The Middle East stands at the forefront of a global energy transition, poised to leverage its unique strengths and innovative spirit to lead the charge towards a sustainable future. As Saudi Arabia continues to execute upon its ambitious Vision 2030 and 2060 net-zero targets, the conversation around decarbonisation often centres predominantly on the visible deployment of solar farms and wind turbines.
Complementing these efforts, for KSA’s heavy industries – key drivers of its economic diversification and future prosperity – another powerful and often less-understood solution is emerging as a critical stimulus for its energy transition: Carbon Capture, Utilisation, and Storage (CCUS). This sophisticated technology, designed to capture carbon dioxide emissions before they enter the atmosphere, is far more than just another climate tool; it is rapidly becoming an indispensable bridge between maintaining vital industrial capacity and achieving sustainable energy production at scale, particularly for the broader GCC's collective net-zero ambitions.
Industries such as aluminum, steel, cement production, and natural gas-based power generation are absolutely vital to Saudi Arabia's economy, underpinning its industrial base and export capabilities. As these foundational sectors evolve towards net-zero, addressing their CO₂ emissions becomes a necessary next step, where CCUS offers a powerful solution. Crucially, many of these emissions are process-based, meaning they are an unavoidable byproduct of chemical reactions within the industrial process itself, and thus cannot be abated through electrification alone.
These heavy sectors require a continuous, high-volume energy supply that can only be ensured at scale by a complementary – and more and more decarbonized - energy mix, in which renewables play an ever-growing role alongside gas-fired generation.” This is precisely why CCUS offer a direct and pragmatic pathway to abate emissions from these "hard-to-abate" sectors. By integrating CCUS, these industries can ensure their continued operation and substantial contribution to the economy without compromising ambitious environmental targets.
The urgency of this imperative is starkly underscored by global figures: while current operational CCUS capacity worldwide stands at a mere 50 million tonnes per annum (Mtpa), an astounding 7.6 billion tonnes of CO₂ annually by 2050 to align with net-zero pathways — meaning global CCUS deployment must increase by more than 150 times its current scale within just 25 years.
The technical foundations of CCUS are robust and well-established, encompassing various methods from capturing CO₂ directly at industrial sources (post-combustion, pre-combustion, and oxy-combustion for power sector retrofits) to even extracting it directly from the ambient air through Direct Air Capture (DAC). Once captured, the CO₂ is either utilised in industrial processes or permanently stored in secure geological formations.
What is critically needed now is widespread deployment, particularly in regions like the Middle East, which boast immense natural advantages. The region possesses vast storage potential in deep saline aquifers, identified as the primary target for long-term CO₂ storage, as well as in depleted oil and gas fields with Enhanced Oil Recovery (EOR) system.
The geographical proximity within the Gulf offers significant cross-border potential, laying a strong foundation for regional CCUS corridors. Transport options extend beyond pipelines to include shipping liquefied CO₂ for smaller volumes or cross-border transfers, and even the potential for repurposing existing natural gas pipelines, albeit with careful technical considerations.
In many hard-to-abate sectors, such as cement and fertiliser production, CCUS is not merely an option but often the only large-scale decarbonisation solution available. Economically, CCUS can even prove more cost-effective than full electrification or fuel-switching in specific contexts, such as gas-fired power generation versus hydrogen turbines.
Capture costs can range from an efficient $15–40/tCO₂ for high-purity industrial streams to $60–120/tCO, demonstrating its economic viability in targeted applications. This strategic positioning allows Saudi Arabia to go beyond being an energy producer, transforming into a leader in the production of low-carbon goods, thereby creating new economic avenues and skilled jobs within the Kingdom. It also offers a pragmatic pathway to repurpose existing energy infrastructure and leverage existing expertise, supporting a just transition for the workforce and local communities.
Looking ahead, the journey towards a sustainable future in Saudi Arabia and the broader GCC is one of immense potential. By fostering collaboration and embracing the transformative capabilities of CCUS, significant progress can be made. This vital technology is meant to play its full role in achieving net zero, ensuring a prosperous and sustainable future for generations to come – a vision that ENGIE deeply shares and is committed to supporting through its global expertise in advanced decarbonisation solutions.
- The writer, Mohammed Al Hajjaj, is the CEO of Engie Saudi Arabia
