We are thrilled to announce that we have been commissioned by ClimateXChange to undertake a groundbreaking study on the costs and profitability of deploying Direct Air Capture (DAC) in Scotland. This project will provide crucial insights to support Scotland’s ambitious goal of reaching net zero emissions by 2045.
Direct Air Capture
Direct Air Capture is an emerging negative emissions technology that removes carbon dioxide directly from the atmosphere. As global efforts to combat climate change intensify, DAC is gaining traction as a potentially vital tool in achieving net zero targets. This study will focus specifically on assessing the feasibility and economic viability of deploying a large-scale DAC facility in Scotland, with a capture capacity of 0.5 million tonnes of CO2 per year.
Project Objectives
The primary objectives of this project are to:
- Evaluate the costs associated with building and operating a DAC plant in Scotland
- Explore the innovation landscape and potential for cost reductions in DAC technology
- Assess potential profitability scenarios under various market conditions and policy frameworks
- Compare the advantages and disadvantages of deploying DAC in Scotland versus other international locations
Work Packages
Our team of modelling and carbon experts will deliver this project through several key work packages:
- Expert Engagement: Throughout the project, we will engage with a diverse range of experts from academia, industry, and policy spheres to ensure our analysis reflects the most up-to-date understanding of DAC technology and market dynamics.
- .Innovation and Limiting Factors Review: We will conduct a comprehensive literature review and expert engagement to identify current R&D trends in DAC technology, assessing their potential impacts on cost reduction and performance improvements. We will also investigate Scotland-specific factors that could limit or enable DAC deployment.
- Cost Modelling and Additional Income Streams: Utilising our proprietary DAC cost model, we will develop detailed cost projections for a 0.5 Mt CO2 per year plant in Scotland. This analysis will cover capital expenditures, operational costs, and potential revenue streams, including exploration of additional income opportunities from CO2 utilisation.
- Scenario Development: Building on our cost and revenue projections, we will create a range of scenarios to explore the uncertainty surrounding DAC profitability. These scenarios will consider factors such as technological advancements, policy support mechanisms, and market conditions for captured CO2.
- International Comparison: We will conduct a comparative analysis with three other international locations, including both quantitative assessments of costs and revenues, and qualitative evaluations of the economic and political environment for DAC deployment in each location.
We are excited to contribute to this important work, which will play a crucial role in informing Scotland’s strategy for achieving its ambitious climate targets. The insights gained from this study will not only benefit Scotland but also contribute to the global knowledge base on DAC deployment and its potential role in mitigating climate change.