3 Business case
- Building the business case for CCS projects is difficult and time-consuming.
- There is strong near-term potential for CCS, with the most economic propositions being natural gas extraction, fertiliser, synfuel, and production.
- Higher cost CCS projects (power, steel, and concrete) require strong government support, including during the operational phase, due to low or absent carbon pricing arrangements.
- CCS is a competitive technology for power sector emissions reduction when compared to other low-carbon technologies.
- Many projects target additional revenues from CO2 utilisation to close the commercial gap.
- There are significant issues with debt availability to support CCS in a post-GFC world.