8 Cost and funding

The costs for the Getica CCS Demo Project are presented in terms of investment and operating costs. Both include each of the components of the CCS chain – capture, transport and storage. They also include a knowledge sharing component.

The components included in the investment costs from the Getica CCS Demo Project Feasibility Study are presented in Table 8-1, and carry a +/-20% level of accuracy. The following key elements have been considered for the investment costs: capital equipment, sites infrastructure, studies, engineering and design, installation and commissioning, permitting, taxes, project management, knowledge sharing (Communication Strategy), contingency and owner’s costs.

Table 8-1 Investment costs

Component Weight of total estimated cost (%)
Capture (compression component is 2.5% of total Capture cost) 60
Transport 4
Storage 14
Owners costs 2
Development costs 19
Public awareness, communication and knowledge sharing 1
TOTAL 100

The development costs (around €148 million of total investment costs) include:

  • FEED and detailed design;
  • studies (e.g. risk analysis);
  • permits, authorisations, taxes, legal quotas;
  • consultancy and tendering process organisation;
  • site surveys (geotechnical, geological, topographical etc, seismic 2D and 3D acquisition and processing, coring and sampling);
  • appraisal wells; and
  • expenses for project management.

The contingencies applied for each of the capture, transport and storage investment costs are 10% for capture, 10% for transport and 15% for storage.

The operating costs based on the Feasibility Study for the Getica CCS Demo Project are presented in Table 8-2.

Table 8-2 Operating costs

Component Weight in annual OPEX (%)
Capture 90
Transport 2
Storage 8
TOTAL 100

The operating costs across the CCS chain include:

  • for CO2 capture and compression, fixed and variable O&M, utilities, staff costs, knowledge sharing, and contingency. Utilities costs (electricity and steam, water, other) represent on average 82% of the total operating costs for capture. Out of the utilities costs, the cost of CO2 compression is on average 14%.
  • for CO2 transport, fixed and variable O&M, utilities, staff costs, knowledge sharing, contingency; and
  • for CO2 storage, fixed and variable O&M (including maintenance, micro-seismicity and environmental monitoring), utilities, staff costs, insurance, knowledge sharing and contingency.

Wherever possible, the investment costs for the Getica CCS Demo Project will be covered by direct funding (grants). Direct funding opportunities exist given the demonstrative nature of the project and the EU’s objective of advancing CCS towards commercial operation.

A detailed investigation of possible financing sources at European level was undertaken in order to assess which best fits the Project needs, in terms of time compatibility and level of funding. The potential financing sources are summarised below.

  • Potential financing sources for the investment period are:
    • NER 300;
    • Norwegian Financial Mechanism;
    • EU ETS incomes from auctions;
    • National Public Sources;
    • EU 7th Framework Project (FP7);
    • Green Investment Scheme;
    • EIB loan; and
    • Equity.
  • Potential financing sources for the operation period are:
    • NER 300;
    • EU ETS incomes from auctions;
    • National incentive scheme; and
    • Fee for CCS service.

As previously highlighted, the Financial Scenarios Report provides for further cost and funding details (refer Section 2.6).