title: Economics of carbon dioxide capture and utilization-a supply and demand perspective.
abstract: Lately, the technical research on carbon dioxide capture and utilization (CCU) has achieved important breakthroughs. While single CO2-based innovations are entering the markets, the possible economic effects of a large-scale CO2utilization still remain unclear to policy makers and the public. Hence, this paper reviews the literature on CCU and provides insights on the motivations and potential of making use of recovered CO2emissions as a commodity in the industrial production of materials and fuels. By analyzing data on current global CO2supply from industrial sources, best practice benchmark capture costs and the demand potential of CO2utilization and storage scenarios with comparative statics, conclusions can be drawn on the role of different CO2sources. For near-term scenarios the demand for the commodity CO2can be covered from industrial processes, that emit CO2at a high purity and low benchmark capture cost of approximately 33 €/t. In the long-term, with synthetic fuel production and large-scale CO2utilization, CO2is likely to be available from a variety of processes at benchmark costs of approx. 65 €/t. Even if fossil-fired power generation is phased out, the CO2emissions of current industrial processes would suffice for ambitious CCU demand scenarios. At current economic conditions, the business case for CO2utilization is technology specific and depends on whether efficiency gains or substitution of volatile priced raw materials can be achieved. Overall, it is argued that CCU should be advanced complementary to mitigation technologies and can unfold its potential in creating local circular economy solutions.
authors.affiliation: IASS-Institute for Advanced Sustainability Studies e.V., Berliner Strasse 130, 14467, Potsdam, Germany. henriette.naims@iass-potsdam.de.
authors.forename: Henriette
authors.initials: H
authors.lastname: Naims
mesh_terms: D000393:Air Pollutants / Q000737:chemistry*; D002245:Carbon Dioxide / Q000737:chemistry*; D057231:Climate Change / Q000191:economics; D003247:Conservation of Natural Resources / Q000191:economics*; D033161:Government Regulation; D055772:Green Chemistry Technology / Q000191:economics*; D007221:Industry; D059205:Renewable Energy
chemical_list: D000393:Air Pollutants; D002245:Carbon Dioxide
keywords: Carbon capture and utilization; Circular economy; Commodity CO2; Costs of CO2 capture; Supply and demand scenarios