CALGARY, Alberta (Sept. 24, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its annual CCUS Fundamentals, a report series that examines the evolution of CCUS over the last year, emerging strategies and investible opportunities.
“Despite the impressive 500 mtpa of announced CCUS capacity, the industry is slipping into the trough of disillusionment,” said Graham Bain, principal analyst at EIR. “Permitting delays, uncertainties around pore space and carbon pricing, and public opposition have left only one-third of planned 2023 projects operational, with just 4% of 2025 projects under construction. Huge CCUS ambitions are being eroded by these growing challenges.”
“However, emerging commercialization strategies, including credit and technology stacking and commodity subsidization, offer promising opportunities for those positioned to capitalize on this multi-billion-dollar opportunity. Bio-capture solutions are proving themselves as the superior pathway in the race to decarbonize, especially with $100+ CDR credits and 45Q stacking driving their economics,” said Bain. “With bioenergy with CCS (BECCS) slashing levelized cost of energy to as little as $2.04/MWh and biomass carbon removal and storage (BiCRS) elevating ethanol revenues, the future of bioenergy with CCUS is not just promising, it’s transformative.”
“Bringing all U.S.-announced CCUS projects to fruition demands an investment of $73 billion, a staggering figure where over half will be poured into capture technologies and nearly a third into 14,000 miles of CO2 pipelines. When you realize that the storage alone requires an area the size of Hawaii, the scale of the task ahead becomes undeniable.”
Key takeaways from the report:
- With 500+ mtpa of announced CCUS capacity, only one-third of 2023 projects are operational, and just 4% of 2025 projects are under construction due to permitting delays and pore space and carbon pricing uncertainties.
- EIR estimates $73 billion will be required to develop all U.S.-announced CCUS projects, including 60% for capture, 31% for about 14,000 miles of new CO2 pipelines and 9% for storage. The latter will require 6,700 square miles of land, roughly equivalent to the state of Hawaii.
- A $337 barrel of zero-carbon oil can be achieved by stacking different energy transition technologies and credits.
- Bio-capture solutions are emerging superior as $100+ CDR credits and 45Q stacking improve economics. BECCS can lower the levelized cost of energy to as little as $2.04/MWh, a $93.12/MWh reduction. BiCRS boost ethanol revenues from $2.34 to $2.93/gallon.
Fundamentals is an EIR research series that dives into a key geographical basin or energy transition technology. A collective series, with each play or technology updated annually, it includes technical research and interactive maps, investment opportunities, benchmarking, macro trends, basin and technology analytics, empowering readers to make intelligent connections and, overall, more informed investment, operating and strategic decisions. It is considered the most in-depth research EIR offers and among the most-read analysis series in the energy industry.
Enverus Energy Transition Research, Enverus PRISM®, Enverus FOUNDATIONS® – Carbon Innovation, Enverus Regulatory Analytics.
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Additional Resources:
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About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
Media Contact: Jon Haubert | 303.396.5996
