Simplified levelised cost of competing low-carbon technologies in long distance transport

Notes

Indicative cost ranges are based on the technical and economic methodology and data in IEA (2020a), which reflect varying energy prices and technological uncertainty. Processes shown cover conventional unabated fossil fuels as well as a low carbon option based on CCUS and one that does not involve CO2 capture. For long-distance transport modes, fossil fuel costs reflect a USD 50/bbl to USD 100/bbl crude oil cost range, and the carbon price variant represents a USD 150/tCO2 shadow carbon price, which in practice could take the form of other regulatory policy measures such as fuel standards. Synthetic hydrocarbon fuel cost ranges consider CO2 from bioenergy or DAC, and hydrogen from electrolysis powered by a dedicated renewable energy system. Electricity prices for hydrogen production range from USD 20/MWh to USD 60/MWh across regions; given that these fuels are expected to materialise in the market somewhat later than CCUS in industry, the cost range is lower than in Figure 2.9 to better reflect anticipated electricity prices. DAC CO2 capture costs range from USD 135/tCO2 to USD 345USD/tCO2, while biogenic CO2 feedstock costs range from USD 15/tCO2 to USD 30/tCO2. Biofuels covers hydrotreated vegetable oils (HVO) and biomass-to-liquids (BTL) fuels reflecting biomass feedstock costs from USD 5/GJ to USD 15/GJ.