Carbon capture services could be profitable in the next ten years, Equinor says

Carbon capture and storage (CCS) services for large industrial emitters could break even in the next ten years if the emission of a ton of carbon costs around 100 euros, Norwegian energy company Equinor said.

The CCS (for its acronym in English) mechanism transports CO2 from the place where it is emitted, usually a chimney, and stores it, usually in a geological location, to prevent its release into the atmosphere.

“We believe there is potential to reach € 100 per tonne,” said Torbjørg Fossum, Equinor Vice President of Global CCS Solutions at the Reuters Next conference.

“Today there is a gap between what it costs to emit (the) CO2 and what it costs to implement CCS. We believe that this gap will be closing in the next ten years, “he said.

In the most consolidated carbon market, the European Union’s Emissions Trading System, pollution permits were trading at around 76 euros per ton on Wednesday.

Until the break-even price is reached, government funding is crucial to help first responders, he said, with projects like Northern Lights in Norway and Britain’s East Coast Clusters providing good models.

CCS typically prevents additional carbon emissions from reaching the atmosphere, but the technology can be adapted to suck carbon out of the atmosphere in what is known as direct air capture (DAC). This negative spin on emissions costs several times more than CCS.

“We have to do both. The downside to direct air capture is that it requires a lot of energy to capture CO2. Therefore, it is more expensive than capturing when you have a source of escape, ”said Fossum.

“But, on the other hand, the good thing about direct air capture is that you can place it wherever you want … where there is access to very cheap and clean energy,” he said.