![]() ![]() With these major differences, projects can vary by as much as +/- 100% from a reference cost. We’ve modelled the effect of many different scope levers, such as load factor (which has the biggest impact on power) and location (which affects the energy prices and the cost of labour and materials). We believe the range of costs is much wider than is regularly reported. One of the most complex aspects of CCS is the bespoke nature of projects. But while not suitable for all CO₂ emitters, for smaller point sources they are critical to making CCS economically viable. On the other hand, hubs take longer to plan, fund and develop – and need significant public funding. So, should projects join forces or go it alone? Hubs have lower investment and lifetime costs and could ultimately lower CCS breakevens by a further 20-25%, on top of technology cost reductions. They can help the companies involved avoid the expensive upfront development work associated with creating standalone CO₂ transport and storage. Multi-industry hubs take CO₂ from sources including power generation, chemical production and oil refining. The solution for many CCS projects could be to collaborate. Fill in the form at the top of the page to get a more detailed introduction. The full report includes the modelled cost of CCS at planned capture projects in power, natural gas processing and hydrogen sectors. ![]() Addressing emissions in the fossil-power sector and other post-combustion industries is more complex and will be more expensive. For example, natural-gas processing costs less, as CO₂ removal is already built into the process. That’s because what’s already in place, or in the pipeline, is really the low-hanging fruit. One thing that companies and governments will have to consider as they scale up and increase investment, is that the next phase of CCS projects are likely to cost more. We estimate this will need to rise by as much as 10-15 times that number to meet our Accelerated Energy Transition scenarios. Costs will go up before they go downĬurrent global CCS capacity is around 60 Mtpa and could rise to 400 Mtpa by 2030. As the industry scales up and technology improves, we forecast cost reductions of around 20% by 2050.įill in the form to access more detail on further potential cost reductions. However, the number of CCS projects is increasing, with North America the most active. Our modelling shows the average cost of CCS is higher than today’s carbon pricing levels – and will be for some time to come. Reducing fossil fuels in favour of renewables just won’t be enough.įor now, CCS still comes at a significant cost. Industry must cut the equivalent of around 1.8 billion tonnes of carbon dioxide (BtCO2e) each year over the next three decades. CCS is costly but necessary to meet net zero commitmentsĪs our recent Horizons article detailed, finding ways to remove CO₂ is essential if we’re to limit global warming to 1.5 ☌, in line with the most ambitious goals of the Paris Agreement. Fill in the form for complimentary access to short video presentation exploring the report in more detail – and read on for an introduction. We tackled these questions and more in our first proprietary report on CCS costs, covering the levelised cost of CCS across power, natural gas processing and hydrogen production. Why is it so expensive? And what will be the catalyst that makes costs fall? ![]() The costs of carbon capture and storage (CCS) technology are still stubbornly high. ![]()
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