Carbon Capture and Storage Total Costs

The economics of a CCS system rely on various components that are highly variable and site specific. Currently, a large funding gap exists and must be addressed in order to ensure large-scale deployment of CCS.


  • Capture – includes both capital and operating costs and will vary greatly depending on facility specifics and the chosen capture technology.  This component normally represents about 80% of the total project cost.
  • Transport and Storage – includes the transportation of CO2 from the capture facility to the storage location as well as injection and monitoring at the storage site.


There are various forms of compensation that can offset the costs of CCS.

  • Compliance –  Government regulations require CO2 emission reductions and the cost of compliance that a corporation avoids by undertaking CCS is a core financial driver.
  • Enhanced Oil Recovery – CO2 can be used to enhanced production in some older oil fields and the companies who use the CO2 will pay for it. This provides a revenue for capture companies.
  • Tax Savings – Corporate financial tax savings resulting from the economic expenditure on CCS. This expenditure lowers corporate profits and the tax payable.

Funding Gap

The funding gap is simply the difference between the total costs associated with a CCS project and the compensation received to offset these costs.  It is expected that the economic gap will disappear and CCS will become commercial.