CO2 disposal in geologic formations: the economics?

Costs of disposing of CO2 are extremely variable and project-dependent, ranging from $5-50/ton, with a base case of $22.5/ton. This is the disposal price needed to earn a 10% post-tax IRR, transporting, injecting and monitoring CO2 in the sub-surface.

This model captures the economics and costs of CO2 sequestration in geological formations, as a function of a dozen input variables: such as CO2 prices, costs, transportation distances and reservoir properties.

Our capex and opex estimates are broken down, line-by-line across c30 different line-items, using granular technical disclosures from the EPA’s GEOCAT database. Our modelled costs are also compared with detailed estimates for offshore disposal beneath the UK North Sea, based on recent technical papers.

Please download the data-file to stress tests the economics.