Carbon capture and storage tech too risky an investment in absence of quality data and low commercial readiness, report finds
- There is a lack of quality data to prove that the technology is commercially ready and cost competitive, says analyst and report author Michael Salt
- World should prioritise renewable energy deployment, electrification and grid modernisation to support power generated by renewable energy
The risks of investing in carbon capture and storage (CCS) projects are still high, despite their potential and promise of driving down carbon dioxide emissions to mitigate climate change.
There is a lack of quality data currently to prove that the technology is already commercially ready and cost competitive, said Michael Salt, an energy economics and finance analyst. The global focus should remain on technologies that have been proven economical and mature, such as renewable energy deployment, electric vehicles and power grid modernisation, he added.
Salt has authored a report published by the US-based Institute for Energy Economics and Financial Analysis (IEEFA) this week, which has surveyed different types of CCS applications to see whether they are ready for investment and commercialisation.
“It is important for investors to distinguish between the type of CCS being discussed, as risks and opportunities differ in terms of technical and commercial maturity, environmental and social implications, as well as carbon mitigation potential,” Salt said.
The report’s findings are significant because under the Paris Agreement, the world must limit global warming to below 1.5 degrees Celsius by mid-century to prevent the worst effects of climate change. However, data from many credible organisations, such as the World Meteorological Organization, suggests it is very likely that the world will overshoot this temperature budget, and that CCS technologies are absolutely needed.
