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Achieving climate neutrality requires carbon capture and storage (CCS) for certain applications in industry and waste management, yet development of the necessary CO₂ storage and transport infrastructure is lagging behind.
The expected CO2 storage capacity by 2030 amounts to only one-fifth of the EU‘s storage target. The lead time for new offshore storage is 6 to 13 years. For CO2 transport, trains and pipelines are two available options that offer some flexibility during the ramp-up phase, but this depends on an appropriate regulatory framework being established.
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The total costs of CCS range from EUR 150 to 300/t CO₂. Insights gained from ongoing projects show that transport and storage costs in particular have been significantly underestimated in the past.
This results in a significant cost gap compared to the CO2 price in the EU Emissions Trading System (currently around EUR 75/tCO2). At the same time, the potential for cost reductions of CO2 transport and storage capacities is expected to be limited, as these are site-specific projects involving largely established technologies.
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Ramping up CCS requires a broad set of policy measures, especially to close the cost gap and to derisk the infrastructure build-out.
Subsidy schemes should generally target emitters, to make allocating public finance more efficient and to support the emergence of price signals. Solutions are also needed to ensure workable grid fees and address counterparty risks. Providing state support to midstream traders can allow them to contribute to derisking the value chain and coordinating the CCS ramp-up.
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Even with stronger political support, CCS remains a limited and expensive option.
Even with regulatory backing, CO2 transport and storage capacities can only scale gradually, not exponentially. An industrial policy approach is therefore needed that deploys CCS efficiently and strategically, focusing its deployment on key core processes, particularly in industry and waste management, as well as on generating negative emissions.
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Deploying carbon capture and storage (CCS) for climate neutrality
The infrastructural and regulatory framework for CO2 transport and storage
Summary
This study analyses the technical, economic and regulatory requirements to scale up CO2 transport and storage infrastructure. A look at current and planned injection capacities shows that offshore storage projects have long lead times and that storage capacities will only scale gradually.
Offshore CO2 storage costs are investigated using current market and project data: The medium-term costs for offshore storage including transfer are expected to reach approximately EUR 100 to 150/t CO₂, with limited potential for cost reductions.
The pros and cons of different CO2 transport options and their role in scaling up CO2 infrastructure are highlighted, including their techno-economic characteristics, ramp-up potentials and risks. Multimodal CO2 transport options via pipelines, trains and ships combined with CO2 hubs offer some flexibility, especially during the ramp-up phase.
The study provides a comprehensive overview of the regulatory framework needed to kick-start the carbon capture and storage (CCS) ramp-up and develop a CCS market and puts forward policy recommendations to address key challenges in a coordinated way.
CCS will be needed to achieve climate neutrality: to capture remaining emissions for a limited number of processes, particularly in industry and waste management, and to remove carbon from the atmosphere to generate negative emissions. However, developing the necessary CO2 capture, transport and storage infrastructure faces significant challenges, including development timelines and a substantial cost gap. Targeted and efficient deployment of CCS on key processes is therefore necessary.
Key findings
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Deploying carbon capture and storage (CCS) for climate neutrality
The infrastructural and regulatory framework for CO2 transport and storage
