Evaluation of two alternative carbon capture and storage technologies

Abstract

* Carbon dioxide capture and storage (CCS) is one of the technologies for fighting climate change in the future. The use of CO2 for enhanced oil recovery (EOR) paired with storage in deep saline formations (DSF) could effectively help to support CCS demonstration projects, reduce costs and thus guarantee the future economic viability of power plants incorporating both EOR and CCS. * CCS without EOR is highly unprofitable at both current and expected carbon market prices. * The profitability of these technologies is highly influenced by the volatility of future electricity prices, oil prices and carbon allowance prices. * Investment in EOR and secondary DSF storage can only be profitable with a long-term equilibrium price for oil higher than $51/barrel. When the investment decision can be made at any time the trigger value for optimal investment is significantly higher at $89/barrel. However, an increase in the investment cost can substantially raise these trigger prices.