Public Commentary: The information below outlines our perspective on CCS / CCU carbon-credit transactions. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
CCS & CCU Carbon Projects – Carbon Capture and Storage / Utilization Finance
Capturing carbon dioxide at the source and securing its permanent storage—or converting it into value-added products—addresses emissions from industries with limited abatement options. When supported by rigorous monitoring and verification, these interventions generate high-integrity emission-reduction units alongside tax incentives and product revenues. FG Capital delivers comprehensive advisory, capital structuring, and market-access services to transform CCS / CCU infrastructure into bankable investments.
Project Scope
• Post-Combustion Capture:
Amine or chilled-ammonia systems retrofitted to cement, steel, and power-generation facilities.
• Pre-Combustion & Oxy-Fuel:
Integrated gasification combined-cycle (IGCC) and oxy-fired kilns capturing high-purity streams.
• Direct Air Capture (DAC):
Modular sorbent or solvent units with geological storage agreements.
• Geological Storage:
Saline aquifers, depleted hydrocarbon reservoirs, and dedicated CO₂ pipelines.
• Utilization Pathways:
Mineralisation, e-fuels synthesis, and carbon-cured concrete.
Advisory Framework
1 | Feasibility & Baseline Validation
• Flue-gas characterisation, capture-rate modelling, and life-cycle assessment.
• Methodology alignment with Verra VM0016, Gold Standard CCS frameworks, or Article 6 guidance.
2 | Capital Structuring
• Structured senior debt, subordinated tranches, and tax-equity partnerships leveraging Section 45Q and similar incentives.
• Advance credit purchase agreements to augment debt-service coverage.
3 | Engineering Oversight
• Technology-vendor diligence, EPC contract negotiation, and risk-allocation matrices.
• Class VI well permitting and MMV (monitoring, measurement, verification) planning.
4 | MRV & Certification
• Continuous emissions monitoring systems, subsurface plume tracking, and annual third-party audits.
5 | Credit Monetisation
• Long-term offtake contracts with compliance entities and corporates targeting science-based net-zero pathways.
• Secondary-market support following credit issuance.
Indicative Financial Parameters
| Metric | Cement / Steel Capture | Direct Air Capture |
|---|---|---|
| CapEx (USD / tCO 2 e annual capacity) | 120 – 200 | 500 – 750 |
| Levelised Capture Cost (USD / t) | 55 – 85 | 150 – 230 |
| Forward Credit Price (Year 0, USD / t) | 45 – 70 | 150 – 200 |
| Target Equity IRR (post-tax) | 13 % – 17 % | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Green or Transition Loan | Pledge over capture plant, pipeline, and storage assets | SOFR + 250 – 325 bps | Multilateral lenders, infrastructure debt funds |
| Subordinated Facility | Second-ranking charge; cash-sweep covenant | SOFR + 450 – 600 bps | Private credit investors |
| Tax-Equity or 45Q Transfer | Tax-credit monetisation agreements | N/A – negotiated | Specialist tax-equity funds |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 50 / t (capture); USD 180 / t (DAC) | Compliance entities, corporate sustainability desks |
| Sponsor Equity | Residual cash flow | Target IRR 13 % – 18 % | Industrial emitters, project developers |
Stakeholder Benefits
- Industrial Emitters: De-risked compliance pathway and potential tax-credit upside.
- Credit Purchasers: Access to high-integrity removals and avoidance credits with transparent chain-of-custody.
- Investors: Predictable cash flows supported by long-term storage contracts, tax incentives, and credit offtakes.
- Communities: Reduced local pollutants and contribution to national net-zero targets.
Engagement
Organisations considering a CCS or CCU initiative are invited to engage with our advisory team for a confidential discussion regarding feasibility assessments, financing structures, and long-term project governance.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
