This website will offer limited functionality in this browser. We only support the recent versions of major browsers like Chrome, Firefox, Safari, and Edge.

Technology Collaboration Programme by IEA

Understanding the cost of reducing water usage

Regina Sander, Minh Ho, Paul Feron, Chris Green, Ramesh Thiruvenkatachari, Karsten Michael, Rongrong Zhai, Kaiqi Jiang

Citation: IEAGHG, "Understanding the cost of reducing water usage", 2020-09, September 2020.

Download The Full Publication Now

Publication Overview

Previous IEAGHG studies (IEAGHG 2010/05, IEAGHG 2012/12, and IEAGHG 2018/04) have identified key factors that affect the Energy-Water-CCS Nexus: location; the dependency of the costs and water consumption on the cooling system; and the post-combustion CO₂ capture (PCC) system. Additionally, extracting water from a CO₂ storage site can significantly increase the available volumetric space for CO₂ storage which could benefit PCC in the power sector. The conclusions drawn from these studies identified the need to assess the technical and economic impact of water consumption in power plants with and without CO₂ capture systems in different locations. Further investigation also needs to encompass the impact of local regulations, ambient conditions, specific region-based power plants configurations, and water availability. This current study was conducted in two phases. Phase 1 developed a hypothetical base case scenario of power plants with and without a PCC system in The Netherlands, assuming both on and offshore storage, and with and without treatment of the water extracted from the storage site for its reuse in the power plant. Phase 2 was based on four hypothetical PCC systems in South Africa, Australia, China and India.

Publication Summary

  • If more restrictive regulations are imposed on power plants that currently use evaporative freshwater cooling, the use of extracted and treated formation water in an integrated CCS-water loop could be a cost competitive alternative to retrofitting a power plant with an air cooling system.
  • The results from this study confirm that adding a CO₂ capture system to the power plant may increase the water consumption of the whole facility. However, this increase can be mitigated through the implementation of different fitted strategies, such as using alternative water supply, recycling of water, or using alternative cooling techniques
  • The outcomes from this study confirm that the selection of the cooling system has a strong impact on the water consumption. For example, evaporative natural draught cooling has a noticeably higher percentage increase in water withdrawal and consumption compared with the once-through seawater cooling systems.
  • 16 Water-Energy-CCS nexus cases were modelled for a hypothetical location in the Netherlands. LCOE increases by 2-3 €/MWh and 3-6 €/MWh for onshore and offshore storage scenarios respectively. That includes CO₂ storage, water extraction, treatment, transport and disposal.
  • Results show that, if water extraction is necessary for storage purposes, its treatment and beneficial reuse may present the most economic option, compared to the direct disposal in the onshore storage scenario
  • In the second phase of this study, power plants in South Africa, Australia, China, and India were modelled. The results of this work show that the location of the power plant (with and without CO₂ capture system) influences the water availability, consumption and costs, due to the regulations, feedstock, ambient conditions, and cooling system.
  • The lowest water withdrawal and consumption rates are evident from the case in China due to the ambient conditions, such as a lower temperature. In this scenario, building an air-cooled USCPC (Ultra Super-Critical Power Coal plant) is 30% cheaper, while this option is 20% more expensive in Australia and South Africa, compared to the USCPC base case in The Netherlands.
  • Adding a CO₂ capture system at the power station, as well as ZLD (Zero Liquid Discharge) at the power stations in China, India and South Africa, increases the specific capital requirement by 52% – 60%. The LCOE increases by 44% – 55%, which equates to a LCOE of 62-91 €/MWh, depending on the location.
  • CO₂ avoidance cost for the USCPC with capture is 36 – 51 €/t CO₂ in the CCS Base Case Scenario and increases to 41 – 58 €/t CO₂ in the Energy-Water-CCS nexus Scenario, with the Chinese power station having the lowest avoidance cost and the South African power station having the highest.
  • Water extraction and treatment add a comparatively small capital cost to the examined CCS cases (5% increase), but the LCOE can increase by 11 – 12%.
  • The treatment of extracted water may provide a value in water-stressed regions, especially when considering the associated cost of water shortages. In this study, the cost of product water, accounting for brine treatment and disposal costs, was found to be comparable to local water tariffs in the four countries, ranging from 1.12 €/m3 to 2.43 €/m3. When water extraction and transport costs are also included, product water cost exceed local water supply charges.

Download Publication

Access the complete publication in PDF format.

Download Now

Related Publications

View similar publications.

View All Publications
Technical Report

CO2 Transport and Storage Cost Review

  • 9 October 2025
  • Costs of CCUS
  • Storage
  • Transport

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.

Technical Review

Proceedings of the CCS Cost Network 2025 Workshop

  • 1 October 2025
  • Costs of CCUS
  • Event Proceedings

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.

Technical Report

Market Models for CCUS/CDR – A Global Screening

  • 10 September 2025
  • Capture

This report provides a key pillar to interested parties including policy makers, regulators, and the technical carbon capture, utilisation and storage (CCUS) / carbon dioxide removal (CDR) community on potential successful market strategies, including their pros and cons and their suitability for dierent economic and political realities, which may lead to the fast development of an efficient, safe, and accepted CCUS/CDR market sector.

Technical Report

The Value of Direct Air Carbon Capture and Storage (DACCS)

  • 4 September 2025
  • Capture

The aim of this study is to evaluate the value of direct air capture and storage (DACCS) in the energy transition (down to the regional level), accounting for key factors, including carbon removal eiciency, timeliness, durability, land footprint and techno-economic performance.

Technical Report

Power CCS: Potential for cost reductions and improvements

  • 5 August 2024
  • Capture
  • Costs of CCUS

CCS, in the context of power CCS technologies, will be an essential component of the portfolio of technologies required to reach net-zero emissions in the power sector. This study explores the potential to reduce the cost and accelerate the uptake of power CCS technologies.

Technical Review

7th Post-Combustion Capture Conference Summary

  • 1 April 2024
  • Capture
  • Event Proceedings

The 7th edition of the Post Combustion Capture Conference (PCCC-7) was held on the 25?28 September 2023 and was jointly hosted by the IEAGHG, U.S. Department of Energy (DOE) and the National Energy Technology Laboratory (NETL) and sponsored by Worley, Shell, and Mitsubishi Heavy Industries. (MHI).

Technical Report

Techno-Economic Assessment of Small-Scale Carbon Capture for Industrial and Power Systems

  • 1 March 2024
  • Capture
  • Costs of CCUS

This study, undertaken on behalf of IEAGHG by Element Energy (now a part of ERM), explores the role of CCS in decarbonising small-scale industry and power generation applications. While relatively under investigated compared to their larger scale counterparts, reaching net zero will be dependent on successfully addressing the emissions from small-scale facilities. The findings from the study will be of interest to the broader energy community but, in particular, should benefit project developers, the finance community and policymakers.

Technical Report

Clean steel an environmental and technoeconomic outlook of a disruptive technology

  • 1 March 2024
  • Capture
  • Costs of CCUS

This study primarily presents a comparative analysis of steelmaking pathways to cost-effectively decarbonise a steel mill, taking a life-cycle perspective on associated environmental impacts. The roll-out of clean steel technologies is envisioned to have a significant implication for support infrastructure. Therefore, a secondary objective of the study is to gain insights into the primary energy and infrastructure implications associated with large-scale deployment of different steel decarbonisation pathways. Clean steel production will likely be more expensive than steel produced today; this poses additional economic strains on steel producers and consumers. Consequently, a third objective is to estimate the price premium that clean steel could command in existing and future markets. Further, this study formulates recommendations for key stakeholders to support the sector and outlines recommendations for further work.

Technical Review

7th Cost Network Proceedings

  • 1 November 2023
  • Costs of CCUS
  • Event Proceedings

The 7th edition of the IEAGHG CCS Cost Network Workshop was hosted at the University of Groningen, Netherlands, on 12-13 April 2023. The purpose of the workshop was to share and discuss the most current information on the costs of carbon capture and storage (CCS) in various applications, as well as the outlook for future CCS costs and deployment. For the first time, this workshop also included a session on the direct capture of CO₂ from the atmosphere. The workshop also sought to identify other key issues or topics related to CCS costs that merit further discussion and study.

Our most recent publications

Our authoritative, peer-reviewed publications cover topics that include carbon capture, transport, storage, monitoring, regulation, and more.

View All Publications
Technical Report

CO2 Transport and Storage Cost Review

  • 9 October 2025
  • Costs of CCUS
  • Storage
  • Transport

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.

Technical Review

Proceedings of the CCS Cost Network 2025 Workshop

  • 1 October 2025
  • Costs of CCUS
  • Event Proceedings

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.

Technical Report

Market Models for CCUS/CDR – A Global Screening

  • 10 September 2025
  • Capture

This report provides a key pillar to interested parties including policy makers, regulators, and the technical carbon capture, utilisation and storage (CCUS) / carbon dioxide removal (CDR) community on potential successful market strategies, including their pros and cons and their suitability for dierent economic and political realities, which may lead to the fast development of an efficient, safe, and accepted CCUS/CDR market sector.

Technical Report

CO2 Flow Metering Technologies

  • 4 September 2025
  • Policy & Regulation
  • Transport

The main objective of this study is to raise awareness of the relevance, state of the art, challenges and opportunities of flow metering for carbon capture, utilisation and storage (CCUS). Flow metering of CO2 streams will be critical in supporting trade, protecting consumers, ensuring confidence, facilitating taxation, and meeting CO2 reduction goals and treaty obligations.

Technical Report

The Value of Direct Air Carbon Capture and Storage (DACCS)

  • 4 September 2025
  • Capture

The aim of this study is to evaluate the value of direct air capture and storage (DACCS) in the energy transition (down to the regional level), accounting for key factors, including carbon removal eiciency, timeliness, durability, land footprint and techno-economic performance.

Get the latest CCS news and insights

Get essential news and updates from the CCS sector and the IEAGHG by email.

Can’t find what you are looking for?

Whatever you would like to know, our dedicated team of experts is here to help you. Just drop us an email and we will get back to you as soon as we can.

Contact Us Now