February2024OIESPaper:CM08CaptureCarbon,CaptureValue:AnOverviewofCCSBusinessModelsBassamFattouh,Director,OIESHasanMuslemani,HeadofCarbonManagementResearch,OIESRaeidJewad,PrincipalAdvisor,GaffneyClineiThecontentsofthispaperaretheauthors’soleresponsibility.TheydonotnecessarilyrepresenttheviewsoftheOxfordInstituteforEnergyStudiesoranyofitsMembers.Thecontentsofthispaperaretheauthor’ssoleresponsibility.TheydonotnecessarilyrepresenttheviewsoftheOxfordInstituteforEnergyStudiesoranyofitsmembers.Copyright©2024OxfordInstituteforEnergyStudies(RegisteredCharity,No.286084)Thispublicationmaybereproducedinpartforeducationalornon-profitpurposeswithoutspecialpermissionfromthecopyrightholder,providedacknowledgementofthesourceismade.NouseofthispublicationmaybemadeforresaleorforanyothercommercialpurposewhatsoeverwithoutpriorpermissioninwritingfromtheOxfordInstituteforEnergyStudies.ISBN978-1-78467-228-7iiThecontentsofthispaperaretheauthors’soleresponsibility.TheydonotnecessarilyrepresenttheviewsoftheOxfordInstituteforEnergyStudiesoranyofitsMembers.ContentsContents.................................................................................................................................................iiFigures...................................................................................................................................................iiTables.....................................................................................................................................................iiAcknowledgement................................................................................................................................iiIntroduction...........................................................................................................................................11.KeyrisksinvolvedwithCCS........................................................................................................12.FrameworkstosupportinvestmentinCCS................................................................................42.1Supportivelegalandregulatoryframework............................................................................42.2Mechanismsthatallowstackingofrevenues..........................................................................52.3Diverseapproaches:Experiencesfromdifferentcountries....................................................93.CCSBusinessModels.................................................................................................................163.1Overviewofbusinessmodeltheory......................................................................................163.2CCSbusinessmodels...........................................................................................................16Conclusions.........................................................................................................................................23Appendix:Casestudies.....................................................................................................................24FiguresFigure1:LevelizedcostofCO2avoidedbetweenCCSandunabatedrouteacrosssectors................2Figure2:VaryingDegreeofGovernmentInvolvementinCCS............................................................10Figure3:CCSValueChain,OwnershipandFinancing.....