Transport Economics

In most cases, transportation costs are governed primarily by the distance the captured CO2 must be moved in a pipeline. It is consistent to assume a nominal price of approximately $15 per tonne when estimating overall costs. Common transportation infrastructure would provide operational efficiencies and decrease costs. An example of this is demonstrated in the tables below, showing a potential for significant cost reduction with the construction of a common carrier pipeline as opposed to a multi-phase pipeline.

Pipeline networks from the first Carbon Capture and Storage (CCS) projects should be developed with the consideration of future CCS transportation needs. Building pipelines in this manner includes consistent standards and integrating system design.

Economics of Integrated Infrastructure

Economies of Scale: Centralized design and pre-building is significantly more cost effective than point and shoot CCS solutions.

Option 1: Build in Phases Capital Cost Capability (t/day) $/t Cost
Point & Shoot (Phase 1) $400M 20,000  
Point & Shoot (Phase II) $400M 20,000  
Total $800M 40,000 $10/t
Option 2: Build for Capacity Capital Cost Capability (t/day) $/t Cost
Build in One Phase $500M 40,000 $6/t

* Numbers based on a 400km CO2 Pipeline Example