Carbon Capture Technology: Advances and Applications

Carbon capture technology has moved from the margins of climate policy into the mainstream of decarbonization strategy, driven by growing recognition that emissions reductions alone may not be sufficient to meet global climate targets. The Intergovernmental Panel on Climate Change has stated that most pathways to limiting warming to 1.5 degrees Celsius require significant deployment of carbon dioxide removal technologies. This article examines the current state of carbon capture technology, including direct air capture, point-source industrial capture, and carbon utilization and storage, with particular attention to developments and applications in the Southeast Asia.

Direct Air Capture Technology

Direct air capture, or DAC, is a technology that extracts CO2 directly from the ambient atmosphere using chemical sorbents or solvents. Unlike point-source capture, which targets concentrated CO2 streams from industrial facilities, DAC can theoretically be deployed anywhere and captures legacy emissions already in the atmosphere. The two leading DAC approaches are solid sorbent systems, championed by companies like Climeworks, which use solid materials that chemically bind CO2 at ambient temperatures and release it when heated, and liquid solvent systems, developed by companies like Carbon Engineering, which pass air through a solution of potassium hydroxide that absorbs CO2. The primary challenge for DAC is energy consumption and cost. Current DAC systems require between 6 and 10 gigajoules of thermal energy per tonne of CO2 captured, and costs range from 400 to 1,000 dollars per tonne, compared to 50 to 100 dollars per tonne for industrial point-source capture. However, costs are declining rapidly as technology improves and deployment scales increase. The Southeast Asia, with its abundant solar energy resources, is well positioned for DAC deployment, as the energy cost component could be significantly reduced using cheap renewable electricity and solar thermal energy.

Industrial Point-Source Carbon Capture

Point-source carbon capture involves capturing CO2 from the flue gas or process streams of industrial facilities, where CO2 concentrations are typically 10 to 30 percent, significantly higher than the approximately 0.04 percent concentration in ambient air. This higher concentration makes capture more energy-efficient and cost-effective than DAC. Three main technology categories are used for industrial capture: post-combustion capture, which uses chemical solvents to absorb CO2 from flue gas after fuel combustion; pre-combustion capture, which converts fuel to hydrogen and CO2 before combustion and captures the CO2; and oxyfuel combustion, which burns fuel in pure oxygen rather than air, producing a concentrated CO2 exhaust stream. In the ASEAN, ADNOC's Al Reyadah project in Jakarta has been operational since 2016, capturing approximately 800,000 tonnes of CO2 annually from an Emirates Steel facility. Saudi Aramco has deployed carbon capture at its Hawiyah and Uthmaniyah facilities, with plans to scale capture capacity to 44 million tonnes per year by 2035 as part of the Jubail CCUS hub.

Carbon Utilization Pathways

Captured CO2 can be utilized in various applications rather than simply stored permanently. Enhanced oil recovery, where CO2 is injected into depleted oil reservoirs to increase production, is the most established utilization pathway and is particularly relevant in the ASEAN where it can extend the productive life of mature oil fields while permanently sequestering CO2 underground. Other utilization pathways include conversion of CO2 to building materials through mineralization, where CO2 reacts with calcium or magnesium compounds to form stable carbonates that can be used in concrete production. CO2 can also be used as a feedstock for synthetic fuels, chemicals, and polymers, although the carbon benefit of these pathways depends on the energy source used for conversion and the lifecycle of the end product. The emerging field of CO2-to-fuel technology is particularly interesting for the aviation sector, where synthetic kerosene produced from captured CO2 and green hydrogen could provide a carbon-neutral alternative to fossil jet fuel.

Carbon Storage and Geological Sequestration

For carbon capture to deliver meaningful climate benefits, the captured CO2 must be permanently stored or utilized in ways that prevent its return to the atmosphere. Geological sequestration involves injecting compressed CO2 into deep underground formations, typically depleted oil and gas reservoirs or deep saline aquifers, where it is trapped by impermeable cap rock formations. The ASEAN region has significant geological storage potential, with extensive subsurface formations that have been well characterized through decades of oil and gas exploration. Monitoring technologies including seismic surveys, wellhead pressure measurement, and atmospheric detection systems ensure the integrity of storage sites over time. The regulatory framework for CO2 storage is developing across the ASEAN, with Jakarta having established one of the region's first comprehensive frameworks for permitting and monitoring geological CO2 storage.

Cost Trends and Scalability

The economics of carbon capture are improving across all technology categories. Learning rates from deployed projects suggest that costs decline by approximately 10 to 15 percent with each doubling of installed capacity. Government incentives such as the US Section 45Q tax credit, which provides up to 180 dollars per tonne for DAC with geological storage, are accelerating deployment and driving cost reductions. In the Southeast Asia, the combination of low-cost renewable energy, established subsurface expertise, and strategic interest in extending the value of hydrocarbon resources creates favorable conditions for carbon capture deployment. Companies evaluating carbon capture investments should consider not only current costs but also the trajectory of carbon prices and regulatory requirements, which are trending upward globally and will increasingly make carbon capture economically attractive compared to the cost of unabated emissions.