Some 25,000 t/y of CO₂ is to be captured from Eni’s natural gas treatment plant in Casalborsetti, Italy, under phase 1 of the Ravenna CCS project. Once captured, the CO₂ is transported to the offshore Porto Corsini Mare Ovest platform in the Adriatic Sea through reconverted gas pipelines, where it is then injected and stored at a depth of 3,000 metres in the depleted gas field.

The project partners report that Ravenna CCS is already delivering a reduction of over 90% in CO₂ emissions from the Casalborsetti plant’s chimney, rising to peaks of 96%, despite a carbon concentration of less than 3% and a low level of atmospheric pressure making recovery more ‘challenging’. They claim it is the world’s first industrial-scale project with such high levels of carbon capture efficiency. The companies also report that the facility is fully powered by electricity from renewable sources, avoiding further CO₂ emissions.

Under phase 2 development of the project, which is slated to begin in 2027, Ravenna CCS could ramp up to store up to 4mn t/y of CO₂ by 2030, in line with the goals defined by Italy’s Integrated National Energy and Climate Plan (PNIEC). According to Eni and Snam, the project is a candidate ‘to become the Italian hub for the decarbonisation of energy-intensive and hard-to-abate industries’. They also report that, ‘with the total storage capacity of the depleted gas fields of the Adriatic Sea, and based on market demand, the volumes of CO₂ captured and stored underground could reach 16mn t/y’.

The European Union has set a target for member states to develop storage capacity for at least 50mn t/y of CO₂ by 2030.

The Ravenna project partners are also conducting research and development studies for a possible future reuse of the captured CO₂.  

Current economics limit CO₂ utilisation potential as a key global decarbonisation tool  

However, new analysis from Wood Mackenzie suggests that CO₂ utilisation deployment in carbon capture, use and storage (CCUS) projects is being hindered by high costs and insufficient subsidies. The market analyst reports that CO₂ use currently represents less than 5% of globally announced capture capacity and says that stronger incentives are needed.

In Wood Mackenzie’s 2050 net zero scenario, more than 7bn t/y of CCUS capacity is needed. Currently, 500mn t/y of planned carbon capture capacity has been announced worldwide, of which more than 95% is dedicated to storage and less than 5% (22.4mn t/y) to utilisation, according to the report titled To use or not to use? CO₂ utilisation as a carbon capture enabler.

‘Expanded CO₂ utilisation could bolster overall carbon capture economics, but current high costs, insufficient subsidies and unsubstantial markets for green premiums are limiting appetite for utilisation growth,’ comments Rohan Dighe, Research Analyst, CCUS for Wood Mackenzie.

The report suggests that most markets remain uncompetitive due to costs. For example, e-hydrocarbons are uncompetitive and cost three times more than incumbent technology when using green hydrogen, which comprises more than 80% of the cost of production, finds the analysis.  

The report also states that more policy support and tax incentives are needed. According to Dighe, tax incentives like the US 45Q and Canadian Investment Tax Credit support utilisation but are limited in scope and provide insufficient revenue to justify projects. Only the European Union (EU) has a legislated CO₂ utilisation mandate, which is confined to e-fuel use in aviation. ‘Policy supporting demand for utilisation products is not strong enough,’ he says. ‘Without markets for these products, utilisation economics will continue to be disadvantaged. Declines in feedstock and technology costs and development of strong policy incentives are crucial for utilisation to become a legitimate, widespread enabler of carbon capture deployment.’

Meanwhile, a recent paper published in World Energy Law & Business suggests that carbon capture regulation within the EU has evolved. In particular, it ‘demonstrates a transition from prioritising CCS over carbon capture and utilisation (CCU) towards a more equitable treatment of both approaches in relevant legislation and policy frameworks’. The study examines recent legislative initiatives and amendments to key directives such as the Emissions Trading System Directive and the Renewable Energy Directive. It also explores the implications of the EU Net Zero Industry Act and the Carbon Removal Certification Framework.

The authors point out that within the current European legal framework, harnessing the regulatory incentives depends on how long CO₂ remains in CCU products, and warn that the ‘permanence’ criterion of CO₂ in the products remains an ‘ongoing challenge’. The article also examines and explains the need for expanding the scope of CCUS by incorporating pre-combustion carbon capture through methane splitting into the definition.