Decarbonizing Saudi Arabia’s energy and industrial sectors: An integrated techno-economic assessment of CCS

This study presents a comprehensive techno-economic assessment of Carbon Capture and Storage (CCS) tailored to Saudi Arabia’s unique energy and industrial landscape. By constructing a detailed Marginal Abatement Cost Curve (MACC) that integrates capture, transportation, and storage costs, the analysis offers a perspective on the Kingdom’s potential to decarbonize its economy under the Circular Carbon Economy (CCE) framework. Leveraging spatial evaluations of the stationary emission sources and geological sinks, this study develops an optimized source-sink matching workflow specific to Saudi Arabia’s infrastructure and geology. Findings reveal that the current CCS costs (2024 USD) average approximately $81.4 per metric ton CO2 (tCO2), with capture costs dominating ($69/tCO2), while transportation and storage costs remain relatively low ($6.7/tCO2 and $5.7/tCO2, respectively). These results reflect the advantages of short distances between emitters and storage sites and the country’s extensive saline aquifer storage capacity. The study further shows that achieving the 2035 target of 44 MTPA of captured CO2 is feasible at a volume-weighted average cost of $52/tCO2 by prioritizing low-cost, high-concentration emission projects. The analysis also underscores the critical need for technological advancements in CO2 capture and targeted investments in CCS hubs and clusters to unlock the potential for large-scale decarbonization. This assessment provides actionable insights for policymakers and investors, laying the groundwork for CCS to play a transformative role in Saudi Arabia’s transition toward a sustainable and low-carbon economy.