November 22, 2008

CCS could reduce global CO2 emissions by one third - BCG

According to a report released by US based Boston Consulting Group, Carbon capture and storage technology has the potential to reduce by one third the total global emissions of carbon dioxide from stationary.

The report said that the group's analysis determined that if the 1,000 largest fossil fuel burning power plants and industrial facilities began using CCS technology by 2030, more than one third of estimated total global emissions of CO2 would be reduced. Such a development would allow utilities to upgrade, rather than shut down, large fossil fuel based generation facilities.

The group said that while the high cost of CCS technology has slowed deployment, a stable carbon price of EUR 30 per tonne which could be achieved with government subsidies, would have the technology pay for itself, Boston Consulting said. An initial subsidy of EUR 100 billion during a ramp up period would enable development of CCS to proceed as the carbon price stabilized.

The consulting firm said that most efforts to mitigate global warming have focused on improving energy efficiency and deploying renewable resources, and while both are necessary, they are not likely to be sufficient to contain increasing global carbon emissions.