Full Title: The Business Case for Carbon Capture, Utilization, and Storage
Author(s): Pamela Tomski
Publisher(s): Atlantic Council
Publication Date: October 1, 2012
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The Atlantic Council’s Energy and Environment Program has released an issue brief entitled: “The Business Case for Carbon Capture, Utilization and Storage.” The issue brief is one in a series the Atlantic Council is publishing to analyzing carbon capture, utilization, and storage (CCUS). This brief, by Pamela Tomski, senior fellow, Energy and Environment Program, analyzes the economic issues associated with CCUS, including CO2-capture costs, project risks, and emerging business models.
Beyond generating domestic economic activity, CO2 enhanced oil recovery (CO2-EOR) can boost domestic oil production and limit CO2 emissions. However, the selection of a CCUS business model will be based on many factors, including: type of CO2-emitting facility; power market; CO2 demand and market price; distance to CO2-EOR or storage site;CO2 pipeline and transport infrastructure requirements; and internal engineering, design, and construction capabilities.The report concludes that CO2-capture costs must be driven to business-case economics and that the cost gap between the market price for CO2 and the price CO2-EOR operators are willing to pay must be closed in order to leverage wide-scale CCUS deployment.