ESG, Recycling, & Climate | Monthly Thematic Piece

Cluster F***ed: The Dangerous Scale Component of CCS
July 21, 2021
Products Mentioned:
Carbon Dioxide, Hydrogen, Ethylene, Polyethylene, Polypropylene
Companies Mentioned:
Shell, ExxonMobil, Dow, LyondellBasell, CP Chemical, Eastman, Westlake, Borealis, Ineos, TotalEnergies, SABIC, bp, Gevo, Aemetis
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing

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 

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