Calculating CO2 avoidance costs of Carbon Capture and Storage from industry

Abstract

This work discusses methods for calculating the CO2 avoidance cost for Carbon Capture and Storage from the non-power generation industry. Unlike the power generation sector, three calculation methods are often used to evaluate the CO2 avoidance cost in the case of CCS from industrial sources. However, each of these methods relies on different assumptions of which potential users are not always aware. The links between these three methods are here presented and verified over an illustrative case to highlight the conditions that are required to ensure their reliable use, as well as their associated shortcomings. Finally, the basis to ensure the selection of the CO2 avoidance cost calculation method that is both valid and most efficient for cases considered by potential users are presented. Abbreviations: CCS, carbon capture and storage; CAPEX, capital expenditure; FCC, fluid catalytic cracker; OPEX, operating costs; TCR, total capital requirement.

Keywords

• carbon capture and storage (ccs)
• industry
• co2 avoidance cost
• techno-economic
• methodology