REPORTMakina Carbon Capture&StoraaeWorkA strateaic auide to economicviabilitv and enablina conditionsRolandBerger
Managementsummaryover200mlliontonsofCO:safelystoredglobally, and costsdecliningtowardbreakeventhechallengeisnolongertechical-it'saliganingtheinstitutiona,regulatry,andsociaconditionsthatalloweconomicallyviableCCSprojects to get built.lnterviewswithleadersfromacrosstheCCSvaluechainrevedledthreeunanimousconcerns:fnancialviabilitychallenges, unclarlablityframeworks, and lowsocialacceptance.Theeconomicsarecontext-dependent.Capture costsvary dramaticallybysector:In chemicals, ammonia production enjoys natural advantages due tohighCOrconcentrations,whilecaeentandsteelfacehighercosts.Energysourcingalsoprovesdecisve-heatpumpsenableviabityin350f42countriesby2040versusjustsiusingelectricheaters. Customer willingnesstopayisalso emergingasakeyfactor,creating astrategicwindowbeforemarkBeyond economics, socialacceptance ofCCSlagsbehind that of otherclimateas subsidy generosity and iability clarity is urgent, as current frameworks remainimmatureacrossfiveriskcategoriesAdecisivewindowexistsfrom2025to2035wherearlymoverswillcaptureadvantagesthroughgreenpremiums andinfrastructure acces.Tosucceed,industryplayersshouldestablishcompetitivepositioning,manageuncertaintyproactively,andsecurecustomer-backed offtake.Conversely, regulatorscansupportbyprioritizing stablese6ougAueoypupmframeworksovergenerous butuinpreictablesubsidis, clariyingliablit allocation,andenablinacross-borderabatementSucessrequiresmultidimensinalexcallnce.The countrisandcompaniesexcelingat orchestration-buildingtrust, creatingalignment,maintaining commitment-willeadtheCCSera.RolandBerger|MakingCarbonCapture&StorageWork
ContentsFasttactsPageUnderstandina theeconomicsof CCS viability70%1.1/Thethree-partvaluechain,ofCCSoperating1.2/ Energy:Thehiddencostmultipliecosts comefromenergy1.3/Customer willinaness topay.Therevenuesideconsumptionof theequation35302Beyondeconomics:Requlatory,social, andriskfactorscountries(of42 analyzed)achieveCCS2.1/Reaulatoryuncertainty:Theinvestrmentkilleviabilityby2040usingheatpump2.2/ Socialacceptance:Thehiddenvetotechnology2.3/Risks and liabilties:Thebankabiltychallenge393Improving CCS decision-making and outcomes85%3.1/TheCCSdecisionframeworkreduction32/Recomendationsfrindustryplayers,inpipelinetransportationcosts fromscale3.4/Thepathforwardonomies(transporting10mvs.5m tonsannually)RolandBerger|MakingCarbanCapture&StorageWorl
Understandingthe economicsof CCSviabilityFor industrialleaders weighing investments in carbon capture and storage(CCS),theauestionisnotwhetherthetechnologyworks,butratherwhenitbecoeseconomicalycmpellingfrtheirspecificicumstances.Theanswerdeandsonacomplexinterplay ofThischanterexaminestheflleconomicpiture ofCSvicbilty,moving beyond simplecost estimates to explore how capture technology, transportation logistics, storageoptions,energysourcing,marketdynamics, and regulatoryincentivescombine todeterminecommerialefeasibility,Ouranalysisrevealsthat CSisalready viableforcertain,aoplications in advanced economies, while othersectors and regions face timelinesextendingto2030orbeyond.1.1/UnderstandingCCS costsrequires examining threedistinct activities:...
