Beyond storage to value: Barriers, potential and accelerating policies for carbon capture and utilization in energy production

Abstract

In this study, we systematically investigate the barriers, potential, and accelerating policies of carbon capture and utilization for energy (CCU4E) production as a key strategy to reduce CO₂ emissions and mitigate climate change. We develop an economically optimized model tailored for major CO₂-emitting regions, covering the period from 2030 to 2050. The proposed model outlines a structured CCU4E strategy by identifying the optimal pathway configurations under nation-specific constraints such as H₂ production costs, market demand variability, and CO₂ capture capacities. Our analysis reveals that CCU4E strategies demonstrate significant potential for CO₂ utilization, with substantial regional variations driven by differences in H₂ availability and H₂ price. The economic feasibility and environmental performance vary considerably across regions, with H₂ price identified as the dominant economic factor. Policy sensitivity analysis demonstrates that carbon taxes, H₂ economy promotion, and catalyst development significantly influence CCU4E effectiveness, with optimal strategies varying substantially by regional conditions. Synergistic integration of CCU4E with existing CCUS frameworks offers strategic pathways for enhanced CO₂ mitigation while improving economic efficiency. The comprehensive optimization framework provides practical insights for policymakers and industry stakeholders by identifying implementation barriers, quantifying economic potential, and developing targeted policy recommendations. This research contributes a valuable tool for strategic decision-making in CCU4E deployment, enabling evidence-based policy design and technology investment strategies that accelerate progress toward global climate targets while considering regional economic and technical constraints.