Economic Potential of DACCS and Global CCS Progress slide image

Economic Potential of DACCS and Global CCS Progress

[35] IPCC 5.2 CARBON REMOVALS NECESSITY OF CARBON REMOVALS Carbon dioxide removal (CDR) technologies remove carbon dioxide from the atmosphere. The Intergovernmental Panel on Climate Change (IPCC) finds that all scenarios that limit warming to no more than 1.5°C deploy CDR technologies. Further, most models are unable to find pathways that limit warming to 1.5°C without CDR technologies (1). Direct air carbon capture and storage (DACCS) removes CO2 directly from the atmosphere, while bioenergy with carbon capture and storage (BECCS) captures CO2 from bioenergy combustion. Because BECCS provides both CDR and usable energy, BECCS is typically a lower cost option than DACCS. BECCS, though, is limited by the sustainable biomass available for energy, approximately 131 EJ per year globally (2). Recent economic modelling by the Global CCS Institute found that reaching net-zero (based on IPCC SSP1-1.9) is expected to require the maximum possible deployment of BECCS (3), which is determined by the availability of sustainable biomass. The deployment of DACCS however is determined by its future cost, which is uncertain. To understand the potential role of DACCS in achieving net-zero, the Institute examined a range of possible DACCS costs from US$137 per tCO2 to US$412 per tCO2 (compared to the IPCC DACCS cost range of US$100-300 per tCO2). The Institute's model provided results that are broadly consistent with the IPCC's projections of DACCS & BECCS deployment. Staying within the remaining carbon budget through this century will be more difficult and costly without CDR. The scale of the energy transition to net-zero is staggering. Advanced fuels and their infrastructure must be developed, the electricity sector must decarbonise, and industry and transport must be transformed. CDR can buy time so that the rate of transformation is more manageable for the hardest-to-abate, highest-cost applications (3). CDR can also act as insurance if unexpected constraints arise in other decarbonisation pathways (3). Global DACCS cost USD per tCO2 400 350 300 250 Global CCS Institute FIGURE 19: CUMULATIVE CDR THROUGH 2100 (GTCO₂)¹ 150 BECCS DACCS Total CDR 200 226-842 109-539 333-1,221 491-510 1.2-786 511-1,277 DACCS IS ECONOMIC DACCS IS UNECONOMIC 2050 1 The model for the Institute's analysis runs to the year 2065. The CDR results for 2065 were assumed to repeat for years 2061-2100 to arrive at an approximate value for the 21st century for comparison with the IPCC results. 2055 FIGURE 20: BREAKEVEN COSTS FOR DACCS OVER TIME (ASSUMES NO DACCS-SPECIFIC INCENTIVES) GLOBAL CCS INSTITUTE 2060 2065
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