5.3 Application of CCS to select industrial applications

For the application of CCS on select industrial processes, the incremental levelised product costs and the cost of CO2 avoided/captured have increased by a small amount consistently across all applications. A reduction of approximately 10 per cent is achieved through the removal of process contingency applied to the capture technology in moving from FOAK to NOAK systems.

Consistent with the findings from Foundation Report Two in 2009, the cost of CO2 avoided/captured is lower for those industrial processes that currently include a CO2 separation/capture process, compared to PCC from other industrial processes. Natural gas processing and fertiliser production, for example, already separate the CO2 so additional expenditure is required for the compression, transport and storage of the CO2 only.

The increases in the commodity costs due to CCS implementation also reflect the level of additional investment required to apply CCS to select industrial facilities. For example, for natural gas and fertiliser (ammonia) production, the commodity cost increases due to CCS are 1 and 3 per cent respectively. On the other hand, the commodity cost increases due to the application of CCS for steel and cement are 10–14 per cent and 39–52 per cent respectively.