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Capturing investment in carbon sequestration: The clear path to net zero

  • Written by Sharon Malka, CEO, Dotz Nano Limited (ASX: DTZ)

In recent years, the detrimental effects of greenhouse gas emissions on our planet have become undeniable. Carbon dioxide (CO2), a major greenhouse gas, is a significant contributor to global warming and climate change. As we strive to transition to a more sustainable future, carbon capture technology has emerged as a powerful tool to mitigate CO2 emissions and promote clean air.

To meet our commitments to a 1.5-degree world, the International Energy Agency tells us we need to capture 5.6 gigatons per annum of CO2 from the environment by 2050. Currently, our annual capture rates are a mere 45 megatons. From crisis breeds opportunity, and by 2030, the global addressable market for carbon capture will be almost $100 billion. By 2050, this skyrockets six-fold to $600 billion.

Despite the attractive investment opportunity, data from the World Economic Forum (WEF) shows there is a global financing gap of $1 trillion to meet renewable energy requirements, particularly in developing nations. To achieve energy transition targets, carbon capture needs to be a major focus for investors as it is the most viable option for achieving deep decarbonisation from fossil fuel usage. 

Today, corporates and investors are recognising that the costs and economics of investing in carbon sequestration now add up and the time is right to be allocating capital to climatech and green energy solutions, such as carbon capture. However, there is still a significant education gap around the role of carbon capture, its benefits, and application, which is slowing the investment pipeline.

Enabling the transition

Carbon capture technology, also known as carbon capture utilisation and storage (CCUS), refers to the process of capturing CO2 emissions from various sources, preventing them from being released into the atmosphere, and storing or utilising them in a safe manner. The technology can be deployed at industrial facilities, power plants, and other large-scale CO2 emitters.

Post-Combustion Capture involves capturing CO2 after fossil fuels have been burned, making it feasible to retrofit existing power plants and industrial facilities. The captured CO2 can then be transported and stored in underground geological formations.

The primary goal of carbon capture technology is to reduce CO2 emissions from industrial processes and power generation. By capturing CO2 at its source, this technology prevents vast amounts of greenhouse gases from entering the atmosphere, thus mitigating global warming and climate change.

Industrial facilities and power plants often emit not only CO2 but also other harmful pollutants. By adopting carbon capture technology, these emissions can be significantly reduced, leading to improved air quality and health benefits for nearby communities.

While the world aims to transition to renewable energy sources, the complete phase-out of fossil fuels remains a challenging task. It is becoming clear that traditional energy sources will continue to play a significant role in our energy mix for years to come. CCUS technology helps enable the transition and close the gap, making fossil fuel-based power plants and industries more environmentally friendly and providing an economical industry solution to a wide-scale problem. Carbon capture has a vital role to play in a transitioning economy, empowering us to meet net zero targets.

Capturing the opportunity

The transformative potential of CCUS technologies opens a world of future possibilities for industry, government, and investors. But it's not enough to simply acknowledge its importance; we must actively support and invest in the CCUS industry to drive its development and advancement forward.

Policymaker decisions can shape the future of our planet by enacting policies that incentivise the deployment of carbon capture technology across industries. We are seeing this on a global stage, with the US and Canada increasing carbon capture credits, while the EU has implemented many progressive policies, such as the EU Emissions Trading System, introduced in 2005 to put a CO2 cap on EU industrial emitters.  This political focus and corporate incentivisation is encouraging major emitters, such as fossil fuel industries and cement manufacturers, to strengthen green credentials and focus sustainability efforts. The cost is too high to miss the opportunity. By creating a favorable regulatory environment and offering financial support, policymakers can accelerate the adoption of these technologies and help us achieve our climate goals.

Australia has the opportunity to be champions of change in renewable energies and CCUS technologies, given its economic dependence on fossil fuel and resource intensive sectors. However, to date, Australia has been laggards and with political guidelines murky there is opportunity for investors and corporations to lead the charge. For Investors, the opportunities in the CCUS sector are not only environmentally significant but also economically promising. Supporting the CCUS industry is not just a moral imperative; it's a sound financial decision.  

Time for disruption and innovation

CCUS technology has the potential to revolutionise our fight against climate change and improve the quality of the air we breathe. To accelerate the adoption of this technology, innovation is needed. Historically, this technology has been unviable at scale, however, technological advancements are improving viability and scalability of this solution. For example, Dotz Nano is exploring research and development of lower-cost, higher-impact CCUS technology that doubles the environmental impact by utilising plastic waste to capture and store carbon, following our acquisition of patented, proprietary technology earlier this year.

The time is now for change. Investing in carbon capture is a win-win situation for our planet and our economies. Together, industry, policymakers, and investors can drive innovation, create jobs, and ensure a cleaner, healthier future for all.

Background

Sharon Malka is the CEO, Dotz Nano Limited.  Dotz Nano Limited (ASX: DTZ) is a leading developer of innovative climate and industrial nanotechnologies tackling global environmental and industrial challenges.

The company's primary focus is centered around ground-breaking carbon management technologies as enablers of carbon neutrality. Dotz's proprietary carbon-based solid sorbent, represents the next evolution in carbon capture technologies, offering an efficient and sustainable approach to drive industrial deep decarbonisation towards sustainable energy future.

To learn more about Dotz, visit www.dotz.tech

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