News Release

CO2 pipeline economics: The missing link

Model analyzes transportation economics in the carbon capture, usage and storage value chain

byEnverus

CALGARY, Alberta (April 2, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, has developed a CO2 Pipeline Economic Model that can be used to analyze transportation economics in the carbon, capture, usage and storage (CCUS) value chain.

Utilizing the CO2 Pipeline Economic Model, a new EIR report analyzes the differences between CO2 and natural gas pipelines and outlines the importance of minimizing CO2 transportation costs through hub and trunkline pipeline designs. For example, EIR has used the model to analyze the canceled Navigator CO2 Heartland Greenway project economics to illustrate the hub-scale economics the project was targeting.

“With carbon capture gaining momentum as a method to lower emissions, many industries still face challenges in terms of economic viability for the entire capture and storage value chain,” said Jeffery Jen, senior associate at EIR.

“A key component of the overall cost and ultimate success of these projects will be their transportation strategies — whether they can leverage trunkline designs to connect to higher-quality storage reservoirs and reduce transportation and storage costs,” Jen said. “EIR calculates that projects should target bundled captured emissions of 12-18 million tonnes per annum (mtpa) as part of their transportation strategies to minimize transportation costs and maximize profitability.”

Key takeaways:

  • Only 290 mtpa, or 13%, of U.S. emissions break even below $85/tonne assuming top decile storage costs. Developing transportation strategies that utilize trunkline design to maximize flow rate while connecting emitters to higher-quality reservoirs will be a key strategy for profitable CCUS projects.
  • The CO2 transportation breakeven ranges from $0.85-$15.90/tonne, contingent on optimal flow rates of 12-18 mtpa.
  • Labor and materials constitute 50% of the CO2 transportation breakeven, creating cost escalations more than 10 times caused by locational disparities in labor costs, access to materials and terrain variability.
  • The canceled Navigator CO2 Heartland Greenway project showed cost savings of almost 10 times through the utilization of a trunkline design. The CO2 transportation breakeven would have been under $10/tonne with 15 mtpa of capacity.
  • With the addition of the CO2 Transportation Economic Model, EIR can now model the economics of the entire CCUS value chain.
Enverus graph showing Co2 transportation breakeven for various flow rates and distances

EIR’s analysis pulls from a variety of Enverus products including Energy Transition Research and Enverus Infrastructure.

You must be an Enverus Intelligence® subscriber to access this report.

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, generative AI and energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

Media Contact: Jon Haubert | 303.396.5996

View all press releases at Enverus.com/newsroom.

Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Enverus Media Advisory-Press Release - EIR’s Andy McConn testifies before Congress on navigating Gulf of Mexico’s offshore challenges
News Release
ByEnverus

Enverus, the leading generative AI and energy-dedicated SaaS company, announced today that Andy McConn, director and head of Commercial Intelligence at Enverus Intelligence Research (EIR), will testify before the U.S. House of Representatives Natural Resources Subcommittee on Energy and Mineral...

Enverus News Release - Defying peak oil predictions
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, has released a new report highlighting the organization’s view that it does not expect global oil demand to peak or plateau by the...

Enverus Media Advisory - Welcome to Enverus EVOLVE: The pivotal event for energy professionals, thought leaders and experts
News Release
ByEnverus

Enverus, the leading generative AI and energy-dedicated SaaS company, is inviting members of the media to EVOLVE 2024, a conference focused on the evolution of the energy industry and what to expect in 2024 and beyond. EVOLVE 2024 will be...

Enverus Press Release - Blue hydrogen: Greening the bottom line
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, is releasing its inaugural Hydrogen Fundamentals report that evaluates the U.S. clean hydrogen opportunity at national and regional levels.

Enverus Press Release - CO2 pipeline economics: The missing link
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, has developed a CO2 Pipeline Economic Model that can be used to analyze transportation economics in the carbon, capture, usage and storage (CCUS) value...

Enverus Press Release: Beyond the horizon: US solar and storage solutions are on the rise
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, has released a report that quantifies annual cost savings of rooftop solar and forecasts residential demand.

Enverus press release - Renewing Alberta’s path for renewables
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, is shedding light on the impact of ending a Feb. 28 moratorium by Alberta Premier Danielle Smith that also included a host of new...

Enverus Press Release - Unearthing the potential beneath deepwater fracturing
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, has released a report that assesses fracturing parameters and recovery enhancement within the Gulf of Mexico’s (GOM) Lower Tertiary play and analyzes project economics. 

Enverus Press Release - Midwest transportation failure strands highly anticipated CCUS opportunities
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading energy-dedicated SaaS company, has released a report examining emissions from Midwest ethanol facilities left without a connection to carbon capture, utilization and storage (CCUS) projects after Navigator CO2’s Heartland Greenway...

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert