Vinco Innovation has prepared this report in response to a request from Krakowski Holding Komunalny S.A. W Krakowie, as part of our commitment to our project titled “Gaining Insight and Know-How from Norway on CCS and CCU Solutions for Waste Thermal Plant Incinerator in Krakow.” This project is supported by the Fund for Bilateral Relations within EEA and Norway Grants 2014 – 2021.

The primary objective of this report was to delve into the business dynamics of CCUS (Carbon Capture, Utilization, and Storage) projects, focusing on the key factors contributing to their success. To achieve this goal, we adopted a multi-dimensional approach, analyzing projects and literature from four distinct perspectives: economic, organizational, legal, and environmental.

1. Economic challenges

From an economic standpoint, we have explored various configurations of project types, ownership structures, and economic rationales. While the traditional full-chain model has historically dominated CCUS development, we observe a shift towards innovative part-chain models. These models involve specialized entities focusing on distinct segments of the CCUS value chain, often in conjunction with the emergence of CCUS hubs. We have evaluated the potential integration of the incineration plant within such industrial hubs, while also identifying primary sources of funding and revenue streams.

2. Organisational challenges

On the organizational front, we have mapped out different project structures and development processes employed by past and ongoing CCUS initiatives. This analysis underscores the profound influence of chosen business models on project structure, alongside the implications of ownership types, whether sole or multi-party, which necessitate distinct legal and structural frameworks.

3. Legal challenges

Turning to the legal perspective, our examination has highlighted challenges at both international and national levels. Internationally, while the CCS Directive provides a foundational framework, inconsistencies in its implementation across member states can impede progress. Addressing this requires enhanced trans-boundary regulatory cooperation. On a national level, our focus on Poland reveals regulatory alignments with the EU CCS Directive. Nonetheless, specific regulatory hurdles persist, including gaps in regulations concerning commercial transport and carbon dioxide sequestration.

4. Environmental challenges

For the environmental impact, we have evaluated potential benefits, risks, and mitigation strategies by drawing on insights from previous projects on CCS implementation. This assessment outlines the environmental impact that CCS can lead to in securing a sustainable integration of the technology.

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