Xodus study finds UK carbon capture expertise could speed CCUS deployment across Asia Pacific region
UK expertise in carbon capture, utilization and storage could help fast-track project development across Asia Pacific, according to a new study from global energy consultancy Xodus. Published in September 2026 and commissioned by the UK Department for Business, Innovation, Science and Trade, the Asia Pacific CCUS Regional Assessment finds a strong alignment between the technical and regulatory challenges facing the region and the specialist capabilities the UK has built through its own CCUS industry.
The report arrives as Asia Pacific — responsible for more than half of global CO2 emissions — is projected to become a major global hub for carbon capture deployment.
Xodus report identifies UK-APAC alignment on carbon capture
The APAC CCUS Regional Assessment draws a direct line between what Asia Pacific needs and what the UK already has. Xodus points to several areas where UK capabilities match the region’s most pressing gaps: subsurface appraisal, saline aquifer screening, regulatory and monitoring frameworks, early-stage feasibility and front-end engineering design (FEED), specialist capture technologies, Monitoring Reporting and Verification (MRV), and engineering for CO2 transport and shipping infrastructure.
Malaysia and Indonesia, by contrast, have the potential to become major storage hubs — handling both domestic emissions and imported CO2 from neighboring countries.
That’s a wide range of competencies — and according to the report, they map closely onto the specific obstacles slowing CCUS progress across Asia Pacific.
The region’s potential is substantial. It accounts for more than half of global CO2 emissions and is expected to become one of the world’s most significant centers for carbon capture deployment. The question the report tries to answer isn’t whether APAC will develop a CCUS industry, but how quickly — and who helps shape it.
Why APAC CCUS development has stalled despite strong potential
Andrew Taylor, Head of Advisory for APAC at Xodus, put it plainly: “Asia Pacific does not lack ambition or potential for CCUS but its challenge is turning that potential into investable projects.”
Most of the ingredients are already there. Many countries in the region have substantial emissions, significant geological storage resources, and governments actively building frameworks to connect the two. Gaps in storage characterization, project development, and specialist engineering are still slowing deployment, though.
Regulatory readiness is one of the most uneven variables. Japan, South Korea, Malaysia, and Australia have established dedicated CCUS legislation or relatively mature permitting frameworks, while other markets are still working through foundational rules covering monitoring, liability, and long-term stewardship. That patchwork creates real uncertainty for investors evaluating cross-border projects.
Commercial incentives add another layer of complexity. Carbon pricing and other financial drivers for CCUS vary significantly between markets, making it hard to build consistent investment cases across the region. Without stronger, more harmonized commercial frameworks, capital is likely to move slowly.
Geography compounds all of this. The region’s largest emission sources don’t always sit near its best storage sites — a mismatch that makes cross-border CO2 transport increasingly necessary, along with common technical and regulatory standards that don’t yet fully exist.
Projected CO2 export volumes and market value under accelerated scenarios
Xodus modeled what accelerated CCUS deployment could look like across Asia Pacific, and the numbers are significant. Under the more ambitious scenario, seven countries could be exporting approximately 91.5 million U.S. tons per year of CO₂ by 2030, growing to nine exporting countries by 2035, with volumes reaching 159.8 million U.S. tons per year.
The overall APAC CCUS market could reach up to $246 billion USD by 2035 under that accelerated deployment scenario, as projects move from development into execution at scale.
The report maps out which countries are likely to play which roles. In Northeast Asia, Japan, South Korea, and Taiwan are expected to initially focus on validating local storage options while also capturing and exporting CO2 to storage sites elsewhere in the region. Malaysia and Indonesia, by contrast, have the potential to become major storage hubs — handling both domestic emissions and imported CO2 from neighboring countries.
Australia and New Zealand also offer substantial geological storage opportunities. Longer transport distances could affect the economics of importing CO2 from Northeast Asia, the report notes, making those markets more complex to integrate into regional supply chains.
Role of UK expertise in shaping the region’s CCUS industry
Xodus is clear that the UK’s most valuable contribution isn’t simply selling equipment into future projects. The real opportunity, the report argues, lies in early-stage collaboration — working alongside regional governments, project developers, and local supply chains during the formative period of industry development.
That means helping build the technical evidence base, developing regulatory structures, and shaping commercially viable project concepts before major capital decisions get made. Getting involved at that stage is what allows investment to actually happen.
Taylor framed it directly: “There is a window now to help shape how this industry develops.” The implication is that this window won’t stay open indefinitely. As markets mature and frameworks solidify, the opportunity to influence the foundations narrows.
The report identifies four conditions central to accelerating investment across the region: greater regulatory certainty, stronger commercial incentives, continued technical development, and cross-border coordination on standards. These apply broadly across Asia Pacific and represent the shared work ahead.
UK expertise aligns with the gaps
The Xodus APAC CCUS Regional Assessment makes a straightforward case. Asia Pacific has the emissions, the storage potential, and the political intent to become a global leader in carbon capture — what it currently lacks are the technical foundations, regulatory consistency, and commercial frameworks to move projects from concept to execution at speed.
UK expertise, built through the development of its own CCUS industry, aligns closely with those gaps. The report recommends early, collaborative engagement rather than a transactional equipment-supply model. Under an accelerated deployment scenario, the regional market could “reach $246 billion USD by 2035, with up to nine countries exporting 159.8 million U.S. tons of CO₂ per year. Whether that potential is realized will depend significantly on the regulatory and commercial groundwork laid in the years immediately ahead.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
