CCUS Economics & Implementation

Calculate project costs and explore real-world CCUS deployment strategies

Making CCUS Economically Viable

CCUS economics are simple: costs are real, immediate, and measurable ($40-150/t); revenues depend entirely on policy. Without carbon pricing, tax credits, or compliance mandates, CCUS loses money on every tonne. The US 45Q tax credit ($85/t for storage, $60/t for utilization) has unlocked 100+ projects. Europe's ETS ($80-100/t) and CBAM (carbon border adjustment) are driving industrial CCUS. But policy alone isn't enough—projects need low-cost CO₂ sources, transport infrastructure, storage permits, and long-term revenue certainty. First movers prioritize pure CO₂ streams (ammonia, ethanol—$15-25/t capture), industrial hubs with shared infrastructure (Rotterdam, Houston, Teesside), and jurisdictions with strong carbon policy. The 2020s are about proving commercial models; the 2030s must be about exponential scale-up.

Interactive Project Economics Calculator

Adjust parameters to see how capture costs, carbon pricing, and project scale affect CCUS viability

Project Parameters

1000 kt/year
$60/t
$15/t
$10/t
$800M

Revenue Streams

$85/t
$0/t

Project Economics

Cost per Tonne

Capture:$60
Transport:$15
Storage:$10
Total Cost:$85/t

Revenue per Tonne

Carbon Credits:$85
Utilization:$0
Total Revenue:$85/t

Net Economics

Net Cost/Revenue:+$0/t
Annual OPEX:$85.0M/yr
Annual Revenue:$85.0M/yr
Annual Net:+$0.0M/yr
Breakeven Carbon Price
$85
Simple Payback
N/A
✓ Profitable Project

This project generates net revenue and could proceed without subsidies.

Key Takeaways

🎯 Strategic Priorities

  • Target pure streams first: Ammonia, ethanol, hydrogen—lowest cost
  • Build industrial hubs: Shared infrastructure cuts costs 30-50%
  • Secure long-term policy: 10+ year revenue certainty essential
  • Combine CCS + CCU: Utilization revenue reduces net cost

📊 Technology Maturity

  • Commercial today: Post-combustion, EOR, urea, concrete curing
  • Demonstration scale: Pre-combustion, oxy-combustion, DAC
  • Early stage: E-fuels, CO₂-polymers, mineralization at scale
  • Storage proven: 30+ years, 40 Mt/year, 99.9%+ containment

⚠️ Implementation Barriers

  • Policy uncertainty: Carbon price volatility kills investment
  • Infrastructure gaps: CO₂ pipelines need $100B+ investment
  • Permitting delays: Storage site approval takes 3-7 years
  • Public acceptance: Education and engagement critical

🚀 2030 Targets

  • IEA Net Zero: 1.7 Gt CO₂/year captured (45x scale-up)
  • Project pipeline: 450+ facilities announced worldwide
  • Cost reduction: Target $40-60/t all-in for post-combustion
  • Geographic spread: Must expand beyond US, Norway, Australia

💡 Final Insight

CCUS is not a silver bullet—it's a critical tool for hard-to-abate sectors (steel, cement, chemicals) where alternatives don't exist. Success requires: 1) Strong, sustained carbon pricing, 2) Industrial cluster development, 3) Shared CO₂ transport networks, 4) Streamlined storage permitting, 5) Technology innovation (lower costs, higher efficiency). Think of CCUS as essential infrastructure for net-zero, not optional.

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Module Complete!

You've mastered CCUS technologies, economics, and implementation strategies