Energy Transition Podcast Series, Focus on Carbon Capture

THE COWEN INSIGHT

Studies indicate achieving net zero emissions by mid century will require a massive scale up in carbon capture which could result in a market growing from nearly nothing today to ~$125B by 2030 and over $500B by 2050. We’re introducing a new podcast series to help investors understand the market and identify which companies have the most to gain from this potentially very attractive growth market.

Energy Transition Podcast Series

$125B in 2030 and >$500B in 2050 to Avoid The Worst?

Research has concluded that avoiding the worst consequences of climate change requires limiting the global temperature increase to 1.5°C above pre-industrial levels (1850-1900). In order to achieve this goal, human-caused CO2 emissions need to reach net zero by mid-century. Many governments and corporations have adopted targets aligned with this plan.

Global human-caused CO2 emissions are ~35-40 billion tonnes per year. Projections suggest reaching net zero will require ~1.7 billion tonnes of carbon capture per year by 2030 and over 7 billion tonnes per year by 2050, a significant increase compared to the ~40 million tonnes of CO2 capture currently. Assuming an average capture cost of $75 per tonne, these volumes could imply an industry size of ~$125B by 2030 and over $500B by 2050.

Policy Support Needed to Scale Up

While targets have been set, current policy and market signals are not yet sufficient to incentivize such investment. We see a combination of enhanced subsidy and carbon market pricing required to reach targets, aided by ultimately lower costs as the industry scales and new technologies are introduced. We see policy support for storage hubs being an important catalyst to solving the chicken and egg problem with carbon capture and lowering transport and storage costs.

Through our podcast series, we’ll explore the various applications for carbon capture, drivers of cost structure, current and future technologies, and hopefully identify which companies stand to benefit from the market’s potentially dramatic growth.

Episode 1: An Introduction to Carbon Capture

Marc Bianchi, Sustainability, Energy Transition, and Oilfield Services & Equipment Analyst, introduces his energy transition podcast series. He provides an overview of the carbon capture market, including emissions reduction targets, growth rates of capture, and the major drivers of cost structure. He also discusses Cowen’s unique ESG offerings including sector specific ESG research coverage, a dedicated ESG & sustainability policy analyst, and ESG scoring on all research reports.

For the full transcript click here.

Episode 2: Exploring Hydrogen and Carbon Capture

Simon Moore Vice President of Investor Relations & Sustainability at Air Products joins Cowen’s sustainability & energy transition analyst Marc Bianchi to discuss the company’s role in hydrogen production in steam methane reforming (SMR) and gasification as it relates to hydrogen with carbon capture. 

For the full transcript click here.

Episode 3: Carbon Capture and Hydrogen Equipment Technology with Baker Hughes

Chris Barkey, Chief Technology Officer of the TPS division at Baker Hughes joins Marc Bianchi, Industrial Gas & Equipment and Oilfield Services & Equipment Analyst to discuss the company’s offerings and product development in compressors, turbines and other capabilities available to serve hydrogen and carbon capture.

For the full transcript click here.

Episode 4: Carbon Capture as a Service with Aker Carbon Capture

David Phillips, Head of U.K. and Investor Relations of Aker Carbon Capture, joins Marc Bianchi, Industrial Gas & Equipment and Oilfield Services & Equipment Analyst to discuss carbon capture technology, various plant designs, and carbon capture as a service.

For the full transcript click here.

Episode 5: Carbon Capture & Sequestration Along the Gulf Coast With Talos Energy