Techno-economic assessment of large-scale sedimentary basin stored–CO2 geothermal power generation

Justin Ezekiel, Volker Vahrenkamp, Hussein A. Hoteit, Thomas Finkbeiner and P. Martin Mai

Applied Energy, 2024, vol. 376, issue PB, No S0306261924016532

Abstract: One approach to reducing atmospheric carbon dioxide (CO2) emissions is to adopt carbon capture utilization and storage (CCUS) strategies. This is particularly crucial for countries to achieve their net-zero goal. In this study, we investigate the techno-economic viability of a proposed CCUS process that utilizes geologically stored CO2, associated with hydrogen (H2) production from fossil fuels, as a working fluid to extract geothermal energy from deep, large-scale, sedimentary storage formations. The process ensures permanent geological storage of all injected CO2 while generating adaptable geothermal power through supercritical CO2 turbine expansion, thus, bolstering revenue and reducing the final cost of blue hydrogen production. We simulate subsurface-wellbore fluid flow and heat transport for a representative 4-way closed anticlinal Arabian reservoir and optimize system power output, including a comprehensive and integrated economic analysis. We find that CO2 captured from an equivalent blue H2 production of ∼4.1 Mt./year can be injected at an annual rate of 0.92–1 million metric tons (Mt) per well, resulting in a cumulative sequestration of ∼1.15 gigatons (Gt) of CO2 over 11.5 years. To mitigate the risks of reaching the formation parting pressure at the crest of the anticline and ensuring sufficient CO2 saturation at the production wells, phased drilling schedules and pressure-controlled injection and production are essential. With horizontal production wells, our simulations generate an average geothermal net electricity of 164 MW. The base-case economic analysis reveals a Levelized Cost of Electricity (LCOE) of 77 $/MWh and a Net Present Value (NPV) of 480 million USD over 50 years. In contrast, vertical production wells double LCOE, and the project remains unprofitable throughout its life (negative NPV). Our economic sensitivity analysis further emphasizes how the capacity factor, electricity selling price, and drilling costs govern LCOE and NPV. On the other hand, discount rates and Opex fraction are influential yet uncertain parameters affecting the system's techno-economic outlook. Therefore, our study provides valuable insights into the benefits of geothermal energy production from over 1 Gt of stored CO2 and the associated economic landscape.

Keywords: Carbon capture utilization and storage; CO2 plume geothermal; Hydrogen production; Techno-economic analysis; Levelized cost of electricity (LCOE); Net present value (NPV) (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.apenergy.2024.124270

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