Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia

Cheng Yee Ng; Muk Chen Ong; Gregory Loo Fong Chiu

doi:10.59717/j.xinn-energy.2025.100100

The Innovation Energy > 2025 Vol. 2 > No. 3 > 100100

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Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia

1.
Department of Civil and Environmental Engineering, Universiti Teknologi PETRONAS, Perak 32610, Malaysia
2.
Department of Mechanical and Structural Engineering and Materials Science, University of Stavanger, Stavanger 4036, Norway
3.
Asia Risk Management Solutions Co. Ltd., Pathum Thani 12120, Thailand

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Corresponding author: Email: chengyee.ng@utp.edu.my
Received Date: March 13, 2025

Accepted Date: May 22, 2025

Published Online: July 05, 2025

The Innovation Energy 2(3), https://doi.org/10.59717/j.xinn-energy.2025.100100 | Cite this article

GRAPHICAL ABSTRACT

GRAPHICAL ABSTRACT

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PUBLIC SUMMARY

PUBLIC SUMMARY
1. Offshore Carbon Capture and Utilization (CCU) system offers a pathway to reduce carbon emissions in Southeast Asia by leveraging existing offshore infrastructure.
  
  This study evaluates the economic feasibility of deploying offshore CCU system as a complement to offshore Carbon Capture and Storage (CCS) in Southeast Asia.
  
  A probabilistic quantitative economic feasibility analysis is applied to address market volatility, revenue fluctuations, and regulatory uncertainties.
  
  The findings highlight that CCS and CCU face financial challenges when operating separately.
  
  CCU enhances economic potential by reducing costs, generating revenue from CO₂-derived products, and improving overall financial sustainability.

ABSTRACT

ABSTRACT

Offshore Carbon Capture and Utilization (CCU) is a promising method to reduce carbon emissions while creating economic value. This study assesses the economic feasibility of an offshore CCU system in Southeast Asia as a complement to offshore Carbon Capture and Storage (CCS). A probabilistic quantitative economic feasibility analysis is performed by integrating a conventional financial analysis (CFA) with a probabilistic risk module (PRM) to evaluate cost structures, revenue potential, operational risks, and market uncertainties. The findings show that offshore CCU reduces capital expenditures (CAPEX) by leveraging existing offshore infrastructure and generates revenue from CO₂-derived products such as sustainable fuels and chemicals. However, standalone financial viability remains challenging without supportive policy incentives or market-driven mechanisms. Automation and optimization are essential to reduce operational expenditure (OPEX) and improve profitability. Additionally, offshore CCU supports compliance with carbon regulations and strengthens environmental, social, and governance (ESG) performance. This study highlights offshore CCU as a complementary and sustainable strategy for carbon management. Future work should focus on optimizing CCU technologies and refining carbon policy frameworks to accelerate adoption in Southeast Asia.
- Offshore CCU /
- Economic Feasibility /
- Carbon Capture /
- Revenue Potential /
- Market Uncertainty /
- Carbon Policy

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Ng C.Y., Ong M.C. and Chiu G.L.F. (2025). Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia. The Innovation Energy 2:100100. https://doi.org/10.59717/j.xinn-energy.2025.100100

Ng C.Y., Ong M.C. and Chiu G.L.F. (2025). Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia. The Innovation Energy 2:100100. https://doi.org/10.59717/j.xinn-energy.2025.100100

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Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia

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Economic feasibility of offshore carbon capture and utilization systems in Southeast Asia

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