Economic feasibility studies for Carbon Capture and Utilization technologies: a tutorial review

Tine Compernolle,Hanne Lamberts-Van Assche

doi:10.1007/s10098-021-02128-6

Abstract

Carbon Capture and Utilization (CCU) involves the capture and use of CO2 as a resource to create valuable products. The competitiveness of various CCU technologies has been investigated frequently resulting in a variety of economic feasibility studies and economic indicators. This study performs a tutorial review, in which practical guidance is given on the implementation of Techno-Economic Assessments (TEAs) for chemical CCU technologies. The tutorial review maps the differences in the methods and assumptions of economic feasibility studies for CCU technologies and advises how these studies can be improved in the future. A TEA framework, drafted by the CCU research community, is used as a benchmark in this review, to allow for objective comparisons between various economic feasibility studies. The four phases of an exhaustive TEA are (I) goal and scope, (II) data inventory, (III) calculation of indicators and (IV) interpretation. The tutorial review reveals that economic feasibility studies for chemical CCU technologies can and should be improved in various manners. Phases I and II are often skipped or incomplete. In Phase III, a very diverse indicator set is observed, which hampers comparability across CCU technologies. Phase IV, the interpretation of results, is often missing in the literature set or lacks thorough uncertainty and sensitivity analyses. The comparison with the TEA framework revealed the diversity in assumptions and methodological choices in the literature set. These findings suggest that future economic feasibility studies should be made in a more standardized way to improve both the quality and comparability of economic feasibility studies. Four improvements to the TEA framework are suggested: (i) focussing more on the impact of technical parameters in sensitivity analyses, (ii) adapting the assessment to the TRL of the technology, (iii) implementing ROA in the TEA and (iv) integrating an environmental assessment or LCA with the TEA. Further research is needed to investigate how Real Options Theory can be integrated into conventional TEA frameworks to analyse the investment decision in CCU technologies in a dynamic setting.Graphic abstract

Highlights

In 2018, annual global anthropogenic CO2 emissions exceeded 36 billion tons (Ritchie and Roser 2017)
CO2-derived building materials are typically produced through mineralization processes, this product category was not observed in our literature set
This study set out to evaluate the quality of economic feasibility studies for chemical Carbon Capture and Utilization (CCU) technologies, to detect differences in methodological choices and assumptions in these studies and to identify current barriers and drivers for the commercialization of CO2-based methanol synthesis

Summary

Introduction

In 2018, annual global anthropogenic CO2 emissions exceeded 36 billion tons (Ritchie and Roser 2017). To stay below the ‘+2°C’ target, it will not su ce to reduce energy consumption, impose carbon taxes and increase energy e ciency (Green sh 2019). CO2 emissions from power plants and heavy industry must be reduced signi cantly to achieve the climate objectives (European Commision 2019). Carbon Capture and Utilization (CCU) technologies are acknowledged as a crucial component of the decarbonization strategy. CCU can lower the concentration of CO2 in the atmosphere in two ways: (i) by decreasing CO2 emissions at the source itself and (ii) by increasing the e ciency of industrial processes and replacing the conventional fossil-based raw materials (Aresta and Dibenedetto 2007; Baena-Moreno et al 2019). CCU technologies can provide substitutes for fossil resources, slowing down the depletion of fossil resources

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