Argentina Carbon Capture Industrial Infrastructure Development Feasibility Study with Climate Technology Outlook

Executive Viability Abstract

This feasibility study evaluates the development of a large-scale Carbon Capture and Storage (CCS) infrastructure in Argentina, focusing on the industrial hubs of Bahía Blanca and Rosario with storage in the Neuquén Basin. The project leverages Argentina's existing pipeline expertise and geological storage capacity to decarbonize heavy industry and position the country as a leader in blue hydrogen and climate technology exports.

## Market Analysis Argentina presents a unique opportunity for CCUS due to its concentrated industrial emissions and vast geological storage potential in depleted oil and gas reservoirs. The primary demand drivers include the decarbonization requirements for the steel, cement, and petrochemical sectors. Global carbon credit markets and potential carbon border adjustment mechanisms (CBAM) in Europe create a significant financial incentive for Argentine exporters to lower their carbon intensity. The market is currently in an early-adoption phase, with significant growth projected as international climate regulations tighten. ## Technical Feasibility The technical framework relies on post-combustion amine scrubbing technology at industrial sites, linked via a 500km dedicated CO2 pipeline network to the Neuquén Basin. Geological assessments confirm that the Vaca Muerta region offers high-porosity formations suitable for long-term sequestration. Challenges include the need for specialized compression stations and the integration of carbon capture units into existing legacy industrial plants without significant downtime. ## Financial Projections The project requires an initial CAPEX of approximately $2.8 billion, covering capture plants, pipeline infrastructure, and injection wells. Revenue is modeled through a combination of Carbon Credit Sales (estimated at $65/tonne), Enhanced Oil Recovery (EOR) services for local operators, and Government tax incentives under proposed green technology frameworks. Operational costs (OPEX) are estimated at $25-$35 per tonne of CO2 captured. ## Risk Assessment Key risks include macroeconomic volatility in Argentina, specifically inflation and currency fluctuations, which impact long-term infrastructure financing. Regulatory risk is moderate, as specific CCUS legal frameworks are still under development. Technical risks are low to moderate, given the proven nature of the technologies in other jurisdictions.