This paper reports modeling of economic supply curves of Carbon Capture and Storage over future time horizons and examines how the economics change as the volume of deployment increases – ie to develop a cost supply curve for all the major static emission sources on the UK mainland.

We consider the supply curves for both the sources and storage sinks as well as when combined by a transport network. For the composite curve, the market implications of the likely economics, the context of the EU ETS and other market considerations are considered.

A reasonable basecase suggests that up to 100mt pa of carbon dioxide could be stored at prices below £30/tonne before any carbon allowance income is included.

The author is grateful for support in developing this paper from Barry Ladbrook of Pöyry Energy Consulting, Ewa Kmietowicz, George Marsh and Jo Rowbotham of the DTI, Sam Holloway of the BGS and Isabelle McKenzie and Mark McKenzie of Equilibrium Consulting. The project was supported by the Department of Trade and Industry.

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