There is considerable potential to reduce CCUS costs, particularly as many applications are still in the early stages of commercialization. Experience within IEA indicates that CCUS should become cheaper as the market grows, the technology develops, finance costs fall, economies of scale are reached, and experience of building and operating CCUS facilities accumulates. This pattern has already been seen for renewable energy technologies over recent decades.1IEA. (2021, February 17). Is carbon capture too expensive? International Energy Agency. https://www.iea.org/commentaries/is-carbon-capture-too-expensive
Cost reductions have already been achieved at large-scale CCUS projects. For example, the cost of CO2 capture in the power sector has come down by 35% through its evolution from the first to the second large-scale CCUS facility, and this trend is set to continue as the market expands.2IEA. (2021, February 17). Is carbon capture too expensive? International Energy Agency. https://www.iea.org/commentaries/is-carbon-capture-too-expensive
Cost of capture for large-scale coal-fired power plants (IEA, 2019)3IEA. Cost of CO2 capture from large-scale coal-fired power plants, IEA, Paris. Retrieved June 28, 2021, from https://www.iea.org/data-and-statistics/charts/cost-of-co2-capture-from-large-scale-coal-fired-power-plants
