Business model design for the carbon capture utilization and storage (CCUS) project in China

Yao, Xing; Zhong, Ping; Zhang, Xian; Zhu, Lei

doi:10.1016/j.enpol.2018.06.019

Cited by 93 publications

(27 citation statements)

References 33 publications

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“…In the energy sector, while there is vast literature on business models of energy service companies [86][87][88], the literature on CCUS remains mostly focused on techno-economic analyses [89,90]. Studies focusing particularly on CCUS business models remain largely limited to industry consultancy reports [16,17,19,91], with the exception of a small number of academic works [18,[20][21][22]. The authors of some of these studies also provided valuable input to this study either as questionnaire respondents or interviewees, or both.…”

Section: Literature On Ccus Business Modelsmentioning

confidence: 99%

“…This in effect limits market players to only specific enterprises with the resources to invest heavily in and manage an entire CCUS chain. This, however, alleviates the risks associated with synchronizing efforts among different sectors [22]. The high degree of integration also serves to eliminate transaction costs as CO 2 is directly transported from the capture plant to be utilized.…”

Section: Vertically Integrated Ccus Business Modelmentioning

confidence: 99%

“…In a JV model, CO 2 is captured from an industrial or power plant owned by a third party, where CO 2 is then transported to a storage/utilization site, also owned by a third company. Yao et al [22] describe a typical ownership structure of a JV business model as 40% (industrial/power company), 30% (transport company), and 30% (CO 2 user). Revenue accrues from the sale of CO 2 rather than from utilization, where the CO 2 user can decide on the proportion of CO 2 to be purchased for utilization, with the rest of CO 2 used for storage ( Figure 5).…”

Section: Joint Venture Ccus Business Modelmentioning

confidence: 99%

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Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

et al. 2020

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Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO2 emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature.

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Section: Literature On Ccus Business Modelsmentioning

confidence: 99%

Section: Vertically Integrated Ccus Business Modelmentioning

confidence: 99%

Section: Joint Venture Ccus Business Modelmentioning

confidence: 99%

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Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

et al. 2020

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“…At the optimal conditions, the system is able to reduce 50% of the carbon dioxide emissions at a cost of $35.63 per ton of the carbon dioxide captured. Four business models with different stakeholders involved in carbon supply chains are presented by Yao et al (2018). Different derivative-free optimization methods are used by Rahmawati et al (2015) to maximize the net present value (NPV) of a CCUS supply chain with oil recovery with CO2 utilization and to compare the results with other injection strategies.…”

Section: Graphical Abstract 1 Introductionmentioning

confidence: 99%

Optimization of CCUS supply chains in the UK: A strategic role for emissions reduction

Leonzio

Bogle

Foscolo

et al. 2020

Chemical Engineering Research and Design

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The UK is the second largest emitter of carbon dioxide in Europe. It aims to take urgent actions to achieve the 2030 target for CO2 emissions reduction imposed by EU environmental policies. Three different carbon capture utilization and storage (CCUS) supply chains are developed giving economic indicators for CO2 utilization routes not implying carbon dioxide hydrogenation (i.e. with high TRL). The study presents an innovative proposal to reduce CO2 impact in the UK, a country rich in coal, which requires reduction of carbon dioxide emissions from flue gases as the easiest and best performing solution. Bunter Sandstone, Scottish offshore and Ormskirk Sandstone are the storage sites considered, while several attractive potential utilization options are considered. Through minimization of total costs, the CCUS supply chain with Bunter Sandstone as storage site results in the most economically profitable solution due to the highest value of net present value (€0.554 trillion) and lowest value of pay back period (2.85 years). Only carbon tax is considered. The total cost is €1.04 billion€/year. Across the supply chain, 6.4 Mton/year of carbon dioxide emissions are avoided, to be either stored or used for calcium carbonate production. Future work should consider uncertainty, dynamics of market demand and social aspects.

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“…For CCS, although it has been technically feasible for more than ten years [ 14 ], and the importance of commercial deployment of CCS has been widely acknowledged by many countries [ 15 ], it is still lagging in the demonstration stage at a small-scale thus far [ 16 ]. Therefore, to reduce carbon emissions, energy saving technologies are extremely important.…”

Section: Introductionmentioning

confidence: 99%

A Novel Isothermal Compression Method for Energy Conservation in Fluid Power Systems

Ren

Jia

et al. 2020

Entropy

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Reducing carbon emissions is an urgent problem around the world while facing the energy and environmental crises. Whatever progress has been made in renewable energy research, efforts made to energy-saving technology is always necessary. The energy consumption from fluid power systems of industrial processes is considerable, especially for pneumatic systems. A novel isothermal compression method was proposed to lower the energy consumption of compressors. A porous medium was introduced to compose an isothermal piston. The porous medium was located beneath a conventional piston, and gradually immerged into the liquid during compression. The compression heat was absorbed by the porous medium, and finally conducted with the liquid at the chamber bottom. The heat transfer can be significantly enhanced due to the large surface area of the porous medium. As the liquid has a large heat capacity, the liquid temperature can maintain constant through circulation outside. This create near-isothermal compression, which minimizes energy loss in the form of heat, which cannot be recovered. There will be mass loss of the air due to dissolution and leakage. Therefore, the dissolution and leakage amount of gas are compensated for in this method. Gas is dissolved into liquid with the pressure increasing, which leads to mass loss of the gas. With a pressure ratio of 4:1 and a rotational speed of 100 rpm, the isothermal piston decreased the energy consumption by 45% over the conventional reciprocation piston. This gain was accomplished by increasing the heat transfer during the gas compression by increasing the surface area to volume ratio in the compression chamber. Frictional forces between the porous medium and liquid was presented. Work to overcome the frictional forces is negligible (0.21% of the total compression work) under the current operating condition.

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Business model design for the carbon capture utilization and storage (CCUS) project in China

Cited by 93 publications

References 33 publications

Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

Optimization of CCUS supply chains in the UK: A strategic role for emissions reduction

A Novel Isothermal Compression Method for Energy Conservation in Fluid Power Systems

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