Accelerated deployment of carbon capture, utilisation and storage across Asia Pacific could unlock a market worth up to £187.8 billion by 2035, according to modelling published by UK consultancy Xodus. The figure sits at the top end of an accelerated case in the firm's APAC CCUS Regional Assessment, commissioned by the UK Department for Business, Innovation, Science and Trade.

What is the scale of the modelled deployment?

Under Xodus' more ambitious case, seven APAC countries could be exporting roughly 83 million tonnes per year of CO₂ by 2030. By 2035, the consultant expects the exporting cohort to grow to nine countries, with combined flows reaching about 145 million tpy.

The trajectory assumes storage resources become bankable and cross-border transport links mature in step with capture projects across the region. Xodus frames the regional market as increasingly interconnected, with a geographic mismatch between major emitters and storage capacity driving demand for shared technical standards.

Why does the study focus on UK expertise?

Asia Pacific accounts for more than half of global CO₂ emissions and is positioning itself as a major CCUS hub. Xodus argues the UK has built specific capability in seven priority areas through the development of its own CCUS industry:

• Subsurface appraisal and saline aquifer screening
• CCUS regulatory and monitoring frameworks
• Early-stage feasibility and front-end engineering design
• Specialist capture technologies
• Monitoring, reporting and verification (MRV)
• Engineering and design for CO₂ transport and shipping infrastructure

Andrew Taylor, Head of Advisory, APAC at Xodus, said: "Asia Pacific does not lack ambition or potential for CCUS but its challenge is turning that potential into investable projects."

Taylor added: "The UK has already developed solutions to many of these challenges in pursuing its own CCUS industry. Applying that experience in partnership with governments, project developers and local supply chains across Asia Pacific can help projects progress more quickly and avoid having to solve the same problems again."

Which APAC markets are closest to FID?

The assessment splits the region into distinct roles. Northeast Asian states — Japan, South Korea and Taiwan — are expected to focus first on validating local storage, capturing CO₂ and exporting volumes.

Malaysia and Indonesia carry the potential to host large-scale storage for both domestic and imported streams. Australia and New Zealand hold further geological storage, though the longer shipping lane from Northeast Asia could weigh on project economics.

Where are the regulatory gaps?

Japan, South Korea, Malaysia and Australia have enacted dedicated CCUS legislation or operate mature permitting systems, the study finds. Regulatory readiness remains highly variable, with other markets at earlier stages on monitoring, liability and long-term stewardship.

Commercial frameworks vary sharply. Carbon pricing and other incentives for CCUS differ between markets, and Xodus flags cross-border transport plus common regulatory and technical frameworks as growing priorities as the mismatch between emitters and storage widens.

What could unlock the 145 million tpy case?

Taylor framed the regional opportunity around connecting emitters to storage through maturing government frameworks. He cautioned that further work is needed on storage characterisation, regulation, project development and specialist engineering if the accelerated case is to materialise.

Xodus identifies three enablers: greater regulatory certainty, stronger commercial incentives, and continued technical development across capture, transport and storage. Cross-border shipping is expected to become a structural feature of the regional CCUS market as projects move from development into execution.

What to watch

The first FID-style project decisions in Malaysia and Indonesia, plus the next round of MRV and permitting guidance from Tokyo, Seoul and Canberra, will indicate whether the 2030 export cohort of seven countries is realistic. The £187.8 billion 2035 ceiling will hinge on whether storage resources can be banked at the pace modelled.