Perpustakaan Digital ITB

This study examines a financial feasibility and required incentive support of a Carbon Capture and Storage (CCS) project through carbon tax and carbon credit pricing models. The incentive is calculated to compensate the gap between CCS value chain cost and project revenue to achieve the required margin and financial feasibility. The CCS system consists of post-combustion capture from one industrial emission source, CO? transportation through an onshore pipeline, and storage in an onshore depleted oil and gas field with legacy wells. The study estimates CCS costs, calculates incentive support, and compares the Operator and Joint Venture schemes using cash flow, Net Present Value (NPV), and Internal Rate of Return (IRR). Cost data and key parameters are adapted from secondary literature, while CCS cost and required support are estimated using a techno-economic and financial modelling approach based on secondary literature. The results show total CCS cost is USD 71.63/tCO?, dominated by capture at USD 53.54/tCO? or 74.74%, followed by transportation at USD 14.07/tCO? or 19.64%, and storage at USD 4.02/tCO? or 5.62%. Sensitivity analysis of support proportion, cost share, and carbon credit allocation ensures both schemes meet the policy constraint that carbon tax must be greater than or equal to carbon credit. At 10% operator margin, the Operator Scheme with 60% carbon tax and 40% carbon credit generates USD 57.78/tCO? carbon tax and USD 48.15/tCO? carbon credit, while the Joint Venture Scheme with 70:30 companyoperator cost share and 30:70 company-operator carbon credit allocation generates USD 55.28/tCO? carbon tax and USD 51.83/tCO? carbon credit. Financial comparison shows that the Joint Venture Scheme is more attractive through cost and risk sharing, but operator margin escalation and carbon credit allocation must be managed to maintain policy compliance and commercial feasibility.