Carbon capture and storage (CCS) projects are a critical part of the global strategy to mitigate the negative impacts of climate change. However, CCS projects are complex, requiring careful planning and execution to be successful.
Risk management is a critical component of any CCS project, as it helps to identify and mitigate potential risks and uncertainties throughout the project life cycle. CCS Energy management has extensive experience in risk management for CCS projects and can help companies find cost-positive solutions to reducing their carbon emissions.
One of the most significant risks associated with CCS projects is the technical risk.
CCS projects involve capturing CO2 from industrial processes or power plants, transporting it to a storage site and injecting it into underground formations. Each of these steps presents technical challenges that we must address to ensure the safe and effective implementation of the project.
For example, the capture technology must be reliable and efficient, the transport infrastructure must be robust and secure, and the storage site must be suitable and stable.
To manage technical risks, it is essential to conduct extensive testing and validation of the technologies and processes involved in the project and develop contingency plans for potential failures or setbacks.
At CCS Energy we coordinate and execute all conceptual designs and engineering analyses, including geological and petrophysical assessments, to identify potential locations for underground geological sequestration of CO2.
Our services include the review of potentially suitable subsurface reservoirs in your operating region to assess potential CCS applications.
Helping mitigate financial risk
Another critical risk associated with CCS projects is financial risk. CCS projects are typically capital-intensive, requiring upfront investment. The financial risk can arise from several sources, such as uncertainty about the project’s cost, regulatory and policy risks, and market risks.
To manage financial risks, it is essential to conduct detailed financial modelling and analysis to assess the project’s economic viability and develop robust financing strategies.
Before committing to a CCS project, our team conducts an in-depth feasibility study. We unearth the legal, economic and operational risks and opportunities directly affecting your business and the suitability of a carbon capture and storage solution.
We look at greenfield projects to existing carbon-producing infrastructure without subsurface components and those with existing subsurface assets. We assess the feasibility of utilising carbon capture and storage in conjunction with other low-emission technologies to assist you to decarbonise your business.
Regulatory and public acceptance
CCS projects must comply with regulations and standards, such as safety, environmental and legal requirements. Regulatory risk can arise from changes in regulations or the failure to obtain necessary permits or approvals.
To manage regulatory risks, it is essential to have a clear understanding of the regulatory landscape and engage with regulators and stakeholders throughout the project’s life cycle. It is also important to have contingency plans in place to address potential regulatory changes or delays.
CCS projects can face opposition from local communities, environmental groups and other stakeholders who may have concerns about the project’s safety, environmental impacts or economic viability.
To manage this risk, engaging with stakeholders early and frequently is essential, providing clear and transparent information about the project’s benefits and risks and addressing any concerns or questions they may have. Effective stakeholder engagement can help to build trust, reduce opposition and improve the project’s chances of success.
CCS Energy has the expertise, specialist skills and experience to help risk manage your CCS project.
How can CCS Energy help
CCS Energy is committed to forging your path toward net zero emissions. Our expertise can help clients set realistic targets and tap into additional asset value through carbon offset mechanisms available through various global emission trading schemes.
Our team members are CSS experts and well engineers, passionate about identifying efficient and cost-effective transition technology to capture and store carbon, and reduce your operation’s carbon footprint.
When you are ready to reduce your carbon emissions footprint and push forward to a sustainable and environmentally positive mining operation, give our team a call. We only offer the very best solutions and technical expertise.