Plans are moving ahead to create carbon capture, utilization, and storage (CCUS) hubs across Asia, with some of the region’s largest industrial players joining forces in a landmark study that could see captured carbon shipped to Australia for long-term storage.

BHP, Chevron, and Hyundai are among the steelmakers, mining firms, and energy companies participating in what they describe as the first independent, industry-led study in Asia to assess the technical and commercial feasibility of developing large-scale CCUS projects. The aim is to reuse or permanently store carbon dioxide from multiple heavy industries.

Large-Scale Collaboration to Cut Emissions

The pre-feasibility study will identify which industrial processes are most suitable for CCUS if companies share infrastructure and capture CO2 at scale. The plan involves transporting the captured carbon, via pipelines or shipping, to storage sites in Asia or northern Australia.

The consortium believes that developing regional hubs will help cut costs, spread business risks, and foster innovation in carbon capture across several hard-to-abate sectors in one coordinated effort.

“With more than 1 billion tonnes of steel production a year in Asia coming from blast furnaces that are still relatively early in their production life, it’s important for industry to progress technologies to decarbonize existing steelmaking assets while new commercial pathways to decarbonise steelmaking are developed over time,” shared the Vice-President of Marketing Sustainability at BHP.

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Australia’s Storage Potential

Australia has recently changed its laws to allow the import and export of captured CO2, opening the door for cross-border storage solutions. According to consultancy Wood Mackenzie, this could pave the way for a A$600 billion (US$390 billion) industry, as the country’s geological storage sites become accessible to customers across the Asia-Pacific region.

Alongside BHP, Chevron, and Hyundai, the consortium includes ArcelorMittal Nippon Steel India, JSW Steel, and Mitsui. The group remains open to additional companies joining the study, with each partner expected to have at least one operation featured in the planned hubs.

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Strategy, Costs, and Regulation

The partners will work together to develop a conceptual strategy for each hub, including cost estimates and an examination of regulations surrounding the cross-border movement of CO2. The goal is to identify what is needed to make such projects commercially viable.

The study is scheduled for completion by the end of 2026, and its findings will be made public. The hope is that the results will advance CCUS in Asia while influencing policies and regulations, enabling faster and broader adoption.

“This consortium goes beyond conventional technological development – it aims to deliver real and measurable emissions reductions through collaboration with global partners, sharing knowledge and experience across borders,” said Yonghee Kim, vice-president of process R&D at Hyundai Steel.

Engineering firm Hatch is managing the project in partnership with the Global CCS Institute, ensuring that the initiative draws on technical expertise and industry-wide experience.

If successful, the hubs could mark a critical step toward reducing carbon emissions from some of Asia’s most challenging industrial sectors, helping the region make meaningful progress toward its climate targets.

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Source: The Chemical Engineer