1. The Economic Viability of Carbon Capture and Sequestration
(CCS) Technologies: Value Chain Linkages from Capture to
Enhanced Oil Recovery (EOR) in Trinidad and Tobago
Nicole Crichlow n.crichlow.08@aberdeen.ac.uk +44 7503228058; +868 785-3465 www.abdn.ac.uk
University of Aberdeen, King's College, Aberdeen, AB24 3FX
Relevance of CCS to Trinidad and Tobago
-Trinidad and Tobago is a highly industrialised country due to its
oil and gas resources and its dramatic growth in the
petrochemical and steel industry.
-Alongside its economic growth was a significant increase in CO2
emissions
- T&T is the largest producer of CO2 per capita in the world.
-Clear imbalance in CO2 emission levels with respect to
population size (1.3 million) and gross domestic product (GDP).
-This undermines the sustainability of T&T’s development and
CCS has been a major topic of discussion.
Research Objective
This project:
 examines the economic viability of a proposed CCS plant
within the Point Lisas Industrial Estate in Trinidad and Tobago
and how it can be linked to EOR.
seeks to be a guide to the level of investment and risk involved
at each stage of the value chain.
Location of Point Lisas Industrial Estate relative to other important sites
Trinidad
Methodology
The analysis was broken down into two economic models linked
by the price of the captured CO2.
Framework for Model #1: CCS from the perspective of a potential investor
in the proposed centralised capture plant
Framework for Model #2- Demand for CO2 by EOR operations.
The models are linked with the Carbon capture plant being
treated as a supplier of CO2 to the Oil Company utilizing the CO2
for Enhanced Oil Recovery (EOR).
Model #2 considers the government’s role through legislation to
ensure sufficient demand for the captured CO2 versus the
cheaper natural CO2 as this would reduce incentives to
invest in CO2 capture.
Researcher: Nicole Crichlow
Excess Carbon Dioxide
stored in depleted oil
and gas reservoirs
Carbon Dioxide
Captured and
transported from the
centralized Capture
Plant
Majority CO2. is
supplied to oil
companies for
Enhanced Oil
Recovery
Anthropogenic Carbon
Dioxide sourced from
the Carbon Capture
Plant
Naturally existing Carbon
Dioxide derived in situ from
the reservoir, purified and
then re-injected
Oil Company
investing into
EOR and
therefore
demanding
Carbon Dioxide
Required investments; main risk
factors and their impact upon NPV
Local
adjustments due
to local
circumstances
eg. Very low
electricity price
Technological
plant lifetime,
materials used,
plant capacity
Financial
CAPEX, OPEX,
tax, cost of CO2,
oil price,
abandonment
costs, etc
Results
NPV of -239.165 mil US$ derived
from CAPEX being the main risk
factor.
The long term social cost of
mitigated carbon emissions is
892.5 mil US$
Conclusions
The Capture Plant is not
economically viable despite the
long term social cost benefits.
CAPEX- only variable
manipulated independently can
make the investment viable.
Results
NPV was minimal at 476,206USD.
Oil price- the greatest +ve
contributor to NPV. The amount
of anthropogenic CO2 - the
greatest -ve contributor.
Conclusions
Economically viable but risky as
a slight decrease in oil price
below 75US$ may lead to a
negative NPV
NPV is -ve if more than 50% of
the CO2 required is
anthropogenic.
Inputs/
Assumptions
Outputs
Main results and conclusions - Model #1
Main results and conclusions-Model #2
Economic
Modeling
Excel (model
building, NPV and
sensitivity analysis)
and Oracle Crystal
Ball (Monte Carlo
analysis) software