Supplementary written evidence from Pale Blue Dot

(HNZ0094)

CCUS applications do not all have the same cost. Looking specifically at carbon capture, the cost can vary greatly by CO2 source, from a range of USD 15-25/t CO2 for industrial processes producing “pure” or highly concentrated CO2 streams (such as ethanol production or natural gas processing) to USD 40-120/t CO2 for processes with “dilute” gas streams, such as cement production and power generation. Capturing CO2 directly from the air is currently the most expensive approach, but could nonetheless play a unique role in carbon removal.

Some CO2 capture technologies are commercially available now, while others are still in development, and this further contributes to the large range in costs.  Moving on to the cost of transport and storage, this can also vary greatly on a case-by-case basis, depending mainly on CO2 volumes, transport distances and storage conditions. In the United States, for example, the cost of onshore pipeline transport is in the range of USD 2-14/t CO2, while the cost of onshore storage shows an even wider spread. However, more than half of onshore storage capacity is estimated to be available below USD 10/t CO2. In some cases, storage costs can even be negative if the CO2 is injected into (and permanently stored in) oilfields to enhance production and thus generate more revenue from oil sales.

But CCUS is a relatively advanced and cost-competitive option for dramatically cutting the CO2 emitted during the production of these essential materials. It can also be more cost-effective to retrofit CCUS to existing facilities than building new capacity with alternative technologies.

The relative lack of progress in deploying CCUS to date means that many technologies and applications are still at an early stage of commercialisation – and therefore at a high point in the cost curve. There is ample potential for cost reductions – the experience of wind and solar highlights what is possible – but, as with renewable energy, realising this potential will require strengthened policy support to drive CCUS innovation and deployment

Source: https://www.iea.org/commentaries/is-carbon-capture-too-expensive

April 2021