Carbon capture technology to remain financially unviable in near-term - S&P |
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Published
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Tue, 29 May 2007 13:39
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said while carbon capture and sequestration (CCS) will have an integral part in combating climate change, the technology will remain financially unviable in the near-term until technical, regulatory and legal hurdles of large-scale implementation are solved.Considering the emissions coal currently releases, power producers are looking to capture carbon dioxide (CO2) and sequester it indefinitely in underground reservoirs to mitigate climate change, S&P said in its report.S&P said technically, over the longer term, as deep cuts in CO2 emissions become needed, CCS will be necessary and carbon credit prices will rise to levels that will make CCS economic.S&P said the cost is about 40 usd/tonne currently 'but may fall in future' as technology matures.However, S&P said CCS's high costs will not be economically justified 'in the near-term', when CO2 reduction requirements are likely to be small, and other approaches to CO2 reduction will be less expensive.Also important are the legal and regulatory issues, S&P said, given the credit quality of CCS when put into practice on a large scale and the responsibility of monitoring the gas underground and ensuring the site's safety over long periods.TFN.newsdesk@thomson.comypv/jroCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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