oa Feasibility and Business Model Research on CCS Cluster Development in Guangdong Province, China

In the context of carbon neutrality, CCS is considered an essential solution for achieving deep decarbonization in hard-to-abate industrial sectors. Due to the fact that individual companies often find it challenging to independently undertake the construction and operation of large-scale CCS infrastructure, cluster-based development offers the possibility for the large-scale promotion and application of CCS. As one of the most economically developed provinces in China, Guangdong is characterized by large industrial CO2 emissions, concentrated spatial distribution of emission sources, and has significant potential for offshore geological CO2 storage. It is feasible to develop CCS clusters in Guangdong Province. Three CCUS clusters can be planned, namely the Pearl River Delta Cluster, the Eastern Guangdong Cluster, and the Western Guangdong Cluster. It is recommended that Guangdong province adopt the “split-chain” approach to design the business model of CCS cluster to promote the development of CCS clusters. For the carbon capture, the capital grant and income support will be provided based on the amount of CO2 captured and delivered to the transportation network. But for the transportation and storage, revenue support and risk support will be provided to the transport and storage company to enhance the investment confidence.