on the nearby public road. Cost Cost is a significant factor affecting CCS. The cost of CCS, plus any subsidies, must be less than the expected cost of emitting CO2 for a project to be considered economically favorable. CCS technology is expected to use between 10 and 40 percent of the energy produced by a power station. Energy for CCS is called an energy penalty. It has been estimated that about 60% of the penalty originates from the capture process, 30% comes from compression of CO2 , while the remaining 10% comes from pumps and fans. CCS would increase the fuel requirement of a plant with CCS by about 15% (gas plant). The cost of this extra fuel, as well as storage and other system costs, are estimated to increase the costs of energy from a power plant with CCS by 30–60%. Constructing CCS units is capital intensive. The additional costs of a large-scale CCS demonstration project are estimated to be €0.5–1.1 billion per project over the project lifetime. Other applications are possible. CCS trials for coal-fired plants in the early 21st century were economically unviable in most countries, including China, in part because revenue from enhanced oil recovery collapsed with the 2020 oil price collapse. A carbon price of at least 100 euros per tonne CO2 is estimated to be needed to make industrial CCS viable, together with carbon tariffs. But, as of mid-2022, the EU Allowance had never reached that price and the Carbon Border Adjustment Mechanism had not yet been implemented. However a company making small modules claims it can get well below that price by mass production by 2022. According to UK government estimates made in the late 2010s, carbon capture (without storage) is estimated to add 7 GBP per MWh by 2025 to the cost of electricity from a gas-fired power plant: however most CO2 will need to be stored so in total the increase in cost for gas or biomass generated electricity is around 50%. Business models Possible business models for industrial carbon capture include: Contract for Difference CfDC CO2 certificate strike price Cost Plus open book Regulated Asset Base (RAB) Tradeable tax credits for CCS Tradeable CCS certificates + obligation Creation of low carbon market Governments have provided various types of funding for CCS demonstration projects, including tax credits, allocations and grants. Clean Development Mechanism One alternative could be through the Clean Development