May 10, 2010

With the U.S. coal industry reeling from the worst mining disaster of the last quarter century, many business and government leaders are seeking ways to mitigate the costs – economic, environmental, social, and human – of electricity from coal.  Among the most high-profile approaches for addressing at least some of these costs lies in carbon capture and sequestration (CCS).   However, according to a recent report from Pike Research, CCS faces a number of challenges including uncertainty about the costs of technology, the lack of a pipeline network to transport CO2 to geological storage sites, and most notably the absence of a price on carbon emissions. 

“There will be an extensive, expanding CCS industry in place by the early 2020s,” says managing director Clint Wheelock.  “How large and how vibrant that industry will be depends on how CCS is prioritized by corporations and governments over the next decade.”

The addition of CCS systems to power plants will likely add between 50% and 70% to the cost of producing electricity and to date, no commercial-scale integrated power plant with CCS exists. The intensive short-term financing, radical policy shifts, and R&D advances that would be required for multiple deployments of CCS in the next five years, Pike Research believes, appear unlikely.

Nevertheless, the forces behind CCS projects are strong, and growth is likely to be significant in the longer term.  By 2020, according to the report, global revenues for CCS systems could surpass $1 billion annually under a moderate forecast scenario.  However, in a more aggressive scenario that includes a strong push for CCS by government and industry, that figure could be as high as $42 billion in the same timeframe.

Pike Research’s report, “Carbon Capture and Sequestration”, examines the market issues, technological factors, and opportunities for players in all phases of the CCS industry, from capture technology to transport and storage.  It also provides detailed market forecasts for all the major regions of the world, including costs and revenues.  An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.  The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors.  For more information, visit www.pikeresearch.com or call +1.303.997.9765.