SIEW TechTable Kicks Off with Spotlight on Carbon Capture Solutions

SIEW TechTable are sessions designed to explore emerging and nascent low carbon technologies that will accelerate the energy transition.

This year’s edition kicked off with a focus on ASEAN’s expanding influence in the global clean energy transition. The opening session highlighted the critical importance of regional energy interconnectivity. It also explored the transformative potential of carbon capture, utilisation and storage (CCUS) in reducing emissions, particularly in hard-to-abate sectors such as industry and cement.

ASEAN's role in the clean energy transition

In his Welcome Remarks, Chua Shun Loong, Assistant Chief Executive, Sustainable Supply Division, Energy Market Authority emphasised the unique energy landscape of ASEAN. He highlighted three characteristics that make interconnectivity technologies essential for the region.

First, ASEAN's renewable resources are unevenly distributed. For example, Laos and Indonesia possess significant potential, with nearly 26 gigawatts of hydropower and 3 terawatts of solar photovoltaic (PV) capacity. Singapore, on the other hand, has limited renewable options.

Second, renewable energy in the region, particularly solar, is intermittent. This makes cross-border resource pairing crucial to ensure a stable energy supply. Lastly, ASEAN’s complex geography, with its archipelagos and peninsulas, poses significant hurdles for energy transmission.

To address these challenges, Mr Chua stressed the need for long-distance power cables, grid upgrades, and backup solutions to manage renewable energy intermittency. "As we navigate the complexities of the clean energy transition, conversations, collaboration, and partnerships remain our most powerful tools," he said.

The role of CCUS in emissions reductions

In his Opening Remarks, Mohammed Y Al Masrahi, Director of Global Analysis, Aramco, reiterated a point made by Amir Nasser, President and CEO, Aramco, during an earlier event. Mr Nasser had cautioned that "the world is not on track to meet affordability, transition speeds, or emission reduction targets".

Mr Al Masrahi then focused on the pivotal role of CSS in reducing emissions, particularly in hard-to-abate sectors like cement production and heavy industry. He explained that these sectors are crucial for economic growth. He also noted that these industries are also among the most difficult to decarbonise due to the nature of their emissions.

Mr Al Masrahi pointed out that CCS offers a viable solution by capturing and storing carbon emissions, allowing these hard-to-abate sectors to continue industrial development while contributing to global emissions reduction goals.

Addressing the investment gap in CCUS technologies

One of the critical points discussed was the substantial gap in investments in CCUS compared to other clean energy technologies.

In a fireside chat, Mr Al Masrahi then joined Landon Derentz, Senior Director, Morningstar Chair, Global Energy Security, Atlantic Council. They discussed how substantial investment in technology development and policy incentives are needed to make CCUS cost-effective and competitive.

He illustrated the issue by comparing global spending on energy initiatives versus the amount allocated to CCUS. "As of 2023, the world spent US$1.8 trillion on energy transition initiatives, yet only US$12 million on CCS. That’s less than 1 percent," he noted, adding: "If the government really wanted to achieve their mission, they need to invest more into CCUS."

Mr Al Masrahi likened this investment gap to the early days of electric vehicle (EV) battery technology. Then, costs were prohibitively high until significant investments led to significant price reductions over time. He noted: "If you go back to the mid-2000s, a typical electric vehicle battery cost around US$1,400 per kilowatt power. Today, it is averaging US$30 per kilowatt—that's more than 90 percent in reduction."

Overcoming the cost of carbon transport and storage

Mr Derentz then shifted the conversation to hidden costs associated with CCUS, which in turn hindered its wider adoption.

Mr Al Masrahi explained that building sequestration infrastructure closer to emissions sites, or developing carbon hubs, could significantly reduce transportation costs and enhance the feasibility of large-scale CCUS projects. "The biggest chunk of the cost, after capturing the carbon, is transportation. That's because most of the carbon emissions sources are far away from the sequestration sites," he said

He shared Aramco's strategy to develop CCUS hubs in Japan and Saudi Arabia. These hubs will centralise the capture, transport, and storage of carbon dioxide, helping to scale CCUS deployment and reduce costs over time.

The opening addresses and fireside chat underscored the critical role of CCUS in reducing emissions, especially in hard-to-abate sectors. Significant challenges remain in terms of cost and scalability. By addressing these barriers, ASEAN and the global energy community can take a decisive step towards a sustainable, lower-emissions future.