2024碳捕获价值捕获- 碳捕获商业模式综述报告（英文版）-牛津能源研究所

February2024

CaptureCarbon,CaptureValue:AnOverviewofCCSBusinessModels

BassamFattouh,Director,OIES

OIESPaper:CM08

HasanMuslemani,HeadofCarbonManagementResearch,OIESRaeidJewad,PrincipalAdvisor,GaffneyCline

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Copyright©2024

OxfordInstituteforEnergyStudies

(RegisteredCharity,No.286084)

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ISBN978-1-78467-228-7

i

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Contents

Contents ii

Figures ii

Tables ii

Acknowledgement ii

Introduction 1

1.KeyrisksinvolvedwithCCS 1

2.FrameworkstosupportinvestmentinCCS 4

2.1Supportivelegalandregulatoryframework 4

2.2Mechanismsthatallowstackingofrevenues 5

2.3Diverseapproaches:Experiencesfromdifferentcountries 9

3.CCSBusinessModels 16

3.1Overviewofbusinessmodeltheory 16

3.2CCSbusinessmodels 16

Conclusions 23

Appendix:Casestudies 24

Figures

Figure1:LevelizedcostofCO2avoidedbetweenCCSandunabatedrouteacrosssectors 2

Figure2:VaryingDegreeofGovernmentInvolvementinCCS 10

Figure3:CCSValueChain,OwnershipandFinancing 17

Figure4:FullChainModelConcept 18

Figure5:PartialChainModel–SingleHubConcept 20

Figure6:PartialChainModel–OffshoreCO2TransportConcept 21

Figure7:PartialChainModel–FreeMarket 22

FigureA1:CRCBusinessModel 26

Tables

Table1:SummaryofhurdlesintheCCSSupplyChain 4

Table2:GovernmentfundingsupportmechanismsforCCS 6

Table3:CCSSupportMechanismsinUK 12

Table4:FullChainModelProjects 18

Table5:ExamplesofPartialChain-FreeMarketprojects 22

TableA1:DenburyBusinessModel 25

TableA2:CRCBusinessModel 26

Acknowledgement

TheauthorsacknowledgethereviewandvaluableinputsofTobyLockwoodattheCleanAirTaskForce(CATF)intothiswork.

ii

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Introduction

Becauseofthescalewithwhichitcouldbeapplied,carboncapture,andstorage(CCS)isidentifiedasacriticaltechnologytoreduceCO2emissionstoachieveglobalclimategoal

s1.

Particularly,CCScanreduceemissionsfromexistingassets(suchasgasprocessingplants,powerplants,chemicalplants)decreasingtheriskofstrandedassetsinacarbon-constrainedworld;reduceemissionsfromhard-to-abatesectors(suchascementandsteel)wheredecarbonizationtechnologiesarelimitedandhavenotbeenscaledup;enabletheproductionoflow-carbonhydrogenwhichrepresentsakeypillarofdecarbonization;andenabletheremovalofCO2fromtheatmospherewhichisneededtoreachglobalclimateobjectivesviatechnologiessuchasDirectAirCarbonCaptureandStorage(DACCS)andBioenergywithcarboncaptureandstorage(BECCS

)2.

ThepotentialofCCSasmitigationtechnologycouldbesubstantial.IntheIEA’sNet-ZeroEmissionsby2050Scenario(NZE),installedcapacityofcapturedCO2increasesfromthecurrentlevelofaround45MtCO2peryearto1.2GtCO2peryearin

20303

,andupto7.6GtCO2in

20504

.AccordingtotheIntergovernmentalPanelonClimateChange(IPCC),theroleofCO2captureandstorageisevenmoresignificantthanIEA’sNZEwiththeIPCC’s1.5°Cscenarioshavingamedianofaround15GtCO2peryearcapturedin205

05.

Similarly,theEnergyTransitionCommission(ETC)estimatesthatby2050,between6.9Gt(basecase)and10.1Gt(highdeploymentcase)ofcapturedCO2peryearisrequiredtomeetnetzerotarget

s6.

Accordingtothe

IEA7,

totalannualcapacitycapturecapacityin2023amountedto45MtCO2andalthoughdeploymentmomentumhasimproved–witharound200newcaptureplantsannouncedtobeinoperationby2030–evenifalloftheseareimplemented,thetotalannualcapacitywillonlyincreasetoroughly400MtCO2by2030,wellbelowthelevelsrequiredtoachieve2050netzeroobjective

s8.

ThisraisessomefundamentalquestionsaboutthecharacteristicsofCCSprojectswhichmakethemchallengingforfinancingandscaling,eventhoughthetechnologyhasbeenappliedfordecadesparticularlyintheoilandgasindustry.

Thispaperseekstoidentifythemaincommercialandnon-commercialrisksassociatedwithCCSandanalyzeincentivemechanisms,regulatoryandlegalframeworks,typesofindustryandownershipstructures,andpublic-privatepartnershipsthatarelikelytoemergeindifferentpartsoftheworldtomitigatetheserisksandenableviablebusinessmodelstoscaleupthetechnology.Giventhatcountrieshavedifferentnaturalresourceendowments,regulatoryframeworks,andeconomicstructuresandasCCScanbeappliedtodifferentindustries(e.g.cement,steel,oilandgas,power,andchemicals),emergentbusinessmodelscandiffersubstantiallyacrosscountries.

1.KeyrisksinvolvedwithCCS

TheCCSvaluechainconsistsofthreemainactivities:CO2capture,transport,andstorage.CapturingCO2oftenconstitutesthebiggestcostcomponentforCCSandiswheresignificantcostreductions,efficiencygainsandfurthertechnologicalinnovationscouldbeachieved.AkeyfactorinthecostofCO2captureistheconcentrationandoverallvolumesofCO2inthesourcegas,withcoststypicallydecreasingwithincreasedconcentrationandvolumesofCO2inthefluegasflow.Insomeapplicationssuchasethanolproductionor

1Seeforinstance,Bui,M.,Adjiman,C.,Anthony,E.etal.(26moreauthors)(2018)Carboncaptureandstorage(CCS):Theway

forward.EnergyandEnvironmentalScience,11(5).pp.1062-1176.ISSN1754-5692;IPCC,ClimateChange2014:Mitigationof

ClimateChange.WorkingGroupIIIContributiontotheFifthAssessmentReportoftheIntergovernmentalPanelonClimateChange,CambridgeUniversityPress.

2IEA(2020),EnergyTechnologyPerspectives2020SpecialReportonCarbonCaptureUtilizationandStorage:CCUSincleanenergytransition.

3IEA(2023).Crediblepathsto1.5C.Fourpillarsforactioninthe2020s.

4IEA(2021),NetZeroby2050:ARoadmapfortheGlobalEnergySector.

5(IPCC)(2018),SpecialReportonGlobalWarmingof1.5°C(SR15),

https://www.ipcc.ch/sr15/

6ETC(2022),CarbonCapture,Utilisation&StorageintheEnergyTransition:VitalbutLimited,July2022,

https://www.energy-

/wp-content/uploads/2022/07/ETC-CCUS_Executive-Summary_final.pdf

7/reports/carbon-capture-utilisation-and-storage-2

8IEA(2023).CCUSpoliciesandbusinessmodels.

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naturalgasprocessing,CO2concentrationisquitehigh(>95%).Incontrast,inapplicationssuchaspowergeneration,CO2isquitedilutedandthereforeitismorechallengingandcostlytocaptureit(Figure1).Currently,themostexpensiveapplicationiscapturingCO2directlyfromair(DirectAirCapture

)9.

Figure1:LevelizedcostofCO2avoidedbetweenCCSandunabatedrouteacrosssectors

Source:FigureextractedfromInternationalEnergyAgency(2023),CCUSPoliciesandBusinessModels:BuildingaCommercialMarket.Notes:Notes:BF=blastfurnace;CCGT=combinedcyclegasturbine;FCC=fluidcatalyticcracker;NGP=naturalgasprocessing;PC=pulverisedcombustion.

CO2transportationtechnologiesarematureespeciallyviapipelines,asmanypipelinesarealreadyinoperationlinkedwithenhancedoilrecovery(EOR

)10.

Large-scaletransportationofCO2viashipsislessestablished,butthegasindustryhasplentyofexperienceintransportinggaseousfuelsandthisisunlikelytopresentatechnicalbarrierespeciallyasthetechnologyrequiredisalreadyinuseforthetransportofothercryogenicliquidssuchasLPGand

LNG11.

ThefinalstageintheCCSsupplychainisinjectingandstoringCO2underground.CO2canbestoredinsalineformationsandindepletedoilandgasfields.AccordingtotheGlobalCCSInstitute,storageinsalineaquifershasTechnologyReadinessLevel(TRL)of9andexistingprojectshaveshownthatCO2couldbeinjected,monitored,andstoredpermanentl

y12.

StorageindepletedoilandgasfieldshasalowerTRL(5-8)asprojectsareyettooperateatacommercialscal

e13.

WhilestorageofCO2scoreshighinTRL,thedelayandunderperformanceofsomekeyprojectssuchastheGorgonCCSprojecthavecausedsomeobserverstodoubtwhetherthedeploymentofCO2storageatalargescaleandacrosstheglobecouldbeachieve

d14.

Duringthisstage,monitoring,reportingandverification(MRV)iske

y15.

TheinjectionprocessneedstobedocumentedandvolumesofinjectedCO2needtobeverified.ItisalsoimportanttodemonstratewithappropriatemonitoringtechniquesthatCO2remainscontainedintheintendedstorageformation.Thishasalsosafetyandenvironmentaldimensions.Systemsmustbeputinplacetomonitorleakageandprovide

9CostsofDACCScanvarywidelyfrom400-1000$/tCO2.Source:Webbetal.(2023).ScalingDAC:Amoonshotorthesky’sthelimit?

10InternationalEnergyAgency(2023),CCUSPoliciesandBusinessModels:BuildingaCommercialMarket.

11SmallscaleCO2shippingalreadyexistsundermediumpressureconditions.

12GCCSI(2021).TechnologyreadinessandcostsofCCS.

13Bui,M.,Adjiman,C.S.,Bardow,A.,Anthony,E.J.,Boston,A.,Brown,S.,...&MacDowell,N.(2018).Carboncaptureandstorage(CCS):thewayforward.Energy&EnvironmentalScience,11(5),1062-1176.

14IEEFA(2022).IfChevron,ExxonandShellcan’tgetGorgon’scarboncaptureandstoragetowork,whocan?

15InternationalEnergyAgency(2023),CCUSPoliciesandBusinessModels:BuildingaCommercialMarket.

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earlywarningsofanyseepageorleakagethatmightrequiremitigatingactionandtoassessenvironmentaleffects.

SeveralcharacteristicsandrisksmakefinancingCCSprojectschallengingforgovernmentsandtheprivatesectoralike.Theseinclude:

Riskofinsufficientrevenues:Formanyprojects,thedeploymentofCCSwillexclusivelybedrivenbyclimatechangemitigationgoalsandloweringemissions.InsuchprojectswhereCO2iscapturedandstoredundergroundand/orinbuildingmaterialssuchascementandconcrete,thereareno,orverylimitedrevenuestreamsassociatedwithCCSthatcancompensateforthehighupfrontcapitalcostsandhighoperationcosts(incontrast,forinstance,tothecaseofrenewableelectricitygeneration).Theseoperationalcostsinclude:

•ThecostofcapturingandconditioningCO2

•Thecostofcompressing/liquefyingCO2fortransport

•ThecostoftransportingCO2viapipelinesandships(ortrucksincaseofshortdistancesandsmallvolumes)

•ThecostofinjectingCO2intostoragesites,and

•ThecostofmonitoringandverifyingtheamountofCO2stored.

Thecostofeachoftheseactivitiesvarieswidelydependingonprojectspecificfactors(location,plantsize,typeofactivity,thetechnologyinuse,tomentionafew)andtheliteraturereportsaverywiderangeofestimatesofthesecosts.

RiskoflowandvariableCO2price/tariffs:Incountriesthathaveestablishedcarbonpricing,eitherthroughemissiontradingsystems(ETS)orcarbontaxes,theseinstrumentscanprovideplayerswitheconomicincentives,eitherthroughavoidingcostsorasrevenue(e.g.fromsaleofallowancesinanETS)thatwouldhelpthemrecouppartofthecapitalinvestmentandoperatingcosts.However,suchsignalsmaynotbestable,andtherevenuesnotlargeenoughtoprovideincentiveforinvestmentinCCS.

Riskofinterdependency:Onewaytoreducerisksistodisaggregatethecapture,transport,andstoragecomponentsoftheCCStechnologychain.Ontheonehand,thisallowsdifferentmarketactorswithdifferentstrengthandriskappetitestocollaborateonCCSandtoallocaterisksmorebroadlyacrossthechain.Ontheotherhand,thiscreatesinterdependency/cross-chainrisksaseachpartofthechaindependsontheperformanceofothercomponents.Forinstance,ifanindustrialplayerinvestsinCO2capture,itisimportantthatthetransportandstorageinfrastructureisinplace.Itisalsoimportantthatthoseplayerscontrollingthetransportandstorageinfrastructuredonothaveunilateralmarketpowertochargeexcessivefees.Atthesametime,investorsinthetransportandstorageinfrastructuremustensurethatthereissufficientandregulardemandfortheirservicestorecoupcapitalandoperationalcosts.

Riskofliability:AlthoughtheprobabilityofCO2leakagefromwell-selectedandmanagedstorageisverylow,thisriskcannotbeeliminated.Ifthisriskisnottransferredtothegovernmentorthroughinsurance,theprojectownerwouldbeliablefortheriskofleakageforanindefiniteperiod,withthecontingentliabilitymostlikelytoincreaseinvalueovertime.

Otherrisks:ThereareotherkeyrisksthatfaceinvestorsinCCSincludingplantintegrationrisk,technologyrisks(especiallywhenitcomestothecapturetechnology)andfinancingrisk.ThereisalsoapublicperceptionandstakeholderacceptanceriskasmanyremainskepticalabouttheroleofCCSasaclimatemitigationtechnology,citingfactorssuchashighcost,uncertaintysurroundingviability,andfearsaroundthesafetyandpermanenceofstorage.SkepticsarguethatCCScanalsoperpetuatetheuseoffossilfuelsanddiscouragechangeinsocietalbehaviorandreinforceexistingdependencie

s16.

ItisalsoarguedthatCCScoulddivertfundsawayfromcleantechnologie

s17.

Table1summarizesthehurdlesfacedbyplayersthroughvariouspartsoftheCCSvaluechain.

16Parmiter,P.&Bell,R.(2020).PublicperceptionofCCS:AreviewofpublicengagementforCCSprojects.

17IEA(2020).AneweraforCCUS.

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Table1:SummaryofhurdlesintheCCSSupplyChain

Capture

Transport

Storage

CAPEX

CAPEX

CAPEX

OPEX

OPEX

OPEX

LowandvariableCO2priceorcompensationforCO2avoidance

Pricerisk(tariffsforCO2transport)

Pricerisk(tariffsforstorage)

Volumerisk(volumeofCO2transported)

Volumerisk(volumeofCO2stored)

Decommissioningrisk

Safetyandstorageliabilities(CO2leakage)

Publicperceptionrisks

2.FrameworkstosupportinvestmentinCCS

IndesigningframeworkstosupportinvestmentandscalingupofCCS,thefollowingkeyelementsareessentialtomitigatesomeoftheaboverisksandgenerateastreamofrevenuestomakeprojectsattractiveforprivatesectorinvestment:

•Stableandsupportivelegalandregulatoryframeworks

•Mechanismsthatallowstackingofrevenuesforoperatorsinthesupplychain,and

•VaryingdegreesofgovernmentparticipationintheCCSsupplychaintoenablerisk-sharingandriskmitigation.

2.1Supportivelegalandregulatoryframework

Atthemacrolevel,thegovernmentcancreateanenablingregulatoryandlegalframeworkforCCS.Keyelementsinclude:

•Settingnational/regionalCCStargetstosignalthegovernments’commitmentforCCSasamitigationtechnology.Forinstance,intheEU,theNZIAestablishesanEU-wideobjectivetoachieveanannualCO2storagecapacity/injectiontargetof50MtCO2by2030,280MtCO2by2040,andupto450MtCO2by2050

.18

IntheUK,thegovernmenthasatargettodeliverfourcarboncaptureusageandstorage(CCUS)clusterscapturing20to30MtCO2peryearby2030.ThesetargetsareintendedtoreassureentitiesthatwishtoinvestinCO2capturethatstoragewillbeavailable.

•Establishingregulatoryframeworksthatincentivizeinvestmentinlow-carbontechnologies.Carbonpricingisthemainmarket-basedinstrumentinthepolicytoolboxtoreduceCO2emissions.Carbonpricingcouldbeimplementedeitherthroughataxoncarbonemissionsorviaanemissiontradingscheme(ETS),andbothoptionsarepresentlyinuse.Governmentscanalsointroducespecificincentiveschemessuchasthe45QtaxcreditsforCCSprojectsundertheInflationReductionAct(IRA)intheUSandtheinvestmenttaxcredit(ITC)inCanada.

•Establishingaregulatoryandlicensingframeworktoaddressissuesofoperation,permitting,licensingofstorageandCO2transportanddecommissioning.Forinstance,theUKintroducedtheEnergyAct2023thatestablishesaneconomicregulationmodelforCO2transportandstorage,includinganeconomiclicensingframeworkunderwhichCO2transportationbypipelineforgeologicalstorageoperationswillrequirealicence.Thelicenceallowstheeconomicregulatortoaddressmarketfailuresassociatedwiththenaturalmonopolycharacteristicsofthisnetworkinfrastructure.IntheEU,theDirectiveonthegeologicalstorageofCO2(2009/31/EC),orcolloquiallytheCCSDirective,aimstoestablishalegalframeworkforenvironmentallysafegeologicalstorage

18EuropeanCommission(2024).Industrialcarbonmanagement–carboncapture,utilisationandstoragedeployment.

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ofCO2.TheCCSDirectiveiscomprehensiveandcoversareassuchasselectionofstoragesitesandexplorationpermits,storagepermits,obligationsforoperatingandclosingstoragesites,andthird-partyaccess(MemberStatesmustensurethatpotentialusershaveaccesstoCCSinfrastructure).TheCCSDirectivemustbeimplementedinthenationallegislationwithnationalauthoritieshavingsomechoiceonhowtoimplementtheDirective.Similarly,intheUS,theUndergroundInjectionControl(UIC)programregulatestheinjectionandlong-termstorageofCO2intodeeprockformationssuchasClassVIwells.InAustralia,thegovernmentintroducedtheOffshorePetroleumandGreenhouseGasStorageAct2006.TheActcoversmanyaspectsincludingthegrantingoftherighttoexplore,appraise,injectandstoreaGHGsubstance,setsoutabasicframeworkofrights,duties,obligations,entitlementsandresponsibilitiesofgovernmentsandindustry,andensuressafe,secureandpermanentstorageofGHGsubstanc

e19.

•Establishingand/oradoptingCCSmethodologies.Methodologiesareneededtoensurethequalityandaccuracyofmonitoringdata,thecredibilityofthecreditingbaseline,andwhetherimpactsareaccuratelyquantifiedusingconservativeandtransparentmethodologiesandwhichaccountforpotentialleakageandreversalsandavoiddoublecounting.Forinstance,theETSDirectiveintheEUhasdevelopeditsrulesforthemonitoringandreportingofGHGemissionsthroughRegulation2018/2066,alsoknownastheMonitoringandReportingRegulation(MRR).MRRestablishescomplianceproceduresandincludesreportingandmonitoringrequirements

.20

•Establishingabodytocoordinateactivitiesacrossthesupplychainifthevaluechainisnotintegrated.Forinstance,inNorway,thegovernmentestablishedastateentityGassnovatoactasaprojectintegratorfortheCCSLongshipproject.

•DevelopingalegalframeworkwhichallowsforCO2tobetransportedacrossbordersifthecountryplanstoestablishitselfasaregionaloraglobalstoragehub.

2.2Mechanismsthatallowstackingofrevenues

WhileutilizationofCO2couldprovidealimitedstreamofrevenuesinsomecontext

s21,

governmentsupportandincentivesarecentraltomakeCCSprojectsviable.Also,sincetheCCSvaluechainmayincludevariousplayerswithdifferentincentivestructureandskillsanddifferentappetiteforrisk,thequestionofwhoshouldbeincentivizedinthevaluechaincomesintofocus.Forinstance,anindustrialplant(anemitter)canbeincentivizedwiththerevenuespassedthroughthesupplychain.Also,sincethecostsandthetechnology/commercialreadinesslevelsvariesacrossthesupplychain,theamountandtypeofsupportwilldifferacrossthevariouscomponents.

ThebulkofrevenuestreamsforCCScomeseitherthroughpublicfundingsupportmechanisms–whichisthemainfundingprocessforthetimebeing–orthroughmarket-basedmechanisms,whicharelikelytogrowfurtherinthefutureasCCStechnologyandbusinessmodelsmature.

Governmentfundingsupportmechanisms

GovernmentfundingsupportplaysacrucialroleinovercomingbarriersandmitigatingriskswhichareparticularlyinherenttoFirst-of-A-Kind(FOAK)CCSinfrastructure,beyondsimplyreducingtheinvestmentcontributionrequiredfromtheprivatesector.Supportcanbeprovidedinseveralformsandatvariousstagesthroughoutthedevelopment,executionandoperationoftheCCSproject.Thissupportisrequiredtoovercomethebarriersandmitigatetherisksoftechnology,valuechaincoordination,lowandvolatilecarbonpricing,environmentalriskfromCO2leakage,counter-partyriskandthecostofcapitalforfinancingtheprojects.Intermsofpolicies,incentivesandleverswhicharecurrentlybeingemployedbygovernmentsglobally,theycanbecategorizedintothreemainbuckets:

19AustralianGovernment,NationalOffshorePetroleumTitlesAdministrator,‘OffshorePetroleumandGreenhouseGasStorageTitles:AnintroductiontotheGreenhousegas(GHG)storagelegislativeframework’,May2023,

.au/

_documents/guidelines/Introduction-to-the-offshore-petroleum-and-GHG-titles-framework.pdf20MRRdealspartiallywithCCUwheretheCO2convertedintoproductsmustbereported.

21Thispaperdoesnotfocusontheutilizationoptions.TheIEAnotesthat‘themarketforCO2useisexpectedtoberelativelysmallin

theshortterm,butalsoacknowledgesthat‘earlyopportunitiescanbedeveloped’.See:IEA(2019),PuttingCO2intoUse:CreatingValuefromEmissions.

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•SubsidiesforspecificCCSprojects,throughelementssuchastaxincentives/breaks,supportagreements,competitionsanddirectCO2storageprocurement,

•Emitter-targetedpolicieswhichdrivedemandforCO2captureandstoragesuchascarbonpricingandETSs(asnotedearlier,representinganincentiveforoperatorstoreducetheiremissionstoavoidpayingthecarbontaxand/orallowoperatorstotradeemissionreductioncertificatesandgeneraterevenuesinthemarket),and/orimpartingproducerresponsibilitytosequesterCO2,and

•Publicsectorlow-carbonprocurementrequirements,privatesectorprocurementcommitments,andstandard-settingandregulationsforlow-carbonproducts.

Table2summarizesfourmaingovernmentfundingmechanismthatarecurrentlybeingutilizedbygovernmentssupportingthedevelopmentanddeploymentofCCSglobally.Eachmechanismpossessesspecificadvantagesbutalsoconstraints.

Table2:GovernmentfundingsupportmechanismsforCCS

Governmentfunding

support

mechanism

Description

Advantages

Disadvantages

Directcapitalgrantsubsidy

DirectsubsidyoftheCCSprojectCAPEXtothe

investor/projectsponsor(notrequiredtobepaidback)

Reducesprivatesector’sCAPEXinvestment

requirements.

Reducesprojectcostofcapital(WACC)throughrisksharing.

Improvesbankability

throughthesharingoftheprojectexecutionrisk

betweenthegovernmentandtheprivatesector.

Developmentriskandexpenditureretainedbyprojectsponsorand

thereforeCCSdevelopment

contingentonsecuringsubsidywhichendsuppotentially

constrainingtheCCSvaluechainpipeline.

Publicfinancesareexposedto

downsideriskwithnopotentialforupsidebenefitfromtheproject.

Limitedscalabilityinthatfinite

amountofcapitalgrantsubsidyisavailablewhichultimatelyendsuplimitingthenumberofprojectsandconstrainsscalability.

Fewerprojectscanbedeployedandthereforelimitedeconomiesofscaleandcostoptimization

potential.

Lengthyprocesscoupledwith

uncertaintysincepublicfunding

processestendtobebureaucraticandsubjecttochangesin

governmentpolicy,andthereforehasthepotentialtoincreasethelead-timeanduncertaintytoFinalInvestmentDecision(FID).

Technologyrisk;subsidy

paymentsarenotdrivenbytheperformanceofCCStocaptureandsequesterCO2butalignedwithprojectexecutionmilestonedeliverables.

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Revenue

support

(OPEX/tariff

subsidy)

Governmentpaymentmadeeithertothe:

Capturingentity:SubsidypaidtotheemittercapturingtheCO2atapredeterminedrateforapredetermined

periodbasedupontheCO2capturedandsequestered,tocontributetooperationalcostsand/ortomitigate

uncertainty/volatilityinthecompliancecarbonmarketprice.

Transport&storage

operator:PaymentmadetoT&Soperator/companyto

mitigatethecoordinationriskofdelay,shortfallornon-

paymentoftransportandstoragefeefromthe

emitters.

Performancedependent:ifthereisnocaptureand

sequestration,therewillbenopayment.

Sharingoftechnologyandoperationalriskbetweenthegovernmentandthe

privatesector.

Redu