Description
Introduction
This brief analyzes the carbon capture and storage industry in the UK and Europe from various angles, examining the key drivers, issues, trends, players, and costs. Using a range of sources supplemented with unique insight from industry experts, it joins the dots to provide an informative and compelling overview of the CCS industry, and is imperative reading for strategic decision makers.
Features And Benefits
• Segments the large-scale integrated projects by various angles, such as by application type, capture type, and country.
• Highlights the key players and projects.
• Provides an overview of the different funding sources and the legal/risk landscape, highlighting their respective problems.
• Provides detailed insight into the economics of CCS, with cost breakdowns sourced from highly reputable organizations.
• Gives an estimate of the market size and future outlook.
Highlights
Overall, the carbon price is too low to incentivize the development of CCS, and so its development is carried forward by the aid of slow-paced government support, which will hopefully enable the economics of CCS to converge with the long-run estimates of the carbon price, by around 2025.
Your Key Questions Answered
• What is the current status of large-scale integrated CCS projects, by industry, technology, and region?
• Who are the key players and what are the key projects?
• What is the funding and legal/risk landscape, and what are their associated issues?
• What is the cost breakdown of CCS, segmented by location and capture type as well?
• What is the future outlook, including novel technologies, market size forecasts, where to enter the UK value chain, and what does it all depend upon?
Table of Contents
Executive Summary
Weak economic performance, legislative uncertainty, and public opposition have caused many delays and cancellations to projects, but progress is still being made
Post-combustion capture, pipelines, and deep saline aquifer methods dominate
EU and UK funding programs are making slow progress, but progress all the same
The legal and risk landscape is developing, but again uncertainties remain
Carbon price estimates fall short of the price needed to spur the development of CCS
For European carbon capture equipment manufacturers, there is approximately $15 - 17bn worth of revenue potential to 2020
Easily exportable knowledge services appear the most lucrative section of the UK' s value chain
Overall, the carbon price is not high enough to incentivize the development of CCS; however, it is being carried forward by government support, and is expected to be fully viable by 2025
OVERVIEW
Catalyst
Summary
Methodology
CURRENT STATUS OF LARGE-SCALE INTEGRATED PROJECTS AND PLAYERS IN EUROPE
Weak economic performance, legislative uncertainty, and public opposition have caused many delays and cancellations, but progress is still being made
Breakdown by industry, technology, and region
Post-combustion capture, pipelines, and geological storage technologies dominate
Alstom Power
Siemens Power
Doosan Power Systems
GE
Hitachi Power Europe
Country-by-country overview of projects and statuses
FUNDING AND RESEARCH INITIATIVES
EU and UK funding programs are making slow progress, but progress all the same
UK CCS demonstration competitions
EU NER300 update
Seventh Framework Program for Research and Technological Development
Other funding and research activities
International funding and research initiatives
The private sector has the ability to fund, but will only do so when the forecast risk-adjusted net present values are positive
LEGAL AND RISK OVERVIEW
The legal and risk landscape is developing, but again uncertainties remain
Risk
EU Directive 2009/31/EC on the geological storage of carbon dioxide
The proposed UK electricity market reforms imply a floor carbon price not high enough to incentivize investment in CCS
THE ECONOMIC VIABILITY OF CCS
Carbon price estimates fall short of the price needed to spur the development of CCS
Future costs
Business models
THE FUTURE OUTLOOK
For European carbon capture equipment manufacturers, there is approximately $15 - 17bn worth of revenue potential to 2020
Market size
Many exciting novel technologies are on the horizon
Easily exportable knowledge services appear the most lucrative section of the UK' s value chain
Supply chain opportunities
Overall, the carbon price is not high enough to incentivize the development of CCS; however, it is being carried forward by government support, and is expected to be fully viable by 2025
Appendix
What is CCS?
Carbon capture can occur pre-combustion, post-combustion, and in oxyfuel combustion
The transportation of CO2 is similar to that of natural gas and employs mature and commercially available technologies
There are currently three ways to store CO2, but geological formations are considered the most promising sequestration sites
The road to 2050
Definitions
Bibliography
Further reading
Ask the analyst
Datamonitor consulting
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