Deploying carbon capture and storage (CCS) for climate neutrality

CCS for climate neutrality: opportunities, limitations and framework conditions

The capture and safe storage of CO₂ in geological formations (Carbon Capture and Storage – CCS) is one of the climate protection options that are fundamentally necessary for achieving climate neutrality. However, its contribution is limited, involves economic challenges and requires a broad, well-coordinated mix of supporting measures.

This is shown by a study by the Oeko-Institut commissioned by Agora Industrie, which presents a comprehensive analysis of the possibilities and limitations of CO₂ storage as well as the various transport options. The Oeko-Institut’s research team provides an overview of the existing and still required support measures for CCS in the form of a so-called ‘regulatory map’.

Limited capacities and long lead times for CO₂ storage

Christoph Heinemann, Senior Researcher at the Oeko-Institut, explains: “We have compiled the offshore CCS projects known to date in the European Economic Area and the UK, along with their various stages of development, into a comprehensive database. Looking at the investment decisions made so far, only a storage capacity of around 14 million tonnes (Mt) of CO₂ per year will be available for decarbonisation projects by 2030.”

The study also shows that the potentially achievable offshore storage capacity for Europe by 2040 lies at around 100 to 300 million tonnes. Whilst this is significant, it ultimately only allows for the use of CCS in areas where there are no alternative options for reducing emissions. “Given lead times of six to 13 years, projects must be advanced swiftly in order to contribute to climate neutrality in good time,” says Heinemann.

CCS as a targeted option for unavoidable emissions

In addition to the time-consuming development of storage infrastructure, the transport of CO₂ to storage sites is also an often underestimated part of the CCS process chain. Dr Roman Mendelevitch, Senior Researcher at the Oeko-Institut, emphasises: “Transport on an industrial scale can be carried out by pipeline, train or ship. These options have very different advantages and disadvantages in terms of flexibility and costs, are in some cases in competition with one another, and require careful and forward-looking planning of CO₂ infrastructure when it comes to route selection and dimensioning.”

To reduce costs and enable economies of scale, the state should help to provide clarity at an early stage regarding future sites, the volumes of CO₂ to be transported and the timing of their generation by establishing reliable framework conditions.

Necessary policy mix for the market ramp-up of CCS

According to current estimates, the total costs of the CCS process chain – from capture through transport to offshore storage – are likely to range from 150 to 300 euros per tonne of CO₂. Against this backdrop, given the CO₂ prices foreseeable in the short and medium term, CCS is dependent on support from a broad package of intelligent and consistent measures.