Offshore Storage
Offshore Transport
CO2 Capture
CO2 Emitter
Scenario
Underperformance of capture facility
Key Risks
A major risk pertaining to CCS is underperformance of the carbon capture technology when deployed at scale.
Depending on the nature of the underperformance it can lead to significant impacts on revenue. Cost implications can be caused by:
Continued payment obligations for Transportation & Storage service during outage or shortfall in carbon output.
Financial implications on the price of the manufactured product e.g. cement that fails to meet required CO₂ emission thresholds.
Continued debt service.
Required equipment modifications / replacement due to technology underperformance.
Onshore Transport & Temporary Storage Facility
Key Risks
Alongside the physical risks posed by inconsistent CO2 streams, there is a serious economic impact even in the event the CO₂ hasn’t caused physical damage; once revealed to be off-spec, the entire system may need to be vented to avoid casing damage up the chain. Depending on the geography of the project, this could result in:
Financial losses associated with ETS allowances and/or returning of upfront tax credits.
Costs of cleaning and remedying the capture facility.
Costs from redesign of technology and control protocols.
Environmental liability costs and obligations.
Reductions in the various emitters’ product value (e.g. cement or power) when it is no longer zero-carbon.
Key Risks
Another potential risk scenario is CO₂ leaking from the geological storage complex, which can cause financial loss and introduce further complications for Operators:
Loss of revenue until able to recommence injection.
Financial losses associated with ETS allowances (according to geography).
Cost of corrective measures.
Associated third party liabilities (legal or contractual).
The liability for the storage site (held by the Operator) extends beyond the operational phase of the store, often extending to 20+ years post closure.
1
2
3
Click to read more
>
Scenario
Off-spec CO2 discovered at temporary storage facility
Click to read more
>
Scenario
CO2 leakage from geological storage complex
Click to read more
>
An industrial or power generation facility that produces carbon dioxide emissions, such as cement plants, steel mills, or fossil fuel power stations.
A site where CO₂ is separated and captured from other gases produced during industrial or power generation processes, conditioning the CO₂ for transport.
The phase where captured CO₂ is compressed and transported via pipelines or road to temporary storage tanks on land, buffering the CO₂ before further transport.
The movement of CO₂ from onshore facilities to offshore storage sites, typically by ship or pipeline, involving liquefaction and conditioning of CO₂ for safe and efficient transport over long distances.
The permanent injection and containment of CO₂ deep underground in geological formations such as depleted oil and gas reservoirs or saline aquifers, ensuring long-term isolation from the atmosphere.
Click on the risk scenarios 1, 2 and 3 to learn about potential risks at each stage of the process
