Why the Cost of Carbon Capture and Storage Remains Persistently High

The document analyzes the persistent high costs of carbon capture and storage (CCS), particularly within the Canadian oil and gas sector. It argues that high design complexity and the need for customization prevent the cost reductions seen in renewable technologies like solar and wind. While CCS may be vital for hard-to-abate sectors like cement, the brief concludes that public investment in CCS for oil and gas is risky and inefficient.

• 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) are estimated at CAD 50–150/tCO2 captured.
• Actual costs for Canadian CCS projects tend to be at the higher end of modelled ranges; the Quest project costs were around CAD 200/tCO2 up to 2021, and the Boundary Dam project's lowest estimated cost is CAD 100–120/tCO2.
• CCS has a low experience rate compared to renewables because of high design complexity and a high need for customization, which limits innovation and prevents economies of scale.
• The experience rate for CCS in natural gas combined-cycle plants (2% to 7%) is significantly lower than the 23% median experience rate for solar PV since 1976.
• CCS is identified as a vital mitigation tool for the cement industry because two-thirds of its emissions result from chemical reactions during limestone heating, whereas other sectors like steel may have more cost-effective alternatives like green hydrogen.
• CCS in the oil and gas sector relies on substantial and ongoing government support, such as Alberta's Technology Innovation and Emissions Reduction regulations and federal investment tax credits, unlike renewables which typically only require initial subsidies.

APA

Sievert, K., Cameron, L., & Carter, A. (2023). Why the Cost of Carbon Capture and Storage Remains Persistently High. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-09/bottom-line-why-carbon-capture-storage-cost-remains-high.pdf

Chicago

Sievert, Katrin, Laura Cameron, and Angela Carter. Why the Cost of Carbon Capture and Storage Remains Persistently High. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-09/bottom-line-why-carbon-capture-storage-cost-remains-high.pdf.

Wikipedia

{{cite report |last1=Sievert |first1=Katrin |last2=Cameron |first2=Laura |last3=Carter |first3=Angela |title=Why the Cost of Carbon Capture and Storage Remains Persistently High |publisher=International Institute for Sustainable Development |date=September 2023 |url=https://www.iisd.org/system/files/2023-09/bottom-line-why-carbon-capture-storage-cost-remains-high.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sievert2023why, author = {Sievert, Katrin and Cameron, Laura and Carter, Angela}, 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/system/files/2023-09/bottom-line-why-carbon-capture-storage-cost-remains-high.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }