Cluster F***ed: The Dangerous Scale Component of CCS

C-MACC Weekly “CRETER” (Climate etc.)

Cluster F***ed: The Dangerous Scale Component of CCS

• As carbon values rise, carbon sequestration plans also rise and a “cluster” trend is developing – good for those who can participate – quite bad for the rest.
• Teaming up to get real scale in CCS could create a very steep abatement cost difference among companies in the same end markets based on proximity to CCS.
• Other offset options might be available at disadvantaged locations, but the cost difference would still be very high and create sizable advantages for the lucky ones.
• We discuss the regulatory waiting game and how it is more important in some areas of energy transition than others – largely dependent on capital risk.
• Otherwise, the call for more renewable power grows ever louder and we look again at the risk of inflation, as supply tries to keep pace.

See PDF below for all charts