CO2 transport and storage: Review of business models (Phase 1)

Tender description

Notice summary: To inform the potential development of a future approach to Carbon Capture and Storage (CCS) in the UK, the Department for Business, Energy & Industrial Strategy (BEIS) wishes to understand whether alternative business models could make CO2 transport and storage infrastructure more affordable. This study will identify the range of possible business models and make recommendations for possible further, more detailed work. Description: This work will form part of a review looking at how to enable cost effective development of CO2 transport and storage infrastructure in the UK and will examine how alternative financing, delivery and operating business models may help enable this. The work will explore the range of possible business models and their potential to address CCS specific risks that act as barriers to deployment and increase cost. The work will make recommendations for further analyses of a selection of alternative models identified as having potential to enable more cost effective development of CO2 infrastructure: (i) document the challenges that can increase the risk and cost of delivering and operating CO2 infrastructure; (ii) define the range of potential delivery and operating business models for CO2 infrastructure; (iii) consider how those models can differently address the challenges identified; (iv) present case studies to illustrate how and why different models have performed successfully on other CCS projects or other infrastructure projects in the UK or overseas; (v) identify which business models should be subject to further, more detailed analyses to test their suitability for UK use, and to understand relative performance prospects. Subject to the findings of this initial study, further more detailed work may subsequently be commissioned.