20 October 2008: The International Energy Agency (IEA) has released a new study on carbon dioxide (CO2) Capture and Storage (CCS). The study, which was released on 20 October 2008, considers aspects such as CO2 transport and storage, CCS demonstration, financial and regulatory incentives, development of legal and regulatory frameworks, public awareness and acceptance, international co-operation, and CCS Roadmaps, as well as the role of CCS in ambitious new energy scenarios that aim for substantial emissions
reduction.

The report highlights the importance of CCS for climate change mitigation and the need for demonstration projects, while noting the lack of investment, increasing costs of CCS technology, the need to develop regulatory frameworks, and a lack of public support. The study finds that the overall financial consequences of CCS range from a potential benefit of US$50/t CO2 (through the use of CO2 for enhanced oil recovery) to a potential cost of US$100/t CO2. The study notes that putting in place a safe, efficient CO2 transportation system will raise very significant cost and infrastructure challenges. It also concludes that the best options for CO2 storage in the medium-term are depleted oil and gas reserves, unmineable coal seams, and deep saline formations, while underscoring the need to address long-term liability issues. The study indicates that, if a number of demonstration projects do not materialize in the near future, it will be impossible for CCS to make a meaningful contribution to mitigation efforts by 2030. It notes that the medium and longer-term viability of CCS, particularly in developing nations, will be enhanced by its inclusion in the Clean Development Mechanism (CDM). The study also highlights the need to urgently coordinate the way forward for CCS among major stakeholders, and to develop and implement a global CCS roadmap. [CO2 Capture and Storage]