Carbon Removal Technologies for the Energy Sector

As the climate crisis escalates, the energy sector faces significant pressure to decarbonise and move toward sustainable practices. While renewable energy sources such as wind, solar, and hydro can reduce emissions, they aren't enough on their own to mitigate the existing greenhouse gases already in the atmosphere. This is where carbon removal technologies come in. These solutions aim to capture and store carbon dioxide (CO₂) directly from the atmosphere, helping to balance emissions from sectors that are harder to decarbonise.

What Are Carbon Removal Technologies?

Carbon removal technologies, also known as negative emissions technologies, are processes that capture and remove CO₂ from the atmosphere. Unlike emission reduction strategies, which focus on lowering the amount of greenhouse gases released, carbon removal aims to address existing carbon. For the energy sector, which is one of the largest contributors to global CO₂ emissions, carbon removal technologies provide a pathway to achieve net-zero targets and limit global warming.

These technologies are critical because some emissions are difficult to eliminate entirely, especially in industries like steel, cement, and aviation. Removing carbon from the atmosphere allows for balancing out these unavoidable emissions, moving the energy sector and other industries toward a carbon-neutral future.

Leading Carbon Removal Technologies Transforming the Energy Sector

Different carbon removal technologies vary in approach, scalability, and application within the energy sector. Here, we’ll review some of the most promising types and how they work.

Direct Air Capture (DAC)

Direct Air Capture (DAC) is a technology that uses chemical processes to capture CO₂ directly from the air. DAC systems use fans to draw in air, which then passes through filters containing chemicals that bind to the CO₂. Once captured, the CO₂ is compressed and can be stored underground or used in products like concrete or fuels.

Pros and Cons of DAC:

• Pros: DAC offers flexibility because it can be installed anywhere, unlike point-source carbon capture, which requires proximity to emission sources. It also has a small physical footprint.

• Cons: DAC is currently one of the more expensive carbon removal methods, with costs estimated between €230 to €600 per ton of CO₂. Scaling up DAC to make a significant impact on global emissions will require major investment and infrastructure.

Despite these challenges, companies like Climeworks and Carbon Engineering are pioneering DAC projects. Climeworks recently opened a large-scale DAC facility in Iceland that captures 4,000 tons of CO₂ per year, showcasing the potential of this technology when deployed at scale.

Bioenergy with Carbon Capture and Storage (BECCS)

Bioenergy with Carbon Capture and Storage (BECCS) involves growing biomass, such as trees or crops, that absorbs CO₂ as it grows. This biomass is then used to produce energy, and the resulting CO₂ emissions are captured and stored underground, effectively removing carbon from the atmosphere.

Advantages and Limitations of BECCS:

• Advantages: BECCS combines carbon capture with renewable energy production, making it a promising dual-purpose solution. It has the potential to remove large amounts of CO₂ when implemented on a significant scale.

• Limitations: BECCS requires vast amounts of land for growing biomass, which could lead to land-use conflicts, affect food security, and impact biodiversity. The energy-intensive nature of the process also limits its efficiency.

BECCS is being tested in various countries, particularly in areas where biomass resources are abundant. However, for this technology to play a major role in decarbonising the energy sector, sustainable sourcing and land management practices must be prioritised.

Carbon Mineralisation

Carbon mineralisation, also known as carbon sequestration in rock formations, involves reacting CO₂ with naturally occurring minerals to form stable carbonates. This process can happen naturally over thousands of years, but engineered solutions aim to accelerate it to make it viable for carbon removal.

Benefits and Challenges of Carbon Mineralisation:

• Benefits: Carbon mineralisation is a highly stable form of storage, as the CO₂ is permanently turned into rock. It also has the potential for large-scale deployment in areas with abundant minerals, such as basalt.

• Challenges: This method can be slow and energy-intensive, and its effectiveness depends on the availability of suitable rock formations. However, new technologies are being developed to speed up the reaction, which could make this option more practical.

Mineralisation projects are being explored in regions rich in basalt rock, such as Iceland and parts of the United States, as potential large-scale solutions for carbon removal.

Soil Carbon Sequestration

Soil carbon sequestration involves storing CO₂ in the soil through agricultural practices like planting cover crops, reducing tillage, and managing grazing. These methods encourage carbon storage in soil organic matter, which also improves soil health and agricultural productivity.

Benefits and Considerations of Soil Carbon Sequestration:

• Benefits: Soil carbon sequestration is a cost-effective solution with co-benefits for agriculture, including improved soil fertility, water retention, and crop yields.

• Considerations: This method relies on sustainable land management practices and requires ongoing maintenance to ensure CO₂ remains stored in the soil. Changes in land use or improper practices could reverse the sequestration.

While soil carbon sequestration alone cannot fully decarbonise the energy sector, it offers a valuable, low-cost addition to carbon removal portfolios, especially in agricultural regions.

Investment Trends and Major Players in Carbon Removal for Energy

Investments in carbon removal technologies are growing as the demand for decarbonisation solutions intensifies. Governments, private companies, and environmental organisations are backing initiatives that develop and deploy these technologies.

• Key Companies: Companies like Climeworks, Carbon Engineering, and Global Thermostat are leaders in DAC, each with active projects aiming to capture millions of tons of CO₂ annually.

• Government Support: European governments and the EU are investing significantly in carbon removal, with programs like Horizon Europe directing billions towards climate innovation and DAC projects.

• Future Projections: According to market forecasts, the carbon capture, utilisation, and storage (CCUS) market is projected to grow substantially over the next decade. This growth will likely drive innovation, reduce costs, and make carbon removal more accessible for the energy sector and beyond.

Current Challenges and the Future of Carbon Removal in Energy

Despite their promise, carbon removal technologies face significant challenges. Financially, many of these solutions remain costly, which can limit their widespread adoption. DAC, for example, requires substantial upfront investment and operational expenses. Additionally, infrastructure for CO₂ storage and transportation must be expanded to support large-scale deployment of these technologies.

Regulatory frameworks and industry standards also need to evolve to support carbon removal. The establishment of clear guidelines, incentives, and credits for carbon removal will be crucial for creating a viable market and encouraging investment.

In the future, carbon removal technologies will likely be part of a multi-faceted approach to achieving net-zero emissions. Renewable energy, emissions reductions, and carbon capture solutions must all work in tandem to meet climate goals.

Carbon removal technologies represent a promising, albeit complex, solution for the energy sector to address climate change. By capturing and storing CO₂, these technologies help balance out unavoidable emissions, making a sustainable energy future possible. With ongoing research, investment, and policy support, carbon removal can play an essential role in decarbonising the energy sector and creating a more resilient, climate-friendly world.