Economic Analysis of Methanating CO 2 and Hydrogen-Rich Industrial Waste Gas in Depleted Natural Gas Reservoirs

Zhengmeng Hou, Liangchao Huang (), Yachen Xie (), Lin Wu, Yanli Fang, Qichen Wang and Yilin Guo
Additional contact information
Zhengmeng Hou: Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
Liangchao Huang: Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
Yachen Xie: Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
Lin Wu: Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
Yanli Fang: Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
Qichen Wang: Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
Yilin Guo: Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China

Energies, 2023, vol. 16, issue 9, 1-12

Abstract: This study explored underground biomethanation as a means to achieve carbon neutrality and promote carbon circular utilization by methanating CO 2 and hydrogen-rich industrial waste gas in depleted natural gas reservoirs (MECHIG). This approach not only aids the development of carbon capture, utilization, and storage (CCUS) technologies, but also effectively processes industrial waste gas, thereby reducing pollutant emissions. In order to verify the feasibility of the MECHIG concept, this study builds upon the analysis of the MECHIG process overview and employs the net present value (NPV) analysis method to investigate its economic viability. Additionally, the study conducts a sensitivity analysis on six factors, namely methanation efficiency, facility site investment, hydrogen content in waste gas, natural gas prices, operation and maintenance (O&M) investment, and CO 2 capture and injection prices. The results indicate the following: (1) Under the baseline scenario, the NPV of the MECHIG concept is approximately CNY 5,035,100, which suggests that the concept may be economically viable. (2) The fluctuation in natural gas prices has the most significant impact on NPV, followed by facility site investment and methanation efficiency. In contrast, the variations in hydrogen content in waste gas, O&M investment, and CO 2 capture and injection prices have relatively smaller effects on NPV. (3) To ensure the economic feasibility of the concept, the acceptable fluctuation ranges for the factors of methanation efficiency, facility site investment, hydrogen content in waste gas, natural gas prices, O&M investment, and CO 2 capture and injection prices are −16.78%, 5.44%, −32.14%, −4.70%, 14.86%, and 18.56%, respectively.

Keywords: economic analysis; underground biomethanation; carbon neutrality; carbon circular utilization; NPV (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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/1996-1073/16/9/3633/pdf (application/pdf)
https://www.mdpi.com/1996-1073/16/9/3633/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:16:y:2023:i:9:p:3633-:d:1130960

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().