3.0: Project Evaluation and Reporting Guidelines

The evaluation process serves to determine the monetary value of the resources assigned to a specific project from a given date forward. In the context of CO ₂ storage projects, the commercial evaluation of a storage resource ultimately yields a return on investment (e.g., net present value or NPV) for the development or maintenance of a storage project. For the purposes of evaluation and reporting described in this chapter, a storage project may be integrated or standalone. An integrated storage project evaluation includes revenue and expenses from the facility generating the CO ₂ , such that the CO ₂ storage project will be a capital and operating expense to the facility. A standalone storage project may be an independent business offering storage services or owned by the facility (or co-owned by several facilities) but valuated separately from the facility’s revenue and expenses. Regardless, investment criteria such as NPV are used to make investment decisions with respect to commitment and allocation of funds for the commercial development of storage resources.