Overview
IEAGHG’s 8th CCS Cost Network Workshop, hosted by Bechtel at their Energy Headquarters in Houston, the so-called Energy Capital of the World, took place on March 5–6, 2025. This invitation-only, in-person gathering convened around 50 leading experts from industry and academia, fostering a highly interactive forum for in-depth discussions on advancing real-world cost estimation across the CCS value chain.
The workshop was opened with welcoming remarks from Bechtel’s Bill Elliot, Operations Manager, ET, and George Whittaker, CCUS Operations Manager, which set the scene for a workshop focused on sharing expertise, challenging assumptions, and identifying practical pathways to lower CCS costs.
The workshop was conducted through five plenary sessions and three breakout discussions.
Summary
The aim of the Workshop was to explore and advance the understanding of real-world cost estimation across the CCS value chain, drawing on practical insights from ongoing projects, studies and deployment experiences. The workshop also served as a forum to identify emerging cost drivers, share lessons learned, and discuss key enablers for reducing costs and de-risking investment in CCS systems globally.
Key takeaways from the workshop:
- While techno-economic analyses (TEAs) compare capture options under standardised assumptions, and provide indicative performance and cost estimates, they do not typically capture the localised impacts of “steel-in-the-ground” realities such as site constraints, permitting timelines, supply chains limitations, labour availability and integration with existing assets.
- Direct cost comparisons between projects are not advisable, as cost estimates were developed using inconsistent methodologies and assumptions. Variations exist in the definition and treatment of capital and operating costs, including differences in tax structures, cost escalation methods, inclusion of owner’s costs, insurance and other financial parameters. Furthermore, project costs are heavily influenced by a range of site-specific and design-dependent factors, such as sparing philosophies, local labour rates, geotechnical conditions, ambient environment and climate-related design requirements. These variables introduce inherent complexity and reduce the comparability of cost estimates across projects.
- Offshore transport and storage (T&S) scenarios consistently exhibited the highest unit costs relative to onshore alternatives. Studies indicated that costs generally decrease with an increasing number of candidate storage sites, allowing for greater routing flexibility and more cost-optimised infrastructure development. Participants emphasised the urgent need for transparent, high-resolution cost data to guide strategic investment decisions in CO₂ transport networks.
- Costs for new-build, greenfield CO₂ pipelines are highly sensitive to location-specific parameters, including terrain, land use, permitting complexity and stakeholder engagement. Installers are unable to provide firm cost estimates without a detailed understanding of these constraints, and routing alternatives can cause significant variation in capital costs. Comprehensive and accurate cost assessment requires upfront investment in site surveys, routing studies and stakeholder analysis.
- Financing is one of the most significant cost drivers in CCS deployment, often representing up to 50% of the total levelised cost per tonne of CO₂ captured and stored. Contributing factors include high capital intensity, inflationary pressures, interest rate volatility and the lack of long-term offtake agreements. These risks typically attract growth or structured equity investors, who demand higher returns. To reduce financial barriers and mobilise capital, targeted policy support – such as enhanced fiscal incentives for heavy industry, streamlined permitting, and robust regulatory frameworks – is essential.
- Standardisation and replication of CCS system designs, especially for mature configurations such as gas boilers and natural gas combined cycle (NGCC) retrofits, could accelerate cost reductions and de-risk financing. This approach may yield faster gains in investor confidence and commercial viability than waiting for disruptive technology breakthroughs.
- Current incentive mechanisms, which predominantly focus on capital cost support, tend to favour low-risk, commercially mature technologies. However, achieving broader cost reductions and enabling the future deployment of next-generation CCS systems will require phased and risk-tolerant investment in lower-TRL (technology readiness level) capture technologies.
- Early-stage, collaborative “storage-ready” development significantly improves project bankability. Because secure storage access is critical to CCS viability, capture developers and T&S operators should jointly invest in early geological characterisation, risk assessment and permitting activities. Advancing preparatory work on Class VI wells0F and associated infrastructure can accelerate timelines, reduce uncertainty and improve access to financing.
- Capture rates of ≥95% are technically and economically viable, particularly when supported by robust solvent management and optimised plant operation. However, pursuing 100% capture poses diminishing returns, with considerable cost and operational challenges. At these ultra-high capture levels, the majority of residual lifecycle emissions from NGCC+CCS systems stem from upstream methane leakage and gas supply emissions, highlighting the importance of sourcing low-carbon intensity natural gas.
- Integration of CCS into power plants requires careful selection of steam regeneration configurations. While steam extraction offers the highest thermodynamic efficiency, it imposes operational inflexibility and extended start-up times. In contrast, standalone CHP systems and auxiliary boilers offer improved flexibility and modularity, albeit at higher energy penalties and capital costs.
- Government intervention remains the primary enabler of CCS deployment. Jurisdictions have employed a range of policy instruments – such as carbon pricing (taxes or markets), capital subsidies, operational incentives, and regulatory mandates – to stimulate investment. Long-term political alignment and consistent policy support are critical to sustaining deployment and scaling CCS as a viable decarbonisation pathway
- Overall, the workshop underscored that scaling up carbon capture and storage (CCS) will require a pragmatic integration of commercially proven technologies, targeted innovation, and cohesive policy and financial frameworks. Success will hinge on early, cross-sector collaboration across the CCS value chain, improved transparency in cost and performance data, and the adoption of adaptive, site-specific project strategies. These elements are critical to de-risking investments, optimising capital allocation, and establishing CCS as a reliable and scalable solution for achieving global decarbonisation targets.
