The Effect of Market and Leasing Conditions on the Techno-economic Performance of Complex CO2 transport and storage value chains

Abstract

AbstractThe complex interplay of capital and operating costs that results from different CO2 transport and storage network configurations, and the market conditions in which they develop is investigated using the life cycle CO2 storage cost model and the multi-period CCS network optimisation model developed by Imperial College. These tools integrate seamlessly the geological characteristics, engineering aspects and the economics of complex CCS chains. The paper demonstrates that these models capture effectively and accurately the effects of market and leasing conditions on the techno-economic performance of complex CCS value chains. The results reveal that saline aquifers and depleted oil and gas fields may differ significantly in terms of cost performance. It is also shown that it is important to evaluate the technical and economic performance of the CCS value chain as a whole, rather than in individual components in order to ensure the financial viability of CCS projects