EVALUATION OF TWO ALTERNATIVE CARBON CAPTURE AND STORAGE TECHNOLOGIES

The analysis finds that CCS without EOR is currently unprofitable due to low carbon prices, while CCS combined with EOR and DSF storage can be profitable if oil prices remain above a specific threshold. The study highlights that high investment costs and energy efficiency losses at power plants create significant financial barriers, necessitating either high commodity prices or substantial government subsidies to incentivize early adoption.

• CCS without EOR is considered highly unprofitable under current and projected carbon market prices, requiring an initial carbon price equivalent to a constant price of $73.91/tCO2 to be profitable.
• Investment in CCS combined with EOR and secondary deep saline formation (DSF) storage is profitable (NPV > 0) only if the long-term equilibrium price for oil is higher than $50.95/barrel.
• When the timing of the investment is flexible, the trigger price for optimal investment in CCS with EOR increases to $89.29/barrel.
• Implementing CCS at a coal-fired power plant results in a significant loss of energy efficiency, estimated at 10.34%, which corresponds to 26.67% of the electricity that would have been generated without the technology.
• The profitability of CCS technologies is heavily dependent on the volatility of three primary commodity prices: electricity, oil, and carbon emission allowances.
• Current carbon prices are too low to provide significant incentives for investing in CCS, and the cost of subsidies required to encourage early investment in non-EOR CCS would reach billions of dollars.

APA

Abadie, L. M., Galarraga, I., & Lucas, J. (2013). EVALUATION OF TWO ALTERNATIVE CARBON CAPTURE AND STORAGE TECHNOLOGIES. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201307290654511714670453.pdf

Chicago

Abadie, Luis M., Ibon Galarraga, and Josu Lucas. EVALUATION OF TWO ALTERNATIVE CARBON CAPTURE AND STORAGE TECHNOLOGIES. Basque Centre for Climate Change, 2013. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201307290654511714670453.pdf.

Wikipedia

{{cite report |last1=Abadie |first1=Luis M. |last2=Galarraga |first2=Ibon |last3=Lucas |first3=Josu |title=EVALUATION OF TWO ALTERNATIVE CARBON CAPTURE AND STORAGE TECHNOLOGIES |publisher=Basque Centre for Climate Change |date=May 2013 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201307290654511714670453.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{abadie2013evaluation, author = {Abadie, Luis M. and Galarraga, Ibon and Lucas, Josu}, title = {{EVALUATION OF TWO ALTERNATIVE CARBON CAPTURE AND STORAGE TECHNOLOGIES}}, institution = {Basque Centre for Climate Change}, year = {2013}, month = may, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201307290654511714670453.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }