Feasibility Analysis of CCUS Projects Deployment

Yi-Ming Wei ()
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Yi-Ming Wei: Beijing Institute of Technology

Chapter 15 in Carbon Mitigation System Engineering, 2025, pp 333-368 from Springer

Abstract: Abstract This chapter first proposes a priority evaluation method system for CCUS project deployment based on the requirements of global economic optimization and safety feasibility, and optimizes and prioritizes potential CCUS projects formed by 101 potential geological reservoirs and 1229 emission sources in China. Secondly, an investment decision model for CCUS projects is established to evaluate the investment feasibility of carbon capture and storage combined with enhanced oil recovery (CCS-EOR) projects and carbon capture and storage combined with enhanced water recovery (CCS-EWR) project based on our country’s existing emission sources. The results show that high-concentration emission sources located near oil fields such as Ordos, Zhungeer, and Songliao can form 22 profitable CCUS projects by storing CO2 in nearby oil fields, which should be the preferred choice for large-scale deployment of early CCUS projects in China. The economically suboptimal CCUS projects are saline aquifer storage projects implemented by high-concentration sources near the saline aquifer basins. The average cost of storing 2958 million tons of CO2 per year from 1229 sources in China is 683.16 yuan/ton. Taking the Sinopec CCS-EOR project as a case study for investment decision analysis (2019 as the first year of investment decision), the results show that the project should choose delayed investment, which can yield an option return of 12 million yuan. From the perspective of investment probability, 2022 is the best time to invest, and the latest investment time cannot exceed 2027; otherwise it will be difficult to recover costs. Taking the CCS-EWR project of Shenhua Group as a case study for investment decision-making (2019 as the first year of investment decision-making) analysis, the results show that project investment will be delayed until at least 2025 to obtain maximum investment value. However, regardless of whether to increase the EWR process or exemption from water resource fees, the commercial investment opportunities for existing high-concentration emission source projects are slim without other income.

Date: 2025
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DOI: 10.1007/978-981-95-0371-1_15

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