Carbon Capture and Storage (CCS): 5 Key Tips to Maximize Your Benefits

What is CCS and how is it done?

For business owners, CCS is a way to move towards a low-carbon model by “greening” energy production and operations. If we are talking science, you can apply carbon capture and storage systems to remove CO₂ emissions from stationary sources or processes, store them in underground reservoirs, and reuse them in other industries. It helps mitigate your enterprise’s carbon footprint and implements enhanced oil recovery (EOR).

How does carbon capture work?

CCS is a three-stage process that includes:

1. Capturing CO₂ from various industrial sites and compressing it with proper methods

2. Transporting trapped CO₂ to a storage location via road transport, pipelines, or tankers

3. Long-term storing of captured carbon in geological formations away from the atmosphere

Hard-to-decarbonize plants across the globe are implementing CCS to future-proof operations and remain resilient in the long run. This is because one of the critical benefits of carbon capture and storage technology is its ability to neutralize around 90% of CO₂ emissions.

How to capitalize on the carbon capture and storage trend in 5 simple steps

Whether you plan to build your own carbon capture and storage solution or invest in an existing one, you should understand what you are dealing with. Here are our practical recommendations that you can use to harness the benefits of the carbon capture and storage model.

#1 Select the right approach

There are three main types of carbon capture to navigate:

• What is pre-combustion carbon capture?

In pre-combustion carbon capture, CO₂ is removed before the actual combustion process by converting fuel into a mix of hydrogen and CO₂ through a process called gasification. Then, hydrogen is isolated and burned to produce energy and the compressed CO₂ is transported to a storage facility. The required infrastructure must be incorporated when building a new power plant to implement this type of carbon capture and storage in production. However, the effort proves worthwhile, as pre-combustion capture is less energy-intensive and delivers higher capture rates compared to post-combustion methods.

What is post-combustion?

In this method, CO₂ is bound and separated from other greenhouse gases after combustion using a liquid solvent and a gas separator. It is the most widely applied carbon capture and storage technology because it allows for the reuse of CO₂ at a storage facility and can be integrated into existing sites. However, this approach requires significant capital investment and extensive infrastructure, which consumes more energy.

• What is oxyfuel combustion?

This approach is applicable only in specific cases where fuel is processed in pure oxygen-rich environments. After cooling and liquefying CO₂ and water vapor in a boiler or gas turbine, the carbon can be dehydrated and compressed for further transportation. It also enables the use of the generated steam to power turbines or produce electricity. While the oxy-fuel method is costly, it can be integrated into certain types of existing plants and offers the potential for complete CO₂ removal.

#2 Create a business plan

Would you buy a big share of carbon capture stocks, or would you migrate your plant to a carbon capture and storage business model? Whatever you choose, there are costs to consider beforehand. Numerous studies over the past decade have emphasized the possibility of reducing OpEx and CapEx by around 30-70% when equipping your facilities with CCS. It is just much easier to do through technology refinement, retrofitting, and continuous efficiency improvements from a first-generation site to the next.

What you can do to future-proof your CCS projects:

• Explore existing low-carbon business models to develop your own financial strategy

• Elaborate risk management strategies and anti-crisis plans

• Calculate the expected revenues and possible losses (for each carbon capture stock)

• Communicate your business plan to all stakeholders and get their support

• Collaborate with governmental organizations to win their substantial support or even funding

• Partner with other CCS providers and innovators to create a network and join forces for large-scale constructions

Yes, you will invest heavily, but a potential ROI is worth it. Official estimates state that a CCS approach can save you 40% of the expenses you’ll need to meet the 50% global emissions reduction by 2050. Sounds promising, doesn’t it?

#3 Opt for technology advancements

The latest Industry 4.0 achievements are what you need when it comes to carbon capture and storage systems. We advise investigating the carbon capture stock market to find Big Tech companies that develop highly advanced and efficient CCS solutions with high capture capacity.

For instance, check out the latest inventions in the direct air or compact carbon capture fields. Companies like Baker Hughes, Carbon Clean, and Mitsubishi Heavy Industries have developed groundbreaking bite-sized capture tech with modular designs that promote more widespread use for small and mid-size businesses. What’s more, manufacturers expect smaller systems like these to capture around 95% of CO₂ emissions.

#4 Leverage the benefits of carbon capture and storage

You might not be a leading climate change activist, but your investors and customers most likely are. A low-carbon business model is what will help you secure their loyalty. As society shifts toward renewable energy and net-zero initiatives, you can use CCS advantages to accelerate changes while maintaining your oil and gas business continuity.

Top 8 opportunities in the carbon capture and storage sector:

1. Increase power generation with CO₂ steam cycles

2. Improve your on-site waste management

3. Optimize fuel consumption and oil production

4. Unlock new revenue streams with eco-friendly services

5. Boost the quality of natural gas by removing CO₂ from it

6. Reduce facility management and maintenance costs

7. Safeguard existing on-site jobs and create new ones

8. Produce new materials using CO₂ (concrete, hydrocarbons, polyurethanes)

#5 Invest in CCS strategically

The carbon capture stock market offers plenty of options to benefit your portfolio, and it’ll only skyrocket in the next decade. Not only can you fund energy transition initiatives but also profit from a billion-dollar industry while the competition is still relatively low.

How can you buy the perfect carbon capture stock? There is no universal recipe—you know that investing is a risky business. We can advise starting with established carbon capture and storage market players in the USA, Europe, and Japan. Diversify your portfolio as much as possible to manage disruptions proactively.

The 5 best carbon capture stocks to invest in 2022-2023:

1. Aker ASA (AKER: NO)

2. Exxon Mobil (NYSE: XOM)

3. Equinor (NYSE: EQNR)

4. Occidental Petroleum (NYSE: OXY)

5. NRG Energy (NYSE: NRG)

In summary, you have a great chance to capitalize on the new climate legislation and CCS solutions by cutting your emissions and earning money in the process.

What does the future hold for carbon capture and storage, tech, and stocks?

Positive outcomes in the CO₂ footprint mitigation field will only increase demand for EOR and advanced carbon capture and storage projects. It means investments in CCS technologies can bring you substantial ROI, open up new markets, and attract stakeholders motivated to drive decarbonization. Moreover, carbon capture stocks will remain resilient and lucrative, so getting the ball rolling now will help you avoid tight competition and overspending. Considering all this, who wouldn’t want some carbon capture and storage stocks in their portfolio to gain a competitive advantage?