BENEFITS OF BIOENERGY CARBON CAPTURE PROJECTS CAN OUTWEIGH CHALLENGES, SAYS BCG

In Brazil, the development of bioenergy projects linked to carbon capture and storage (BECCS) faces challenges due to high initial investments and a lack of supportive policies. However, a Boston Consulting Group (BCG) study suggests the potential benefits of BECCS outweigh the obstacles, offering attractive revenue prospects. Current investments range from $100 million to $1 billion, with carbon credits valued at $200 to $300 per ton, making these projects economically viable. Unlike the U.S. and Europe, where specific incentives exist, Brazil lacks mature discussions on this technology. Key sectors like ethanol production and pulp and paper could benefit significantly. FS Bioenergia’s recent $350 million BECCS investment exemplifies progress. The International Energy Agency projects a rise in annual CO2 capture through BECCS from 2 million tons in 2022 to 40 million tons by 2030, aiming for 200 million tons by 2050.
Source: Nova Cana