An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS

In spite of the UK Government's ambition for at least 20 GW of CCS to be deployed in the UK/UKCS by 2030, the attitude of potential investors thus far remains lukewarm. Several reasons have been adduced for this. The present paper makes a contribution to the debate on removing the barriers to CCS investment by investigating the criteria and scope for negotiation among the CCS investors of mutually acceptable prices for trading the captured CO2 and storage services. A decision-making framework was deployed to design and implement an investment model, using the Net Present Value criterion. Stochastic optimisation was executed and optimal solutions found for the investors within a range of carbon prices and sequestration fees. This range permits negotiation among the participants in the CCS chain to the mutual benefit of all, compatible with a co-operative Nash-type equilibrium.