Direct air capture capacity configuration and cost allocation based on sharing mechanism

Qian Wang, Caiyi Du and Xueguang Zhang

Applied Energy, 2024, vol. 374, issue C, No S030626192401420X

Abstract: Direct air capture (DAC) offers a potential solution for capturing carbon dioxide directly from the atmosphere, making it a promising technology in the field of negative carbon solutions. However, its current stage is characterized by high costs and a lack of maturity, placing it in the early phases of commercial application. To address these challenges, this paper introduces a novel cost-sharing mechanism specifically designed for DAC equipment within the context of carbon emission management in power systems. The aim is to facilitate both DAC capacity configuration and cost allocation. We begin by dissecting the operational principles of DAC and reviewing ongoing demonstration projects. We then pioneeringly devises a unified operational model (UOM) for DAC, which integrates electricity and carbon considerations seamlessly. Following this, we introduce an enhanced version of the carbon emission flow (CEF) theory, customized for DAC deployment. This sets the stage for the design of a DAC-specific carbon capture cost-sharing mechanism. Building on these foundations, we develop a meticulous DAC capacity planning model. This is accompanied by a cost allocation methodology based on the Shapley value framework. The ultimate goal is equitable cost allocation among stakeholders and optimized DAC capacity planning. Case studies validate the efficacy of both the proposed model and the cost allocation methodology. The insights from this study contribute to advancing theoretical frameworks for carbon capture technologies and have practical implications for engineering designs in real-world implementation.

Keywords: Direct air capture; Carbon capture; Capacity cofiguration; Cost allocation; Sharing mechanism (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.apenergy.2024.124037

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