A new assessment from energy consultancy Xodus projects that the Asia Pacific carbon capture, utilization and storage (CCUS) market could grow to $255 billion by 2035 under an accelerated deployment scenario. The region accounts for more than half of global CO2 emissions, but a mismatch between major emission sources and available storage capacity is expected to drive development of cross-border CO2 transportation networks. Japan, South Korea and Taiwan are likely to focus on domestic storage while building export capabilities, while Malaysia and Indonesia could emerge as major storage hubs for both domestic and imported CO2. Regulatory frameworks vary widely across the region. Japan, South Korea, Malaysia and Australia have dedicated CCUS legislation or mature permitting processes, but other countries are still developing rules for monitoring, liability and long-term stewardship. Xodus says storage characterization, regulation and early-stage engineering are needed to turn potential into investable projects. The assessment was commissioned by the UK government and also looked at how British CCUS expertise could support project development in Asia Pacific.
