“Creating a commercial carbon capture and storage (CCS) value chain is a complex task,” emphasized Trudvang’s Commercial Manager, Caroline Svae, during her presentation on “How to Solve the CCS Puzzle” at the annual NPF Petroleum Economics Conference in Stavanger.
Svae underscored the urgent need for more robust and predictable commercial incentives for CCS, noting that it is currently cheaper for industrial emitters to release CO2 into the atmosphere rather than capturing it and paying for its transportation and storage. She also pointed out the intricate cross-chain risks associated with commercializing a new value chain, stressing the necessity of aligning everyone from source to sink on schedules, technical concepts, risk allocation, pricing, tariffs, and CO2 specifications.
Svae said: “we cannot work out the optimal solution in silos. We need to adopt a holistic value chain approach that provides value to everyone involved. To make CCS both affordable and commercially viable, we need to challenge conventional thinking, work diligently, and dare to collaborate—across the value chain, across projects, and with policymakers and regulators. ”
Svae concluded her presentation with the message: “Solving the CCS puzzle is complex, but with a record high number of projects occurring across the full value chain, combined with the enthusiasm to make it work and signaling from the EU and Norway that they support CCS, I’m confident we will achieve this together.”