Carbon Capture Could Contribute €14 Billion to Portugal's Economy
Portugal's industrial decarbonization faces critical challenges due to increased carbon pricing and reduced emission licenses. The Carbon Capture & Storage (CCS) strategy, highlighted in the Portugal's Carbon Link - White Paper by ATIC and BCG, is essential for the competitiveness of hard-to-abate industries. CCS could generate €14 billion in GDP impact and create up to 7,000 direct jobs by 2065. An integrated CCS infrastructure, estimated at €2 billion, is proposed, aiming for a storage capacity of 300 million tons of CO2 over decades.
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Portugal is at a decisive stage in its industrial decarbonization, with pressures from the European Emissions Trading System and rising carbon prices. The Carbon Capture & Storage (CCS) solution is presented as critical for maintaining industrial competitiveness.
The Portugal's Carbon Link - White Paper indicates that without CCS, national industry viability may be compromised. CCS could yield a €14 billion economic impact and create up to 7,000 jobs by 2065. The proposed infrastructure includes 660 km of onshore and 25 km of offshore pipelines to store 300 million tons of CO2.
Estimated investment for this infrastructure is €2 billion, with a projected cost of €25 per ton for transportation and storage. Although CCS may increase cement production costs by 60-80%, the overall construction cost impact remains minimal. The report recommends a Regulatory Asset Base model to ensure financial predictability and mitigate investment risks.
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