CCS from the gas-fired power station at Karsto? A commercial analysis

Summary: The article presents a commercial investment analysis of the carbon capture project at the Karsto gas processing plant in south-western Norway. We update an earlier analysis and critically review the methods used-including those applied for cost estimating. Our conclusion is that carbon capture and storage (CCS) at Karsto would be a very unprofitable climate measure with poor cost efficiency. It would require more than USD 1.7 billion in subsidies, or in excess of USD 133 million per year. That corresponds to a subsidy of roughly USD 0.1 per kWh on the power station's electricity output. The cost per tonne of carbon emissions abated is about USD 333, which is about 20 times the international carbon emission allowance price and many times higher than alternative domestic climate measures. - Research highlights: →Commercial analyses of climate projects are necessary to obtain realistic figures of the level of subsidies needed. →Carbon capture and storage (CCS) at Karsto would be a very unprofitable climate measure with poor cost efficiency. →It would requiremore than USD1.7 billion in subsidies, or inexcess of USD 133 million per year. →That corresponds to a subsidy of roughly USD 0.1 per kW on the power station's electricityoutput. →The cost per tonne of carbon emissions abated is about USD333.