Carbon Capture & CO₂ Compression Equipment worked example

Retrofit Payback with carbon capture retrofit investment of 12,500 $: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop carbon capture retrofit investment to 12,500 $, then walk the calculation through step by step. Estimate simple payback for adding or upgrading carbon capture, CO₂ compression, drying, heat recovery, monitoring, or storage-interface equipment.

The inputs for this scenario

  • Carbon capture retrofit investment: 12,500 $ (the input this scenario stresses; the baseline uses 25,000)
  • Annual avoided-emissions value or savings: 18,000 $ / yr (held at the documented default)
  • Annual retrofit support cost: 2,500 $ / yr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Net annual retrofit value = annual avoided-emissions value or savings - annual retrofit support cost.
  • Carbon capture retrofit payback period works out to 0.81 yr at these inputs, and this is the headline figure for the scenario.
  • Net annual retrofit value works out to 15,500 $ / yr at these inputs.
  • Carbon capture retrofit investment works out to 12,500 $ at these inputs.
  • Five-year net retrofit value works out to 65,000 $ at these inputs.

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 50% below the baseline at 0.81 yr.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to carbon capture retrofit investment, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. Simple payback ignores the time value of money, equipment degradation, and any drift in carbon price or energy cost — a 1.6-year result assumes the avoided-emissions value and support cost hold steady, which rarely happens over a compressor's life.

Results at a glance

  • Carbon capture retrofit payback period: 0.81 yr (headline result)
  • Net annual retrofit value: 15,500 $ / yr
  • Carbon capture retrofit investment: 12,500 $
  • Five-year net retrofit value: 65,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Retrofit Payback calculator, set carbon capture retrofit investment to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.