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= Carbon transport and storage = Carbon transport and storage (CTS) is the backbone of the carbon management industry by facilitating widespread deployment of the carbon capture and removal technologies within the carbon capture and storage (CSS) industry.

The CTS industry focuses specifically on managing the infrastructure needed to transport and store carbon emissions. It involves developing the regulatory, economic, and physical frameworks necessary for handling large volumes of carbon emissions while ensuring that the captured emissions do not re-enter the atmosphere. Efficient infrastructure is especially critical for enabling large-scale decarbonization of hard-to-abate industries such as cement, steel, and chemicals.

Terminology
Carbon capture, utilization and storage (CCUS) is a term referring to the general aspects of the carbon management value chain : from carbon capture to usage of carbon dioxide in a range of industrial applications, or injection into geological formations for permanent storage.

Carbon capture and storage (CCS) is a term focused on process of capturing carbon emissions from sources like industrial plants and power stations, and then transporting it to storage sites for long-term sequestration underground.

Carbon capture and utilization (CCU) is a variation of the CCS-term where instead of storing carbon emissions, it focuses on the utilization of capture carbon dioxide for producing fuels, chemicals, and building materials, adding a resource recovery element to the carbon management value chain.

Carbon transport and storage (CTS) is term focused on managing the infrastructure needed to facilitate the entire carbon management value chain by transporting carbon emissions to their final destination via pipelines, ships, trucks, and railroads. It involves the development of ships, intermediate storage facilities, harbor terminals, geological storage sites, storage exploration and production licenses, and onshore/offshore drilling and carbon injection technology.

Industry maturity
In 2022, over 40 billion tons of carbon dioxide were emitted globally from burning fossil fuels. For perspective, 40 billion tons of carbon dioxide is the equivalent of covering America’s three largest states (Alaska, Texas and California) to a depth of 8.2 meters in the gasesous state of carbon dioxide ; in Europe it would amount to covering France, Spain, Germany, Poland, Italy, the United Kingdom, Romania, Greece, and Portugal. Robust infrastructure is needed to transport and store such a large emissions volume.

It is widely accepted that carbon waste management is required to address the emissions from hard-to-abate sectors for a net-zero society by decarbonizing a wide range of industrial facilities. This demonstrated by past and present commitment to developing legislative and economic frameworks for implementing cross-border carbon transport infrastructure, including significant investments being made by private companies and governments in carbon management infrastructure:


 * The EU began developing carbon management legislation in the early 2000s and implemented the World’s first large international carbon emissions trading system (EU ETS) in 2005. In 2013 alone, it was responsible for taxing more than 11,000 factories, power stations, and other hard-to-abate industrial facilities.


 * The Bellona Foundation have been advocating for the development of carbon waste policy and regulation since 1986.
 * In 2024, the US Department of Energy announced up to $24 million in funding for carbon transport networks to support geologic storage or industrial utilization.


 * Significant private equity has since 2023 started to be invested into the commercialization of ambitious carbon management projects by companies like BlackRock in the US and Shell in Canada.


 * The World’s first cross-border and entirely commercial carbon transport and storage company, Northern Lights, was launched in Norway and began operations in 2024 . The project is realized by major private energy companies (Equinor, Shell and Wintershall Dea) in collaboration with the Norwegian government.

Governments investing in carbon transport and storage infrastructure include : China, Malaysia, Singapore, Thailand, Japan, Korea, Indonesia, Norway, United States, United Kingdom, Germany, Scandinavia, Belgium, France, and the Netherlands to:


 * Practically enable decarbonization of hard-to-abate industries like cement, steel, and chemicals by providing infrastructure for handling their carbon emissions.
 * Allow for the creation of shared, cross-border carbon transport and storage networks to reduce costs and increase accessibility.
 * Facilitate the deployment of carbon capture technologies by providing a reliable destination for captured carbon emissions.
 * Support the development of a low-carbon hydrogen economy by enabling carbon capture from hydrogen production facilities.
 * Demonstrate the commercial viability for large-scale carbon management in a way that is beneficial to both the public and private sector.

Transport methods
Once carbon dioxide is captured from industrial sources, it needs to be transported to suitable storage sites. Selection of the most suitable transport mode is dependent on many factors. Ultimately the choice comes down to which mode is the most cost effective, safe, reliable and the least intrusive to society and the environment. As of 2024, the most common transport methods include:


 * Ships. Facilitate offshore transport of large carbon dioxide volumes across national and regional borders or oceans. Carbon dioxide is liquefied before it is loaded onto specialized transport ships or barges for offshore well injection via a floating storage and injection unit (FSIU).
 * Pipelines. Theoretically the most cost-effective option for large carbon dioxide volumes over long distances, especially for onshore transport . Existing oil and gas pipelines are in some instances deemed fit to be repurposed for carbon transport.
 * Trucks and trains. Suitable for smaller volumes and shorter distances and typically facilitate transport from an inland industrial facility to an intermediate storage facility before being loaded onto a ship or transported via pipeline to its final destination.
 * Intermediate storage. Temporary storage solutions are often necessary for increasing efficiency in transport to permanent storage sites.

Carbon properties in relation to transport
The physical properties and phase behavior of CO₂ are crucial for determining optimal conditions for transportation. High CO₂ density, achievable through gas compression or liquefaction, is essential for cost-effective transport. While solid CO₂ (dry ice) has high density, it is impractical for transportation. The critical point of CO₂ is 31°C and 74 bara, and the triple point is -56.6°C and 5.2 bara. For liquid CO₂ transport, temperatures between -56°C and +31°C and pressures between 5.2 and 74 bara are used, typically around 15 bara and -28°C. Pipelines generally operate above 74 bara to avoid phase changes.

Selection of transport method
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Transport by ship
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Transport by pipeline
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Transport by road
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Transport by rail
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Intermediate storage
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Storage methods
Carbon transport and storage involves various methods for handling CO₂, which are generally categorized into two types: temporary (intermittent) and permanent storage. Efficient management of the transport value chain necessitates the availability of intermittent storage at ship terminals. This allows emitters to temporarily store their CO₂ at the port before it is transported to its final storage site.

Comprehensive characterization and monitoring of permanent storage sites are essential to ensure long-term storage integrity and safety. Entities engaging in site exploration and storage are legally required to obtain an official permit before commencing work. Furthermore, they must characterize sites in accordance with national and regional law.

In many European regions, offshore storage provides the most viable option due to a large variety of technological factors and availability of appropriate geological formations, including regulatory frameworks for managing carbon emissions and waste. Since 2023, however, an interest for onshore storage has been growing significantly with the first exploration licenses for onshore storage granted by the Danish and Norwegian government.

Permanent storage
Liquified carbon dioxide can be stored and sequestrated in a variety of geological formations that prevent atmospheric reentry. As of 2024, typical examples are:


 * Depleted oil and gas reservoirs have proven capability to trap buoyant fluids over millions of years. Since the 1970s, the practice of injecting CO₂ into nearly depleted oil fields to extract additional oil has been applied in the US, which is technically the first known case related to storing CO₂ underground in large quantities.
 * Deep saline aquifers are located several kilometers underground . Saline aquifers are geological formations containing highly saline water (dense salt water), making them suitable for large-scale carbon dioxide (CO₂) storage. They offer large pore spaces to accommodate large volumes of CO₂, have favorable geological conditions like impermeable cap rocks to trap the injected CO₂, and are often located near major CO₂ emission sources.
 * Unmineable coal seams offer potential for CO₂ storage through adsorption onto coal surfaces, displacing methane . This process traps CO₂ while enabling methane recovery as an energy resource. Feasibility depends on coal seam characteristics, depth, permeability, and geological containment. It provides permanent CO₂ storage and enhanced coal bed methane recovery. Suitable regions with significant coal resources can benefit from this approach.

Governing frameworks
Regulatory frameworks vary between countries.

In regions like the European Economic Area (EEA) the EU Emissions Trading System (EU ETS) and Carbon Border Adjustment Mechanism (CBAM) are central to stimulating investment and adoption of carbon-based technologies. By setting emission targets, establishing carbon pricing mechanisms, and ensuring consistency in emission pricing across borders, these regulations create incentives for emissions reduction and the development of carbon capture and storage technologies, while contributing to globally driving the transition to a low-carbon economy.

European Economic Area
The EU Emissions Trading System (ETS) stands as the primary regulatory tool for controlling and taxing the total permitted quantity of greenhouse gas emissions within the European Economic Area (EEA). As a carbon credit trading and carbon tax mechanism, it directly affects willingness to invest private capital in the development of carbon transport and storage infrastructure.

EU Emissions Trading System (ETS)
Implemented in 2020 and encompasses carbon dioxide (CO₂), nitrous oxide (N₂O), and perfluorocarbons (PFC) emissions from aluminum production. It established the World’s first market for trading emissions allowances in collaboration with partners like the European Energy Exchange (EEX).

Under the ETS, entities subject to regulation can trade allowances known as EU Allowances (EUAs), where each EUA grants the right to emit one tonne of CO₂. This cap-and-trade system, regulated by the EU, aims to assist individual nations in achieving their climate targets. The EU anticipates that each country will reinvest revenues from the ETS into carbon-neutral technologies to support the transition to a carbon-neutral future, facilitated by funds like the Innovation and Modernization Fund.


 * Currently, the EU sets a total emissions cap for EU, Norway, Iceland, and Liechtenstein, with a limit on the total emissions allowed from specific industries. Based on this cap, the EU annually issues a fixed number of EUAs with a variable market price reflecting the costs of emission reduction investments.
 * Entities under the ETS are required to submit annual emissions reports to enable EU regulation of new quota issuance or penalties. However, certain conditions may exempt companies from this requirement, although failure to comply incurs fines, initially set at €100 per tonne of CO₂ emitted, adjusted for inflation. The ETS has faced criticism for speculation by private individuals, causing significant fluctuations in quota prices.
 * Starting from 2021, the EU introduced a linear reduction in new quota issuance by -2.2% per year, phasing out gradually until the mid-2030s, marking the transition to a fully climate-neutral market. The long-term fate of the ETS system remains unclear.

How ETS-prices affect infrastructure investments:


 * The price of EUAs directly influences the development of the CCS market. When ETS prices are lower than the costs of CCS, emitters may be less inclined to invest in CCS technologies, opting to purchase ETS allowances instead. Conversely, higher ETS prices can incentivize emitter investment in CCS technologies due to increased costs of CO₂ emissions, potentially driving greater demand for CCS technologies.
 * Policymakers must therefore consider ETS pricing when defining CO₂ emission prices to ensure alignment with CCS market development goals.

How to purchase carbon credits through the ETS-system:


 * Businesses typically utilize platforms like European Energy Exchange (EEX) or the Intercontinental Exchange (ICE) for EUA purchases.
 * Private individuals can invest in the ETS system through various financial instruments. For example, the KRBN ETF comprises two-thirds EUA issuances. Similarly, the iPath Series B Carbon ETN consists of 99% EUAs, while CU3RPS offers unlimited tracker certificates on carbon futures.

Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is an EU-imposed levy aimed at reducing carbon emissions and addressing issues like carbon leakage. It applies to specific imported goods, requiring importers to register with national authorities, purchase CBAM certificates, and declare imported emissions, ensuring cost parity between imported goods and those produced within the EU. CBAM complements the ETS trading system by gradually aligning with the phasing out of free EUA allocations.

United States
In the United States, investments in carbon transport and storage infrastructure are regulated and stimulated through a combination of federal funding initiatives and legislative support, primarily driven by the US Department of Energy (DOE). Unlike the European Union’s ETS and CBAM system, the US focuses on more direct financial support and infrastructure development.

Bipartisan infrastructure law
The 2021 Infrastructure Investment and Jobs Act provides funding for CCS-projects, including $8.2 billion in advance appropriations for CCS initiatives over several years. This law supports the development of a comprehensive carbon transport network, including pipelines, railroads, trucks, barges, and ships, to connect emission sources with storage sites.

DOE funding programs
The DOE’s Office of Fossil Energy and Carbon Management (FECM) has announced significant funding opportunities to expand CO₂ transportation infrastructure. For instance, up to $500 million is available for projects under the Carbon Dioxide Transportation Infrastructure Finance and Innovation (CIFIA) program, aimed at designing, developing, and building CO₂ transport capacity. Additional funding includes $45.6 million for nine projects to advance CO₂ capture technologies and establish a foundation for a carbon transport and storage industry.

Future growth grants
These grants are part of the CIFIA program and are intended to provide financial assistance for the upfront development of CO₂ transport capacity. This infrastructure will support future carbon capture and direct air capture facilities, as well as additional CO₂ storage and conversion sites.

Current projects

 * List of carbon capture and storage projects documents industrial carbon capture and storage projects.