CO2 Highways for Europe: Modelling a Carbon Capture, Transport and Storage Infrastructure for Europe. CEPS Working Document No. 340/November 2010

This paper presents a mixed integer, multi-period, cost-minimising model for a carbon capture, transport and storage (CCTS) network in Europe. The model incorporates endogenous decisions about carbon capture, pipeline and storage investments. The capture, flow and injection quantities are based on given costs, certificate prices, storage capacities and point source emissions. The results indicate that CCTS can theoretically contribute to the decarbonisation of Europe’s energy and industrial sectors. This requires a CO2 certificate price rising to €55 per tCO2 in 2050, and sufficient CO2 storage capacity available for both on- and offshore sites. Yet CCTS deployment is highest in CO2-intensive industries where emissions cannot be avoided by fuel switching or alternative production processes. In all scenarios, the importance of the industrial sector as a first-mover to induce the deployment of CCTS is highlighted. By contrast, a decrease in available storage capacity or a more moderate increase in CO2 prices will significantly reduce the role of CCTS as a CO2 mitigation technology, especially in the energy sector. Furthermore, continued public resistance to onshore CO2 storage can only be overcome by constructing expensive offshore storage. Under this restriction, reaching the same levels of CCTS penetration would require a doubling of CO2 certificate prices

An overview of current status of carbon dioxide capture and storage technologies

AbstractGlobal warming and climate change concerns have triggered global efforts to reduce the concentration of atmospheric carbon dioxide (CO2). Carbon dioxide capture and storage (CCS) is considered a crucial strategy for meeting CO2 emission reduction targets. In this paper, various aspects of CCS are reviewed and discussed including the state of the art technologies for CO2 capture, separation, transport, storage, leakage, monitoring, and life cycle analysis. The selection of specific CO2 capture technology heavily depends on the type of CO2 generating plant and fuel used. Among those CO2 separation processes, absorption is the most mature and commonly adopted due to its higher efficiency and lower cost. Pipeline is considered to be the most viable solution for large volume of CO2 transport. Among those geological formations for CO2 storage, enhanced oil recovery is mature and has been practiced for many years but its economical viability for anthropogenic sources needs to be demonstrated. There are growing interests in CO2 storage in saline aquifers due to their enormous potential storage capacity and several projects are in the pipeline for demonstration of its viability. There are multiple hurdles to CCS deployment including the absence of a clear business case for CCS investment and the absence of robust economic incentives to support the additional high capital and operating costs of the whole CCS process

Carbon Capture and Sequestration: How Much Does this Uncertain Option Affect Near-Term Policy Choices?

One of the main issues in the climate policy agenda, the timing of abatement efforts, hinges on the uncertainties of climate change risks and technological evolution. We use a stochastic optimization framework and jointly explore these two features. First, we embed in the model future potential large-scale availability of Carbon Capture and Storage (CCS) technologies. While non-CCS mitigation that reduces fossil energy use is modelled as exerting inertia on the economic system, mainly due to the durability of the capital in energy systems and to technology lock-in and lock-out phenomena, the implementation of CCS technologies is modelled as implying less resilience of the system to changes in policy directions. Second, climate uncertainty is related in the model to the atmospheric temperature response to an increase in GHGs concentration. Performing different simulation experiments, we find that the environmental target, derived from a cost-benefit analysis, should be more ambitious when CCS is included in the picture. Moreover, the possible future availability of CCS is not a reason to significantly reduce near-term optimal abatement efforts. Finally, the availability of better information on the climate cycle is in general more valuable than better information on the CCS technological option.Climate change, Uncertainty, Sequestration, Cost-benefit analysis

Mitigation Strategies and Costs of Climate Protection: The effects of ETC in the hybrid Model MIND

MIND is a hybrid model incorporating several energy related sectors in an endogenous growth model of the world economy. This model structure allows a better understanding of the linkages between the energy sectors and the macro-economic environment. We perform a sensitivity analysis and parameter studies to improve the understanding of the economic mechanisms underlying opportunity costs and the optimal mix of mitigation options. Parameters representing technological change that permeates the entire economy have a strong impact on both the opportunity costs of climate protection and on the optimal mitigation strategies, e.g. parameters in the macro-economic environment and in the extraction sector. Sector-specific energy technology parameters change the portfolio of mitigation options but have only modest effects on opportunity costs, e.g. learning rate of the renewable energy technologies. We conclude that feedback loops between the macro-economy and the energy sectors are crucial for the determination of opportunity costs and mitigation strategies.Endogenous technological change, Climate change mitigation costs, Integrated assessment, Growth model, Energy sector, Integrated assessment

Analysis of Technological Portfolios for CO2 stabilizations and Effects of Technological Changes

In this study, cost-effective technological options to stabilize CO2 concentrations at 550, 500, and 450 ppmv are evaluated using a world energy systems model of linear programming with a high regional resolution. This model treats technological change endogenously for wind power, photovoltaics, and fuel-cell vehicles, which are technologies of mass production and are considered to follow the “learning by doing” process. Technological changes induced by climate policies are evaluated by maintaining the technological changes at the levels of the base case wherein there is no climate policy. The results achieved through model analyses include 1) cost-effective technological portfolios, including carbon capture and storage, marginal CO2 reduction costs, and increases in energy system cost for three levels of stabilization and 2) the effect of the induced technological change on the above mentioned factors. A sensitivity analysis is conducted with respect to the learning rate.Energy systems model, Global warming, Technological portfolios, Technological changes