European Scenarios of CO2 Infrastructure Investment until 2050

Pao-Yu Oei and Roman Mendelevitch ()

EconStor Open Access Articles and Book Chapters, 2016, vol. 37, 171-194

Abstract: Based on a review of the current state of the Carbon Capture, Transport and Storage (CCTS) technology, this paper analyzes the layout and costs of a potential CO2 infrastructure in Europe at the horizon of 2050. We apply the mixed-integer model CCTS-Mod to compute a CCTS infrastructure network for Europe, examining the effects of different CO2 price paths with different regional foci. Scenarios assuming low CO2 certificate prices lead to hardly any CCTS development in Europe. The iron and steel sector starts deployment once the CO2 certificate prices exceed 50 € /tCO2. The cement sector starts investing at a threshold of 75 € /tCO2, followed by the electricity sector when prices exceed 100 €/tCO2. The degree of CCTS deployment is found to be more sensitive to variable costs of CO2 capture than to investment costs. Additional revenues generated from utilizing CO2 for enhanced oil recovery (CO2-EOR) in the North Sea would lead to an earlier adoption of CCTS, independent of the CO2 certificate price; this case may become especially relevant for the UK, Norway and the Netherlands. However, scattered CCTS deployment increases unit cost of transport and storage infrastructure by 30% or more.

Keywords: CCS; CCTS; CO2 emissions; Scenario analysis; Infrastructure; Modeling; EOR (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Journal Article: European Scenarios of CO2 Infrastructure Investment until 2050 (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:167598

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