Washington (Platts)--1Jul2008

Carbon capture and storage technology has the potential to reduce by
one-third the total global emissions of carbon dioxide from stationary
sources, according to a report released Tuesday by US-based Boston Consulting
Group.

The group's analysis determined that if the 1,000-largest
fossil-fuel-burning power plants and industrial facilities began using CCS
technology by 2030, more than one-third of estimated total global emissions of
CO2 would be reduced. Such a development would allow utilities to upgrade,
rather than shut down, large fossil-fuel based generation facilities, the
report said.

While the high cost of CCS technology has slowed deployment, a stable
carbon price of Eur30/ton, which could be achieved with government subsidies,
would have the technology pay for itself, Boston Consulting said. An initial
subsidy of Eur100 billion during a ramp-up period would enable development of
CCS to proceed as the carbon price stabilized, the group said.

Most efforts to mitigate global warming have focused on improving energy
efficiency and deploying renewable resources, and while both are necessary,
they are not likely to be sufficient to contain increasing global carbon
emissions, the consulting firm said.