Carbon Capture & CO₂ Compression Equipment worked example

Retrofit Payback with carbon capture retrofit investment of 62,500 $: a worked example

This scenario runs the retrofit payback calculation on the strong side: carbon capture retrofit investment of 62,500 $, with every other input held at its documented default. Use it when retrofit payback in carbon capture and co₂ compression equipment is being put in front of a capital committee and the savings story needs to hold up.

The inputs for this scenario

  • Carbon capture retrofit investment: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual avoided-emissions value or savings: 18,000 $ / yr (unchanged)
  • Annual retrofit support cost: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual retrofit value = annual avoided-emissions value or savings - annual retrofit support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for carbon capture retrofit payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual retrofit value.
  • At this operating point the engine returns 62,500 $ for carbon capture retrofit investment.
  • At this operating point the engine returns 15,000 $ for five-year net retrofit value.

How this compares with the baseline

  • Against the tool's baseline example, where carbon capture retrofit investment sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • Use it during capital screening of a CO₂ capture or compression retrofit, when sizing the carbon price needed to justify the spend, or when ranking decarbonization projects against a payback hurdle. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Carbon capture retrofit payback period: 4.03 yr (headline result)
  • Net annual retrofit value: 15,500 $ / yr
  • Carbon capture retrofit investment: 62,500 $
  • Five-year net retrofit value: 15,000 $

Run it with your numbers

  • Every input above is editable in the live Retrofit Payback calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.