Cost Analysis Insights for Offshore CCS Hubs: A Case Study of the Santos Basin, Brazil

ABSTRACT The reuse of decommissioned offshore platforms for geological carbon storage offers a cost‐effective and technically feasible strategy to reduce greenhouse gas emissions in emerging economies. This study presents a comprehensive techno‐economic assessment of offshore carbon capture and storage (CCS) hubs in Brazil, with a focus on the Merluza Field in the Santos Basin. A detailed cost model was developed to quantify capital expenditure (CAPEX), operational expenditure (OPEX), and the levelized cost of storage (LCOS) for scenarios involving infrastructure reutilization. Results indicate that site characterization dominates the cost structure, accounting for up to 76% of CAPEX in reuse scenarios, despite an overall 6% reduction in total capital investment when compared with new offshore construction. Annual OPEX is estimated at $7.79 million, and over a 40‐year project lifespan, the net present value of operational costs reaches $104.68 million. The LCOS ranges from $12.72 to $35.54 per ton of CO 2 for a 1.39 Mtpa case, making the Brazilian scenario economically competitive when compared to international benchmarks such as Sleipner and Quest. Moreover, potential revenues from carbon credits and avoided emission penalties could substantially offset total project costs. These findings highlight the financial viability of offshore CCS in Brazil and reinforce its potential integration into national decarbonization strategies under the Paris Agreement. 2026 Society of Chemical Industry and John Wiley & Sons, Ltd.