Carbon Capture and Storage: Seeking a Bankable Business Model

While the first CCS projects receive significant government subsidies, scaling up the solution will require private-sector investments, primarily from banks and large infrastructure funds. However, for CCS to become bankable, key investment hurdles should be addressed. Firstly, CCS should be economically attractive for emitters, and secondly, various technical and commercial risks for both emitters and CO2 transport and storage providers should be mitigated. CCS commercial frameworks are still under development across Europe and the US, with current focus mainly on making CCS economically acceptable for emitters. The analysis indicates that only the UK has implemented an investable CCS business model. This was achieved through a structured approach to clusters development and adopting the regulated asset base approach, which determines the allowable revenue.