Economic Potential of DACCS and Global CCS Progress
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400
Global DACCS Cost (USD per tCO2)
200
600
800
137.1825
156.2966
175.5225
DACCS
194.5599
213.674
233.1551
252.5705
HYDROGEN CCS
271.4131
289.3849
307.3766
325.7602
343.8663
362.4646
382.4709
403.0618
412.4078
BECCS
DRIVERS AND INCREASING SUPPORT
The primary driver for CDR is the pathway toward net-zero
emissions by mid-century. All available BECCS is likely
to be deployed because it offers CDR and energy. The
lower the cost of DACCS, the more it will be deployed,
the lower the price of CO2 that will result, and the lower
the cost of the transition to net-zero. According to
Institute's modelling, the potential cost savings are huge.
If the future cost of DACCS can be reduced to US$ 200
per tonne of CO2, the net present value of savings in the
global energy system would be around US$1 trillion (3).
If the future cost of DACCS can be reduced to US$137
per tonne of CO2, the net present value of savings in the
global energy system would be around US$3 trillion.
In an effort to drive DACCS technology toward
commercialisation to reduce the overall costs of reaching
net-zero, governments are implementing specific policies
for DACCS. For example, the US Department of Energy
announced in May 2022 that it would provide US$3.5
billion in funding to four direct air capture hubs over the
next five years (4). DACCS also qualifies in the US for
45Q tax credits of US$180 per tCO2 stored (5). Canada
recently announced an investment tax credit of 60 per
cent for direct air capture equipment till 2030 and 30 per
cent till 2040 (6).
An individual country is unlikely to invest in DACCS at
a level needed for globally optimal benefits. Therefore,
cooperation among countries is critical to ensuring that
DACCS can reach levels that benefit all. This cooperation
would fall within Article 6 of the Paris Agreement and
the UNFCCC process. One possible approach would
be for a group of like-minded countries to form a club
and pool money to invest in DACCS projects to drive
commercialisation (7).
Gt CO2
INDUSTRY CCS
ELECTRICITY CCS
FIGURE 22: CUMULATIVE CO₂ STORED FROM 2022 TO 2065 BY CCS TYPE AS THE COST OF DACCS CHANGES
GLOBAL CCS
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