5.1 General observations

CO2 capture still represents the greatest contribution to the cost of CCS, with the majority of the cost increases being due to changes in the capture system. The percentage increases in costs that the application of CCS has over non-CCS facilities have remained relatively unchanged since 2009.

Though minor changes in the costs of CCS across power generation and industrial applications have occurred, the costs of CCS still remain high. This is expected, given that it has only been 12 months since the initial Foundation Report Two, and major developments that have the potential to dramatically reduce the cost of CCS have not yet occurred or have been sufficiently tested for commercialisation.

Despite the costs of CCS being high relative to traditional power generation and industrial facilities, it is important to consider that these traditional methods currently emit large amounts of CO2 into the atmosphere. Given the current and anticipated restrictions on facility emissions, these facilities will not be allowed to continue to operate as they have in the past.

The high costs of CCS as identified in this study should be considered with other low emission technologies to allow consideration of approaches to low emission power and industrial production. Further, if CCS is compared against the anticipated cost that may be imposed on facilities for emitting CO2 it is likely to appear more competitive in a low carbon market.