Economic Potential of DACCS and Global CCS Progress

[36] ECONOMIC POTENTIAL OF DACCS Another result from the Institute's modelling is that the earliest DACCS would be deployed on an economic basis without any dedicated DACCS incentives is 2043, with the lowest-cost DACCS assumption (US$137 per tCO2), but not until 2062 with the highest-cost assumption (US$412 per tCO2). Figure 21 shows the economic breakeven point by year and cost of DACCS. The economic deployment of DACCS beyond the breakeven point depends on how low the cost of DACCS is and how early that breakeven occurs. Very little DACCS is deployed if the cost is higher than US$350 per tCO2. Significant levels of DACCS are economic between US$137 and US$223 per CO2 (16 GtCO2 and 8 GtCO2, respectively, by 2065). Figure 22 shows how different DACCS cost assumptions affect other types of CCS, including BECCS, electricity fossil CCS, industry CCS, and hydrogen CCS. BECCS remains constant regardless of the cost of DACCS, as do, for the most part, industry and electricity CCS. The lower the cost of DACCS, the more it is cost-effective in offsetting emissions that would otherwise be decarbonised through a hydrogen pathway, which in turn reduces the need for both green and blue hydrogen and the CCS associated with blue hydrogen. DACCS COST (USD PER CO₂) 412 406 403 395 382 375 362 354 344 335 326 316 307 298 289 281 271 262 253 243 233 223 214 204 195 185 176 166 156 147 137 FIGURE 21: QUANTITIES OF CO2 STORED FROM DACCS AT DIFFERENT COSTS OVER TIME 2022 2024 2026 2028 2030 2032 2034 2036 0 1 2 3 4 5 6 7 2038 abor 2042 2044 8 9 10 11 12 13 14 15 DACCS STORED (GtCO2) 2046 2048 2050 2052 2054 2056 16 2058 2060 2062 2064 GLOBAL CCS INSTITUTE

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