CO2 Transport and Storage Cost Review

Overview

The objective of the study was to review publicly available information on CO₂ transport and storage (T&S) costs, to provide insights into how typical cost estimates are built up and to inform on areas of risk. Current information on T&S costs and the need for new or improved data would be explored.

Key Findings

Transport Distance Impacts Cost. The distance between CO2 emitters and storage sites significantly influences both capital and operational costs. Longer distances require more extensive pipeline infrastructure or shipping solutions, increasing overall system complexity and expense.

Emitter Type and System Utilisation. Understanding the types of emitters early in project design is critical to estimating system utilisation and forecasting both capital and operating costs throughout the project lifecycle.

Economies of Scale in Pipelines. Pipeline-based transport systems offer substantial economies of scale. Incremental capacity can be added at relatively low cost if considered during the initial design phase.

Shipping Costs Depend on Location and Volume. Shipping costs are closely tied to emitter-to-store distance and shipment volumes. Failing to account for these variables can lead to inaccurate cost assessments and suboptimal system design.

Number of Storage Sites Affects Capital Expenditure. Systems requiring multiple storage sites to meet long-term capacity needs typically incur higher capital expenditure than those relying on fewer, larger-capacity stores.

Storage Integrity and Legacy Well Risk. Ensuring the integrity of a CO₂ storage site is critical for both containment and long-term project success. Careful site selection, robust storage design and ongoing monitoring are key to identifying and addressing potential issues early, enabling timely and effective remediation if needed. Legacy wells can pose a significant leakage risk; however, this risk can be effectively managed through comprehensive site evaluation and targeted risk mitigation strategies. A strong focus on risk management not only enhances storage security but also supports more accurate and reliable cost forecasting.

System Design Driven by Key Variables. The design of T&S systems is shaped by emitter location, storage site characteristics and initial reservoir pressure. A clear understanding of these factors is vital for managing lifecycle costs and optimising system performance.

Monitoring and Regulatory Compliance Costs. Measurement, monitoring, and verification (MMV) are core regulatory requirements to ensure long-term storage performance and environmental safety. MMV strategies and associated costs vary by site and jurisdiction but can represent a significant portion of overall storage costs.