Developing Profitable Carbon Storage Projects

I came across a valuable report prepared for OGCI (Oil and Gas Climate Initiative): 𝘈𝘍𝘙𝘠 𝘢𝘯𝘥 𝘎𝘢𝘧𝘧𝘯𝘦𝘺𝘊𝘭𝘪𝘯𝘦 (2022). 𝘊𝘊𝘜𝘚 𝘋𝘦𝘱𝘭𝘰𝘺𝘮𝘦𝘯𝘵 𝘊𝘩𝘢𝘭𝘭𝘦𝘯𝘨𝘦𝘴 𝘢𝘯𝘥 𝘖𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘪𝘦𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘎𝘊𝘊. It is a useful read for anyone interested in understanding how #CarbonCapture, #Utilisation and #Storage (#CCUS) can fit into the #decarbonisation strategies of our region. The report provides a comprehensive overview of storage capacities, hub opportunities, #economic impacts, and roadmaps across the Gulf. From my perspective, the report also highlights what is still missing if #Oman and the wider #GCC want to turn CCUS into a bankable and investable pathway that hard-to-abate industries and hydrocarbon reliant economies can confidently adopt. The gaps that must be addressed include: • 𝙋𝙤𝙡𝙞𝙘𝙮 𝙘𝙡𝙖𝙧𝙞𝙩𝙮: Oman does not yet have a CCUS Act or a framework covering licensing, liability, MRV, and long term storage stewardship. This absence prevents projects from moving beyond pilots. • 𝘾𝙖𝙧𝙗𝙤𝙣 𝙥𝙧𝙞𝙘𝙞𝙣𝙜 𝙖𝙣𝙙 𝙞𝙣𝙘𝙚𝙣𝙩𝙞𝙫𝙚𝙨: Without a cost signal or mandatory capture obligations, there is no commercial driver for companies to invest in CCUS. GCC leaders such as Saudi Arabia, the UAE, and Qatar are already tying CCUS to industrial clusters and export markets while Oman risks lagging behind. • 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙣𝙜 𝙢𝙤𝙙𝙚𝙡𝙨: To make CCUS investable, Oman needs clear business models for capture, transport, and storage services alongside long term offtake contracts for low carbon products including ammonia, methanol, and steel. • 𝙏𝙚𝙘𝙝𝙣𝙤𝙡𝙤𝙜𝙮 𝙖𝙙𝙖𝙥𝙩𝙖𝙩𝙞𝙤𝙣: Oman’s unique ophiolite formations offer around 8.2 Gt of storage potential, but efficiency and injectivity remain unproven. This requires dedicated R&D, regulatory codes, and pilot projects to de risk. Bridging these gaps is not optional. It is the difference between remaining dependent on hydrocarbons versus creating a new low carbon industrial base that can compete regionally and globally. For those working on strategy, policy, or investment in Oman and across the GCC, I recommend reading the report closely. It provides both the scale of the opportunity and a clear reminder of the urgency to align regulation, finance, and technology if we want CCUS to become a credible pillar of the energy transition. https://lnkd.in/dTr3wWCe

Stop Guessing, Start Earning: Your No-Nonsense Guide to Carbon Market Profits Is your company leaving money on the table in the carbon markets? Forget the hype and focus on what actually works. Interoperability is the key to unlocking massive profit potential. Here's how: 1. Understand the Landscape: EU, North America, Asia-Pacific: Major carbon regulatory frameworks like EU ETS, California Cap-and-Trade, and China's National ETS are creating arbitrage opportunities. Article 6 of the Paris Agreement: This is a game-changer for international carbon credit trading. Think scaled carbon finance and regulatory arbitrage. 2. Interoperability: Your Profit Multiplier Cross-Jurisdictional Arbitrage: Exploit price differences between markets (e.g., EU ETS vs. UK ETS). Potential gains of €8-15/tCO₂. CORSIA vs. Voluntary Market: Develop projects for dual eligibility and optimize sales channels. Premium potential: $5-12/tCO₂. Temporal and Vintage Arbitrage: Time your credit delivery strategically. Current vintage credits can fetch a $3-5/tCO₂ premium. Quality and Certification Arbitrage: Invest in projects that meet premium standards (Gold Standard, Verra + CCB). Potential profit: $3-15/tCO₂. 3. How to Implement (Actionable Steps): Supply Chain Optimization: Source low-carbon options to save €15-35/tCO₂. Carbon Accounting Services: If you're a service provider, tap into the €500M+ market for emissions verification. Technology Transfer: If you have low-carbon tech, there's a premium for it. Strategic Monitoring: Track policy changes (UNFCCC, EU Green Deal, etc.) and market shifts (registry updates, investor policies). 4. Making Money at Scale: Government-to-Government Partnerships: Explore large-scale sectoral programs. Public-Private Partnerships: Combine public and private funding for maximum impact. Corporate Procurement: Secure high-quality credits for compliance. 5. The CSRD Opportunity (Don't Ignore This): The Corporate Sustainability Reporting Directive is creating a €40B annual market for sustainability reporting. Carbon offset procurement will increase 5- 7x. The Bottom Line: Interoperability isn't just a buzzword; it's a strategy. By understanding the nuances of different carbon markets and implementing smart arbitrage strategies, your company can not only meet its sustainability goals but also generate significant revenue. #carbonmarkets #sustainability #interoperability #climatefinance #CSRD

New Paper: 𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐭𝐚𝐤𝐞 𝐟𝐨𝐫 𝐥𝐚𝐫𝐠𝐞-𝐬𝐜𝐚𝐥𝐞 𝐂𝐂𝐒 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬 𝐭𝐨 𝐫𝐞𝐚𝐜𝐡 𝐟𝐢𝐧𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧? 🪏🪏🪏 Evidence from Porthos in the Netherlands The Porthos project in the port of Rotterdam (Netherlands) is the EU’s first large-scale CO₂ transport and offshore storage system to reach Final Investment Decision (FID) ➡️ This is a major step toward industrial decarbonization in the EU. There were earlier Dutch CCS initiatives. But they all failed (including Barendrecht and the ROAD project) There were substantial challenged with to 🦂 permitting, 🦂public acceptance, 🦂policy uncertainty, and 🦂no real business-case So if all these other projects failed, why did Porthos succeed? Well, the results show that four factors were decisive for advancing the project: 1️⃣ A new and substantially more supportive climate-policy framework reduced commercial and regulatory uncertainty to key project actors. 2️⃣ A lean number of organizations involved. These were only three state-owned (infrastructure) firms and a limited group of industrial emitters (who were very technologically capable) enabled efficient coordination with in the project. 3️⃣ Early identification of permitting and regulatory constraints, including the Dutch nitrogen ruling, allowed targeted government intervention and support to sustain project momentum. 4️⃣ And at last and very key, tht the project benefited from cross-project learning from earlier Dutch CCS projects that had failed, which provided technical knowledge, regulatory templates, and stakeholder-engagement experience, forming what we term 𝐩𝐫𝐨𝐣𝐞𝐜𝐭 𝐬𝐜𝐚𝐟𝐟𝐨𝐥𝐝𝐢𝐧𝐠. Are you a policy maker, regulators, or project developer? If yes, and if you want to make your CCS project happening in your constitutency, then these might be points to think about when designing and supporting large scale CO₂ transport and storage infrastructure in Europe and beyond. The paper is out and full Open Access. If you have questions and comments please reach out to Markus Steen and/or me (Julius Wesche (PhD) 🌏).

40 billion tonnes of CO2! That’s what the world emits every year. And yet, most corporate carbon strategies still revolve around tree planting and renewable energy certificates. Let me be blunt: nature-based offsets and RECs are not going to close a 40-billion-tonne gap. Trees burn. They decay. They take decades to mature — and even then, the math doesn’t come close. Renewables are essential for electricity. But they don’t decarbonize cement. They don’t decarbonize steel. They don’t touch heavy industry, refining, or petrochemicals — sectors that aren’t going away. The only technology that can capture CO₂ at the source, at scale, and store it permanently underground is CCUS — Carbon Capture, Utilization & Storage. This isn’t theoretical. EPA Class II and Class VI wells. Subpart RR MRV. Permanent geological sequestration. Measured and verified, not modeled and hoped for. So why the hesitancy? Because too many carbon managers are still operating from a 2015 playbook — one that treats CCUS as a fossil fuel talking point instead of what it actually is: the only credible path to gigatonne-scale removal. At CarbonKerma, we built something to bridge the gap between CCUS project development and the corporate buyers who need permanent, verified credits — and we did it by solving a problem no one else has touched. We de-link geology from carbon attributes. That means a CCUS operator doesn’t have to be in the carbon credit business to monetize sequestration, and a corporate buyer doesn’t need to be co-located with a well to claim verified, permanent offsets. The geology does the storing. CarbonKerma does the attribution — on-chain, auditable, and impossible to double-count. Our Carbon Forward Commitment (CFC) program takes it further: enterprises forward-purchase CarbonKerma Token (CKT) credits tied to real CCUS project milestones — from feasibility through EPA Class II/VI permitting to first injection. Your capital doesn’t just buy an offset. It acts as catalytic financing that helps these projects reach financial close. Don’t just offset. Build the capture capacity the world actually needs. 🔗 kerma.ai If this resonates, share it. The conversation needs to shift. #CCUS #CarbonCapture #CarbonCredits #NetZero #CarbonManagement #ESG #ClimateAction #CarbonKerma