IEA | CCUS Policies and Business Models Building a commercial market

CCUS Policies and Business Models Building a commercial market

The full-chain business model has played an important role in the early development phase of CCUS. In such models, a single project framework is used for the full CCUS value chain from CO2 capture to transport and storage.

The oil and gas industry has played a major role in these projects, thanks to its expertise in operating large-scale projects and knowledge of the subsurface. However, the industry’s historical focus has been enhanced oil recovery (EOR) and a shift is now required to one that centres on dedicated CO2 storage.

While the full-chain business model has some advantages, it comes with multiple risks at each step of the chain. These are typically associated with a need for technical and operational expertise in all fields, and high CAPEX. Fullchain business models alone are not well suited to CCUS applications needed for net zero, as some emitters may not have the internal expertise.

For capture, this is particularly relevant for applications where CO2 is not already separated as part of the process, and which require dedicated capture equipment

CCS and Hydrogen