Updated sieve study for SDE++ subsidy round 2024. Cost-effective alternatives to CCS

The Dutch Climate Agreement (Nederlandse Klimaatakkoord) stipulates that subsidising Carbon Capture and Storage (CCS) projects through the SDE++ subsidy can only take place under certain conditions. One of these conditions is that there are no cost-effective sustainable alternatives to CCS. This condition is called the ‘sieve methodology’. At the request of the Ministry of Economic Affairs and Climate Policy (minsterie van Economische Zaken en Klimaat), CE Delft applied the sieve methodology for the 2024 SDE++ subsidy round, based on our previously developed methodology. As was the case last year, we found that mechanical steam recompression (MVR) is the only more cost-effective option compared to CCS. However, because all SDE categories are broader than just MVR, it is not possible to exclude an entire SDE category from a subsidy on this basis. We found that the cost of renewable alternatives increased relatively more than that of CCS compared to last year. This is not beneficial to the development of these alternatives.