Why the Cost of Carbon Capture and Storage Remains Persistently High

The document argues that CCS costs remain persistently high due to design complexity and a high need for customization, which prevents the technology from achieving the experience rates and economies of scale seen in renewable energy. In Canada, actual project costs often exceed modelled estimates, and the technology's viability in the oil and gas sector relies heavily on ongoing government subsidies. While CCS may be useful for hard-to-decarbonize industries like cement, the brief suggests it is an inefficient use of public funds for the oil and gas sector compared to alternatives like methane reduction and electrification.

• CCS costs vary by CO2 concentration: concentrated streams (e.g., natural gas processing) range from CAD 27 to 48/tCO2 captured, while diluted streams (e.g., cement production) are higher, estimated at CAD 50–150/tCO2 captured.
• Actual CCS project costs in Canada tend to be at the higher end of modelled ranges; for instance, the Quest project cost approximately CAD 200/tCO2 up to 2021, and the Boundary Dam project's lowest estimated cost is CAD 100–120/tCO2.
• The slow reduction in CCS costs is attributed to high design complexity and a significant need for customization for specific applications and geological conditions, which hinders large-scale deployment and innovation.
• CCS has a much lower experience rate than renewable technologies; for example, the experience rate for CCS in natural gas combined-cycle plants is 2% to 7%, whereas solar PV has a median experience rate of 23% since 1976.
• The Pathways Alliance proposes a CAD 16.5 billion CCS network in Alberta to reduce 22 MT of CO2 by 2030, but the project is contingent on substantial government subsidies.
• While CCS is viewed as inefficient for oil and gas, it is identified as a vital mitigation tool for the cement industry because two-thirds of its emissions result from chemical reactions during limestone heating.
• CCS in Canada's oil and gas sector depends on ongoing public support, including Alberta's Technology Innovation and Emissions Reduction regulations and federal investment tax credits, unlike renewables which typically only required initial subsidies.

APA

Sievert,, L. C. C. (2023). Why the Cost of Carbon Capture and Storage Remains Persistently High. International Institute for Sustainable Development. https://www.iisd.org/articles/deep-dive/why-carbon-capture-storage-cost-remains-high

Chicago

Sievert,, Laura Cameron,Angela Carter,Katrin. Why the Cost of Carbon Capture and Storage Remains Persistently High. International Institute for Sustainable Development, 2023. https://www.iisd.org/articles/deep-dive/why-carbon-capture-storage-cost-remains-high.

Wikipedia

{{cite report |last1=Sievert, |first1=Laura Cameron,Angela Carter,Katrin |title=Why the Cost of Carbon Capture and Storage Remains Persistently High |publisher=International Institute for Sustainable Development |date=7 September 2023 |url=https://www.iisd.org/articles/deep-dive/why-carbon-capture-storage-cost-remains-high |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sievert2023why, author = {Sievert,, Laura Cameron,Angela Carter,Katrin}, title = {{Why the Cost of Carbon Capture and Storage Remains Persistently High}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = sep, url = {https://www.iisd.org/articles/deep-dive/why-carbon-capture-storage-cost-remains-high}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }