While carbon capture and storage (CCS) units are used to purify flue gases from thermal power plants and carbon-intensive industries, DAC technologies are usually used in open spaces to improve the quality of atmospheric air.
The cost of these technologies varies greatly. While the operating costs of CCS units range from $50 to $250 per ton of CO2, those of DAC units range between $400 and $700 per ton of CO2 (as estimated by S&P Global Platts), including dehydration and liquefaction of carbon dioxide for delivery to end users. The latter include meat and soda producers, as well as nuclear power plant operators who use carbon dioxide to cool down nuclear reactors.
Major CO2 emitters’ interest towards CCS and DAC technologies is linked to the possibility of improving environmental reporting indicators, including for Scope 1 emissions, which include emissions from the extraction of raw materials and the production of carbon-intensive products. Unlike Scope 2 and Scope 3 emissions, they cannot be reduced by switching to clean sources of electricity or more rational use of products by end users.
Despite its status as one of the world’s largest oil producers, Saudi Arabia has ambitious plans for the development of low-carbon energy. Specifically, Saudi Arabia’s government seeks to increase the share of renewables in the country’s energy mix to 50% by 2030, from just 1.4% in 2023. Last year, the country had 25 renewable energy projects with a total capacity of 21.4 GW at the planning stage, of which half is expected to go into operation before the end of 2026.
