Economic Potential of DACCS and Global CCS Progress
The identification and appraisal of geological resources for the storage of CO2 is a costly
and time-consuming process. It requires a desktop review of existing geological models
covering the area in question, "imaging" of the subsurface using seismic techniques
and complex data processing, and finally, the drilling of a well to collect core samples
for analysis and to undertake small scale injection testing. These activities typically
take a few years to complete and are subject to the availability of geoscientists with
appropriate experience and the critical equipment required to collect data and drill
wells. Storage appraisal is on the critical path for CCS deployment.
Figure 28 is a highly simplified Gantt chart for the development of a complex CCS project,
assuming appropriate CCS regulation is in place and there is no significant community
opposition. It is possible to deliver a complex project in less time if relevant pre-existing
studies are available (for example, storage site appraisal or capture engineering studies).
At the other end of the spectrum, less complex CCS projects can be developed
in less than five years. These projects will generally require CO2 capture processes
that are simple to integrate with the CO2 source, are vertically integrated (no offtake
agreements), utilise existing infrastructure and/or access rights, and access geological
storage resources that are already well characterised and not facing any significant risk
of community opposition.
An excellent example of a less complex CCS project is Santos's Cooper Basin CCS
Project in Australia, which is scheduled to commence operation in 2024. This project
will capture CO2 from gas processing facilities and, using an existing pipeline corridor,
transport it 50 km to a depleted hydrocarbon reservoir for storage. Santos will own
and operate every element of the project, which is in a remote part of Australia with
extremely low population density.
While there are likely many opportunities around the world to develop less complex
CCS projects such as the Cooper Basin CCS Project, these represent a minority of the
total capacity required to meet climate targets. CCS projects in development today
typically have disaggregated value chains and connect to a CO2 transport and storage
network because of the cost and the risk benefits that networks provide. The downside
is increased complexity and longer development timelines.
In the last few years, as CCS networks have emerged, the scale and complexity of CCS
projects has increased significantly. A large majority of these projects are leveraging
some existing studies, most commonly related to geological storage resources. Those
with access to pre-existing studies would be expected to advance to operation in less
than nine years, but some may take longer. Large industrial projects take time to develop.
If ambitious climate targets are to be met, the majority of projects that will deliver multi-
mega-tonne-per-year-abatement in the 2030s need to commence development in the
2020s. In addition, less complex projects that can be delivered in five years or less
should be pursued with urgency. Policymakers must take these timelines into account
and develop policy that incentivises investment in more complex and less complex CCS
projects to support net-zero strategies. Further, capacity-building across all relevant
disciplines, especially geoscience, will be necessary in some developing countries,
particularly those without a well developed petroleum production industry.
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GLOBAL CCS
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