Carbon Capture, Usage & Storage (CCUS) Supply Chain Cooperation: Unlocking the full potential of CCUS for the UK and China 20 w 30 w 6 w 0双 .2 03 碳 06 文 0. 库 vi p January 2024 CCUS Supply Chain Cooperation: Unlocking the full potential of CCUS for the UK and China 1 20 w 30 w 6 w 0双 .2 03 碳 06 文 0. 库 vi p Report funded by UK Government and prepared by 2 Table of contents Foreword 1 Executive Summary 3 Chapter 1. Introduction 4 6 9 11 13 14 15 17 18 18 20 Chapter 3. UK CCUS Strategy and Capability 3.1  Current CCUS Deployment Plans in the UK 3.2  UK’s Capability in the CCUS Sector 22 23 23 Chapter 4. China CCUS Supply Chain Assessment 4.1  Carbon Capture Supply Chain 4.2 CO2 Transport Supply Chain 4.3 CO2 Usage Supply Chain 4.4 CO2 Storage Supply Chain 4.5  Commercial Opportunities for UK CCUS Companies 4.6  Foreign Company Entry 26 28 28 30 32 32 33 Chapter 5. UK CCUS Companies in China and Strengthening UK-China Collaboration 5.1  UK CCUS Companies’ Presence in China Collaboration 5.2  Suggestions for Enhancing UK-China Collaboration on CCUS 5.3  Market Risks and Mitigation Strategies 34 35 36 37 20 w 30 w 6 w 0双 .2 03 碳 06 文 0. 库 vi p Chapter 2. CCUS Progress 2.1  Carbon Capture 2.2  Carbon Transport 2.3  Carbon Usage 2.4  Carbon Storage 2.5  Deployment of CCUS Clusters in China 2.6  CCUS Government Policies in China 2.7  CCUS Standards in China 2.8  China CCUS Market Outlook 2.9  Cost of CCUS in China CCUS Supply Chain Cooperation: Unlocking the full potential of CCUS for the UK and China 3 4 20 w 30 w 6 w 0双 .2 03 碳 06 文 0. 库 vi p Foreword I am delighted to be writing the foreword to this excellent report into the opportunities in China for UK businesses in Carbon Capture, Usage & Storage (CCUS). market, while explaining that China actively encourages foreign investment and participation in the CCUS industry, as evidenced by the policies and initiatives. This comprehensive report examines the critical aspects of CCUS technology, its current state, and the immense potential it holds for both the UK and China. It outlines the opportunities for collaboration across the CCUS supply chain highlighting areas where the UK and China should work together to accelerate the advancement and expedite the deployment of CCUS solutions and how to maximise their impact. I would like to express my gratitude to the UK companies that have contributed to this report through their valuable insights and expertise. I also extend my sincere thanks to the dedicated teams and experts who have compiled this report. I look forward to seeing the positive impact that this work has on UK-China collaboration in CCUS and on the global fight against climate change. I hope that this report serves as a catalyst for increased participation by UK companies in CCUS projects in China. There is much potential for commercial success, as well as addressing the global challenge of climate change that transcends borders. By working together, we can unlock the full potential of CCUS and contribute to a sustainable future for all. 20 w 30 w 6 w 0双 .2 03 碳 06 文 0. 库 vi p Both the UK and China have ambitious targets for reducing carbon emissions - net zero emissions by 2050 for the UK and carbon neutrality by 2060 for China. CCUS is an important part of achieving this and offers a pathway to reduce greenhouse gas emissions and secure a sustainable future. The UK’s independent Climate Change Committee (CCC) has described CCUS as a ‘necessity, not an option.’ China’s impressive portfolio of nearly one hundred CCUS projects across various sectors, along with its ambitious goals for carbon capture capacity expansion, presents a significant opportunity for collaboration. UK industry holds the potential to contribute its commercial expertise in engineering consultancy, project development, financing, and the supply of key components. Through strengthened cooperation, we can enhance our capabilities and drive forward innovation in CCUS technology. In particular, this report identifies several sectors within the CCUS domain where UK companies can make significant commercial contributions, including high-efficiency amine solutions, biomass carbon capture solutions, offshore carbon storage solutions, and key CCUS equipment, among others. This report also highlights challenges that UK companies may encounter when entering the Chinese His Majesty’s Trade Commissioner CCUS Supply Chain Cooperation: Unlocking t