This report brings a comprehensive analysis of the situation in Ukraine regarding the existing situation, past experiences, and potential for CCS deployment till October 2021. From February 2022, the Russian invasion in Ukraine has left a heavy, lasting and, for now, fully unpredictable impact on the situation in Ukraine in all areas of life, including the aspects described in this report. Thus, it is clear that this war and its consequences will have a strong impact on the situation described further in this report.
- Ukraine has reduced the C02 emission by 62% from 1990 due to economic decline that led to lower energy consumption. The biggest polluters are the heat power plants that are powered by coal, as well as energy intensive production like metallurgy, cement and chemical industries that generate combined over
- The output of industrial producers is expected to grow by at least 10-15% as the demand on the internal market on construction materials and metal will grow at a high pace, driven by the modernization of the infrastructure and constructing new efficient buildings.
- Significant number of companies (such as DTEK, Metinvest, ArcelorMittal, Naftogaz) are searching for new technologies to implement but do not see the technologies tested on the industrial scale and economically viable, so they are focused on the energy efficiency measures within the next 5 years. Still, they are ready to invest in R&D and test new technologies such as hydrogen and CCS/CCU.
- Geological potential allows to store the C02 in depleted gas fields, which are located nearby the big industrial polluters. The estimated capacity of the depleted gas fields for CO2 storage exceeds 2.4 billion tons of CO2 stored.
- The key potential for the CCS/CCU implementation are the heat power plants (international obligations on cutting emission), metallurgy production facilities (try to reduce the carbon footprint under threat of CBAM), gas production companies (have significant CO2 in the gas which doesn’t meet the requirements of the gas transmission system).
- The key challenges in launching the CCS/CCU projects: 1-no stable environment; 2-no incentives for the business to investment in new technologies (low environmental tax and bad administration of the tax); 3-absence of regulatory base that sets the framework for the CCS/CCU; 4-absence of infrastructure to transport the C02; 5-poor infrastructure to attract financing.
Full PDF can be found here: CCS4CEE_Ukraine