The economics of geological CO₂ storage and leakage

Topic(s): CO₂ storage, Economics, Engineering and project delivery

The economics of CO₂ capture and storage in relation to the possibility of significant leakage of CO₂ from geological reservoirs once this greenhouse gas has been stored artificially underground will be among the main determinants of whether CCS can significantly contribute to a deep cut in global CO₂ emissions. This paper presents an analysis of the economic and climatic implications of the large-scale use of CCS for reaching a stringent climate change control target, when geological CO₂ leakage is accounted for. The natural scientific uncertainties regarding the rates of possible leakage of CO₂ from geological reservoirs are likely to remain large for a long time to come. We present a qualitative description, a concise analytical inspection, as well as a more detailed integrated assessment model, proffering insight into the economics of geological CO₂ storage and leakage. Our model represents three main CO₂ emission reduction options: energy savings, a carbon to non-carbon energy transition and the use of CCS. We find CCS to remain a valuable option even with CO₂ leakage of a few %/yr, well above the maximum seepage rates that we think are likely from a geo-scientific point of view.

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