Understanding the pitfalls of CCS cost estimates

This paper reviews and compares the prevailing methods, metrics and assumptions underlying cost estimates for CO2 capture and storage (CCS) technologies applied to fossil fuel power plants. This assessment reveals a number of significant differences and inconsistencies across different studies, not only in key technical, economic and financial assumptions related to the cost of a CCS project (such as differences in plant size, fuel type, capacity factor, and cost of capital) but also in the underlying methods and cost elements that are included (or excluded) in a particular study (such as the omission of certain owner's costs or the cost of transport and storage). Such differences often are not apparent in the cost results that are reported publicly or in the technical literature. In other cases, measures that have very different meanings (such as the costs of CO2 avoided, CO2 captured and CO2 abated) are all reported in similar units of dollars per ton CO2. As a consequence, there is likely to be some degree confusion, misunderstanding and possible mis-representation of CCS costs. Given the widespread interest in the cost of CCS and the potential for lower-cost CO2 capture technology, methods to improve the consistency and transparency of CCS cost estimates are needed. (c) 2012 Elsevier Ltd. All rights reserved,