Asia's Carbon Capture Projects Reach 50 Million Tons Annual Capacity
CCUS projects across Asia reach 50 million tons of annual CO2 capture capacity, a 150% increase since 2023, led by China and Australia.
Asia's Carbon Capture Projects Reach 50 Million Tons Annual Capacity
Operational and under-construction carbon capture, utilization, and storage (CCUS) projects across Asia reached a combined capacity of 50 million tons of CO2 annually as of February 2026, according to the Global CCS Institute. China accounts for 28 million tons, Australia 12 million, Japan 5 million, and South Korea 3 million, with the remainder spread across India and Southeast Asia.
The figure represents a 150% increase from 20 million tons in 2023, driven by policy incentives and declining capture costs.
Major Projects
China's Sinopec Qilu-Shengli project, the country's largest, captures 2 million tons of CO2 from petrochemical operations and injects it into depleted oil reservoirs in Shandong province. Australia's Santos-led Moomba project captures 1.7 million tons from natural gas processing in South Australia.
Japan's Tomakomai CCS demonstration in Hokkaido, which began in 2019, has safely stored 600,000 tons in sub-seabed geological formations, proving the viability of offshore storage in seismically active regions.
Cost Trends
Carbon capture costs from industrial point sources in Asia have declined to $45-65 per ton for high-concentration CO2 streams (cement, steel) and $80-120 per ton for lower-concentration sources (power generation). Government subsidies in Japan ($50 per ton tax credit) and Australia ($35 per ton direct payment) bridge the gap to commercial viability.
"CCUS costs are following a learning curve similar to solar panels a decade ago," said Brad Page, CEO of the Global CCS Institute. "Scale drives down costs, and Asia is providing that scale."
Storage Capacity
Asia's identified geological CO2 storage capacity exceeds 500 billion tons, primarily in depleted oil and gas reservoirs and deep saline aquifer formations. Southeast Asia's offshore basins, particularly in the South China Sea and Java Sea, offer large-capacity storage close to major industrial emission sources.
Malaysia's PETRONAS is developing a 3-million-ton carbon storage hub in the Kasawari field offshore Sarawak, targeting commissioning in 2028.
Criticism and Role
Environmental groups have questioned whether CCUS enables continued fossil fuel use by providing an "alibi" for delaying renewable energy transition. The International Energy Agency positions CCUS as necessary for hard-to-abate industrial sectors — cement, steel, chemicals — where electrification is technically or economically impractical.
Asia's CCUS pipeline includes 45 additional projects in development, which could add 80 million tons of annual capacity by 2030, bringing the total to 130 million tons — roughly 3% of the region's current emissions.