Capture Carbon, Capture Value: An Overview of CCS Business Models

Here are the main takeaways of this paper titled “Capture Carbon, Capture Value: An Overview of CCS Business Models” published by the Oxford Institute for Energy Studies (OIES). The paper, authored by Bassam Fattouh, Hasan Muslemani, and Raeid Jewad, provides valuable insights into the world of carbon capture and storage (CCS) and its business models.

1️⃣ Key risks involved with CCS: The paper highlights the three main activities in the CCS value chain: CO2 capture, transport, and storage. It identifies the concentration and volumes of CO2, cost of capture, and transportation technologies as key factors influencing the viability of CCS projects.

2️⃣ Frameworks to support investment in CCS: The authors emphasize the importance of supportive legal and regulatory frameworks and mechanisms that allow stacking of revenues to attract investment in CCS. They provide examples of different approaches and experiences from various countries.

3️⃣ CCS Business Models: The paper explores different business models for CCS, including the full chain model, partial chain models with single hubs or offshore CO2 transport, and the free market model. It discusses the ownership, financing, and value chain aspects of each model.

The challenges discussed in the paper revolve around the scale of CCS deployment and the need to significantly increase the annual capacity of CO2 capture to achieve net-zero targets. Financing and scaling CCS projects prove to be complex due to the unique characteristics of the technology and the associated risks.

While the potential of CCS as a mitigation technology is substantial, the paper highlights the importance of addressing these challenges and developing viable business models to unlock its full potential. Collaborative efforts between governments, industry stakeholders, and financing institutions are crucial in driving the adoption of CCS and achieving global climate goals.

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