Tools
Economic Analysis
Full-cycle economics for carbon capture, transport and geologic storage — with 45Q, multiple depreciation schedules, sensitivity analysis, and scenario comparison.
CCS Project Economics
Full-cycle economics for carbon capture, transport & geologic storage — with 45Q, multiple depreciation schedules, sensitivity analysis, and scenario comparison.
Assumptions
Revenue
$ per tonne CO₂
$ per tonne CO₂
45Q Tax Credit
Enable 45Q direct-pay credit
Project Parameters
tonnes per year
injection years
percent
percent
percent per year
Carbon Capture Facility
Include capture facility
Wells & Facilities Capital Expenditure
$ Million total
$ Million total
$ Million
$ Million
$ Million
Pipeline Transportation
miles
inches
$ per inch per mile
Land & Leasing
$ Million
$ Million per year
$ per tonne CO₂
Operating Costs
$ Million per year
$ Million per year
$ per kWh
percent
Compression
psig
psig
Economic Metrics
Net Present Value (NPV)
49.1
$ Million
Internal Rate of Return (IRR)
19.0
percent
Payback Period
6
years
Profitability Index (PI)
0.74
×
Levelized Cost of Storage (LCCS)
29.32
$ per tonne CO₂
Total CO₂ Stored
6.0
million tonnes
Total Revenue (escalated)
279.1
$ Million
Average DSCR — Injection Years
16.7
× coverage ratio
Cumulative Cash Flow
Undiscounted Free Cash Flow ($ Million)Discounted Free Cash Flow ($ Million)
Cost Breakdown ($ Million)
| Wells & Facilities | $-62.1M |
| Pipeline Transport | $-4.0M |
| Land & Leasing | $-21.0M |
| Operating Costs | $-16.1M |
| Revenue (incl. 45Q) | +$279.1M |
| Net | +$175.9M |
Unit Economics ($ per tonne CO₂)
| Wells & Facilities | $-10.35/t |
| Pipeline Transport | $-0.67/t |
| Land & Leasing | $-3.50/t |
| Operating Costs | $-2.68/t |
| Revenue | +$46.51/t |
| Net (LCCS) | +$29.32/t |
Levelized over total CO₂ injected. LCCS = net cost ÷ total CO₂ stored.
Annual Free Cash Flow ($ Million)
Depreciation & Tax Shield
Annual Depreciation ($ Million)Tax Shield Value ($ Million)
MACRS 7-year — Total tax shield: $16.8 Million | PV of tax shield at 8% discount: $11.9 Million
Model Assumptions
Capex schedule
50/50 split over year 0 and year 1 (year 1 escalated). 2-year pre-injection build period.
50/50 split over year 0 and year 1 (year 1 escalated). 2-year pre-injection build period.
NOL carryforward
Pre-injection losses create NOL, capped at 80% of taxable income per year (post-TCJA 2017).
Pre-injection losses create NOL, capped at 80% of taxable income per year (post-TCJA 2017).
Lease structure
Bonus at closing. Rental: pre-injection + injection year 1. Injection fee: all injection years.
Bonus at closing. Rental: pre-injection + injection year 1. Injection fee: all injection years.
45Q credit
Direct-pay, linear phase-up from year 1 to final injection year. Treated as additional revenue in EBITDA.
Direct-pay, linear phase-up from year 1 to final injection year. Treated as additional revenue in EBITDA.
Capture facility
Capex added to construction pool and depreciated on same schedule. Opex escalated with project opex.
Capex added to construction pool and depreciated on same schedule. Opex escalated with project opex.
OCF formula
OCF = EBITDA + BookTax + (BookTax − CashTax). Verified against source Excel model to <$0.03 Million per year.
OCF = EBITDA + BookTax + (BookTax − CashTax). Verified against source Excel model to <$0.03 Million per year.