A Novel Scheme to Allocate the Green Energy Transportation Costs—Application to Carbon Captured and Hydrogen

Marcelo Azevedo Benetti and Florin Iov ()
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Marcelo Azevedo Benetti: Department of Energy Technology, Aalborg University, 9220 Aalborg East, Denmark
Florin Iov: Department of Energy Technology, Aalborg University, 9220 Aalborg East, Denmark

Energies, 2023, vol. 16, issue 7, 1-20

Abstract: Carbon dioxide (CO 2 ) and hydrogen (H 2 ) are essential energy vectors in the green energy transition. H 2 is a fuel produced by electrolysis and is applied in heavy transportation where electrification is not feasible yet. The pollutant substance CO 2 is starting to be captured and stored in different European locations. In Denmark, the energy vision aims to use this CO 2 to be reacted with H 2 , producing green methanol. Typically, the production units are not co-located with consumers and thus, the required transportation infrastructure is essential for meeting supply and demand. This work presents a novel scheme to allocate the transportation costs of CO 2 and H 2 in pipeline networks, which can be applied to any network topology and with any allocation method. During the tariff formation process, coordinated adjustments are made by the novel scheme on the original tariffs produced by the allocation method employed, considering the location of each customer connected to pipeline network. Locational tariffs are provided as result, and the total revenue recovery is guaranteed to the network owner. Considering active customers, the novel scheme will lead to a decrease of distant pipeline flows, thereby contributing to the prevention of bottlenecks in the transportation network. Thus, structural reinforcements can be avoided, reducing the total transportation cost paid by all customers in the long-term.

Keywords: novel scheme; pipeline networks; transportation cost; green energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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