Defining the Business Model for Carbon Capture, Utilization & Storage in North America

Meeting our climate goals requires investment in carbon capture, utilization and storage (CCUS) technologies. The IEA, in its most recent World Energy Outlook, highlights this fact. There is government support, industry support, and private-sector support. While there is huge momentum behind CCUS, there is a deep need to continue to invest if we are to meet our climate goals. 

Credit Agricole CACIB asked the Columbia Capstone team to craft a report on the Carbon Capture, Utilization and Storage (CCUS) technologies, business and financial models as well as available government and market incentives. The team explored CCUS technologies that are technologically feasible, economically viable and aligned with the interests and risk appetite of Credit Agricole CACIB. Specifically, the final report examined the potential for capture, transportation, utilization and storage technologies across the United States and the risks associated with each. Emphasis was placed on the decarbonization potential and financial feasibility of each of the technology areas we considered. A large portion of financial feasibility was also dependent on tax incentives applicable under the new Inflation Reduction Act (IRA), specifically 45Q and 45Z. The final report includes three case studies for adoption of CCUS and ranges from immediate financeability to long-term financeability - CCUS retrofit for an ethanol plant, greenfield installation with a combined cycle gas turbine and a direct air capture facility. The team undertook rigorous financial modeling to better understand the business case for each case study and the expected return for each. In conclusion, the team presented regional potential hubs in North America for application of CCUS technology. The final report helped CACIB make informed decisions and advance their investments in CCUS projects in North America.