Analysing the techno-economic impact of e-fuels and e-chemicals production for exports and carbon dioxide removal on the energy system of sunbelt countries – Case of Egypt

Abstract

Transitioning to 100% renewable energy to mitigate climate change requires solutions for hard-to-abate energy sectors. It must also be complemented with negative emissions technologies to ensure climate security. Previous studies have investigated the feasibility of e-fuels and e-chemicals production for export and some carbon dioxide removal technologies in several regions. This study investigates, for the first time, the techno-economic impacts of offering such services on an exporting country’s energy system as it transitions to 100% renewable energy by 2050. Egypt is used as a representative case study for sunbelt countries with adequate land area. Four scenarios with different system configurations have been investigated using the LUT Energy System Transition Model and compared to a reference 100% domestic renewable energy system. The results show that Egypt can technically provide 5% of the required global carbon dioxide removal capacity starting from 2035, and 10% of Europe’s demand for e-fuels and e-chemicals starting from 2025 within land use constraints. The provision of both services enhances the domestic energy system performance by reducing the levelised costs of important feedstocks, carbon dioxide and hydrogen, as well as other domestic cost metrics and system losses. These findings are extendable and relevant to similar sunbelt countries. They are also relevant to European countries looking to fulfil their climate targets while diversify their energy imports sources. Overall, this study is an important step in 100% renewable energy transition research and international climate change mitigation efforts.