to creating corridors of CO2 transportation infrastructure that link sources of CO2 to enhanced oil recovery (EOR) markets, and eventually other types of geologic storage. Additionally, accelerating deployment of carbon utilization would provide a number of important pathways for decarbonization. For instance, while many sources of carbon emissions can be addressed through traditional carbon capture, certain industrial sectors are harder to decarbonize. One example would be aviation fuel emissions, which cannot be “captured” in real time by traditional means; using captured carbon to produce aviation fuel that has lower carbon content before it is combusted offers an effective pathway to reduce emissions in this sector. Geography may represent another circumstance where carbon utilization may be useful. In certain juris- dictions, such as those where any type of carbon storage may be constrained by social license to operate issues or by land use restrictions, carbon utilization may be an important decarbonization option. In other locations, the small size and proximity of existing CO2 sources may not justify building the infrastructure necessary to transport and store the CO2. In those regions, creating an on-site market for carbon capture and use (CCU) may be a pathway for decarbonization. This paper summarizes the current state of knowl- edge on CCU in an effort to highlight the potential for using carbon as part of the transition to a lower-carbon economy. To understand the technologies and the importance of policies to accelerate their availability, this report is built on a review of existing literature, a series of interviews and finally a workgroup of technical experts who provided significant insights and direction for this work. C2ES interviewed more than 20 develop- ers and other leaders to better understand how policy could spark growth in beneficial carbon utilization. The questions used to guide those interviews can be found in Appendix B. WHAT IS CARBON UTILIZATION? The capture, utilization, and storage of carbon oxides has been technologically feasible for generations and has been in operation since the early 1970s. Currently, 19 “full-scale” projects are in operation worldwide. Of these, 14 use captured CO2 for enhanced oil recovery (EOR) while five store CO2 in saline aquifers.2 Carbon utilization (a term used in this report inter- changeably with CCU) is a broad term used to describe the many different pathways where captured CO2 —or in some cases carbon monoxide (CO)—can be used or “recycled” to produce economically valuable products or services. EOR using CO2 is the most widely practiced form of carbon utilization today. Approximately 17 million metric tons per year of anthropogenic CO2 are currently used in the United States for EOR, along with much higher quantities of CO2 from naturally-occurring, but depleting, sources. Future domestic CO2 use applying current state-of-the-art CO2-EOR techniques for eco- nomically recoverable oil is projected to be 10.7 gigatons (Gt). Projections based on the development of “next-gen- eration” EOR techniques applicable to U.S. resources, such as those designated as the residual oil zone (ROZ), CARBON UTILIZATION—A VITAL AND EFFECTIVE PATHWAY FOR DECARBONIZATION 1PDF Image | Carbon Utilization
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