Influence of carbon dioxide removal policies in CCUS-system development: A techno-economic assessment of Swedish industrial sectors

Typ
Examensarbete för masterexamen
Master's Thesis
Program
Sustainable energy systems (MPSES), MSc
Publicerad
2023
Författare
Martinez, Gustavo Ezequiel
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This master's thesis examines the effect of carbon dioxide removal (CDR) policies and need for CO2 utilization on the development of a carbon capture, utilization, and storage (CCUS) system for the Swedish industry. The study aims to assess the impact of policy scenarios to promote biogenic carbon capture and storage (BECCS) on the total volume CO2 captured and the levelized cost of CO2 in the CCUS system as well as the impact on the levelized cost of CO2 for bioenergy with carbon capture and utilization (BECCU) subsystem. To achieve these objectives, a techno-economic analysis is conducted, integrating various factors such as BECCU requirements and fossil emissions price. The findings reveal that the choice of policy to promote BECCS significantly influences the amount of CO2 captured, while required amounts of CO2 for utilization and fossil CO2 price predominantly affect the levelized cost of CO2. The CCUS system demonstrates levelized costs of CO2 ranging from 92 to 115 €/tCO2, with the capture and conditioning component constituting the largest share of system costs. Two policy scenarios, BECCS credits and BECCS subsidies, are evaluated. In the BECCS credits scenario, a high demand for biogenic CO2 in BECCS leads to an increased LCCO2 for BECCU, reaching nearly 100 €/tCO2. Shared transport infrastructure benefits the fossil carbon capture and storage (CCS) subsystem. In the BECCS subsidies scenario, biogenic CO2 is less attractive for BECCS compared to BECCU, resulting in a decrease in the LCCO2 for BECCU to almost 80 €/tCO2. The study also highlights the potential for creating a market for negative emissions in Sweden. The BECCS credits scenario indicates a market worth approximately 13,700 M€. Moreover, implementing a differentiated financing system for negative emissions to address hard-to-abate sectors could generate profit without significantly increasing the overall costs of the CCUS system. In conclusion, this master's thesis contributes to the understanding of the interplay between CDR policies and CO2 utilization in the development of the CCUS system for the Swedish industry. The findings have implications for designing effective policies and strategies to address carbon emissions and promote sustainable development in the region.
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CCUS , BECCU , CCS , industry , BECCS credits , BECCS subsidies
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