Inside Green Innovation: Progress Report - Fourth Edition highlights:
- CCUS-related patent filings focused on capture technologies have reached an all-time high.
- Although US growth is lower compared to other countries, it still leads the way in CCUS innovation.
- The innovation of Direct Air Capture (DAC) systems continues to grow.
- CCUS-related patent filings in utilisation and storage technologies are following the upward trend established by capture-focused filings.
- Large Japanese corporations significantly contribute to innovations in utilisation and storage.
- New utilisation technologies are poised to incentivise future growth.
Limiting global warming requires ambitious action, with the Intergovernmental Panel on Climate Change (IPCC) calling for carbon neutrality by the mid-21st century to keep the global temperature rise in check. This goal, enshrined in the Paris Agreement signed by 195 countries, sets a clear deadline. However, achieving net zero emissions by 2050 may not be feasible through emission reductions alone. Actively removing greenhouse gases already accumulated in the atmosphere will likely be essential. As a result, carbon capture, utilisation, and storage (CCUS) technologies are gaining momentum as critical tools in the global effort to combat climate change.
According to the International Energy Agency, CCUS deployment has grown substantially in recent years, with over 700 projects in various stages of development across the CCUS value chain. Nevertheless, even at this level, CCUS deployment remains well below what is required in the Net Zero Scenario. The competitive landscape for companies addressing the CCUS deficit is driving innovation in this critical sector.
A global perspective
Global patent filings indicate a surge in technological advancements driven by the growing need for CCUS solutions, bolstered by supportive policies offering increased funding and tax incentives.
In the third edition of Inside Green Innovation: Progress Report, we noted that global CCUS-related patent filings across all regions had surpassed the previous peak in 2011, with 2021 recording the highest number of filings to date – nearly double those in 2020. This upward trend has continued and, in 2022, the number of new filings reached an all-time high as shown in Figure 1.
Figure 1: Twenty-year trend (2003-2022) global priority filings - carbon capture utilisation and storage (CCUS)
(Priority filing = the first time a patent application for a unique invention has been filed (the first filing))
Figure 2: Twenty-year trend (2003-2022) - global priority filings - top five jurisdictions - CCUS
Figure 2 illustrates patent activity across the top five jurisdictions over the past 20 years, with the US, Europe and South Korea leading in filing numbers. While the US continues to lead in CCUS patent filings, its growth from 2021 to 2022 was not as rapid as in other countries. This may be due to the US’s established and mature leadership in CCUS technology, with robust existing infrastructure and policies like the 45Q tax credit. The Inflation Reduction Act of 2022, which further extended the 45Q incentive, is expected to drive growth in future years. In 2022, South Korea surpassed Europe to claim the second spot in patent filings. South Korea's aggressive government initiatives and investments in CCUS as part of its Carbon Neutrality Framework Act 2021 are likely contributing factors. China remains a significant player, actively increasing patent applications with the potential for global impact. Although China files a significant amount of patent applications solely for the Chinese jurisdiction, the increase in internationally relevant applications reflects China’s intention to potentially begin commercialising its new CCUS technologies globally.
Direct air capture
The importance of direct air capture (DAC) cannot be overstated. Unlike traditional "at-source" carbon capture methods that reduce emissions during industrial processes, DAC aims to remove carbon dioxide directly from the atmosphere, positioning it as a potential carbon-negative solution. DAC faces unique challenges, as it entails the removal of carbon dioxide efficiently from the atmosphere, where concentrations are relatively low. Consequently, DAC plants require processing of large volumes of air to extract meaningful amounts of CO2. This process is more energy-intensive than capture from CO2 rich point sources and current DAC deployment relies on access to low-carbon energy sources and effective CO2 storage solutions. Figure 3 illustrates the global patent filings related to direct air capture (DAC) technologies, showing a notable increase in 2022, marking the highest year for filings to date.
Figure 3: Global priority filings (2010-2022) - direct air capture
While the applicants for DAC-related patents vary year by year, Climeworks consistently stands out as a leading assignee in this field. In 2022, Climeworks continued to file patents focused on sorbent materials for CO2 capture, solidifying its position at the forefront of DAC innovation. Despite these technological strides, only three DAC plants worldwide currently capture more than 1,000 tonnes of CO2 annually: Climeworks' Orca plant in Iceland, Global Thermostat's facility in Colorado and Heirloom’s first large-scale site in California. This highlights the urgent need for new easily scalable technologies to actively remove carbon from the atmosphere.
Storage and utilisation
Figure 4 shows the number of patent filings specifically targeting CO2 storage or utilisation technologies. The trend closely follows overall carbon capture patent activity, with filings beginning to rise sharply in 2020.
Figure 4: Twenty-year trend (2003-2022) - global priority filings - utilisation and storage
By 2022, the number of filings reached its highest point in the past two decades, reflecting a significant boost in innovation within both Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU) technologies. This surge highlights the growing importance of these technologies as governments and industries increasingly focus on reducing emissions and achieving net-zero targets. Nevertheless, as with figure 1, we are possibly seeing a slowdown in the rate of growth in filings which potentially indicates that new technologies may still be required. Historically, carbon capture found commercial success primarily through its application in Enhanced Oil Recovery (EOR), where CO2 is injected into oil reservoirs to increase production. This method drove a significant wave of patent applications in the early 2000s, particularly from companies in the oil and gas sector. Industry giants like ExxonMobil, Chevron and Shell were key filers in this area.
While EOR has shown commercial viability, from a climate perspective it has not achieved carbon neutrality or even carbon-negative storage. Although some injected CO2 remains underground, most of the CO2 used in EOR is not captured carbon. However, EOR’s commercial success indicates that making carbon a commercially attractive resource can help facilitate large-scale capture projects in the future.
Figure 5: Twenty-year trend (2003-2022) global priority filings - top five jurisdictions - utilisation and storage
There are notable differences in jurisdictions leading patent filings specifically related to carbon storage and utilisation. Historically, the US and South Korea have been dominant players, but Japan is emerging as a significant contributor in this area. In Japan, a diverse group of major corporations, including Toshiba, Mitsubishi, Honda, Toyobo, and Toyota are driving innovation in CCUS. These companies, traditionally leaders in sectors like automotive, electronics and manufacturing, are now developing technologies to capture and store CO2. Their efforts reflect Japan’s broader commitment to advance carbon capture technologies and address climate change through industrial innovation. Japan’s growing influence in patent filings is supported by strong government backing. The Japanese government has implemented policies and financial incentives to promote CCUS technologies as part of its broader Green Growth Strategy. Launched in 2020, this strategy aims to accelerate the development of low-carbon technologies, including those related to CO2 utilisation and storage, in line with the nation’s commitment to achieving carbon neutrality by 2050.
Utilisation technologies and the future
As carbon dioxide is increasingly viewed as a key driver of global warming, the role of government policies and subsidies in driving innovation becomes paramount. Worldwide, new policies are emerging to support the development of low-emission fuels and materials that promote CCU development. For example, in the European Union, the ReFuelEU Aviation proposal, part of the “Fit for 55” legislation package, imposes blending mandates for synthetic aviation fuels. Under this mandate, synthetic aviation fuels must incorporate 0.7 percent of carbon originally present in the atmosphere by 2030, such as that from biomass or CCU, further increasing to 28 percent in 2050. In the US, captured CO2 utilisation in synthetic fuels could receive further support through the Clean Fuels & Products Shot announced in May 2023. This initiative aims to facilitate alternative routes that can reduce or offset the emissions intensity of fuels and chemicals by 85 percent by 2035. The use of low-carbon energy sources, such as renewables, is particularly vital for the highly energy-intensive processes that use CO2 to produce fuels and chemical intermediates. The well-established process of obtaining CO2 from fossil fuels requires a three-step operation: 1. extraction; 2. purification; and 3. transport. Therefore, to provide a greener route to obtaining CO2 with an overall lower carbon benefit, these competitive CCUS processes must be able to capture, store, process into synthetic fuel atmospheric CO2 all while generating lower net emissions. Nevertheless, we expect these policy changes to spur a wave of innovations in the CCUS sector, leading to the development of commercially viable methods and products in the coming years.
David Walsh
Partner
Ashley Wragg
Patent Attorney