Thermoeconomic Modeling as a Tool for Internalizing Carbon Credits into Thermal System Analysis

Abstract

According to the Intergovernmental Panel on Climate Change (IPCC), greenhouse gas emissions (GHG) have increased since 1990. Electricity and heat generation, along with transportation, accounted for more than two-thirds of emissions in 2018. As CO2 represents the largest percentage of GHG, the term carbon has come to be adopted as a synonym for these gases in climate debates. In order to control emissions, the carbon market helps industries/sectors that are not able to meet the emission reduction goals to buy credit from the ones that have reduced their levels below the required. Thermoeconomics plays a fundamental role in the analysis of thermal systems. Therefore, this study aims to detail how thermoeconomic modeling can be used to include expenses or revenues related to the carbon market through an example in a gas turbine cogeneration system. In addition, it highlights that this modeling can be used in the internalization of other expenses such as environmental control devices, licenses, and permits. Results show that the environmental device is capable of internalizing carbon credits and systematically distributing them to the cost of final products.