UK Report Examines CO2 Shipping Costs

The unit cost of liquefying and shipping carbon dioxide over a distance of 600km and a time frame of 20 years is estimated at £10 per metric ton CO₂ if ships are used, but double that if purpose-built pipelines are used, according to a report by consultancy Element Energy for the UK government released November 28.

The study ‘Shipping CO2 – UK Cost Estimation Study’ can be accessed here, and the figures above are included under its Figure 1-3. It finds that roughly one-third of the estimated cost will be to liquefy the CO₂, one third on shipping, and one-third on other costs including harbour fees. Costs of final undersea storage sites are not factored in.

Port-to-port shipping is likely to be significantly cheaper than utilising a CO₂ pipeline, the report argues, but it notes that the potential for achieving cost savings by re-using existing infrastructure is higher for the pipeline option. It also says a higher CO₂ flow rate decreases the unit cost. If using ships, the report questions whether real savings are achieved by converting vessels such as LPG carriers to carry CO₂.

The report draws heavily on cost estimates done in Norway, where the government and industry are looking to develop a 1.5mn mt/yr carbon capture and storage (CCS) project using ships to carry the CO2.

It was released as an international summit on CCS taking place in Edinburgh, November 28, co-organised by the UK government and International Energy Agency. Plans for a full-chain CCS project in northeast England, including use of some CO₂ by industry, were also announced the same day just ahead of this summit.