Putting CO2 to Use: Creating Value from Emissions |
Technical analysis |
What are the regulatory requirements?
No regulatory barriers were identified for yield-boosting applications of CO2 use.
Table 7. Requirements for a 10 MtCO2 market for CO2 yield boosting
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No technological breakthroughs are needed. |
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Technology |
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The use of external CO2 in greenhouses does not require changes to the |
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greenhouses. |
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Scalability |
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The global potential for CO2 for greenhouses is greater than 10 MtCO2 per year. |
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In some locations, there may not be sufficient CO2 or low-temperature heat. |
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The competitiveness of CO2 yield boosting depends mainly on the relative |
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Competitiveness |
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price of natural gas and externally sourced CO2 and heat. |
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Early opportunities exist in places with sources of low-temperature heat and |
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high-purity CO2 in close proximity to greenhouses. |
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Climate benefits come from the displacement of gas-based CO2 production. |
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Transport of CO2 should be minimised to optimise climate benefits. |
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Regulation |
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No regulatory barriers were identified. |
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Where are suitable locations for an early market?
The CO2-derived products and services identified in the previous sections vary in many ways, including on their required energy inputs, their willingness to pay for CO2 and sources of revenues (Table 8). The challenges and market entry barriers are different as well, although for each application there are companies working to manufacture them commercially and deliver climate benefits under the right set of conditions. Many of these conditions are location specific.
In general, locations with favourable conditions include a low-cost and abundant supply of CO2 (with the right purity), availability of raw materials (waste streams, cement, water), and low-carbon energy (electricity, heat, hydrogen) as well as an existing CO2 infrastructure and product or service off-takers. By concentrating the different elements of the value chain in one area, costs and emissions related to transport can be minimised. Other favourable conditions are the presence of supporting regulation, and if possible, policies supporting products and services with lower life-cycle CO2 emissions. Areas with high industrial activity, in particular around ports, often provide access to CO2, raw materials and outlet markets for CO2 services as well as CO2-derived fuels, chemicals and building materials from waste. Several port areas, such as Rotterdam and Antwerp, already have ambitious plans to exploit CO2 use opportunities (ZEP, 2015). For CO2 yield boosting, suitable locations could also be near other sources of CO2 and waste heat, such as power plants. Concrete plants are usually distributed over a larger area and are often far away from sources of CO2, thus requiring transport of either CO2 or concrete. However, early opportunities exist for concrete plants that are reasonably close to industrial areas with potential availability of infrastructure for transporting CO2.
Co-location of CO2 use plants in industrial clusters could also provide synergies by enhancing demand for input products and transport infrastructure. CO2-derived products and services with low investment requirements for new production capacity, such as building materials, polymer processing and CO2 yield boosting, could be suitable candidates for early markets.
PAGE | 65
IEA. All rights reserved.
Putting CO2 to Use: Creating Value from Emissions Technical analysis
Table 8. |
Overview of mature CO2-derived products and services. |
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Fuels / chemical |
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Polymer |
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Building |
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Stabilising |
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Yield |
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intermediates |
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chemicals |
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materials |
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waste |
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boosting |
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Mature application |
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Methanol; |
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Poly- |
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CO2-cured |
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Aggregates from |
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Greenhouses |
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methane |
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carbonates |
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concrete |
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waste |
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Low, but |
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Depends on |
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Low, but |
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carbonation |
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depends on |
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depends on |
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Energy inputs |
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High |
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Low |
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process and |
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transport |
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transport |
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transport |
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distances |
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distances |
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distances |
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Willingness to pay |
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Low (fuels); high |
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High |
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High |
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Low |
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Low |
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for CO2 |
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(chemicals) |
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Source of revenues |
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Lower cement |
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Avoided |
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Cheaper |
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use; extra |
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Avoided waste |
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(other than normal |
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None |
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natural gas |
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feedstock |
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market value of |
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disposal cost |
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product sale value) |
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use |
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superior product |
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Main source of |
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Displacement of |
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Displacement |
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Lower cement |
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Permanent |
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Displacement |
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potential climate |
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of fossil |
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use; permanent |
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fossil fuel |
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retention of CO2 |
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of natural gas |
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benefits |
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feedstock |
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retention of CO2 |
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Areas with low- |
Industrial sites |
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Early opportunities |
with excess |
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cost CO2 and |
polymer |
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renewable energy |
production |
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capacity |
Areas with |
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Areas with |
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minimum |
Areas with |
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minimum |
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transport |
minimum |
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transport |
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distances |
transport |
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distances and |
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Target market |
distances and |
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existing CO2 |
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segments |
high waste |
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and heat |
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receptive to |
disposal costs |
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infrastructure |
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product |
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PAGE | 66
IEA. All rights reserved.