APAC to see $15b investment in CCS over next decade

Australia, Malaysia and Indonesia are emerging hubs for carbon capture.

The Asia Pacific (APAC) could anticipate a $15b investment in carbon capture, and storage (CCS) over the next decade as markets boost their decarbonisation initiatives.

In a report, Rystad Energy said Australia, Malaysia, and Indonesia are poised to be emerging hubs for CCUS in the region due to the carbon dioxide (CO2) storage potential in their depleted oil and gas reservoirs and strict environmental regulations.

Southeast Asia, meanwhile, is also becoming a ”promising contender” as it offers “cost-effective” storage facilities.

Because of this, companies from countries such as Japan and South Korea partner with Southeast Asian and Australian firms.

Some of the notable players in the CCS market include Malaysia’s Petronas, Indonesia’s Pertamina, and Australia’s Santos and Woodside Energy.

“The race is on for CO2 mitigation leadership in APAC. Policymakers are taking steps to close regulatory gaps to fully unlock the CCS value chain and create a friendly investment environment through project incentives,” Sohini Chatterjee, senior analyst at Rystad Energy said.

“Ultimately, the region with the most cost-effective solutions and a clear path for CO2 storage will win. Strong government action, encompassing financing and establishing a standardized CCS framework, will also be vital,” Chatterjee added.

Meanwhile, the region also saw a record year for the expansion from CCS to carbon capture, utilisation and storage as such projects accounted for 51% of the total CO2 capture capacity.

This increase in capacity was mainly driven by Australia, East Asia and Southeast Asia.