By Amelia Mitchell, Element Energy
Under Work Package 6, we explore the long-term business models for successful CCUS (carbon capture, utilisation, and storage) adoption. We recently published our first deliverable on CCUS risks and challenges, radical innovation, and market creation.
Here’s a summary:
- What drives Sustainable Business Model Innovation (SBMI)?
Innovative business models both at the system and company level can support adopting sustainable practices and new technologies. We investigated the drivers for SBMI, as well as the frameworks and tools that are used to help develop such business models. We found that perceived economic viability is a large driver for sustainable business model innovation. We thus will further investigate the pivotal role of policy in this regard in order to assess and/or create this condition. Moreover, we learnt that dynamic capabilities, such as knowledge and creativity, are resources that are important for sustainable business model innovation.
- What are the risks and challenges of CCUS?
CCUS projects bring some unique risks and challenges and the lack of understanding them may hinder CCUS adoption. In this component, we identified risks and challenges associated with the implementation and continued operation of CCUS projects, including lessons learnt from past projects and factors that may lead to success or failure. By identifying these risks and challenges, we aim to ease the development of business models that can either eliminate risks or mitigate their impact on the business case and CCUS project drivers.
- What drives CCUS projects’ success?
Figure 1: CCS facilities around the world. Taken from GCCSI 2019 Global Status of CCS20
As of 2019, there were approximately 51 ongoing, large-scale CCS projects, and a further 39 in pilot or demonstration phases. The motivations, enabling factors, and business models adopted by these projects can provide valuable insights relevant to the adoption and integration of industrial clusters, such as the North Sea Port. Some of the identified factors relate directly to the business model used, giving insights into how business models can impact project success and failure. Other success factors show how implementation choices instead can mitigate some of the previously identified risks. Case studies illustrated factors, such as:
- Public-sector involvement driving projects;
- A coordinating body easing operations;
- Transport & storage provided as a service;
- Involvement of multiple project partners; and
- Revenue streams from utilisation.
This research provides the foundation for understanding the needs and opportunities associated with CCUS business models. We will use the insights gained to underpin the next stages of the work, as well as discussions with key stakeholders in the North Sea Port.
