CO₂-EOR in the UK: Analysis of fiscal incentives - Final Non-Technical Report

Abstract

The SCCS CO2-EOR Joint Industry Project accepted a proposal by Element Energy, supported by Dundas Consultants and Prof. Kemp, to quantify the potential impacts of fiscal incentives for CO2-EOR in the UK Continental Shelf in detail, recognising the additional costs, complexities, uncertainties and longer-term liabilities faced by CCS projects involving CO2-EOR. The approach agreed uses financial modelling of investor behaviour and outcomes under a wide range of drivers, scenarios, sensitivities. The approach draws on published data and the team's data and models for oil and gas taxation, and understanding of CCS and CO2-EOR. No confidential oil industry data have been used, and all results are therefore illustrative, based on generic assumptions. This non-technical report represents part of the final deliverable from the Element Energy- led study.