Economics, financing complexity, uncertainty and other challenges are putting carbon capture, utilization and storage (CCUS) projects at risk despite the desire to get projects off the ground and across the finish line, experts say.

Potential pathways to revenue, however, could open new opportunities for companies and the investors backing them, according to a panel of executives from Kimmeridge, Bracewell, Enerflex and Exxon Mobil Low Carbon Solutions who gathered recently at a Wood Mackenzie conference to discuss funding CCUS projects.

Today, frequently 鈥渢he base case doesn鈥檛 even work,鈥� said Olivia Woodruff, director of decarbonization at private equity firm Kimmeridge. The firm uses a screening rubric to assess projects, but few can produce all the necessary components. 鈥淚t鈥檚 very tough to invest dollars if you don鈥檛 have a binding contract; if you don鈥檛 have the value chain connected; if you鈥檙e in an area that has regulatory risk. The list can go on. When you go back to put pen to paper, the most optimistic case maybe barely skirts by.鈥�

Economics, financing complexity, uncertainty and other challenges are putting carbon capture, utilization and storage (CCUS) projects at risk despite the desire to get projects off the ground and across the finish line, experts say.

Potential pathways to revenue, however, could open new opportunities for companies and the investors backing them, according to a panel of executives from Kimmeridge, Bracewell, Enerflex and Exxon Mobil Low Carbon Solutions who gathered recently at a Wood Mackenzie conference to discuss funding CCUS projects.

Today, frequently “the base case doesn’t even work,” said Olivia Woodruff, director of decarbonization at private equity firm Kimmeridge. The firm uses a screening rubric to assess projects, but few can produce all the necessary components. “It’s very tough to invest dollars if you don’t have a binding contract; if you don’t have the value chain connected; if you’re in an area that has regulatory risk. The list can go on. When you go back to put pen to paper, the most optimistic case maybe barely skirts by.”