Facilitating CCS Business Planning by Extending the Functionality of the SimCCS Integrated System Model

Abstract

The application of integrated system models for evaluating carbon capture and storage technology has expanded steadily over the past few years. To date, such models have focused largely on hypothetical scenarios of complex source-sink matching involving numerous large-scale CO2 emitters, and high-volume, continuous reservoirs such as deep saline formations to function as geologic sinks for carbon storage. Although these models have provided unique insight on the potential costs and feasibility of deploying complex networks of integrated infrastructure, there remains a pressing need to translate such insight to the business community if this technology is to ever achieve a truly meaningful impact in greenhouse gas mitigation. In this paper, we present a new integrated system modelling tool termed SimCCUS aimed at providing crucial decision support for businesses by extending the functionality of a previously developed model called SimCCS. The primary innovation of the SimCCUS tool development is the incorporation of stacked geological reservoir systems with explicit consideration of processes and costs associated with the operation of multiple CO2 utilization and storage targets from a single geographic location. Such locations provide significant efficiencies through economies of scale, effectively minimizing CO2 storage costs while simultaneously maximizing revenue streams via the utilization of CO2 as a commodity for enhanced hydrocarbon recovery.Results from our first case study application of SimCCUS involving a coal-fired power plant in the Illinois Basin, USA demonstrate its utility in three different business planning contexts: 1) operating under an emissions cap or cap-and-trade environment, 2) technology deployment in response to carbon tax policy, and 3) creating flexibility via multi-stage infrastructure deployment over time. A key finding in this case study is the extent to which CO2 utilization for enhanced oil recovery can help drive carbon capture, utilization, and storage technology deployment and offset costs associated with CO2 mitigation. Results from this work highlight the importance of understanding the economics of technology deployment from an integrated standpoint, and how accounting for such complexity can help promote the development of effective business models.