A key part of the commercial negotiations between emitter and transport & storage operator are around the allocation of risks. Emitters face project risks around technology, construction, price and operations, which are common to any infrastructure investment. For hubs, the specific project risks are around volume, leakage and multi-stakeholder project development.
Emitters face hard-to-reduce risks include revenue risk, relating to an insufficiently high carbon price, cross-chain risks arising from the interdependency of the CCUS value chain, and long-term storage liability risk.