The Asia Pacific (APAC) region is responsible for more than half of global carbon dioxide emissions and is expected to become a significant global center for CCUS deployment. Xodus’ APAC CCUS Regional Assessment, which was commissioned by the UK Department for Business, Innovation, Science and Trade, identifies a strong alignment between CCUS challenges in APAC and areas in which the UK has developed specialist capability through the development of its own CCUS industry.
These include subsurface appraisal and saline aquifer screening, CCUS regulatory and monitoring frameworks, early-stage feasibility and FEED, specialist capture technologies, Monitoring, Reporting and Verification (MRV), and engineering and design for CO2 transport and shipping infrastructure.
Andrew Taylor, Head of Advisory, APAC, Xodus, said: “Asia Pacific does not lack ambition or potential for CCUS, but its challenge is turning that potential into investable projects.
“Across the region, there are countries with significant emissions and very substantial storage resources, plus governments developing the frameworks needed to connect the two. But there needs to be further work on storage characterization, regulation, project development and specialist engineering if deployment is going to accelerate.
“The UK has already developed solutions to many of these challenges in pursuing its own CCUS industry. Applying that experience in partnership with governments, project developers and local supply chains across Asia Pacific can help projects progress more quickly and avoid having to solve the same problems again.”
The study highlights the increasingly interconnected nature of the regional CCUS market. In Northeast Asia, countries including Japan, South Korea and Taiwan are expected to initially focus on validating local storage, capturing and exporting CO2, while Malaysia and Indonesia have the potential to become major storage locations for both domestic and imported emissions.
Australia and New Zealand also offer significant geological storage opportunities, although greater transport distances could affect the economics of importing CO2 from Northeast Asia.
This geographic mismatch between major sources of emissions and available storage means cross-border transport and common regulatory and technical frameworks are likely to become increasingly important as the industry develops.
Under Xodus’ more ambitious deployment scenario, seven countries could be exporting approximately 83 million tonnes of CO2 annually by 2030, growing to nine exporting countries and 145 million tonnes per year by 2035.
However, regulatory readiness remains highly variable. Japan, South Korea, Malaysia and Australia have established dedicated CCUS legislation or relatively mature permitting frameworks, while a number of other markets remain at earlier stages of developing rules covering areas such as monitoring, liability and long-term stewardship.
Commercial frameworks present a further challenge, with carbon pricing and other incentives for CCUS varying significantly between markets. The study concludes that greater regulatory certainty, stronger commercial incentives and continued technical development will be central to accelerating investment.
Andrew added: “There is a window now to help shape how this industry develops. The greatest value the UK can bring is not simply supplying equipment into future projects but working alongside regional partners during the formative stages of the industry—helping to establish the technical evidence, regulatory structures and commercially viable project concepts that allow investment to happen.
“If that expertise is deployed early and collaboratively, it can help accelerate the development of a safe, investable and scalable CCUS industry across the region.”
Xodus’ modeling indicates that the overall APAC CCUS market could grow substantially as projects progress from development into execution, reaching up to £187.8 billion by 2035 under an accelerated deployment scenario.
Read the report here: https://www.xodusgroup.com/response-forms/apac-ccus-regional-assessment-study-report/
