CCUS Project Performance Norms

What Is the Total Lifetime Cost of a CCUS Project?

Independent Project Analysis (IPA) is pleased to announce the launch of a new multi-client research study to determine the real total lifetime cost of carbon capture, utilization, and storage (CCUS) projects in the industry today. Building on previous IPA research, the participating owner firms will receive industry-level metrics needed to improve decision making, understand feasibility, and ultimately drive better competitiveness and overall performance for CCUS projects:

• CAPEX and schedule metrics for the core CCUS components—capture, compression, pipelines, and injection wells
• CAPEX metrics for the OSBL and Balance of Plant components relevant to CCUS projects
• OPEX metrics for the capture and compression scopes

Although the study is underway, additional owner firms active in CCUS—regardless of sector—are welcome to join!

Key Benefits

• Determine the feasibility of CCUS projects based on total lifetime costs
• Understand the cost implications of a given technology selection
• Improve CCUS opportunity screening
• Validate costs for each individual scope component: capture, compression, transport, and storage
• Validate schedule durations for each component (engineering, procurement, construction, execution, cycle time, drilling, completion, and injection well program)
• Understand how project characteristics affect project performance

The Need for CCUS Project Metrics

CCUS projects are increasing in frequency and global significance. Government agencies around the world have announced numerous funding mechanisms to accelerate the development of CCUS projects. As regulatory entities, investors, and shareholders further drive the need for greenhouse gas (GHG) emissions reduction, CCUS projects are poised to play an important role for decades to come. IPA sees the growth first-hand as our initial CCUS research study in 2022 was based on 26 projects and we expect to have more than 45 CCUS projects for analysis in this follow-up study.

Decision-making for CCUS projects has become increasingly complex. This study pools industry learnings to address the gap in developer knowledge on cost and schedule assumptions, driven by the relatively few CCUS projects completed to date and the lack of experience in complex engineering-heavy projects from several industries currently active in CCUS. Another factor adding complexity is the application of partially proven technology and scopes in new environments and at different capacity ranges. This lack of prior experience and added complexity due to first-of-a-kind elements hinders effective decision making.

What Sets IPA’s Study Apart?

Wide Range of CCUS Projects Analyzed: We will examine real data from CCUS projects representing diverse value chain configurations, using various sources of CO2, executed under different business models, and with a wide range of design capacities.

Comprehensive CAPEX Focus: This study seeks to understand the full CCUS value chain, including the Balance of Plant and OSBL components, which can significantly influence the feasibility of the entire project.

Focus on Total Lifetime Project Costs: CAPEX and OPEX metrics provided in this study will give a broader picture of the lifetime costs of the CCUS system.

Data Sourced Directly From Project Teams: This study represents the only CCUS cost study executed to gather, organize, normalize, and present results from real project data.

Comprehensive and Proven Normalization Methodology: Normalization of all data enables a direct comparison of costs and identification of drivers and OPEX metrics.

Global Focus Area: The global nature of this analysis helps participants identify various implications for moving CCUS projects from one location to another.

Secure, Accurate, and Transparent Data Collection: IPA has a 35+ year history of collecting and aggregating cost data securely and accurately using a standardized cost breakdown structure (CBS).

IPA’s Proven Methodology

IPA is employing our proven methodology to conduct the study:

1. Establish the study steering committee
2. Develop the data collection strategy in collaboration with the steering committee
3. Collect CAPEX, OPEX, and technical data from participating companies securely and accurately
4. Aggregate, anonymize, and normalize all project data
5. Analyze the data and prepare the study report
6. Share the study report with all participants

Applicable Sectors

The study is open to all owner firms active in CCUS from all industries, including oil & gas production, power generation, chemicals, refining, cement, and iron & steel.

Join the Study

Do you represent an owner firm active in CCUS projects? Are you ready to take the next step to drive better performance? Complete the web form below to request more information!