Cost is the major limiting factor for CCUS projects and potential role out at scale. The deployment of CCUS at scale is largely subject to costs coming down sufficiently, currently it is not technology that is the limiting factor, it is the reality of whether it is cost effective.

“We will not deploy CCUS at any price, however, and the first CCUS facility will need to demonstrate that it will be cost effective”

There is potential for cost savings in initial CCUS projects which can re-use existing oil and gas infrastructure, an opportunity which has been identified by some project developers and the CCUS Cost Challenge Taskforce. Government will coordinate a process, in collaboration with project developers, owners of existing assets, and relevant regulators, to identify assets with potential for re-use. Government expects that regulators, developers and owners of existing assets will work closely together, where assets are identified with potential for re-use, in order to maximise the potential economic life of those assets