Carbon capture and storage cluster projects: review and future opportunities

Publication Overview

The study was based largely on literature in the public domain and a few enquiries to ascertain current status. Some valuable additional material was also obtained from expert reviewers of the study. Sufficient information was found to review 12 clusters in depth and a number of other less developed clusters at a more general level. Based on the results the gaps, risks and challenges faced by those developing CCS cluster projects are described. Some criteria for selecting additional cluster locations are developed and recommendations for increasing the likelihood of success are put forwards. The data and references were gathered in a working database to facilitate comparisons. A CCS cluster is taken to mean a location where the opportunity to cluster sources and/or sinks for CCS has been identified in published literature.

Publication Summary

The most successful clusters remain those based on the use of CO₂ for EOR application. The funding/cost gap for CCS projects purely for emission reduction is currently an insurmountable obstacle to large scale CCS deployment, whether as clusters or point to point projects. The required revenue drivers are virtually fully reliant on Government policies of one form or another. The cost reduction benefits of combining infrastructure are mainly in reducing the cost of transport by pipeline because of economies of scale. However the reductions are small compared to the overall cost of the CCS chain. Furthermore a failure to utilise CO₂ pipeline and storage capacity within a few years would negate any economic advantage. At the same time pre-investment will potentially be essential to generate the confidence needed for the emission sources in the cluster to progress their plans. Other significant benefits could result from sharing organisational costs, arranging permits, gaining public acceptance and pooling specialist services but are difficult to quantify. Such services could be in the field of maintenance and operation of capture facilities, supply of chemicals and waste disposal or CO₂ measurement and accounting. The cost reductions for CCS cluster projects are greater for offshore pipelines because of the high mobilisation and laying costs and are also greater for long distances from source to store. However both offshore and long distance routes make cluster locations less attractive in terms of overall cost.