CO₂ storage capacity classification and compliance

The Society of Petroleum Engineers (SPE) has proposed a framework for the classification of CO₂ storage resources and storage capacity, known as the Storage Resources Management System (SRMS, 2017). The SRMS framework aims to provide guidelines for the classification and reporting of CO₂ assets. It’s similar to SPE’s well-established framework for hydrocarbon resources and reserves classification, known as the Petroleum Resource Management System (PRMS, 2018). Meanwhile, revisions of both the 2018 version of PRMS and 2017 version of SRMS are underway, with public consultations of practitioners completed in 2024 (PRMS, 2024; SRMS, 2024). While the PRMS is actually used industry-wide, this cannot be said for the SRMS. There is a nascent CO₂ storage business segment, with mushrooming carbon removal startups. This fledgling new industry is now proposing a carbon removal quality assurance Code of Practice, at the same time as SPE is spending efforts on revising its carbon resources management system. The absence of track record and weak incentives, as well as a lack of case studies on how to apply SRMS in practice, are lurking in the background. Additionally, the groundswell of arguably opportunistic providers of storage capacity has created an unprecedented situation where carbon removal companies offer mostly unclassified storage capacity (in SRMS classification’s sense), as will be detailed below. The lack of validated storage capacity is an important hurdle in startup credibility — investors should be wary.