Five potential hubs found for CCUS
An industry consortium — developing a Carbon Capture, Utilisation and Storage (CCUS) hub study for Asia — has identified five hubs as potential storage options after assessing over 3000 site locations.
The study focuses on the capture, transport and long-term storage of carbon dioxide emissions (CO) from hard-to-abate sectors, including steel, cement and chemicals.
The consortium — comprising steelmakers ArcelorMittal Nippon Steel India, JSW Steel, Hyundai Steel Company, and other value chain players BHP, Chevron and Mitsui & Co, Ltd — has committed to industry collaboration in advancing CCUS pathways.
"BHP is committed to supporting our steelmaking customers to decarbonise as demand for high quality steel continues to grow to expand energy networks, build infrastructure and support a growing population," said Dr Ben Ellis, Vice President Marketing Sustainability, BHP.
"With more than one billion tonnes of production a year in Asia coming from blast furnace capacity that is relatively early in its production life, it's important for industry to progress technologies to lower the emissions intensity of existing steelmaking assets while new commercial pathways to decarbonise steelmaking are developed over time.
"Innovative solutions — like the potential of CCUS — are an essential part of decarbonising hard-to-abate sectors such as steelmaking. This study will play an important role in leveraging shared knowledge and resources across the industry with many of the world's leading steelmakers mentioning carbon capture, utilisation and storage (CCUS) in their decarbonisation plans."
The consortium has recently welcomed three new partners, which the companies said will deepen the study's input across the value chain and expand the scale of the opportunity geographically. "K" LINE joins as the strategic expert in shipping technology for carbon dioxide. Kobe Steel LTD. will provide technical steelmaking experience and abatement commitments. LETA will provide expertise on global lower-emissions technologies.
The industry consortium commenced a pre-feasibility study in August 2025 to evaluate the development opportunity of CCUS hubs across Asia.
Through a high-level options study, Phase 1 of the project assessed more than 3000 potential storage sites across the Asia-Pacific. This process narrowed the field to five hubs located in India (two hubs), Indonesia, Malaysia and Australia — each selected for their potential performance across the full CCUS value chain, including capture, aggregation, transport, export to storage, utilisation approaches including technology and commercial readiness and market evaluation, and the policy and commercial conditions needed for deployment.
The five hubs were chosen on the basis of them providing a diverse set of characteristics, helping the study examine important trade‑offs, shape the CCUS development pathway, and pinpoint the practical steps required for feasibility. The selected hubs represent regional and international locations and include both onshore and offshore storage.
The findings to date demonstrate that regardless of which hub is selected, strong policy support, targeted incentives and clear regulatory frameworks are critical to making CCUS commercially viable.
"As we conclude Phase 1 of the project, we have not only identified five highly promising CCUS hubs, but also laid a strong foundation for large-scale CO reduction through close collaboration among the consortium members," said Yonghee Kim, Vice President, Process R&D Sub-Division, Hyundai Steel Company. "The participation of new consortium members is expected to further enrich perspectives and strengthen cross-industry cooperation."
Phase 2 of the study will undertake detailed engineering and commercial analysis of the five shortlisted hubs. This includes maturing engineering definition and developing potential implementation roadmaps to address key opportunities and challenges. The work will culminate in conceptual development plans outlining the business case, value chain design, CO forecasts, and potential pathways to abatement realisation for each hub.
By leveraging shared infrastructure and economies of scale, the study seeks potential applications for captured CO in industrial processes, or transporting captured CO via pipeline or shipping to storage sites.
The purpose of the study is to deliver tailored analysis that supports industry understanding of CCUS. The study also aims to increase public understanding of CCUS in Asia. The CCUS Hub Study is being delivered by Hatch as Project Management Officer in collaboration with Pace CCS, McDaniel and Global CCS Institute.
The consortium continues to welcome new partners and emphasises that CCUS remains a pathway for industries wanting to achieve net zero emissions.
Key Insights
- This topic is currently trending
- Experts are closely monitoring developments
- It may impact future decisions
